The National Science Foundation and the National Institute of Health's policies and procedures for awarding funds through grants for scientific research to colleges and universities for purchasing research equipment are reviewed. Both agencies rely mainly on the researchers to request only necessary equipment. Research evaluation systems, peer review, budget cuts, and site visits are also used to regulate equipment requests and each of these methods is described. Officials at six universities were interviewed, and the equipment management techniques of Boston University, Harvard University, Brandeis University, Brown University, Yale University, and the Massachusetts Institute of Technology are discussed. Iowa State University's Research Equipment Assistance Program is also described. The requirements of the Office of Management and Budget as detailed in circular A-110 are discussed and recommendations for changes are made including: (1) minimum federal requirements for grantees to follow to avoid unnecessary equipment purchases; and (2) special procedures to periodically check grantees' compliance with the requirements. (BH)