FAR 7.400—Scope of subpart.
Plain-English Summary
FAR 7.400 is a scope provision for the equipment-acquisition guidance in this subpart. It says the subpart implements section 555 of the FAA Reauthorization Act of 2018, so the rules in this area are not just internal policy—they are tied to a statutory requirement. It also explains when the guidance applies: when an agency is acquiring equipment and there is more than one available method of acquisition, such as purchase, lease, rental, or other permitted arrangements. Finally, it makes clear that the subpart covers both the initial acquisition of equipment and later actions to renew or extend existing equipment leases or rental agreements. In practice, this means contracting personnel must consider the full range of acquisition options and apply the subpart not only at the start of a requirement, but also when deciding whether to continue an existing equipment arrangement.
Key Rules
Implements statutory authority
This subpart carries out section 555 of the FAA Reauthorization Act of 2018. That means the guidance must be read as implementing a legal requirement, not merely offering optional best practice.
Applies to equipment acquisitions
The scope is limited to acquisitions of equipment. It is intended to guide how agencies approach equipment needs when choosing among available acquisition methods.
Covers multiple acquisition methods
The guidance applies when more than one method of acquisition is available. In those situations, the agency must use the subpart’s direction to evaluate and select the appropriate method.
Includes lease and rental actions
The subpart expressly reaches equipment leases and rental agreements. It is not limited to outright purchases or initial procurement decisions.
Applies to renewals and extensions
The scope includes renewal or extension of existing equipment leases or rental agreements. Agencies must therefore apply the guidance again when deciding whether to continue an existing arrangement.
Responsibilities
Contracting Officer
Apply this subpart whenever acquiring equipment if multiple acquisition methods are available, and when considering renewal or extension of an existing equipment lease or rental agreement. Ensure the acquisition approach is evaluated under the guidance implementing the statutory requirement.
Agency
Use the subpart as the governing framework for equipment acquisition decisions and for continuing existing lease or rental arrangements. Ensure internal acquisition planning and approvals reflect the statutory and regulatory direction.
Requirement Owner / Program Office
Identify equipment needs early enough to allow consideration of all available acquisition methods, including purchase, lease, rental, renewal, or extension. Provide the information needed to support the acquisition strategy.
Contractor / Lessor / Rental Vendor
Understand that equipment arrangements may be reviewed under this subpart at both initial award and later renewal or extension stages. Be prepared for the government to evaluate whether continuing the arrangement remains appropriate.
Practical Implications
This section matters because it tells acquisition teams to compare available ways of getting equipment, rather than defaulting to one method.
A common pitfall is treating lease renewals or extensions as routine administrative actions; this scope provision makes clear they are covered too.
Contracting officers should not assume the subpart applies only to new buys—existing rental and lease agreements can trigger the same analysis.
Program offices should plan ahead, because the choice among acquisition methods may affect cost, flexibility, and timing.
Because the subpart implements a statute, agencies should be careful to follow it consistently and document the basis for the chosen acquisition method.
Official Regulatory Text
This subpart— (a) Implements section 555 of the FAA (Federal Aviation Administration) Reauthorization Act of 2018 ( Pub. L. 115-254 ); (b) Provides guidance when acquiring equipment and more than one method of acquisition is available for use; and (c) Applies to both the initial acquisition of equipment and the renewal or extension of existing equipment leases or rental agreements.