Sec. 21.06.03.08. Lease with Purchase Option

A. A purchase option in a lease may be exercised only if the lease containing the purchase option was awarded under competitive sealed bidding, competitive sealed proposals, or competitive small procurement procedures, or the leased supply or facility is the only supply or facility that can meet the State's requirements, as determined in writing by the agency head.

B. Before exercising the option, the procurement officer shall:

(1) Investigate alternative means of procuring comparable supplies;

(2) Compare estimated costs and benefits associated with the alternative means and the exercise of the option; and

(3) Obtain review and approval of the appropriate Department.