Re: Purchasing vehicles on grants Herbert B. Chermside 28 Jun 2004 14:44 EST
Consider leasing. If the vehicle is used solely for a single project, or for several projects explicitly defined as "closely related" (in most cases you need grants officer confirmation for that), all expenses can be charged direct. That is what Jennifer has suggested. I presume the vehicle is pretty much a "special purpose" vehicle rather than something you could get on a mileage basis from "motor pool". If you buy it on a grant you have to consider how to remove it from the grant when done -- how do you sell/dispose of it and what value do you return to the account, etc. However, a vehicle used for multiple user purposes can, and maybe should, be treated as a "service center". That way you develop a cost structure that involves upkeep, expenses (maybe fuel is a direct user cost, but it may be cheaper with a fleet fuel credit card and charge user on a mileage basis with fuel included), and depreciation/replacement cost. Years ago I had a couple of vehicles too specialized to get from the state motor pool as a departmentally run service center. This sounds more like what you have in mind. But keep in mind the "indirect" costs of managing such a service if you aren't a motor pool. Sorry no really simple answer. First question should always be, "Is this vehicle too specialized to obtain the necessary use from some other source?" Even then, check out leasing rather than purchase and upkeep; you pay for what you get and drop the lease and problems at the end of the lease. Leasing companies can develop reasonable plans for even pretty special purpose vehicles. Cost can be influenced by how long you need it (what portion of its economic life) and by the market for resale or later lease if it is a specialized vehicle. Also, consider in structuring a lease to consider what you will do if the primary vehicle becomes inoperable (some idiot breaks an axle hot dogging through rough country -- yes, it does happen!) It is my personal opinion that outright purchase and maintenance for a single grant is way too much trouble, and use for several grants may still best be handled by leasing. There are lots of people in the leasing business, so there is some competition out there. And you may pay a little "service fee" for someone else to deal with many of the headaches, but it is probably worth it. Field biology use is generally satisfied by something like a Suburban (or similar non-luxury SUV), a pickup, or a slightly larger truck. And, even if leased, you can usually arrange for installation of your own custom fabricated racking for equipment in the interior (presuming you need that!), if you work with the leasor regarding how to attach it. Chuck At 10:31 AM 6/28/2004, you wrote: >If we purchase a vehicle with grant funds (for a field biology project >involving lugging a log of gear to many sites), what vehicle >operation/maintenance expenses can we also budget for as direct >costs? Is there some type of standard mileage rate that can be >used? I assume we can pay for gas and oil with grant funds ... what >about repairs (eg punctured tire)? > >Thanks for the help. I've just moved to a new office and all my >reference materials are still in boxes!! > >Franci Farnsworth > > >Frances Vinal Farnsworth >Coordinator of Sponsored Research >Library Room 223 >Middlebury College >Middlebury, VT 05753 > >Tel: 802-443-5889 >Fax: 802-443-2081 >Email: xxxxxx@middlebury.edu >Web: ><http://www.middlebury.edu/offices/grants/>http://www.middlebury.edu/offices/grants/ > > >====================================================================== >Instructions on how to use the RESADM-L Mailing List, including >subscription information and a web-searchable archive, are available via >our web site at http://www.hrinet.org (click on "Listserv Lists") >====================================================================== Herbert B. Chermside, CRA Special Asst. to VP-Research Virginia Commonwealth University PO BOX 980568 Richmond, VA 23298-0568 Voice: 804-827-6036 Fax 804-828-2051 e-mail xxxxxx@vcu.edu ====================================================================== Instructions on how to use the RESADM-L Mailing List, including subscription information and a web-searchable archive, are available via our web site at http://www.hrinet.org (click on "Listserv Lists") ======================================================================