ABSTRACT
Purchasing capital equipment presents several challenges to the public procurement official. Conflict may occur with the requesting agency, as purchasing the latest technologically advanced equipment may not result in the most productive impact on agency performance. The use of business tools such as life-cycle cost analysis and cost–benefit analysis should occur early and throughout the procurement process. Achieving goals of sustainable or green purchasing may require additional education efforts by the procurement official. A review of the equipment-purchasing cycle provides additional challenges. To determine the need for the equipment, policies and decision rules such as replacing the equipment when the cost of repair equals 60% of the equipment value should be followed. Governmental capital budgeting processes must be followed, requiring planning efforts often projecting more than 1 or 2 years in the future. Specification writing offers its own challenge, striking a balance of adequately specifying the requirement without being overly restrictive. For the procurement of technologically advanced equipment, such as information technology systems, usage outcome or performance-based specifications and reliance on negotiated procurements may be required. Administration of the contract should be performed by a team of agency and procurement officials. For complex equipment, acceptance may involve testing procedures. Preventative maintenance considerations should be implemented, resulting in more consistent and effective replacement planning. Partnering with vendors to ensure requisite knowledge is obtained can help the public procurement official make the most advantageous purchases.
