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August 2007
Chapter 3
PURCHASING |
Section: 3:200
Vehicle Purchases |
Purchase of University Vehicles
All purchases of University vehicles shall be handled through Procurement Services. Purchase from state contracts, or other existing contracts that offer exceptional value is strongly encouraged. Purchase of used vehicles should be considered. The vehicle type, size and accessories specified must be appropriate for the intended use.
Before any new or replacement vehicle is purchased, a review of both the overall need for the vehicle and a cost-benefit analysis of purchasing a vehicle should be completed. Departments should evaluate the cost per mile to operate the vehicles taking into consideration acquisition costs, expected retail or trade-in value, and operating costs such as fuel, maintenance and other administrative expenses. A form is available for use in making these ca lculations. See Cost/Benefit Analysis of Purchase vs. Rental website .
If anticipated annual mileage of a non-exempt* vehicle is fewer than 10,000 miles, the administrative head of the department should consider use of fleet vehicles, rental vehicles or encourage employees to use their personal vehicle instead of purchasing a vehicle. Written justification for purchase of a non-exempt vehicle that is expected to be driven fewer than 10,000 miles each year must be approved by the division head and provided to the department fiscal officer. Vehicles used on a daily basis, for example mail delivery vehicles, are exempt from this requirement.
*See list of exempted vehicles under CAFE Standards.
Sport Utility and Four-Wheel Drive Vehicles
In order to justify the purchase or lease of Sport Utility Vehicles (SUVs) and four-wheel drive vehicles, each department seeking to purchase or lease either SUVs or four-wheel drive vehicles must demonstrate in writing, to the satisfaction of the division head that the vehicle is required to perform an essential function. If it is so demonstrated, priority consideration shall be given to the purchase or lease of an alternative fuel or hybrid SUV or four-wheel drive vehicle.
15 Passenger Vans
Due to safety issues, all 15 passenger van acquisitions must be approved by the Director of Risk Management. Consult the Risk and Insurance Management website for Safety Guidelines for use of 15 passenger vans.
Alternative Fuel Vehicles
At least fifty percent of non-exempt fleet vehicles purchased for each ca mpus between July 1, 2006 and June 30, 2008, and each biennial period thereafter, must be alternative fuel vehicles (AFVs). Bid specifi ca tions must include requests for bids for both standard fuel vehicles and alternative fuel vehicles. Based on anticipated usage information provided by the department, Procurement Services shall ca lculate life cycle costs based on bids for each. When the life cycle costs for the alternative fuel vehicle are less than, or exceed the life cycle costs of a standard fuel vehicle by no more than 10% (17% in Kansas City and St. Louis) the alternative fuel vehicle must be purchased.
Prior to achievement of 50% AFV purchases, the requirement to purchase AFVs may be waived by a Vice Chancellor or Vice President in exceptional circumstances when justification is provided in writing. Justification may include:
- The department's vehicles will be operating primarily in an area in which alternative fuel is not reasonably available; or
- The University is unable to acquire or operate vehicles within the life cycle cost limitations cited above.
After a campus has achieved the purchase of over 50% AFVs in a biennial period, Procurement Services may waive this requirement, so long as it does not jeopardize the attainment of this goal for the campus.
Alternative Fuel
State legislation requires at least 30 percent of all fuel used in alternative fuel vehicles be the designated alternative fuel. For more information see: http://www1.eere.energy.gov/vehiclesandfuels/epact/about/epact_fuels.html
REFERENCE: RSMo Sections 414.400 – 414.417
CAFE Standards
The criteria used to specify and evaluate bids for new vehicles shall consider fuel economy. All non-exempt vehicles must meet Corporation Average Fuel Economy (CAFE) standards set by the EPA. See: http://www.epa.gov/fueleconomy/420f04053.htm
Exempted Vehicles
Vehicles exempted from this requirement are:
- primarily used off road, for construction or road maintenance;
- regularly used in the movement of maintenance or construction equipment;
- trucks or utility vehicles that are regularly used to transport trailers;
- vehicles with manufacturer-stated seating capacity exceeding six persons and the department head has certified that the vehicle will be used to transport its rated capacity;
- vehicles used primarily for criminal law enforcement or motorcycles, all-terrain vehicles, ambulances;
- vehicles over 8500 lbs; or
- any type of vehicle for which the EPA has not published fuel economy comparisons.
Replacement of Vehicles
When a vehicle is unsafe, unreliable, uneconomi ca l to operate, or when annual maintenance cost exceeds 30% of the value of the vehicle, consideration should be given to replacing the vehicle. Departments should strive to replace vehicles before operating costs become prohibitive. The suggested replacement cycle for standard passenger vehicles is 100,000 miles or seven years.
All vehicle purchases shall be made using the UM Purchasing Policy guidelines at: http://www.umsystem.edu/ums/departments/fa/management/procurement/policy/
Titling and Licensing of University Vehicles
When University vehicles are purchased, an individual designated by each campus will be responsible for completing the appropriate documents for the titles and license plates for new or used vehicles. Titles for University vehicles will be maintained and filed in a location designated by each campus.
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