7.401 Acquisition considerations.
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(a) Agencies should consider whether to lease or purchase equipment based on a case-by-case evaluation of comparative costs and other factors. The following factors are the minimum that should be considered:
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(1) Estimated length of the period the equipment is to be used and the extent of use within that period.
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(2) Financial and operating advantages of alternative types and makes of equipment.
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(3) Cumulative rental payments for the estimated period of use.
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(4) Net purchase price.
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(5) Transportation and installation costs.
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(6) Maintenance and other service costs.
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(7) Potential obsolescence of the equipment because of imminent technological improvements.
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(b) The following additional factors should be considered, as appropriate, depending on the type, cost, complexity, and estimated period of use of the equipment:
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(1) Availability of purchase options.
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(2) Potential for use of the equipment by other agencies after its use by the acquiring agency is ended.
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(3) Trade-in or salvage value.
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(4) Imputed interest.
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(5) 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?
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