45072 Federal Register / Vol. 83, No. 172 / Wednesday, September 5, 2018 / Proposed Rules 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Part 7 

[FAR Case 2017–017; Docket No. 2017– 

0017, Sequence No. 1] 

RIN 9000–AN63 

Federal Acquisition Regulation: Rental 

Cost Analysis in Equipment 

Acquisitions 

AGENCY: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Proposed rule. 

SUMMARY: DoD, GSA, and NASA are 

proposing to amend the Federal 

Acquisition Regulation (FAR) to clarify 

the term ‘‘lease.’’ 

DATES: Interested parties should submit 

comments to the Regulatory Secretariat 

Division at one of the addresses shown 

below on or before November 5, 2018 to 

be considered in the formulation of a 

final rule. 

ADDRESSES: Submit comments in 

response to FAR Case 2017–017 by any 

of the following methods: 

• Regulations.gov: http://

www.regulations.gov. Submit comments 

via the Federal eRulemaking portal by 

entering ‘‘FAR Case 2017–017’’ under 

the heading ‘‘Enter Keyword or ID’’ and 

selecting ‘‘Search.’’ Select the link 

‘‘Comment Now’’ that corresponds with 

‘‘FAR Case 2017–017.’’ Follow the 

instructions provided on the screen. 

Please include your name, company 

name (if any), and ‘‘FAR Case 2017– 

017’’ on your attached document. 

• Mail: General Services 

Administration, Regulatory-Secretariat 

Division (MVCB), ATTN: Lois Mandell, 

1800 F Street NW, 2nd Floor, 

Washington, DC 20405. 

Instructions: Please submit comments 

only and cite ‘‘FAR case 2017–017’’ in 

all correspondence related to this case. 

All comments received will be posted 

without change to http://

www.regulations.gov, including any 

personal and/or business confidential 

information provided. To confirm 

receipt of your comment(s), please 

check www.regulations.gov, 

approximately two to three days after 

submission to verify posting (except 

allow 30 days for posting of comments 

submitted by mail). 

FOR FURTHER INFORMATION CONTACT: For 

clarification of content, contact Mr. 

Michael O. Jackson, Procurement 

Analyst, at 202–208–4949. For 

information pertaining to status or 

publication schedules, contact the 

Regulatory Secretariat Division at 202– 

501–4755. Please cite ‘‘FAR Case 2017– 

017.’’ 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD, GSA, and NASA are proposing 

to amend the FAR to clarify, in FAR 

subpart 7.4, Equipment Lease or 

Purchase, that the term ‘‘lease,’’ as used 

in the subpart, includes the ‘‘rental’’ of 

equipment. This change clarifies that 

agencies should be evaluating 

comparative costs and other factors 

when considering whether to lease or 

rent equipment versus purchase 

equipment. The rule also adds a helpful 

link to a GSA site that provides 

additional guidance on renting and 

leasing equipment and updates the GSA 

office from which agencies may request 

information when making lease or 

purchase decisions. In addition, 

weblinks have been added to the rule 

for Office of Management and Budget 

(OMB) guidance for lease-purchase 

analysis, see Special Guidance for 

Lease-purchase Analysis (Section 13 of 

(OMB) Circular A–94, also see 8.c.(2)); 

and OMB Circular A–11 Appendix B 

Budgetary Treatment of Lease-Purchases 

and Leases of Capital Assets. 

II. Discussion and Analysis 

This rule proposes to amend FAR 

subpart 7.4, as follows: 

• Adding language to the scope of the 

subpart to clarify that the term ‘‘lease’’, 

as used in the subpart, applies to both 

the lease and rental of equipment, and 

to identify some general factors that may 

vary when leasing or renting equipment. 

• Adding a GSA website that 

provides information that could assist 

the contracting officer in making 

equipment lease or purchase decisions, 

and updating the GSA office to contact 

when an agency requests assistance 

with the lease versus purchase analysis 

decision. In addition, weblinks have 

been added to the rule for OMB 

guidance for lease-purchase analysis. 

III. Applicability to Contracts at or 

Below the Simplified Acquisition 

Threshold and for Commercial Items, 

Including Commercially Available Offthe-Shelf Items 

This rule amends the FAR to clarify 

that although the term ‘‘lease’’ applies to 

both the lease and rental of equipment, 

there are some differences between 

renting and leasing in many industries, 

and there is no standard distinction 

between both renting and leasing that 

spans across all industries. This case 

does not add any new provisions or 

clauses or impact any existing 

provisions or clauses. 

IV. Executive Orders 12866 and 13563 

Executive Orders (E.O.s) 12866 and 

13563 direct agencies to assess all costs 

and benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). E.O. 13563 emphasizes the 

importance of quantifying both costs 

and benefits, of reducing costs, of 

harmonizing rules, and of promoting 

flexibility. This is not a significant 

regulatory action and, therefore, was not 

subject to review under section 6(b) of 

E.O. 12866, Regulatory Planning and 

Review, dated September 30, 1993. This 

rule is not a major rule under 5 U.S.C. 

804. 

V. Executive Order 13771 

This rule is not subject to E.O. 13771, 

because this rule is not a significant 

regulatory action under E.O. 12866. 

VI. Regulatory Flexibility Act 

DoD, GSA, and NASA do not expect 

this rule to have a significant economic 

impact on a substantial number of small 

entities within the meaning of the 

Regulatory Flexibility Act codified at 5 

U.S.C. 601 et seq. However, an Initial 

Regulatory Flexibility Analysis (IRFA) 

has been performed and is summarized 

as follows: 

DoD, GSA, and NASA are proposing to 

amend the Federal Acquisition Regulation 

(FAR) to clarify, in FAR subpart 7.4, that the 

term ‘‘lease’’ includes the ‘‘rental’’ of 

equipment. This change clarifies that 

agencies should be evaluating comparative 

costs and other factors when considering 

whether to lease or rent equipment versus 

purchase equipment. 

The objective of the rule is to ensure the 

value of rental agreements are included in 

the decision on whether to lease or purchase 

equipment. The legal basis for the FAR is 40 

U.S.C. 121(c), 10 U.S.C. chapter 137, and 51 

U.S.C. 20113. 

Based on Fiscal Year 2016 data from the 

Federal Procurement Data System, the 

Government issued approximately 34,925 

contract actions for the rent/lease or purchase 

of equipment. Of the 34,925 contract actions, 

approximately 20,100 awards were made to 

6,670 unique small business entities. The 

average award to small businesses was 

valued at approximately $700,000. 

This rule does not impose any new 

reporting, recordkeeping or other compliance 

requirements. The rule does not duplicate, 


daltland on DSKBBV9HB2PROD with PROPOSALS
Federal Register / Vol. 83, No. 172 / Wednesday, September 5, 2018 / Proposed Rules 45073 

overlap, or conflict with any other Federal 

rules. There are no known significant 

alternative approaches to the proposed rule 

that would meet the applicable requirement. 

The Regulatory Secretariat Division 

has submitted a copy of the IRFA to the 

Chief Counsel for Advocacy of the Small 

Business Administration. A copy of the 

IRFA may be obtained from the 

Regulatory Secretariat Division. DoD, 

GSA and NASA invite comments from 

small business concerns and other 

interested parties on the expected 

impact of this rule on small entities. 

DoD, GSA, and NASA will also 

consider comments from small entities 

concerning the existing regulations in 

subparts affected by this rule consistent 

with 5 U.S.C. 610. Interested parties 

must submit such comments separately 

and should cite 5 U.S.C. 610 (FAR Case 

2017–017) in correspondence. 

VII. Paperwork Reduction Act 

The proposed rule does not contain 

any information collection requirements 

that require the approval of the Office of 

Management and Budget under the 

Paperwork Reduction Act (44 U.S.C. 

chapter 35). 

List of Subjects in 48 CFR Part 7 

Government procurement. 

Dated: August 30, 2018. 

William F. Clark, 

Director, Office of Government-wide 

Acquisition Policy, Office of Acquisition 

Policy, Office of Government-wide Policy. 

Therefore, DoD, GSA, and NASA are 

proposing to amend 48 CFR part 7 as set 

forth below: 

PART 7—ACQUISITION PLANNING 

■ 1. The authority citation for part 7 

continues to read as follows: 

Authority: 40 U.S.C. 121(c); 10 U.S.C. 

chapter 137; and 51 U.S.C. 20113. 

■ 2. Revise section 7.400 to read as 

follows: 

§ 7.400 Scope of subpart. 

This subpart provides guidance 

pertaining to the decision to acquire 

equipment by lease or purchase. It 

applies to both the initial acquisition of 

equipment and the renewal or extension 

of existing equipment leases. The term 

‘‘lease’’, as used in this subpart, applies 

to both the lease and rental of 

equipment. While there are some 

differences between renting and leasing 

in many industries, there is no standard 

distinction between both renting and 

leasing that spans across all industries. 

Rental agreements are typically for 

shorter periods of time than lease 

agreements. Additionally, maintenance 

requirements and financial terms (e.g., 

fees or payment terms) differ between a 

lease and a rental agreement. 

§ 7.401 [Amended] 

■ 2. Amend section 7.401 by removing 

from paragraph (a)(3) ‘‘rental payments’’ 

and adding ‘‘lease, or other periodic 

payments, however described,’’ in its 

place. 

■ 3. Amend section 7.403 by revising 

the section heading and paragraph (b), 

and adding paragraph (c) to read as 

follows: 

§ 7.403 General Services Administration 

assistance and OMB Guidance. 

* * * * * 

(b) Agencies may request information 

from the following GSA office: GSA 

FAS National Customer Service Center 

by phone at 1–800–488–3111 or by 

email at ncsccustomer.service@gsa.gov. 

Additional information to assist with 

deciding whether to purchase or lease 

equipment is available at https://

www.gsa.gov/acquisition/purchasingprograms/gsa-schedules/list-of-gsaschedules/schedule-51-vhardwaresuperstore/equipment-rental-andleasing. 

(c) See Special Guidance for Leasepurchase Analysis (Section 13 of OMB 

Circular A–94, also see 8.c.(2)) at 

https://www.whitehouse.gov/sites/ 

whitehouse.gov/files/omb/circulars/ 

A94/a094.pdf and OMB Circular A–11 

Appendix B Budgetary Treatment of 

Lease-Purchases and Leases of Capital 

Assets at https://www.whitehouse.gov/ 

wp-content/uploads/2018/06/app_

b.pdf. 

[FR Doc. 2018–19177 Filed 9–4–18; 8:45 am] 

BILLING CODE 6820–EP–P 

DEPARTMENT OF THE INTERIOR 

Fish and Wildlife Service 

50 CFR Part 17 

[Docket No. FWS–HQ–ES–2015–0019; 

4500090024] 

RIN 1018–BC78 

Endangered and Threatened Wildlife 

and Plants; Reclassifying the Golden 

Conure From Endangered to 

Threatened With a Section 4(d) Rule 

AGENCY: Fish and Wildlife Service, 

Interior. 

ACTION: Proposed rule. 

SUMMARY: We, the U.S. Fish and 

Wildlife Service (Service), announce a 

12-month finding on a petition to delist 

or downlist the golden conure under the 

Endangered Species Act of 1973, as 

amended (Act). The golden conure is a 

psittacine bird (parrots, parakeets, 

macaws, cockatoos, and others) endemic 

to the south Amazon Basin in Brazil. 

After review of the best available 

scientific and commercial information, 

we find that listing the golden conure as 

a threatened species is warranted. 

Accordingly, we propose to list it as a 

threatened species with a rule issued 

under section 4(d) of the Act. If we 

finalize this rule as proposed, it would 

reclassify the golden conure from 

endangered to threatened on the List of 

Endangered and Threatened Wildlife 

(List). Additionally, we are proposing to 

update the List to reflect the latest 

scientifically accepted taxonomy and 

nomenclature for the species as 

Guaruba guarouba, golden conure. 

DATES: We will accept comments 

received or postmarked on or before 

November 5, 2018. Comments submitted 

electronically using the Federal 

eRulemaking Portal (see ADDRESSES, 

below) must be received by 11:59 p.m. 

Eastern Time on the closing date. We 

must receive requests for public 

hearings, in writing, at the address 

shown in FOR FURTHER INFORMATION

CONTACT by October 22, 2018. 

ADDRESSES: You may submit comments 

by one of the following methods: 

(1) Electronically: Go to the Federal 

eRulemaking Portal: http://

www.regulations.gov. In the Search box, 

enter FWS–HQ–ES–2015–0019, which 

is the docket number for this 

rulemaking. Then, click on the Search 

button. On the resulting page, in the 

Search panel on the left side of the 

screen, under the Document Type 

heading, click on the Proposed Rules 

link to locate this document. You may 

submit a comment by clicking on 

‘‘Comment Now!’’ 

(2) By hard copy: Submit by U.S. mail 

or hand-delivery to: Public Comments 

Processing, Attn: FWS–HQ–ES–2015– 

0019; U.S. Fish and Wildlife Service, 

MS: BPHC, 5275 Leesburg Pike, Falls 

Church, VA 22041–3803. 

We request that you send comments 

only by the methods described above. 

We will post all comments on http://

www.regulations.gov. This generally 

means that we will post any personal 

information you provide us (see Public 

Comments, below, for more 

information). 

FOR FURTHER INFORMATION CONTACT: Don 

Morgan, Chief, Branch of Delisting and 

Foreign Species, Ecological Services, 

U.S. Fish and Wildlife Service, MS: ES, 

5275 Leesburg Pike, Falls Church, VA 

22041–3803; telephone, 703–358–2171. 

If you use a telecommunications device 


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