FAR 52.208-5—Condition of Leased Vehicles.
Plain-English Summary
FAR 52.208-5, Condition of Leased Vehicles, sets the minimum condition and safety requirements for motor vehicles leased to the Government. It requires each leased vehicle to be of good quality, in safe operating condition, and compliant with applicable Federal Motor Vehicle Safety Standards and state safety regulations. The clause also establishes the Government’s right to promptly accept or reject vehicles after receipt, and it requires the Contracting Officer to notify the contractor in writing if a vehicle does not comply with the contract. If the contractor does not replace the vehicle or correct the defects as directed, the Government may either obtain correction or a substitute vehicle and charge the contractor for the excess cost, or terminate the contract for default. In practice, this clause protects the Government from unsafe or nonconforming leased vehicles and gives the contracting activity a clear remedy path when a leased vehicle fails to meet contract requirements. It applies to solicitations and contracts for leasing motor vehicles, except when the vehicles are leased in foreign countries.
Key Rules
Vehicles must be safe and compliant
Each leased vehicle must be in good quality and safe operating condition. It must also comply with the Federal Motor Vehicle Safety Standards in 49 CFR part 571 and any applicable state safety regulations.
Clause applies to vehicle leases
The clause is prescribed for solicitations and contracts for leasing motor vehicles. It does not apply when the motor vehicles are leased in foreign countries.
Government must act promptly
The Government must accept or reject the vehicles promptly after receipt. This creates a timely inspection and acceptance process so defects are identified quickly.
CO must notify noncompliance
If the Contracting Officer determines a vehicle does not comply with the contract, the Contracting Officer must promptly notify the contractor in writing. This written notice is the trigger for contractor corrective action.
Contractor must replace or correct
If a vehicle is defective or noncompliant, the contractor must replace the vehicle or correct the defects as required by the Contracting Officer. Failure to do so exposes the contractor to Government remedies.
Government remedies for failure
If the contractor does not cure the problem, the Government may correct the defect or lease a similar vehicle elsewhere and charge the contractor for any excess costs. Alternatively, the Government may terminate the contract under the Default clause.
Responsibilities
Contracting Officer
Ensure the clause is included in covered vehicle-lease solicitations and contracts; determine whether a furnished vehicle complies with the contract; promptly notify the contractor in writing of any noncompliance; direct replacement or correction as appropriate; and, if the contractor fails to cure, pursue excess-cost recovery or default termination.
Government receiving activity / inspection personnel
Inspect leased vehicles promptly after receipt and decide whether to accept or reject them in a timely manner; identify obvious safety or quality defects and elevate issues to the Contracting Officer.
Contractor
Provide vehicles that are of good quality, safe to operate, and compliant with FMVSS and applicable state safety regulations; replace vehicles or correct defects when directed by the Contracting Officer; and bear the risk of excess costs or termination if it fails to cure noncompliance.
Agency / requiring activity
Specify vehicle needs clearly enough to support compliance review and ensure leased vehicles are used only under contracts where this clause applies; coordinate with the Contracting Officer on inspection and acceptance issues.
Practical Implications
This clause is mainly about safety and quick correction, so contractors should expect close inspection at delivery and should not assume minor defects will be overlooked.
The Government’s right to reject promptly means acceptance should not be delayed; if a vehicle is unsafe or noncompliant, the issue should be documented immediately.
Written notice from the Contracting Officer matters because it formally starts the contractor’s obligation to replace or fix the vehicle.
If the contractor does not act quickly, the Government can mitigate its own operational disruption by leasing a substitute vehicle and charging the contractor the difference.
For contractors, the biggest pitfalls are delivering vehicles that do not meet safety standards, failing to maintain compliance during the lease term, and ignoring or delaying response to a CO’s written notice.
Official Regulatory Text
As prescribed in 8.1104 (b) , insert the following clause in solicitations and contracts for leasing motor vehicles, unless the motor vehicles are leased in foreign countries: Condition of Leased Vehicles (Apr 1984) Each vehicle furnished under this contract shall be of good quality and in safe operating condition, and shall comply with the Federal Motor Vehicle Safety Standards (49 CFR571) and State safety regulations applicable to the vehicle. The Government shall accept or reject the vehicles promptly after receipt. If the Contracting Officer determines that any vehicle furnished is not in compliance with this contract, the Contracting Officer shall promptly inform the Contractor in writing. If the Contractor fails to replace the vehicle or correct the defects as required by the Contracting Officer, the Government may- (a) By contract or otherwise, correct the defect or arrange for the lease of a similar vehicle and shall charge or set off against the Contractor any excess costs occasioned thereby; or (b) Terminate the contract under the Default clause of this contract. (End of clause)