[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]


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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.

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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