RCUK Overview

Research Councils UK - equipment funding rules

Changes to equipment funding due to the Wakeham report in 2010 mean that we have to be efficient and sustainable around research infrastructure and equipment.

Current limits

Minor equipment up to £10k (including VAT). Include in directly incurred cost under consumables. Directly incurred is the fund heading under which costs that are needed to meet the everyday needs of the project are specified and are explicitly identifiable as arising from the conduct of the research.

Equipment over £10k up to OJEU (Official Journal of the European Union) limit, currently £172,514 including VAT. Evidence of evaluation of existing relevant equipment in the University is required. In general departments are expected to contribute 50% towards equipment costs.

Equipment over OJEU limit-liaise with Procurement Office
This is subject to a two-page business case, separate peer review and consideration of the strategic location of equipment/facility requested. Amount of cost to be met by RCUK will depend on capital availability. Reference to N8 and National Databases will be highly relevant and interrogated by reviewers and RCUK. Each Council will have flexibility in relation to the funding of equipment to negotiate with potential grant recipients to achieve best value from the limited funds at its disposal.

In general equipment funding provided within a specific budget heading is ring fenced and not transferable to any other budget heading. Always check the terms and conditions of your award letter.

Please note the following:

• These thresholds will apply to individually capitalisable assets, rather than by accumulating the value of a number of assets, except where individual assets are clearly intended to be used together as a combined asset.
• These thresholds (other than the increase in the threshold for equipment to £10k) will not apply to grants where the development of a new "instrument" is the core proposal of the grant.
• These thresholds will apply during the application process as the trigger to determine which application process you need to follow. They do not impact the procurement process when organisations will need to conform to the OJEU tendering limits that apply to their organisation.
• It is not permissible to disaggregate complex equipment in order to avoid these limits.

Please check the terms and conditions in the relevant call document to identify the exact eligibility for equipment funding. Contact your Faculty research support staff.

Application guidance

Before you apply

• Do you need to buy? - Leasing or repair may be other options
• Check the University and N8 databases to check if the equipment is available locally or regionally.

Colleagues should consult their departmental Planon user to understand local resources for equipment. Regional and National databases provide information about high specification items which may be available for use by agreement. Where similar equipment does exist, but is not fit for purpose or does not have spare capacity, evidence of this should form part of the application submitted to the Head of Department or research review processes for approval.

For items over £20,000 it would be expected that the wider academic community at York and other institutions would have access if appropriate.

Your department needs to agree any match funding required for grant proposals.

The application process

Any application will have a section called Justification of Resources.

This will require information to:

• a short description of the item and its main use, plus make and model if known.
• confirm that the piece of equipment is not already available for use within the host institution, or at any other accessible location (for instance by making reference to any asset registers consulted)
• provide evidence that all other reasonable options have been considered
• explain, if the equipment requested will replace existing equipment
• set out what contribution the Research Organisation is making towards the cost of the equipment

Applicants should indicate the full cost of the equipment in the Justification of Resources or Case for Support with an indication of their own contribution towards this full cost.

Quotation

Sponsors expect that we consult our procurement services for expert advice on tendering and related processes.

For all equipment costing more than £25k (including VAT), professionally qualified procurement staff must be consulted at the beginning of the procurement process and may need to approve the order before it is placed with the supplier. Additional documentary evidence for the estimated cost (eg supplier’s written quote, specialist advice) should be included. Three quotations should be submitted using the University quotation form.

For all items of equipment requested with a value over the OJEU threshold value three equipment quotations must be provided. Where you believe that there are less than three potential suppliers for an item you should explain this in the ‘Justification of Resources’ attachment and upload the documents .

Capital equipment over the OJEU threshold 

Vendor: Please state the name of the equipment vendor (if known)

Description: Please describe briefly the item of equipment and its primary functions as well as any particularities. Include the make and model of the equipment.

Cost: Please state the cost of the item of equipment in £ sterling (inclusive of VAT)

Usage: Please describe how the item of equipment will be used to meet the objectives of the proposed research. Please also describe how you envisage the item of equipment will be utilised for research not supported by this grant proposal and the proportion of equipment time that will be available for such work. Indicate here the numbers of researchers that will use the item of equipment, in which research areas they will be working, and where they will be based, particularly if the equipment will be available for use by researchers from outside your institution.

Support: Please indicate how the item of equipment will be supported and maintained for the duration of the proposed grant and beyond.

Strategic Case: Please indicate how the requested item of equipment fits to the strategy of your department and institution.  Please also indicate how the purchase of this item of equipment will compliment or enhance regional and/or national research capability.

Ensuring Maximum Value: Please describe what approach you  will take to make best use of your capital assets. (This would be used to assess the value for money via the usual peer review process.)

Contribution from other sources: Please describe here what contributions to the cost, running or maintenance of the item of equipment will be found from other sources, external to those sought from this grant.

Alternatives: Please describe how, in the event that capital funds are not allocated to cover this item of equipment, you   would proceed in meeting the objectives of the proposed project.

Note: It is now expected that items of this value are featured on external databases as part of grant terms and conditions.

It is not permissible to disaggregate complex equipment to avoid these limits.

Applications for internal funding sources

• Are you replacing existing equipment that is still functional? If so explain why it is being replaced
• Proposed location of the equipment (Department, Building and Room number if known)
• Current grants dependent on the proposed purchase
• The criticality of the proposed purchase for the current work and the required time frame for access

Future grants that could be dependent on the proposed purchase (for applications, give date applied, funding body, value, expected decision time).

Proposed purchasing procedures (3-quotes, tender, EU tender, single supplier).

Time frame for invoicing and completion should funding be awarded (ie, tendering completed, equipment ordered and delivered, fully commissioned, signed off and invoiced).

If support for outright purchase of new equipment is requested then include rationale as to why an application through grant funding is not appropriate, PIs that would benefit and likely value and time frame of future grant applications.

Procurement

Procurement of research equipment

Queries should be directed to department procurement services or Dom Roebuck in Central Procurement on +44 (0)1904 328211 or dom.roebuck@york.ac.uk.

Procurement guidance includes details on suppliers and systems.

Important considerations:

• Do you have the funds? Was the equipment specifically requested for your research grant on application? If you are near the end of the grant can you still spend the equipment budget?
• Is it appropriate expenditure? Check the terms and conditions of your research grant to ensure the University can claim for equipment purchase. In some cases University policy will override grant conditions.

Current limits

• Up to £5,000 – use existing supplier or obtain a verbal quote
• £5k to £25k - obtain three competitive quotes using the university quotation template
• £25k to 100k - obtain three competitive tenders-liaise with central procurement who will decide responsibility for the process.

If department lead then a procurement lead (academic or senior support staff should be nominated).

Over £100k Central Procurement will lead and they have to be consulted during any significant or complex capital equipment bid of any value.

Please advise insurance if you are planning to purchase items valued at £250,000 and over.

Contact: matthew.cox@york.ac.uk or +44 (0)1904 322008.