Property Control System Manual (PCS)
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| Effective: 3/1/1984 |
Revised: 3/1/2005 |
![[ASU logo]](asu.gif) |
PCS 205: Acquisition of Vehicles |
Purpose
To acquire vehicles economically and properly
Sources
United States. Office of Management and Budget. OMB circulars A-21 and A-110
Arizona Board of Regents Policy Manual - 3-801, 3-803, 3-808
Property Control
Purchasing and Business Services
Applicability
All vehicles acquired through Purchasing and Business Services in which title vests with the university or sponsor upon acquisition
Policy
Departmental purchases of vehicles using state, local, or sponsored funds must be made in accord with applicable federal and state law and Board of Regents’ and university policy.
Equipment Acquisitions and Fabrications Exempt from Sales Tax
Equipment having a life expectancy of one year or more and a unit cost of $5,000 or more that is purchased for basic and applied research in the sciences and engineering is, to the extent permitted by law, exempt from sales tax. Also exempt are designing, developing, or testing prototypes, processes, or new products. This exemption includes research and development of computer software that is embedded in or an integral part of the prototype or new product or that is required for exempt machinery or equipment to function effectively.
For purposes of this exemption, research and development do not include manufacturing quality control, routine consumer product testing, market research, sales promotion, sales service, research in social sciences or psychology, computer software research that is not included in basic and applied research in the sciences and engineering, or other nontechnical activities or technical services.
The exemption of sales tax does not apply to equipment with a life expectancy of less than one year or project cost of less than $5,000. (Fabricated equipment acquired at less than $5,000 is capitalized as long as the completed fabrication is greater than $5,000.) Such items include expendable supplies; janitorial equipment and hand tools; office equipment, furniture, and supplies; tangible personal property used in selling and distributing activities; motor vehicles; shops, buildings, docks, depots, etc.; and motors and pumps used in drip irrigation systems.
State Contracts
The university has entered into state contracts with various dealerships, and in most cases Purchasing and Business Services uses these contracts when purchasing vehicles. However, the buyer does have the option to purchase, pursuant to applicable purchasing policies, vehicles on the open market if the cost is lower than it would be on a state contract.
| Note: | The university does not have a state contract for the purchase of aircraft or watercraft. Departments must contact Purchasing and Business Services before preparing requisitions to determine special specifications on such purchases. |
Electrical Vehicles
Before purchasing electrical vehicles, departments must contact Parking and Transit Services to obtain a university authorized parking space.
Used Vehicles
Before purchasing used vehicles, an individual must obtain approval from their department chair. Approval may be given in a memo or as a statement on the requisition.
Purchasing and Business Services is not obligated to assist the department in purchasing used vehicles unless they are purchased from the Arizona Department of Administration’s Surplus Property Management Office.
Screening for Availability
Screening for availability of existing vehicles within the university must be conducted before a vehicle can be purchased, regardless of the source of funds. This screening is the responsibility of the acquiring department. It is the responsibility of both the department and Property Control to screen for vehicles costing more than $20,000. If the vehicle is available elsewhere on campus, the acquiring department should attempt to purchase the vehicle, share usage, or make arrangements with the custodial department to transfer the vehicle at no cost.
Registration and Title
University-owned Vehicles
Title vests with ASU immediately when a vehicle is purchased with state or local funds.
Fleet Service charges a nominal fee to register the vehicle with the state Motor Vehicle Department (MVD) and to add university decals and safety features. The registration fee is a one-time charge and covers the life of the vehicle. Registrations are maintained at Fleet Service, and titles are maintained at Surplus Property and Recycling until the vehicle is sold.
The department is responsible for registering aircraft and watercraft vehicles with the appropriate state and federal agencies and for maintaining registrations for these vehicles.
Sponsor-owned Vehicles
Titles to vehicles purchased with sponsored funds vary depending on the terms of the contract or grant.
Insurance
Each department possessing state-owned vehicles receives a monthly charge for insurance through the Arizona Department of Administration’s Risk Management Division.
Procedures
Coding Requisitions
When preparing requisitions, use object and commodity code 7810 13 to classify vehicle purchases.
Screening for Availability
Screening for availability of existing vehicles must be conducted as follows:
Vehicles Costing More than $5,000 but Less than $20,000
The department must
- Coordinate with the Fleet Service supervisor to determine whether the request(s) for the vehicle can be met with available resources and/or vehicle requirements.
If a similar vehicle is not available within the university:
- Contact Purchasing and Business Services to see if a state
contract exists for the vehicle being purchased.
Note: Vehicle specifications must be approved by Purchasing and Business Services and Fleet Service. - Prepare an off-campus purchase request (RX) and obtain
necessary approvals. Send the document to Purchasing and Business
Services.
Note: By preparing a requisition, the ordering department is certifying that a similar vehicle is not available elsewhere within the university, thereby fulfilling the screening requirement.
If a similar vehicle is available within the university:
- Contact the custodian of the vehicle to inquire about transfer, shared usage, or sale of the vehicle (see PCS 210, “Interdepartmental Acquisition of Used Equipment”).
If the custodian of the available vehicle is unable to transfer, share usage, or sell the vehicle:
- Follow the procedures in this policy.
Vehicles Costing $20,000 or More
The department coordinates with the Fleet Service supervisor to determine whether the request(s) for the vehicle can be met with available resources.
Purchasing and Business Services provides Property Control with a report of requisitions of $20,000 or more in order to screen throughout the campus for availability of similar vehicles.
Property Control reviews the report from Purchasing and Business Services and determines if a similar vehicle is available within the university. If the university does not own a similar vehicle or if the custodian is unable to transfer, share, or sell the similar vehicle, Property Control prepares a screening certificate to document the results of the screening.
The department:
- prepares an off-campus purchase request (RX)
- obtains necessary approvals
and
- sends the document to Purchasing and Business Services.
If the university owns a similar vehicle, Property Control contacts the custodian of the vehicle to inquire about transfer, shared usage, or sale of the similar vehicle.
If the custodian is willing to transfer, share, or sell the similar vehicle, Property Control contacts the ordering department and provides the necessary information concerning the availability of the vehicle.
The department follows the procedure in PCS 210, “Interdepartmental Acquisition of Used Equipment.”
Cross-References
For more information on the accounting classification of property purchased by the university, see PCS 101, “Capitalization of Property.”
For information on acquiring property from other university departmental units, see PCS 209, “Acquisition of Equipment for Resale.”
For a listing of object codes, see the Financial Services Policies and Procedures Manual—FIN 430–01, “Overall Expenditure Coding Structure.”
For information on the services provided by Fleet Service, see the Facilities Management Policies and Procedures Manual—FAC 204, “Fleet Service/University Vehicle Policy.”
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