Maintenance and Repair Contracts
REG 07.45.3
Purchasing Department
Authority: Vice Chancellor for Finance and Business
History: First Issued: July 1, 2002.
Contact Info: Purchasing Director (919-515-2171)
1. Purpose:
The purpose of this Statement is to outline the procedures to be used by University
colleges/schools, departments and
administrative units in obtaining required maintenance and/or repair services
for equipment under their control.
2. Rules
2.1. Service or maintenance contracts are generally the most economical method
for servicing or maintaining equipment.
2.2. Equipment is normally best maintained or serviced by the original equipment
manufacturer (OEM) or its authorized service organization.
2.3. Equipment repair is normally handled on an individual needs basis and
the manner in which the repair is handled depends on whether the equipment
is In-Warranty or Out-of-Warranty.
2.3.1. New equipment is normally warranted by the manufacturer against faulty
parts or workmanship for a period of time. Such equipment is generally
supplied with a warranty card which should be completed and returned to
the manufacturer as soon as the equipment is received and accepted.
2.3.2. Depending on the details of the warranty, the manufacturer may be legally
responsible for
replacement or repair only if the defective equipment is returned to an
authorized repair center, freight prepaid.
2.3.3. A service maintenance contract is recommended for highly technical scientific
equipment because of the nature of the equipment and the need to keep
equipment downtime to a minimum.
3. Procedures
3.1. In-Warranty Service and Repair
3.1.1. If the service needed is routine, the department should contact the
vendor directly by telephone or letter and arrange for needed maintenance
or repair. If the service needed is other than routine, contact the Purchasing
Department for assistance.
3.1.2. For each service or repair request, routine or otherwise, furnish the
number and date of the purchase order, or Small Purchase Voucher, and
the nature of the defect to the vendor as appropriate.
3.1.3. The department is required to ship equipment to the vendor or repair
facility if required by the vendor. Assistance in returning the equipment
may be obtained from the University Freight Office at Central Stores.
3.1.4. Serviced or repaired equipment will be returned directly to the department.
3.2. Out-of Warranty Service and Repair
3.2.1. These repairs and/or services may be obtained in one of the following
ways:
3.2.1a. If the total repair costs are less than $5000.00 (including shipping
and tax) and the vendor does not require a confirming purchase order,
payment may be made by using a Small Purchase Voucher. See Basic
Procurement Guidelines, for instructions.
3.2.1b. If the total cost is $5000.00 or above,(including shipping and tax)
the department should initiate a Purchase Requisition. Purchasing will
process and assign a purchase order number or authorize a payment in
excess of normal limitations. See Basic
Procurement Guidelines, for instructions.
3.2.1c. A request by a department for the purchase of an annual equipment
maintenance agreement which cost $5000.00 or above should be submitted
to the Purchasing Department on a requisition. This permits Purchasing
to record and track purchase orders issued against the agreements. Small
Purchase Vouchers are to be used for this process, up to $5000.00. Requisitions
for annual equipment maintenance agreements require supporting documentation
in the forms of the vendor's maintenance agreement, quote, or invoice
copy.
IMPORTANT: Do not sign agreements, contracts, quotes, etc.,
presented by the vendor.
3.2.1d. All non-emergency repairs in excess of $5000.00 (including shipping
and tax) will be handled routinely with the department submitting a
purchase requisition, and supporting documentation, to Purchasing.
3.3. Emergency Repairs/Non-Contract Equipment Service
3.3.1. Emergency repairs/repair parts require prior approval from the Purchasing
Department. After- hours emergencies require notification to the Purchasing
Department by 9:00 a.m. on the next work day.
3.3.1a. If total repair costs are less than $5000.00, (including shipping
and tax) payment may be made by using the Small Purchase Process and
the vendor's original invoice.
3.3.1b. If the total cost is $5000.00 or above, the department must submit
a purchase requisition, with the vendor's invoice, to Purchasing and
a confirming purchase order will be issued. Written justification must
also be provided to Purchasing.
3.4. Office Machines
The Purchasing Department or the State Purchase and Contract Division Contract
negotiates accompanying maintenance agreements on copier equipment purchased
by University departments. Costs, type of coverage, parts supplied, and
the duration of the vendor-provided maintenance are a part of the negotiated
copier contract.
NOTE: Departments interested in "Wolfcopy" copier agreements
should contact University Graphics.
3.5. Software Licenses and Maintenance
Requests by departments for software licensing/maintenance must be accompanied
by the original, unsigned software license or maintenance agreement. Purchasing
will review license/maintenance agreements and obtain the signature of the
authorized University official prior to issuing a purchase order.
3.6. Questions concerning this Statement should be directed to the Purchasing
Department, extension 5-2171.
