Third Party Procurement
Frequently Asked Questions
Q = Question; A = Answer
Q. Can Federal funds be used to lease a mobile office trailer? Our intention is to lease with an option to buy. Your guidance will be appreciated.
A. Federal funds may be used to lease instead of buy. Leases are considered third-party contracts within the meaning of FTA Circular 4220.1F, and so your procurement process to enter into a lease must comply with the requirements of 4220.1F, including the requirement that you first conduct a lease vs. buy analysis to determine the most cost effective option. You must also compete this award and apply the required Federal clauses to the lease per 4220.1F. The Best Practices Procurement Manual, section 220.127.116.11, covers leases. (Revised: May, 2010)
Q. Are there mandatory provisions that must be included in a lease (to use federal property)?
A. FTA requirements concerning the leasing of FTA funded property by a grantee (as lesser) are described in FTA Circular 5010.1D, Chapter IV 3.j. (1).
Please note that the grantee must obtain written approval from the regional FTA Office before leasing project equipment to a third party. The Circular also defines certain provisions that must be included in the lease itself once FTA approval has been granted. (Posted: February 18, 2011)
Q. Would it be permissible for an RFP to request for the Proposers to provide (a) the purchase rates for all equipment AND (b) the lease rates for all equipment; with the understanding that our agency will indeed lease the FCC radio frequency from the successful Proposer?
If this direction of the RFP is permissible, then our agency would be able to perform the lease vs. purchase analysis from the current market.
A. We believe your agency should request prices for lease vs. purchase alternatives in the RFP and choose the alternative that is the most advantageous to the agency. (Posted: January, 2013)