September 5, 2018 DOD, GSA, and NASA issued a proposed rule to clarify the term lease as it appears in the FAR. The proposed rule would amend lease-as the term is used in FAR Subpart 7.4, “Equipment Lease or Purchase”-to include the “rental” of equipment and to identify some general factors that may vary when leasing or renting equipment.

The proposed change clarifies that agencies are required to evaluate comparative costs and other factors when considering whether to lease or rent equipment versus outright purchasing equipment.  The proposed rule also clarifies that although the term lease applies to both the lease and rental of equipment, there are some differences between renting and leasing in many industries, and there is not standard distinction between both renting and leasing that spans across all industries.  Thus, agencies should take this into account when evaluating comparative costs.

1.      83 Fed. Reg. 48691, September 26, 2018

2.     FAR Case 2017-017

3.     83 Fed. Reg. 45072, September 5, 2018

Reference the following website:


November 2018 Contract Management Issue

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