U.S. flag
          An official website of the United States Government  Main navigation
  

        

              Data Initiatives
                              Regulations
                                                                        Row 1
                                              FAR FAR
                              Smart Matrix Smart Matrix
                              Chapter 99 (CAS) Chapter 99 (CAS)
                              Row 2
                                              DFARS DFARS
                              DFARSPGI DFARSPGI
                              AFARS AFARS
                              DAFFARS DAFFARS
                              DAFFARS MP DAFFARS MP
                              DARS DARS
                              DLAD DLAD
                              NMCARS NMCARS
                              Row 3
                                              SOFARS SOFARS
                              TRANSFARS TRANSFARS
                              AGAR AGAR
                              AIDAR AIDAR
                              CAR CAR
                              DEAR DEAR
                              DIAR DIAR
                              DOLAR DOLAR
                              Row 4
                                              DOSAR DOSAR
                              DTAR DTAR
                              EDAR EDAR
                              EPAAR EPAAR
                              FEHBAR FEHBAR
                              GSAM/R GSAM/R
                              HHSAR HHSAR
                              HSAR HSAR
                              Row 5
                                              HUDAR HUDAR
                              IAAR IAAR
                              JAR JAR
                              LIFAR LIFAR
                              NFS NFS
                              NRCAR NRCAR
                              TAR TAR
                              VAAR VAAR
                              Tools
                                                                        Archives
                              Smart Matrix
                              Regulations Search
                              Acquisition Regulation Comparator (ARC)
                              Policy Network
                                                                        CAOC
                              CAAC
                              FAR Council
                              ISDC
 Breadcrumb
        Home
                            Regulations
                            FAR
                            7.401           Acquisition considerations.
        
                  FAR
FAR
FAC Number: 2024-03 Effective Date: 02/23/2024
PartPart 1Part 2Part 3Part 4Part 5Part 6Part 7Part 8Part 9Part 10Part 11Part 12Part 13Part 14Part 15Part 16Part 17Part 18Part 19Part 20Part 21Part 22Part 23Part 24Part 25Part 26Part 27Part 28Part 29Part 30Part 31Part 32Part 33Part 34Part 35Part 36Part 37Part 38Part 39Part 40Part 41Part 42Part 43Part 44Part 45Part 46Part 47Part 48Part 49Part 50Part 51Part 52Part 53
Subpart7.07.17.27.37.47.5
Section7.4007.4017.4027.4037.404
Leave this field blank
        
                  

                                
                  
        « PreviousNext »
7.401 Acquisition considerations.7.401           Acquisition considerations.       (a)                                                         (1)Agencies shall acquire equipment using the method of acquisition most advantageous to the Government based on a case-by-case analysis of comparative costs and other factors in accordance with this subpart and agency procedures.                                                            (2)The methods of acquisition to be compared in the analysis shall include, at a minimum—                                                                           (i)Purchase;                                                                              (ii)Short-term rental or lease;                                                                              (iii)Long-term rental or lease;                                                                              (iv)Interagency acquisition (see  2.101); and                                                                              (v)Agency acquisition agreements, if applicable, with a State or local government.                                                                                                                            (b)                                                         (1)The factors to be compared in the analysis shall include, at a minimum:                                                                           (i)Estimated length of the period the equipment is to be used and the extent of use within that period;                                                                              (ii)Financial and operating advantages of alternative types and makes of equipment;                                                                              (iii)Cumulative rent, lease, or other periodic payments, however described, for the estimated period of use;                                                                              (iv)Net purchase price;                                                                              (v)Transportation, installation, and storage costs;                                                                              (vi)Maintenance, repair, and other service costs; and                                                                              (vii)Potential obsolescence of the equipment because of imminent technological improvements.                                                                                                           (2)The following additional factors should be considered, as appropriate, depending on the type, cost, complexity, and estimated period of use of the equipment:                                                                           (i)Availability of purchase options.                                                                              (ii)Cancellation, extension, and early return conditions and fees.                                                                              (iii)Ability to swap out or exchange equipment.                                                                              (iv)Available warranties.                                                                              (v)Insurance, environmental, or licensing requirements.                                                                              (vi)Potential for use of the equipment by other agencies after its use by the acquiring agency is ended.                                                                              (vii)Trade-in or salvage value.                                                                              (viii)Imputed interest.                                                                              (ix)Availability of a servicing capability, especially for highly complex equipment; *e.g.*, can the equipment be serviced by the Government or other sources if it is purchased?                                                                                                                            (c)The analysis in paragraph (a) is not required—                                                         (1)When the President has issued an emergency declaration or a major disaster declaration pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act (  42 U.S.C. 5121                         *et seq.*);                                                            (2)In other emergency situations if the agency head makes a determination that obtaining such equipment is necessary in order to protect human life or property; or                                                            (3)When otherwise authorized by law.    **Parent topic:**  Subpart 7.4 - Equipment Acquisition
« PreviousNext »
FavoriteX

      Far Parts
            Regulations FAR Menu
  

        
      Index
                              List of Sections Affected
                              DOD Deviations
                              CAAC Deviations
                              1
                              2
                              3
                              4
                              5
                              6
                              7
                              8
                              9
                              10
                              11
                              12
                              13
                              14
                              15
                              16
                              17
                              18
                              19
                              20
                              21
                              22
                              23
                              24
                              25
                              26
                              27
                              28
                              29
                              30
                              31
                              32
                              33
                              34
                              35
                              36
                              37
                              38
                              39
                              40
                              41
                              42
                              43
                              44
                              45
                              46
                              47
                              48
                              49
                              50
                              51
                              52
                              53
                              Chapter 99 (CAS)Definitions
    Toggle
FAC Changes
    Toggle
Style Formatter
    Toggle

      ×
        Data Initiatives
                                                              Regulations
                                                              Tools
                                              Archives
                                                              Smart Matrix
                                                              Regulations Search
                                                              Acquisition Regulation Comparator (ARC)
                                                              Policy Network
                                              CAO.gov
                                                        CAO Home
                                                              Council Member
                                                                    Large Agencies
                                                              Small Agencies
                                                              Council Defining Documents
                                                                    CAOC History
                                                              CAOC Charter
                                                              Civilian Agency Acquisition Council (CAAC)
                                                              Federal Acquisition Regulatory Council
                                                              Interagency Suspension and Debarment Committee (ISDC)
                                                              Search
 ˄ Top Sign up for FAR News

                            Share the FAR
                        Upper Footer Menu
  

        
      Useful Links
                              FAR Resources
                              Training
                              Acquisition Systems
            
                            **Contact Us/FAQs**
                        **Privacy and Security Notice**
                        **Accessibility Aids**
                        **Last Updated 03/29/2024**
 ACQUISITION.GOV
                An official website of the General Services Administration About GSA
                Accessibility support
                FOIA requests
                No FEAR Act data
                Office of the Inspector General
                Performance reports
                Privacy policy Looking for U.S. government information and services?
            Visit USA.gov
 «
    
    Tt