Embedded Files
Equipment Purchases
Equipment Purchases
As per the fixed asset control policy (linked below), all equipment purchases of $5,000 or more must be coordinated through the Central Equipment group. This coordination ensures that equipment is properly registered and tagged into UDOT’s equipment inventory and is accounted for.
UDOT Equipment Replacement
UDOT Equipment Replacement
Certain criteria needs to be met before a piece of equipment is replaced. Criteria includes utilization measures, years of service, maintenance cost, and depreciation values. It is important UDOT uses the equipment they have. Equipment that is used offsets the purchasing price of new equipment, helps forecast replacement cost, and utilization criteria. Equipment that is not used will not meet the replacement criteria or utilization for ownership.
Best Practice
Best Practice
The region and the central equipment group reviews the annual utilization of each piece of equipment and makes the necessary changes to ensure the equipment is accruing the hours and/or miles. The Department still pays the fixed rate whether the vehicle is being used or not.
UDOT Central Equipment Operations establishes the equipment purchase budget for each region. The UDOT central equipment specialist and region equipment manager hold yearly scheduled meetings to review and prioritize equipment needs. These meetings may also include the mechanic/shop supervisor, area supervisors, maintenance engineer, and district engineer. The discussion topics for these meetings typically include the following items:
Evaluate current equipment inventory
Consider if a new maintenance station has come on line within a region (refer to Chapter 16 - Budget Request - Line Item Transfers to request the equipment needed for the new maintenance station)
Identify equipment with higher costs or more frequent repair requirements
Verify if equipment specifications meet region’s needs
Evaluate underutilized equipment and consider relocation
Identify the region’s additional equipment needs and equipment eligible for surplus
Regions should identify purchase requests from the prioritized equipment need list based on available budget/funding established by Central Equipment Operations.
UDOT Equipment Master List
UDOT Equipment Master List
UDOT’s Equipment Operation Division maintains a master equipment list that is used to track and manage all equipment–both UDOT-owned and Fleet-provided. UDOT Equipment Operations coordinates with each region equipment manager to identify and address equipment needs and prioritize the equipment for purchasing.
The following items are tracked on the equipment master list (see example of Table 12.5.1):
Code and Class/Description of Vehicle - Identifies the size and type of equipment
Life Cycle: Identifies how many years UDOT anticipates to keep the piece of equipment before it needs replacement
Monthly Rate /Fixed Rate: Cost per month of the vehicle or equipment towards the home org.
Usage Rate: The rate charged per unit of measure per piece of equipment (hourly, miles traveled, or days used)
Standard Use: The expected monthly use in units of hours, miles traveled, or days used etc.
Annual Depreciation: The annual depreciation for each type/piece of equipment
Scrap Value: The percent of the original cost UDOT expects to get when they sell the equipment at the end of the anticipated life cycle
Table 12.5.1 - Equipment Master List
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