Question: Are there any state or federal purchasing policies that prevent a K-12 school district from using leasing as a method for acquiring classroom technology? Are schools, in any way, discouraged away from evaluating leasing as an acquisition vehicle?

Response: We are not aware of any policies that prevent the leasing of classroom technology. There is a statutory constraint for this type of acquisition that requires proper bidding process to be followed. Effective January 1, 2010, the bid threshold for the award of contracts for the purchase of equipment, supplies, and services (except construction services) is $78,500. This threshold applies to both purchase and lease transactions. Lease transactions should use the aggregate amount of multi-year leases.  Although a process to get the most value and competitive price should be implemented in all cases, transactions over the bid limit are required to be competitively bid.

The method of procurement is for local determination and should match the goals of your LEA and the resources, both in funding and technology support, you have to commit.  Below is an overview of three popular methods of procurement:

1. Leasing is a way to fund technology within an on-going and fixed operating budget.

2. Purchase outright is a great alternative if your LEA has the funds on hand or if you are using one-time funds.

3. Lease/purchase is a hybrid that allows you to extend your payments over a period with the option to purchase at the end of the term.

In each case, you should include the cost of financing, maintenance, and replacement in your consideration. However, we make no recommendation for one method of procurement over another.

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