Overview
This section defines the purpose and applicability of FAR Subpart 7.4, which governs the decision-making process for choosing between different methods of acquiring equipment, such as leasing versus purchasing.
Key Rules
- Statutory Basis: Directly implements Section 555 of the FAA Reauthorization Act of 2018.
- Decision Guidance: Provides the framework for agencies to evaluate and select the most appropriate acquisition method when multiple options are available.
- Comprehensive Applicability: Applies to the entire lifecycle of equipment acquisition, including the initial procurement and any subsequent renewals or extensions of existing lease or rental agreements.
Practical Implications
- Contracting officers must perform a formal analysis to justify the choice of lease versus purchase to ensure the most cost-effective method for the government.
- Agencies cannot automatically renew existing leases; they must re-evaluate the acquisition method at the time of renewal or extension to confirm it remains the most advantageous option.