R33-12-403. Leases of Personal Property

  Leases of personal property are subject to the following:

  (1) Leases shall be conducted in accordance with Division of Finance rules and Section 63G-6a-1209.

  (2) A lease may be entered into provided the procurement unit complies with Section 63G-6a-1209 and:

  (a) it is in the best interest of the procurement unit;

  (b) all conditions for renewal and costs of termination are set forth in the lease; and

  (c) the lease is not used to avoid a competitive procurement.

  (3) Lease contracts shall be conducted with as much competition as practicable.

  (4) Executive Branch Procurement Unit Leases with Purchase Option. A purchase option in a lease may be exercised if the lease containing the purchase option was awarded under an authorized procurement process. Before exercising this option, the procurement unit shall:

  (a) investigate alternative means of procuring comparable procurement items; and

  (b) compare estimated costs and benefits associated with the alternative means and the exercise of the option, for example, the benefit of buying new state of the art data processing equipment compared to the estimated, initial savings associated with exercise of a purchase option.