# 7.401 Acquisition considerations.

1. (a) Agencies should consider whether to lease or purchase equipment based on a case-by-case evaluation of comparative costs and other factors. The following factors are the minimum that should be considered:

   1. (1) Estimated length of the period the equipment is to be used and the extent of use within that period.

   2. (2) Financial and operating advantages of alternative types and makes of equipment.

   3. (3) Cumulative rental payments for the estimated period of use.

   4. (4) Net purchase price.

   5. (5) Transportation and installation costs.

   6. (6) Maintenance and other service costs.

   7. (7) Potential obsolescence of the equipment because of imminent technological improvements.

2. (b) The following additional factors should be considered, as appropriate, depending on the type, cost, complexity, and estimated period of use of the equipment:

   1. (1) Availability of purchase options.

   2. (2) Potential for use of the equipment by other agencies after its use by the acquiring agency is ended.

   3. (3) Trade-in or salvage value.

   4. (4) Imputed interest.

   5. (5) Availability of a servicing capability, especially for highly complex equipment; e.g., can the equipment be serviced by the Government or other sources if it is purchased?