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Air Force and Interior Can Benefit from Additional Guidance When Deciding Whether to Lease or Purchase Equipment
GOVERNMENT ACCOUNTABILITY OFFICE WASHINGTON DC
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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
APPROVED FOR PUBLIC RELEASE