DoD Seal DoD 50 Year Seal

OFFICE OF THE SECRETARY OF DEFENSE

1000 DEFENSE PENTAGON
WASHINGTON, DC 20301-1000
April 18, 1996


ACQUISITION AND
 TECHNOLOGY

 DP(DAR)

                                                                     In reply refer to
                                                                     DFARS Case:96-D302
                                                                     D.L.  96-007


MEMORANDUM FOR DIRECTORS OF DEFENSE AGENCIES
               DEPUTY FOR ACQUISITION AND BUSINESS MANAGEMENT,
                 ASN(RD&A)/ABM
               DEPUTY ASSISTANT SECRETARY OF THE AIR FORCE
                 (CONTRACTING), SAF/AQC
               DIRECTOR, PROCUREMENT POLICY, ASA(RD&A)/SARD-PP
               DEPUTY DIRECTOR (ACQUISITION), DEFENSE LOGISTICS AGENCY



SUBJECT:   Leasing of Commerical Vehicles and Equipment


    We have amended the Defense Federal Acquisition Regulation Supplement (DFARS) to
implement Section 807 of the FY96 Defense Authorization Act (Pub. L. 104-106), which
revises 10 U.S.C. 2401a to permit the use of leasing in the acquisition of commercial
vehicles and equipment.


    The attached interim DFARS rule is effective immediately and will be included in
a future Defense Acquisition Circular.






                                                     /s/

                                              Eleanor R. Spector
                                              Director, Defense Procurement

Attachment

cc: DSMC, Ft. Belvoir


SUBPART 207.4 -- EQUIPMENT LEASE OR PURCHASE

* * * * *

207.470 Statutory requirement[s].

[(a) Limitation on contracts with terms of 18 months or more.]

As required by 10 U.S.C. 2401a, the contracting officer shall not enter into any contract for any vessel, aircraft, or vehicle, through a lease, charter, or similar agreement with a term of 18 months or more, or extend or renew any such contract for a term of 18 months or more, unless the head of the contracting activity has--

[(1)] Considered all costs of such a contract (including estimated termination liability); and

[(2)] Determined in writing that the contract is in the best interest of the Government.

[(b) Leasing of commercial vehicles and equipment.

Except as provided in paragraph (a) of this section, the contracting officer may use leasing in the acquisition of commercial vehicles and equipment whenever the contracting officer determines that leasing of such vehicles is practicable and efficient (10 U.S.C. 2401a).]