[Federal Register Volume 78, Number 136 (Tuesday, July 16, 2013)]
[Notices]
[Pages 42524-42525]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-16920]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
[Notice-MVC-2013-02; Docket 2013-0081; Sequence 2]
Leasing versus Renting
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Request for information.
-----------------------------------------------------------------------
SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council (Councils) are seeking information that
will assist in determining if there is a distinction between leasing
and renting that is useful for the purposes stated in the Federal
Acquisition Regulation (FAR). This Request for Information (RFI) does
not address real property or its leasing.
DATES: Interested parties should submit written comments to the
Regulatory Secretariat at the address shown below on or before
September 16, 2013.
ADDRESSES: Submit comments by any of the following methods:
Regulations.gov: http://www.regulations.gov.
Submit comments via the Federal eRulemaking portal by searching for
``Notice-MVC-2013-02''. Select the link ``Summit a Comment'' that
corresponds with ``Notice-MVC-2013-02''. Follow the instructions
provided at the ``Submit a Comment'' screen. Please include your name,
company name (if any), and ``Notice-MVC-2013-02; Leasing versus
Renting'' on your attached document.
Fax: 202-501-4067.
Mail: General Services Administration, Regulatory
Secretariat Division (MVCB), ATTN: Hada Flowers, 1800 F Street NW., 2nd
Floor, Washington, DC 20405.
Instructions: Please submit comments only in all correspondence
related to this request. All comments received will be posted without
change to http://www.regulations.gov, including any personal and/or
business confidential information provided.
FOR FURTHER INFORMATION CONTACT: Mr. Michael O. Jackson, Procurement
Analyst, at 202-208-4949 for clarification of content. The Regulatory
Secretariat at 202-501-4755 for information pertaining to status or
publication schedules.
SUPPLEMENTARY INFORMATION: The Councils are seeking public input on
whether there is a distinction between renting and leasing that would
be useful in performing the analysis required at FAR subpart 7.4 to
determine the most cost effective approach, all factors considered.
This RFI does not address real property or its leasing. ``Real
property'' is defined in the Federal Management Regulation (FMR) at 41
CFR 102-71.20, and generally describes buildings and land.
Some have suggested that there is no legal distinction between
leasing and renting per the Uniform Commercial Code and that any
distinctions in practice are irrelevant to FAR subpart 7.4, which is
seeking the most cost effective method. Others have suggested there are
distinctions in the terms and conditions that would be useful to
recognize. We note that the FMR at 41 CFR Part 102-34 ``Motor Vehicle
Management'' provides brief definitions of commercial vehicle rentals
and leases at 41 CFR 102-34.35, with the only difference being that a
rental is for less than 120 continuous days while a lease is 120
continuous days or more. We also note that at FAR subpart 8.11, Leasing
of Motor Vehicles, the definition of ``leasing'' of motor vehicles uses
``hire'' and ``rent'' as synonyms for leasing.
The Councils are also seeking any additional information to improve
the guidance at FAR subpart 7.4. The Government Accountability Office
(GAO) issued a report dated February 7, 2012, entitled ``Air Force and
Interior Can Benefit from Additional Guidance When Deciding Whether to
Lease or Purchase Equipment'' (GAO-12-281R). The GAO report noted that
during fiscal years 2006 through 2010, Federal agencies spent more than
$200 billion annually, on average, to purchase or lease equipment, with
purchases accounting for 99 percent of this spending. GAO stated that
this suggests that agencies may overlook the potential for savings by
almost always purchasing when equipment is needed on a temporary basis.
The GAO report focused on the lease versus purchase analysis, which
they generally found inadequate in their selected sampling. While the
only GAO recommendation for the FAR was that subpart 7.4 be revised to
update the GSA contact information, some contracting officers suggested
to GAO that they were uncertain about how and when to perform the
analysis required in FAR subpart 7.4. The FAR Council welcomes all
suggestions for revisions to FAR subpart 7.4 and, in particular, seeks
input on the following questions:
Is there a distinction between rental agreements and
leases (not related to real property)?
[[Page 42525]]
[cir] Are there uniform and recognized differences in the lengths
of rental and leasing agreements? Do these lead to special funding
considerations for the government?
[cir] Are there specific differences in other terms and conditions,
such as maintenance, warranty, insurance, taxes, storage, and
transportation? What are the specific distinctions?
FAR 7.402(a) and (b) provide circumstances indicating when
the purchase or lease method is appropriate. Should rent be added as a
third method? If so, when is renting a more appropriate method than
purchasing or leasing and in what way would it impact the determination
of most effective procurement approach (e.g., cost savings and
efficiencies)?
Does short-term rental offer cost savings and efficiencies
unavailable through leasing?
What additional guidance might be provided at FAR subpart
7.4 to clarify when and how to perform the required analysis?
Dated: July 9, 2013.
William Clark,
Acting Director, Federal Acquisition Policy Division, Office of
Governmentwide Acquisition Policy, Office of Acquisition Policy, Office
of Governmentwide Policy.
[FR Doc. 2013-16920 Filed 7-15-13; 8:45 am]
BILLING CODE 6820-14-P