Q = Question; A = Answer
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 188.8.131.52, covers leases. (Revised: May, 2010)
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)
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)