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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 4220.1E, and so your procurement process to enter into a lease must comply with the requirements of 4220.1E, including paragraph 7.d., which requires 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 4220.1E. The Best Practices Procurement Manual, section 1.3.3.7, covers leases. The BPPM is available online at: http://www.fta.dot.gov/funding/thirdpartyprocurement/grants_financing_6037.html
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