FAR 8.1101—Definitions.
Plain-English Summary
FAR 8.1101 provides the definitions that control how the motor vehicle leasing subpart is read and applied. It defines two core terms: "leasing," which includes acquisition of motor vehicles by hire or rent and excludes purchase from private or commercial sources, and "motor vehicle," which means equipment mounted on wheels and designed for highway and/or land use, either powered by its own self-contained power unit or designed to be towed and used with self-propelled equipment. These definitions matter because they determine what transactions fall within the subpart’s coverage and what kinds of equipment are treated as motor vehicles for acquisition purposes. In practice, contracting officers and contractors must use these definitions to decide whether a contemplated arrangement is a lease rather than a purchase, and whether the item being acquired is a motor vehicle subject to the subpart’s rules. Clear classification at the outset helps avoid using the wrong acquisition approach, applying the wrong clauses, or missing requirements that only apply to leased motor vehicles.
Key Rules
Leasing includes hire and rent
For purposes of this subpart, leasing is not limited to formal lease agreements. It also includes transactions described as "hire" or "rent" when the government acquires a motor vehicle under those arrangements.
Leasing excludes purchases
The definition of leasing applies only to acquisition of motor vehicles other than by purchase from private or commercial sources. If the government is buying the vehicle outright, this subpart’s leasing definition does not apply.
Motor vehicle must be wheeled equipment
A motor vehicle is an item of equipment mounted on wheels and designed for highway and/or land use. The definition focuses on the physical form and intended use of the equipment.
Self-powered vehicles qualify
An item qualifies as a motor vehicle if it derives power from a self-contained power unit. This covers vehicles that operate on their own power, such as many cars, trucks, and similar equipment.
Towed equipment can qualify
Equipment designed to be towed by and used in conjunction with self-propelled equipment is also included. This captures trailers and similar towable items when they are intended for use with powered equipment.
Responsibilities
Contracting Officer
Determine whether the contemplated acquisition is a lease, hire, rent, or purchase, and whether the item meets the definition of a motor vehicle under this subpart before applying the subpart’s requirements.
Contractor
Understand whether its proposed offering is being treated as a leased motor vehicle arrangement and ensure its proposal, pricing, and performance approach align with the applicable leasing requirements.
Agency/Requirement Owner
Describe the need accurately so the acquisition team can identify whether the requirement involves a motor vehicle lease or a different type of procurement.
Practical Implications
The first practical question is classification: if the government is acquiring a vehicle through hire or rent, this subpart may apply even if the agreement is not labeled a "lease."
Do not assume every wheeled item is a motor vehicle; the item must be designed for highway and/or land use and fit one of the two power/use categories in the definition.
Towable equipment can be covered, so trailers and similar items should be checked carefully rather than excluded automatically.
Misclassifying a purchase as a lease, or vice versa, can lead to using the wrong acquisition procedures and contract terms.
Because the definition is narrow and specific, acquisition personnel should confirm the item’s intended use and power source early in the acquisition planning process.
Official Regulatory Text
As used in this subpart- Leasing means the acquisition of motor vehicles, other than by purchase from private or commercial sources, and includes the synonyms "hire" and "rent." Motor vehicle means an item of equipment, mounted on wheels and designed for highway and/or land use, that- (1) Derives power from a self-contained power unit; or (2) Is designed to be towed by and used in conjunction with self-propelled equipment.