Equipment purchases often represent a significant portion of a project budget and are subject to specific sponsor and University requirements. Properly classifying equipment and clearly justifying its need are essential for proposal review, award setup, and ongoing compliance.
What Qualifies as Equipment
For sponsored projects, equipment is defined as an article or item of nonexpendable tangible property that:
- Has a useful life of more than one year, and
- Has an acquisition cost of $5,000 or more per unit
This definition is documented in UMB's Facilities and Administrative (F&A) Cost Rate agreement and must be used unless a sponsor’s published guidelines explicitly establish a different cost threshold.
Only items that meet this definition should be budgeted under the Equipment category.
Items That Do Not Qualify as Equipment
Items that do not meet the equipment definition should not be budgeted as equipment. For example:
- Laptop computers and other lower-cost items
- Consumable or expendable items
These costs should instead be included under Supplies or Other Expenses, unless the sponsor’s written guidelines specify otherwise.
Equipment Budget Justification Requirements
The budget justification must clearly explain why the equipment is necessary for the project. Do not assume that reviewers will understand the need based on the project description alone.
The justification should include:
- A description of the type of equipment
- The model and vendor, if known
- Any technical specifications required for the project
- How the equipment will be used to support the project’s aims
- Why the equipment must be dedicated to this project, rather than using shared or existing UMB resources
If applicable, you may state that:
- The equipment will be dedicated to the project, and/or
- Comparable equipment is not reasonably available elsewhere at UMB for the investigator’s use
Vendor Quotes and Cost Estimates
Some sponsors require a vendor quote to support equipment costs. When required, include the quote with the proposal submission.
If a vendor quote is not available, explain how the budgeted amount was determined, such as:
- Published vendor price lists
- Pricing from UMB purchasing contracts
- Other reasonable and documented cost sources
Key Compliance Reminder
The Equipment budget category must only be used for items that meet the formal definition above. Any exception to the $5,000 threshold must be explicitly permitted by the sponsor’s published policy.