[Federal Register: June 14, 1999 (Volume 64, Number 113)]
[Rules and Regulations]               
[Page 31732]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14jn99-7]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF DEFENSE

48 CFR Part 207

[DFARS Case 99-D012]

 
Defense Federal Acquisition Regulation Supplement; Contract 
Actions for Leased Equipment

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Director of Defense Procurement has issued a final rule 
amending the Defense Federal Acquisition Regulation Supplement (DFARS) 
to add guidance pertaining to funding of contract actions for leased 
equipment. The guidance emphasizes that capital leases are essentially 
installment purchases of property and, therefore, must use procurement 
funding.

EFFECTIVE DATE: June 14, 1999.

FOR FURTHER INFORMATION CONTACT: Mr. Michael Pelkey, Defense 
Acquisition Regulations Council, PDUSD (A&T) DP (DAR), IMD 3D139, 3062 
Defense Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0131; 
telefax (703) 602-0350. Please cite DFARS Case 99-D012.

SUPPLEMENTARY INFORMATION:

A. Background

    This final rule adds a new section at DFARS 207.471 to address 
funding of contract actions for leased equipment. The new text provides 
a reference to DoD Financial Management Regulation 7000.14-R and 
specifies that procurement funds must be used for capital leases.
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

    This final rule does not constitute a significant revision within 
the meaning of FAR 1.501 and Public Law 98-577 and publication for 
public comment is not required. However, comments from small entities 
concerning the affected DFARS subpart will be considered in accordance 
with 5 U.S.C. 610. Such comments should cite DFARS Case 99-D012.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the rule does 
not impose any information collection requirements that require the 
approval of the Office of Management and Budget under 44 U.S.C. 3501, 
et seq.

List of Subjects in 48 CFR Part 207

    Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.

    Therefore, 48 CFR Part 207 is amended as follows:
    1. The authority citation for 48 CFR Part 207 continues to read as 
follows:

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

PART 207--ACQUISITION PLANNING

    2. Section 207.471 is added to read as follows:


207.471  Funding requirements.

    (a) Fund leases in accordance with DoD Financial Management 
Regulation (FMR) 7000.14-R, Volume 2A, Chapter 1.
    (b) DoD leases are either capital leases or operating leases. The 
difference between the two types of leases is described in FMR 7000.14-
R, Volume 4, Chapter 7, Section 070308.
    (c) Capital leases are essentially installment purchases of 
property. Use procurement funds for capital leases.

[FR Doc. 99-15029 Filed 6-11-99; 8:45 am]
BILLING CODE 5000-04-M