WHAT IS THE PROCEDURE FOR PROCESSING A PURCHASE THAT INCLUDES A MATERIAL AND SERVICES?
In order to answer this question, agencies must ascertain the primary purpose or goal of the procurement. A contract for the repair of equipment is a service contract. A contract for the equipment itself with a maintenance plan would be a material purchase. The separate purchase of a particular part or equipment needed for agency-performed maintenance is also a material purchase. Examples: 1) Snow plowing and salting @ $25.00/hour plus salt @$5.00/bag – process as a “service purchase”; 2) Washing machine @ $350.00 plus maintenance and repair service @ $30.00/hour – process as a “material” purchase.
