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Federal Register / Vol. 86, No. 110 / Thursday, June 10, 2021 / Rules and Regulations
Subpart 7.4Equipment Acquisition 2. Revise the heading of subpart 7.4 to read as set forth above.
3. Revise section 7.400 to read as follows:

7.400

Scope of subpart.

This subpart a Implements section 555 of the FAA Federal Aviation Administration Reauthorization Act of 2018 Pub. L.
115254;
b Provides guidance when acquiring equipment and more than one method of acquisition is available for use; and c Applies to both the initial acquisition of equipment and the renewal or extension of existing equipment leases or rental agreements.
4. Revise section 7.401 to read as follows:

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7.401

Acquisition considerations.

a1 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.
b1 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.

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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.
5. Amend section 7.402 by a. Removing from paragraph a1
cumulative leasing and adding cumulative rental or leasing in its place;
b. Removing from paragraph a2
favor of leasing and adding favor of renting or leasing in its place;
c. Revising the paragraph b subject heading, paragraph b1 introductory text, and paragraph b2;
d. Removing from paragraph b3
long term lease and adding long term rental or lease agreement in its place; and e. Removing from paragraph b4 If a lease with option and adding If a rental or lease agreement with option in its place.
The revisions read as follows:

b Rent or lease method. 1 The rent or lease method is appropriate if it is to the Governments advantage under the circumstances. The rent or lease method may also serve as a short-term measure when the circumstances

2 If a rent or lease method is justified, a rental or lease agreement with option to purchase is preferable.

6. Amend section 7.403 by a. Revising the section heading;
b. Removing from paragraph a introductory text in lease or and adding in rent, lease, or in its place;
c. Revising paragraph b; and d. Adding paragraph c.
The revisions and addition read as follows:

7.402

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Acquisition methods.

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7.403 General Services Administration assistance and OMB guidance.

b For additional GSA assistance and guidance, agencies may 1 Request information from the GSA
FAS National Customer Service Center by phone at 18004883111 or by email at ncsccustomer.service@gsa.gov;
and 2 See GSA website, Schedule 51 V
Hardware Superstore-Equipment Rental, https www.gsa.gov/buying-selling/
products-services/industrial-productsservices/rental-of-industrial-equipment.
c For additional OMB guidance, see 1 Section 13, Special Guidance for Lease-Purchase Analysis, and paragraph 8.c.2, Lease-Purchase Analysis, of OMB Circular A94, Guidelines and Discount Rates for Benefit-Cost Analysis of Federal Programs, https
www.whitehouse.gov/sites/
whitehouse.gov/files/omb/circulars/
A94/a094.pdf; and 2 Appendix B, Budgetary Treatment of Lease-Purchases and Leases of Capital Assets, of OMB Circular A11, Preparation, Submission, and Execution of the Budget, https
www.whitehouse.gov/wp-content/
uploads/2018/06/app_b.pdf.
7.404

Amended
7. Amend section 7.404 by removing a lease with and adding a rental or lease agreement with in its place.

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