Equipment Purchases Above $25,000

Before purchasing equipment, grantees must get approval from SAMHSA if the equipment is $25,000 or more for each unit or if the equipment was not included in the approved budget.

Grantees must prove that the purchase is a necessity. SAMHSA will not review your request until you prove that you have explored other options.

Equipment Costs

As defined in 45 Code of Federal Regulations (CFR) 74.2 and 45 CFR 92.3, equipment means tangible, nonexpendable personal property, including exempt property, which is charged directly to the award. It has a useful life of more than one year and an acquisition cost of $5,000 or more per unit. However, consistent with grantee policy, SAMHSA may establish lower equipment cost limits.

Before You Purchase a Vehicle

You must address the following (in your application or request letter) for SAMHSA's review and approval:

  1. Is the purchase necessary? You must provide justification.
  2. Can the grantee organization purchase the vehicle with its own funds or finance it? This allows the value of the vehicle to be depreciated over the useful life budgeted using grant funds.
  3. Can the vehicle be purchased with another source of funding (federal or non-federal, e.g., program income, foundation funds, etc.)?
  4. Has your organization considered a used vehicle?
  5. If purchasing or financing is not possible, you must submit a lease and purchase agreement (signed and dated on the leasing agent's or car dealership's letterhead) as stated under 45 CFR 74.44 or 45 CFR 92.36. This analysis of lease and purchase alternatives will determine which would be the most economical and practical procurement for the recipient and the federal government. In other words, contact a car dealership and request on their letterhead, signed and dated, the purchase price of a vehicle. Then request from a leasing agent the cost of leasing a vehicle, on its letterhead, signed and dated.
  6. Will other programs occupy this vehicle? Or will the vehicle be dedicated to the proposed project only? If so, what would be the other program's portion of the expense? What would be the SAMHSA project's fair share?
  7. How many clients would utilize this vehicle? How many other vehicles are available for these clients to use? Why would your organization need more than one?
  8. Who would drive the vehicle? Will you budget for the driver's salary in subsequent project years?
  9. Will non-grant funds be used for maintenance, insurance, and gasoline? If not, why?
Last Updated: 09/15/2017