U.S. GOVERNMENT PUBLISHING OFFICE

WASHINGTON : 

1 

89–010 

" ! SENATE 115TH CONGRESS

2d Session 

REPORT

2018

115–383 

Calendar No. 669 

FEDERAL ACQUISITION SAVINGS 

ACT OF 2018 

R E P O R T 

OF THE

COMMITTEE ON HOMELAND SECURITY AND 

GOVERNMENTAL AFFAIRS 

UNITED STATES SENATE 

TO ACCOMPANY

S. 3251 

TO REQUIRE EXECUTIVE AGENCIES TO CONSIDER RENTAL IN 

ANY ANALYSIS FOR EQUIPMENT ACQUISITION, AND FOR OTHER 

PURPOSES 

NOVEMBER 26, 2018.—Ordered to be printed 


congress.#13
(II) 

COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS 

RON JOHNSON, Wisconsin Chairman 

JOHN MCCAIN, Arizona 

ROB PORTMAN, Ohio 

RAND PAUL, Kentucky 

JAMES LANKFORD, Oklahoma 

MICHAEL B. ENZI, Wyoming 

JOHN HOEVEN, North Dakota 

STEVE DAINES, Montana 

CLAIRE MCCASKILL, Missouri 

THOMAS R. CARPER, Delaware 

HEIDI HEITKAMP, North Dakota 

GARY C. PETERS, Michigan 

MAGGIE HASSAN, New Hampshire 

KAMALA D. HARRIS, California 

DOUG JONES, Alabama 

CHRISTOPHER R. HIXON, Staff Director 

GABRIELLE D’ADAMO SINGER, Chief Counsel 

PATRICK J. BAILEY, Chief Counsel for Governmental Affairs 

MARGARET E. DAUM, Minority Staff Director 

CHARLES A. MOSKOWITZ, Minority Senior Legislative Counsel 

CHRIS J. MULKINS, Minority Government Accountability Office Detailee 

LAURA W. KILBRIDE, Chief Clerk 

Calendar No. 669 

115TH CONGRESS REPORT " ! SENATE 2d Session 115–383 

FEDERAL ACQUISITION SAVINGS ACT OF 2018 

NOVEMBER 26, 2018.—Ordered to be printed 

Mr. JOHNSON, from the Committee on Homeland Security and 

Governmental Affairs, submitted the following 

R E P O R T 

[To accompany S. 3251] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Homeland Security and Governmental Affairs, 

to which was referred the bill (S. 3251) to require executive agencies to consider rental in any analysis for equipment acquisition, 

and for other purposes, having considered the same, reports favorably thereon without amendment and recommends that the bill do 

pass. 

CONTENTS 

Page 

I. Purpose and Summary .................................................................................. 1 

II. Background and Need for the Legislation ................................................... 1 

III. Legislative History ......................................................................................... 2 

IV. Section-by-Section Analysis .......................................................................... 2 

V. Evaluation of Regulatory Impact .................................................................. 3 

VI. Congressional Budget Office Cost Estimate ................................................ 3 

VII. Changes in Existing Law Made by the Bill, as Reported ........................... 4 

I. PURPOSE AND SUMMARY

S. 3251, the Federal Acquisition Savings Act of 2018, requires executive agencies to do a cost-benefit analysis of the short- and longterm costs of rental, leasing, and ownership of equipment, and 

choose the acquisition method that is most advantageous to the 

Federal Government. 

II. BACKGROUND AND THE NEED FOR LEGISLATION

In February 2018, the Government Accountability Office (GAO) 

reported that the Air Force and the Department of Interior did not 

2 

1Gov’t Accountability Office, GAO–18–295, Heavy Equipment: Selected Agencies Should Improve Guidance for Purchases and Leases (2018), available at https://www.gao.gov/assets/700/ 

690345.pdf. 2 Id. 

3 Id. (estimated in 2016 dollars). 4 83 Fed. Reg. 45,072 (Sept. 5, 2018) (to be codified at 48 C.F.R. pt. 7), available at https:// 

www.gpo.gov/fdsys/pkg/FR-2018-09-05/pdf/2018-19177.pdf. 5 83 Fed. Reg. 45,073 (Sept. 5, 2018) (to be codified at 48 C.F.R. pt. 7.4). 

consistently conduct a cost-benefit analysis when purchasing heavy 

equipment to determine whether a lease might be more cost effective.1 The report also noted that there are indications that this may 

be a problem government-wide, considering that 20 Executive 

Branch agencies had an inventory of 136,000 pieces of heavy equipment such as cranes, forklifts, and backhoes.2 This current inventory cost an estimated $7.4 billion to acquire.3

On September 5, 2018, the Federal Acquisition Regulatory Council (FAR Council) proposed changes to the Federal Acquisition Regulation (FAR) to amend the definition of the term ‘‘equipment 

lease’’ to clarify that it also includes equipment rental.4 While existing law does not preclude the rental of equipment, it is not clear 

in the existing regulations that an agency should conduct a costbenefit analysis for renting in addition to leasing equipment.5

S. 3251 requires Executive Branch agencies to analyze equipment acquisitions on a case-by-case basis and determine whether 

ownership, leasing, or renting is more advantageous to the Federal 

Government. Recognizing that the cheapest option may not always 

be the most advantageous option, the legislation requires that factors other than cost also be considered. 

III. LEGISLATIVE HISTORY

Senators Gary Peters, James Lankford, and Rand Paul introduced S. 3251 on July 19, 2018. The bill was referred to the Committee on Homeland Security and Governmental Affairs on the 

same day. The Committee considered S. 3251 at a September 26, 

2018, business meeting. 

The Committee ordered S. 3251 reported favorably en bloc by 

voice vote. Senators present for the vote were Johnson, Portman, 

Lankford, Enzi, Hoeven, McCaskill, Carper, Heitkamp, Peters, 

Hassan, Harris, and Jones. 

IV. SECTION-BY-SECTION ANALYSIS OF THE BILL, AS REPORTED

Section 1. Short title 

This section established that the bill may be cited as the ‘‘Federal Acquisition Savings Act.’’ 

Section 2. Agency analysis of equipment acquisition 

Subsection (a) requires executive agencies to acquire equipment 

using the method of acquisition most advantageous to the Federal 

Government, based on a case-by-case analysis of cost and other factors. It requires such agencies to make this determination based on 

an analysis of whether to purchase, rent, or lease the equipment. 

It also requires the FAR Council to issue implementation regulations. 

Subsection (b) sets an implementation date after the FAR Council issues the implementation regulations. 

3 

Subsection (c) allows the head of an executive agency to contract 

with state and local governments if the agency head determines the 

agreement satisfies the requirements of subsection (a). 

Subsection (d) sets out exceptions to subsection (a), such as a disaster declaration or other emergency situations. 

Subsection (e) mandates a report be conducted by GAO to review 

the quality of the analyses required by subsection (a). 

Subsection (f) defines the terms ‘‘executive agency,’’ ‘‘interagency 

acquisition,’’ ‘‘state,’’ and ‘‘local government.’’ 

V. EVALUATION OF REGULATORY IMPACT

Pursuant to the requirements of paragraph 11(b) of rule XXVI of 

the Standing Rules of the Senate, the Committee has considered 

the regulatory impact of this bill and determined that the bill will 

have no regulatory impact within the meaning of the rules. The 

Committee agrees with the Congressional Budget Office’s statement that the bill contains no intergovernmental or private-sector 

mandates as defined in the Unfunded Mandates Reform Act 

(UMRA) and would impose no costs on state, local, or tribal governments. 

VI. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, October 3, 2018. 

Hon. RON JOHNSON, 

Chairman, Committee on Homeland Security and Governmental Affairs, U.S. Senate, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for S. 3251, the Federal Acquisition Savings Act of 2018. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Matthew Pickford. 

Sincerely, 

KEITH HALL, Director. 

Enclosure. 

S. 3251—Federal Acquisition Savings Act of 2018 

S. 3251 would amend the Federal Acquisition Regulation to require agencies to acquire equipment using a method of acquisition 

that is most advantageous to the federal government on a case-bycase basis. This could include short- and long-term rental, leases, 

interagency acquisitions, or acquisition agreements with state and 

local governments. The bill also would require a report within two 

years by the Government Accountability Office on equipment acquisitions. According to the General Services Administration (GSA), 

agencies are already required to consider purchasing or leasing 

when evaluating the acquisition of equipment and proposed regulations will clarify leasing and renting as an option. In addition, GSA 

has proposed a similar rule. Because CBO expects that S. 3251 

would not materially change how agencies acquire equipment, CBO 

estimates that implementing S. 3251 would have no significant effect on the federal budget. 

4 

Enacting S. 3251 could affect direct spending by agencies not 

funded through annual appropriations; therefore, pay-as-you-go 

procedures apply. CBO estimates, however, that any net increase 

in spending by those agencies would not be significant. S. 3251 

would not affect revenues. 

CBO estimates that enacting S. 3251 would not increase net direct spending or on-budget deficits in any of the four consecutive 

10-year periods beginning in 2029. 

S. 3251 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act. 

On October 4, 2017, CBO transmitted a cost estimate for H.R. 

3071, the Federal Acquisition Savings Act of 2017, as ordered reported by the House Committee on Oversight and Government Reform on September 13, 2017. The two pieces of legislation are similar and the estimated budgetary effects are the same. 

The CBO staff contact for this estimate is Matthew Pickford. 

This estimate was approved by H. Samuel Papenfuss, Deputy Assistant Director for Budget Analysis. 

VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

Because this legislation would not repeal or amend any provision 

of current law, it would make no changes in existing law within the 

meaning of clauses (a) and (b) of paragraph 12 of rule XXVI of the 

Standing Rules of the Senate. 

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