[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR7.401]



[Page 120]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 7_ACQUISITION PLANNING--Table of Contents

 

                 Subpart 7.4_Equipment Lease or Purchase

 

Sec. 7.401  Acquisition considerations.



    (a) Agencies should consider whether to lease or purchase equipment 

based on a case-by-case evaluation of comparative costs and other 

factors. The following factors are the minimum that should be 

considered:

    (1) Estimated length of the period the equipment is to be used and 

the extent of use within that period.

    (2) Financial and operating advantages of alternative types and 

makes of equipment.

    (3) Cumulative rental payments for the estimated period of use.

    (4) Net purchase price.

    (5) Transportation and installation costs.

    (6) Maintenance and other service costs.

    (7) Potential obsolescence of the equipment because of imminent 

technological improvements.

    (b) The following additional factors should be considered, as 

appropriate, depending on the type, cost, complexity, and estimated 

period of use of the equipment:

    (1) Availability of purchase options.

    (2) Potential for use of the equipment by other agencies after its 

use by the acquiring agency is ended.

    (3) Trade-in or salvage value.

    (4) Imputed interest.

    (5) Availability of a servicing capability, especially for highly 

complex equipment; e.g., can the equipment be serviced by the Government 

or other sources if it is purchased?