Leasing Versus Buying
If a department is acquiring something, but does not want to purchase it outright, the department may consider leasing. Generally speaking, it is usually not in GW's best interest to lease except in those cases where we are purchasing highly specialized equipment that has a high residual value. Because the George Washington University is not a commercial company, it does not benefit from federal or state tax deductions for leasing equipment. This, in effect, raises the cost to GW for leasing. However, if your department must lease, please be sure to contact the Procurement Department early in the process to determine if alternative financing from one of GW's banks may be superior to a supplier's lease terms.
Remember: It is never a valid reason to lease simply because a department does not possess sufficient funds for a purchase in its current funds budget. If a department has the need to obtain equipment and would lease due to shortages of current funds budget, the Procurement Department will work with you and the Budget Office to determine how to best finance the purchase.
For additional information, contact Katherine Steele, Contract Specialist at 571-553-4274 or via email, email@example.com.