Mississippi Administrative Code
Title 12 - Finance and Administration
Part 6 - Office of Purchasing, Travel and Fleet Management
Chapter 3 - Source Selection and Contract Formation
Sec2 12-6-3.117 - Lease Contracts
Sec2 12-6-3.117.05 - Multi-year or Short-term Rental Lease Agreements
Section 12-6-3.117.05.2 - Procedures

Subsection 2.103.03, Rental, Lease, Lease-Purchase of Equipment and Furniture, sets forth the procedures for state agencies to follow when entering into a rental agreement.

Commentary

Careful evaluation of the economics of leasing versus buying is required prior to making the decision to award a lease or lease-purchase contract. Such evaluation examines the comparative costs of leasing and the costs of outright purchase and maintenance, projected as total costs for the estimated use of the item, and the consideration of other pertinent factors such as continuing need and functional obsolescence or inefficiencies which could result from technological advancements.

The question of leasing versus buying involves policy matters important to the budget function as well as to procurement, and the budget and procurement entities need to collaborate in establishing criteria or guidelines applicable to lease and lease-purchase.

Any contract that by the terms of such contract obligates the lessee to make payments for any period past the last day of the fiscal year in which the contract was entered into shall include a non-appropriation clause.