[Federal Register Volume 59, Number 248 (Wednesday, December 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-30664]
[Federal Register: December 28, 1994]
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DEPARTMENT OF DEFENSE
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 7 and 52
[FAC 90-23; FAR Case 91-6; Item V]
RIN 9000-AE86
Federal Acquisition Regulation; Lease with Option to Purchase
AGENCIES: Department of Defense (DOD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council have agreed on a final rule to amend
the Federal Acquisition Regulation (FAR), based on the Defense
Management Review (DMR), to include information required to support a
contracting officer's decision to use a lease with an option to
purchase, and to outline the Government's right to purchase at any time
during the performance of the contract. This regulatory action was not
subject to Office of Management and Budget review under Executive Order
12866, dated September 30, 1993.
EFFECTIVE DATE: February 27, 1995.
FOR FURTHER INFORMATION CONTACT: Mr. Ralph DeStefano at (202) 501-1758
in reference to this FAR case. For general information, contact the FAR
Secretariat, Room 4037, GS Building, Washington, DC 20405 (202) 501-
4755. Please cite FAC 90-23, FAR case 91-6.
SUPPLEMENTARY INFORMATION:
A. Background
The Secretary of Defense directed that the Defense Federal
Acquisition Regulation Supplement (DFARS) be streamlined and rewritten
as part of the DMR Regulatory Reform initiative. This initiative
resulted in movement of some DFARS language and language from lower
level supplements to the FAR.
FAR 7.402(b)(2) states that if a lease is justified, a lease with
option to purchase is preferable. However, there is no FAR coverage to
implement this requirement. This proposed rule implements FAR
7.402(b)(2) and outlines the Government's right to purchase at any time
during the performance of the contract.
A proposed rule was published in the Federal Register at 56 FR
37404, August 6, 1991. Ten comments received from five individuals and
organizations were considered, and changes were made in the development
of the final rule.
B. Regulatory Flexibility Act
The Department of Defense, the General Services Administration, and
the National Aeronautics and Space Administration certify that this
final rule will not have a significant economic impact on a substantial
number of small entities under the Regulatory Flexibility Act, 5 U.S.C.
601, et seq., because the change does not impose any new requirements
on contractors, large or small, and serves only to clarify existing
regulatory coverage. No public comments were received which addressed
the statement to that effect which was published as a proposed rule.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the FAR do not impose recordkeeping or information collection
requirements, or collections of information from offerors, contractors,
or members of the public which require the approval of the Office of
Management and Budget under 44 U.S.C. 3501, et seq.
List of Subjects in 48 CFR Parts 7 and 52
Government procurement.
Dated: December 7, 1994.
Albert A. Vicchiolla,
Director, Office of Federal Acquisition Policy.
Therefore, 48 CFR parts 7 and 52 are amended as set forth below:
1. The authority citation for 48 CFR parts 7 and 52 continues to
read as follows:
Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
PART 7--ACQUISITION PLANNING
2. Section 7.402 is amended by adding paragraph (b)(4) to read as
follows:
7.402 Acquisition methods.
* * * * *
(b) * * *
(4) If a lease with option to purchase is used, the contract shall
state the purchase price or provide a formula which shows how the
purchase price will be established at the time of purchase.
3. Section 7.404 is added to read as follows:
7.404 Contract clause.
The contracting officer shall insert a clause substantially the
same as the clause in 52.207-5, Option to Purchase Equipment, in
solicitations and contracts involving a lease with option to purchase.
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
4. Section 52.207-5 is added to read as follows:
52.207-5 Option to purchase equipment.
As prescribed in 7.404, insert a clause substantially the same as
the following:
Option to Purchase Equipment (Feb 1995)
(a) The Government may purchase the equipment provided on a
lease or rental basis under this contract. The Contracting Officer
may exercise this option only by providing a unilateral modification
to the Contractor. The effective date of the purchase will be
specified in the unilateral modification and may be any time during
the period of the contract, including any extensions thereto.
(b) Except for final payment and transfer of title to the
Government, the lease or rental portion of the contract becomes
complete and lease or rental charges shall be discontinued on the
day immediately preceding the effective date of purchase specified
in the unilateral modification required in paragraph (a) of this
clause.
(c) The purchase conversion cost of the equipment shall be
computed as of the effective date specified in the unilateral
modification required in paragraph (a) of this clause, on the basis
of the purchase price set forth in the contract, minus the total
purchase option credits accumulated during the period of lease or
rental, calculated by the formula contained elsewhere in this
contract.
(d) The accumulated purchase option credits available to
determine the purchase conversion cost will also include any credits
accrued during a period of lease or rental of the equipment under
any previous Government contract if the equipment has been on
continuous lease or rental. The movement of equipment from one site
to another site shall be ``continuous rental.''
(End of clause)
[FR Doc. 94-30664 Filed 12-27-94; 8:45 am]
BILLING CODE 6820-34-P
