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PMM 3.4.1 Equipment Rental for Non-University Purpose

Last Revised Date:
July 1, 2026
Responsible Unit(s):
Property Management
Responsible Unit Email(s):
FNSV-PropertyManagement@arizona.edu
Manual:
Property Management Manual
Status:
Active

Purpose and Summary

To provide direction to university departments regarding the rental of university and sponsored equipment for non-university purposes.

Scope

This policy applies to all University locations and units, including all University extensions, satellite locations, and off-site campus units, both domestic and international.

Policy

  1. In furtherance of the University's public service mission, departments are permitted to rent university and sponsor owned equipment under the following criteria to non-university individuals and entities, and to university employees when acting outside of their university employment.
    1. This policy is limited to the use of equipment, equipment maintenance and unique supplies for the safe and proper operation of the equipment. Any use of University personnel or other supplies must be handled through a standard research agreement, copies of which are available from the Office of Research Contracts & Agreements or the Office of Technology Transfer.
    2. The use of the equipment by the user cannot amount to a subsidy by the University. In addition, the use must be a one-time, short-term use and not a substitute for purchasing the equipment or the components, which have been combined to form the unique configuration. In addition, the duration of the use cannot exceed the period within which it would be possible for the user to purchase the equipment and assemble the configuration.
    3. The equipment to be used is either unique equipment or a unique configuration of equipment, which is not readily available in the private sector.
    4. The use of the equipment does not compete with immediate University educational, or research needs as determined by the appropriate department head or dean.
    5. The equipment must be fully paid for, for example, it cannot be on a lease purchase, lease or rental agreement.
    6. The use of the equipment must be allowed by the terms of any sponsor's grant, contact, or cooperative agreement which funded the purchase of the equipment.
    7. An Equipment Use Agreement must be processed for signature by Financial Services Purchasing.
  2. USE CHARGE
    1. The use charge must meet or exceed the fair market value of the equipment or the use of the equipment, and the University must recover all overhead, taxes and direct costs associated with the use, such as depreciation, maintenance, electrical and janitorial costs. The University may not charge any rate which violates OMB Circular A-21. For assistance in determining that a rate is not in violation of OMB Uniform Guidance 200.313, contact the Cost Analysis team in the Office of Budget and Planning.
    2. The minimum use charge levied for the use of the equipment shall be the fair market rental rate or the use charge as calculated in accordance with Exhibit A whichever is higher. In addition, Exhibit B describes how the revenues shall be distributed internally to University and sponsor accounts. Higher rates may be charged in light of factors or circumstances unique to the equipment.
    3. The funds received for the use of the equipment must be deposited in a University account.
  3. INSURANCE
    1. The user must provide insurance as required by the University's Office of Risk Management and Safety. The department must contact the Office of Risk Management and Safety to find out what types of insurance will be required.
  4. UNRELATED BUSINESS INCOME TAX
    1. The department must contact Tax Compliance to find out if there are any "Unrelated Business Income Tax (UBIT)" related issues involved in the arrangement. The user will be responsible for paying any and all taxes and/or penalties as a result of its use of the equipment.
  5. HAZARDOUS CHEMICALS
    1. If the use of university equipment requires the use of hazardous chemicals, such materials must be supplied by the user. The user must provide evidence of all applicable permits, and compliance with all applicable regulations, and is responsible for all chemical and/or hazardous waste storage, handling and disposal. Chemicals must be completely removed from all equipment prior to return to the University. Non-university chemical and/or hazardous waste may not be stored in University buildings.
  6. QUALIFIED OPERATORS
    1. If the use of university equipment requires special knowledge, training, certification or licensing, the user must supply copies of training records, certifications or licenses to the university. The user may be required to provide proof of workman's compensation insurance coverage to the Office of Risk Management and Safety.
  7. SOFTWARE
    1. Software purchased and/or licensed by the University may not be used by non-university entities pursuant to this policy.
    2. Use of software subject to the copyright of the Arizona Board of Regents on behalf of the University of Arizona must be negotiated separately with the Office of Technology Transfer.

Procedures

ResponsibilityAction
Custodial Department
  1. Determine if the equipment was acquired on university or sponsored (3000000 – 4999990 account) funds. If acquired on a sponsored account, obtain the approval of the SPS Property Administrator for the rental use.
SPS Property Administrator
  1. Consult with the Fund Accountant and review the applicable grant, contract and cooperative agreement for any terms or requirements affecting the rental use of program acquired equipment on non-program activities and for non-university purposes. Advise the department regarding sponsor requirements, if any.
Custodial Department
  1. With SPS Property Administrator approval or if not applicable, contact the Procurement Office and complete the rental agreement documents as directed. Obtain the required approvals of Financial Services and Risk Management.
  2. Send copies of the signed agreement to Property Management. If a sponsored account is not involved, follow the account deposit provisions in the Exhibit B.
    If a sponsored account is involved, send a copy to the SPS Property Administrator. Sponsored Projects Services will set up a Program Income Account when the equipment was acquired on a sponsored account.
  3. Responsible for invoicing the renter for the agreed upon charges and to initiate follow-up on collections, as necessary. Renter is to send payments to the University Bursar’s Office.
  4. Responsible to ensure the item (s) is returned in good condition less normal wear.
  5. Negotiating with the renter for the recovery of costs arising from the renter’s damage to the equipment discovered upon its return.

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