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    Should leased equipment be acquired as a service or supply? Please provide supporting directives. Thanks.


    Answer

    A phone call with the question submitter revealed the context of this question was "do we need to assign a COR".

    This one of those it kinda depends scenario's... 

    See the definition of "supplies" at FAR 2.101: 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,

    The FAR (DFARS and AFARS included), do not provide a definition of "services", but it does define a "services contract" at FAR 37.101: Service contract means a contract that directly engages the time and effort of a contractor whose primary purpose is to perform an identifiable task rather than to furnish an end item of supply. A service contract may be either a nonpersonal or personal contract. It can also cover services performed by either professional or nonprofessional personnel whether on an individual or organizational basis. Some of the areas in which service contracts are found include the following: (note: the examples in the FAR are not provided here, but they do not include "leasing equipment".

    There is a procurement instrument "L" for "lease agreements", see the table found at FAR 4.1603(a)(3).

    From purely a contract (FAR, DFARS, etc.) standpoint it would depend on if any work associated with the lease required labor law related clauses be included in the solicitation and contract. See FAR part 22 and FAR subpart 22.10.

    For the purposes of reporting, see the Adaptive Acquisition Framework (AAF) and the Acquisition of Services Pathway. Then check the Equipment Related Services portfolio/wing for mor guidance on services related to the rental or lease of equipment.

    Bottom line, if there are services that need to be done as a result of the lease (service calls, etc.), then yes it should probably have a COR assigned. See DFARS PGI 201.602-2(d) for appointing CORs.

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