Saint Louis University

Multi-Year Contracts (Including Equipment Leases)

Multi-year contracts including equipment leases and maintenance contracts are permitted when they result in cost savings over contracts issued on an annual basis and when the purchased goods and services will serve anticipated departmental needs for the term of the contract.

A purchase requisition should be submitted at the beginning of the contract and each fiscal year thereafter to cover the payments which will fall in that fiscal year. The requisition must specify in the Document Text field all lease information including the amount and frequency of payments, as well as the payments to be paid in the current fiscal year (i.e. payments 13 - 24 of a 36 month lease), prior years' purchase order number, approval from Legal (if applicable). The contractual agreement with the requisition number noted thereon, should be submitted with the purchase requisition.

Multi-year contracts generally should not exceed a term of three years. Exceptions to this policy which will serve the best interests of the University must be justified in writing by the requesting department and forwarded to the appropriate Purchasing Agent for review. No commitment should be made to a supplier by the requesting department; the Purchasing Agent needs to be notified of a department's need prior to any discussions with the supplier.

Some requisitions for equipment leases will be reviewed by Purchasing and the Treasurer's Office to examine lease/purchase options. If in the University's best interests, equipment may be purchased by the University and charged back to the requisitioning department in monthly installments.

Business Services will perform an initial review of the Business Terms of all contracts.  After this review has been completed, the contract must be submitted to the Office of General Counsel for legal review.  The agreement may then be executed only by a University official with the proper level of signature authority.  

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