Government Contracts FAR Proposed Rule Clarifies Meaning of “Lease”
Tuesday, September 25, 2018

FAR Proposed Rule Clarifies Meaning of “Lease”

By Government Contracts Editorial Staff

A proposed rule would amend FAR Subpart 7.4, Equipment Lease or Purchase, to clarify that the term “lease” includes the “rental” of equipment. This change clarifies that agencies should be evaluating comparative costs and other factors when considering whether to lease or rent equipment versus purchase equipment. The rule also adds a link to a GSA website that provides additional guidance on renting and leasing equipment and updates the GSA office from which agencies may request information when making lease or purchase decisions. In addition, the rule adds weblinks for Office of Management and Budget guidance for lease-purchase analysis, and OMB Circular A-11 Appendix B Budgetary Treatment of Lease-Purchases and Leases of Capital Assets. Comments on the proposed rule, identified by FAR Case 2017-017, are due November 5, 2018. For the text of the rule, see ¶70,006.331.

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