Federal Acquisition Regulation: Rental Cost Analysis in Equipment Acquisitions, 45072-45073 [2018-19177]
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45072
Federal Register / Vol. 83, No. 172 / Wednesday, September 5, 2018 / Proposed Rules
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:
FOR FURTHER INFORMATION CONTACT:
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
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Proposed rule.
AGENCY:
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: https://
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 https://
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).
daltland on DSKBBV9HB2PROD with PROPOSALS
SUMMARY:
VerDate Sep<11>2014
16:17 Sep 04, 2018
Jkt 244001
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,
PO 00000
Frm 00021
Fmt 4702
Sfmt 4702
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,
E:\FR\FM\05SEP1.SGM
05SEP1
Federal Register / Vol. 83, No. 172 / Wednesday, September 5, 2018 / Proposed Rules
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.
requirements and financial terms (e.g.,
fees or payment terms) differ between a
lease and a rental agreement.
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.
§ 7.401
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:
[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]
PART 7—ACQUISITION PLANNING
BILLING CODE 6820–EP–P
1. The authority citation for part 7
continues to read as follows:
■
DEPARTMENT OF THE INTERIOR
Authority: 40 U.S.C. 121(c); 10 U.S.C.
chapter 137; and 51 U.S.C. 20113.
Fish and Wildlife Service
2. Revise section 7.400 to read as
follows:
■
daltland on DSKBBV9HB2PROD with PROPOSALS
§ 7.400
50 CFR Part 17
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
VerDate Sep<11>2014
16:17 Sep 04, 2018
Jkt 244001
[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
Fish and Wildlife Service,
Interior.
ACTION: Proposed rule.
AGENCY:
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
SUMMARY:
PO 00000
Frm 00022
Fmt 4702
Sfmt 4702
45073
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: https://
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 https://
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
E:\FR\FM\05SEP1.SGM
05SEP1
]]>Agencies
[Federal Register Volume 83, Number 172 (Wednesday, September 5, 2018)]
[Proposed Rules]
[Pages 45072-45073]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-19177]
[[Page 45072]]
=======================================================================
-----------------------------------------------------------------------
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: https://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 https://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
Off-the-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,
[[Page 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
0
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.
0
2. Revise section 7.400 to read as follows:
Sec. 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.
Sec. 7.401 [Amended]
0
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.
0
3. Amend section 7.403 by revising the section heading and paragraph
(b), and adding paragraph (c) to read as follows:
Sec. 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 [email protected]. Additional information to
assist with deciding whether to purchase or lease equipment is
available at https://www.gsa.gov/acquisition/purchasing-programs/gsa-schedules/list-of-gsa-schedules/schedule-51-vhardware-superstore/equipment-rental-and-leasing.
(c) See Special Guidance for Lease-purchase 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
