Sign In
  • Question

    Is a lease defined as a service contract? 10 USC 2410a puts several services contracts in one subset and leases in another.


    Examining the broader question as to whether as lease can be construed as a service contract, the FAR clearly defines what a service contract is at Part 37.  In part, it reads as follows:
    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 or supply. [Italics added]
    Leases are addressed at FAR Subpart 7.4. Be aware that FAR 7.4 only addresses equipment; not real property. Real property leases entered into between the US Government and the property holder or their agent  are addressed by the GSA regulations.
    So, if the purpose of the contract is for a lease, it clearly cannot be construed as a service contract based on the definition of a service contract set forth above.

    The question references two statutes as somehow bearing upon the matter.  In examining 10 USC 2410a, “Contracts for periods crossing fiscal years: severable service contracts; leases of real or personal property”, the only matter that is addressed is the obligation of funds.  Services and leases are clearly identified as separate topics and are not commingled in any way so as to lead one to think they may be the same.

    Reference was also made to 41 USC 253l as having a bearing on the question.  A review of this statute addresses service contracts and the severability thereof. It does not address leases.


    Open full Question Details
Bot Image