This section describes the procedures for proposing, purchasing, and acquiring capital (permanent) equipment and Government property. In addition, loaned equipment, transfers, fabrications, and Government furnished assets are discussed.
The university must comply with federal and state regulations, sponsor requirements, the award terms and conditions, and university policies when acquiring property on a sponsored award. The Purchase, Use and Disposition of Sponsored Project Equipment Procedural Statement states the following regarding the acquisition of capital (permanent) equipment:
The following criteria key elements considered in determining when capital and non-capital property charges are allowable on a sponsored project:
- The equipment is necessary to fulfill the research objective of the project; or
- The project will be negatively impacted by not purchasing the equipment; and
- The cost for the equipment is reasonable and represents prudent use of the sponsor’s funds.
- Needs prior sponsor approval to be an allowable Direct Cost
Ensuring responsible acquisition of sponsored projects property is the primary responsibility of the award PI and his/her department. The Office of Contracts and Grants (OCG), Property Accounting Office (PAO), Procurement Service Center (PSC), and Property Services operate to assist departments with property management. When equipment being purchased or provided to CU by the sponsor is titled to the Government, stewardship responsibility is codified in the Federal Acquisition Regulation (FAR) clauses 52.245-1.
Property is primarily acquired by the university through purchasing and fabrication, although property may also be furnished by the sponsor or loaned from another entity. Title to property acquired with sponsored research funds vests either with CU, the sponsor, or the Government. It can also be conditionally tiled to CU which brings with it additional requirements. Responsibility, accountability, and liability for all property lies with the university as soon as it is received. Title to property purchased with university funds does NOT vest with any individual university faculty or staff, department, or institute.
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