Materials Management

Effective Date: 03/01/2000

Policy Statement 21: Service Contracts


Most equipment generally requires service to continue in proper operating condition. For equipment which cannot be serviced on campus, such as specialized scientific or electronic apparatus, it is often most economical to arrange for a service or maintenance contract with the manufacturer or service agency. The cost of service on this equipment, which must be borne by the using department, usually includes a service call charge, labor, and parts charge each time repair or maintenance is required. While parts and supplies are usually not covered in the service contract, the savings on service calls and labor charges can make the lump sum payment for a service contract very reasonable.

Service Contracts are Contractual Service

As also covered by the section regarding Contractual Services, service contracts secured as a contractual service may be initiated by submitting purchase requisition to the Department of Materials Management in addition to the justification memorandum.

Service Request

Service contracts are normally automatically renewed by the Department of Materials Management on a yearly basis, and the invoice is sent to the using department for approval. Once equipment is covered on a maintenance contract, service may be requested by the using department directly from the manufacturer or service agency.