NUMBER: 5.1.14
DATE: 01/15/97
REVISION: 05/29/03   


The purpose of this policy is to inform all departments within the University of Arkansas for Medical Sciences (UAMS) of the procedures to be followed when requesting vendor trade-in of capital/non-capital equipment. These procedures are to be used when a department has identified the need to procure equipment from a vendor and have current ownership of equipment for which the vendor has agreed to offer a trade-in allowance, in the form of a cash discount off the procurement price of the new equipment.


  1. All purchase requisitions involving trade-in of equipment regardless of the cost must be processed as an on-line requisition indicating the cost of the new equipment, trade-in allowance offered by the vendor, and the resultant net procurement price.
  2. The purchase requisition must be submitted with information as listed in (1) above, along with a memorandum indicating the following information regarding the trade-in equipment: 
a.       Equipment description 
b.      Make/Model #(s) 
c.       Serial #(s) 
d.      UAMS Tag #(s), if applicable
e.       Approximate date of purchase 
f.        Condition of equipment (e.g. good, fair, poor, or inoperable). 
g.       Original cost of equipment 

The Procurement Services Department must request prior written approval from the State Marketing & Redistribution division of the trade-in amount offered before releasing a purchase order to the vendor.

3.  If the cost of the new equipment exceeds $2500 (not counting the trade-in allowance), the on-line requisition must be submitted as capital equipment indicating the specifications of the required new equipment. Requests for hospital equipment must be routed as per the Clinical Programs Policy MM 2.05 located on the website: prior to routing to Procurement Services. Procurement Services will seek competitive bids for the new equipment, requesting the bidders indicate the trade-in allowance amount. Written approval of this amount will be requested from the State Marketing & Redistribution division prior to a contract award to the successful vendor.

4.  If the new equipment cost is in excess of $2500, but is exempt from the competitive bidding process by virtue of professional preference or sole source of supply, the on-line requisition must be submitted indicating the new equipment specifications/costs, as previously mentioned in

5.  Procedure (1) above, and be accompanied by a written justification of sole source or professional preference. In addition, information regarding the trade-in equipment must be supplied as outlined in the above procedures. Approval of the professional preference or sole source will be made by the UAMS Director of Procurement Services with the trade-in amount approved in writing by the State Marketing & Redistribution division prior to release of a purchase order.

6.  After receipt of the written Marketing & Redistribution approval document, as required in procedures (2) through (4), a copy will be distributed to the using department and UAMS Property Services. Procurement Services will maintain the original document.


UAMS Policy 5.1.01