---
kind: "section"
citation: "48 C.F.R. § 7.401"
title: "48"
number: "7.401"
heading: "Acquisition considerations."
url: "https://uscodex.org/cfr/48/7.401"
---

# §7.401. Acquisition considerations.

- (a)
  - (1) Agencies shall acquire equipment using the method of acquisition most advantageous to the Government based on a case-by-case analysis of comparative costs and other factors in accordance with this subpart and agency procedures.
  - (2) The methods of acquisition to be compared in the analysis shall include, at a minimum—
    - (i) Purchase;
    - (ii) Short-term rental or lease;
    - (iii) Long-term rental or lease;
    - (iv) Interagency acquisition (see 2.101); and
    - (v) **Agency acquisition agreements, if applicable, with a State or local government.**
- (b)
  - (1) The factors to be compared in the analysis shall include, at a minimum:
    - (i) Estimated length of the period the equipment is to be used and the extent of use within that period;
    - (ii) Financial and operating advantages of alternative types and makes of equipment;
    - (iii) Cumulative rent, lease, or other periodic payments, however described, for the estimated period of use;
    - (iv) Net purchase price;
    - (v) Transportation, installation, and storage costs;
    - (vi) Maintenance, repair, and other service costs; and
    - (vii) **Potential obsolescence of the equipment because of imminent technological improvements.**
  - (2) The following additional factors should be considered, as appropriate, depending on the type, cost, complexity, and estimated period of use of the equipment:
    - (i) **Availability of purchase options.**
    - (ii) **Cancellation, extension, and early return conditions and fees.**
    - (iii) **Ability to swap out or exchange equipment.**
    - (iv) **Available warranties.**
    - (v) **Insurance, environmental, or licensing requirements.**
    - (vi) **Potential for use of the equipment by other agencies after its use by the acquiring agency is ended.**
    - (vii) **Trade-in or salvage value.**
    - (viii) **Imputed interest.**
    - (ix) Availability of a servicing capability, especially for highly complex equipment; e.g., can the equipment be serviced by the Government or other sources if it is purchased?
- (c) **The analysis in paragraph (a) is not required—**
  - (1) When the President has issued an emergency declaration or a major disaster declaration pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act ([42 U.S.C. 5121](/usc/42/5121.md) et seq.);
  - (2) In other emergency situations if the agency head makes a determination that obtaining such equipment is necessary in order to protect human life or property; or
  - (3) **When otherwise authorized by law.**

## Notes

### Amendments

[86 FR 31072, June 10, 2021]

### Authority

Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113.

### Source

Source: 48 FR 42124, Sept. 19, 1983, unless otherwise noted.

### Amendments

[86 FR 31072, June 10, 2021]