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  • Question

    Is rental of heavy equipment without operator considered a products purchase or service purchase.


    Answer

    Ref: Subpart 8.11 -- Leasing of Motor Vehicles

    “Leasing” means the acquisition of motor vehicles, other than by purchase from private or commercial sources, and includes the synonyms “hire” and “rent.

    Therefore leasing of the motor vehicle equipment is a service.

    FAR 2.101: ”“Supplies” means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing.

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