Accession Number:

ADA556884

Title:

Air Force and Interior Can Benefit from Additional Guidance When Deciding Whether to Lease or Purchase Equipment

Descriptive Note:

Corporate Author:

GOVERNMENT ACCOUNTABILITY OFFICE WASHINGTON DC

Personal Author(s):

• Woods, William T.
• Neumann, John
• Ahearn, Marie
• Drucker, Jessica
• Greifner, Laura
• Kennon, Julia
• Walker, J. A.

Report Date:

2012-02-07

Pagination or Media Count:

19.0

Abstract:

Federal agencies spend more than 200 billion per year, on average, to lease or purchase equipment, with purchases accounting for nearly all of this spending.1 With agencies facing new fiscal austerity challenges, it is increasingly important that every dollar is spent cost effectively. The Federal Acquisition Regulation FAR provides that when agencies are seeking to obtain equipment, they should consider whether it is more economical to lease equipment rather than purchase it as a component of acquisition planning. This is known as a lease versus purchase analysis. You requested that we examine how this process is working. As agreed with your staff, we focused on one defense and one civilian agency, the Department of the Air Force Air Force and the Department of the Interior Interior. We determined 1 the extent to which these agencies perform lease versus purchase analyses for equipment, and 2 the role the General Services Administration GSA plays in assisting agencies with making lease versus purchase decisions

Descriptors:

• *ACQUISITION
• *LEASING
• *PROCUREMENT
• ACCOUNTING
• AIR FORCE
• CONTROL
• DECISION MAKING
• DEFENSE SYSTEMS
• GUIDANCE
• INTERNAL
• LOW COSTS
• PLANNING
• UNITED STATES GOVERNMENT

Subject Categories:

• Economics and Cost Analysis

Distribution Statement:

APPROVED FOR PUBLIC RELEASE