FAR 8.1103—Contract requirements.
Plain-English Summary
FAR 8.1103 tells contracting officers what must be written into every contract for leasing motor vehicles. It covers the contract’s scope, how lease payments are calculated, the number and type of vehicles and required equipment/accessories, who provides operating consumables like gasoline, motor oil, and antifreeze, who performs maintenance, how State and local laws and regulations apply, and who is responsible for emergency repairs and services. The purpose is to make vehicle lease terms clear up front so both the Government and the contractor understand performance expectations, cost responsibilities, and compliance obligations. In practice, this section helps prevent disputes over vehicle condition, operating costs, maintenance duties, and roadside or emergency support. It also ensures the contract addresses local legal requirements that may affect vehicle use and operation. For contracting officers, this is a mandatory contract-content checklist; for contractors, it defines the operational and financial risks they are accepting.
Key Rules
Include required lease terms
Each motor vehicle lease contract must expressly address the items listed in the rule. These are not optional boilerplate topics; the contracting officer must ensure they are covered in the contract document.
State the contract scope
The contract must describe the scope of the leasing arrangement so the parties know exactly what vehicles, services, and obligations are included. This reduces ambiguity about what the contractor must provide and what the Government is buying.
Explain payment method
The contract must identify how lease payments will be computed. This should make the pricing basis clear, such as fixed monthly rates, mileage-based adjustments, or other agreed methods.
List vehicles and equipment
The contract must specify the number and type of vehicles required, along with the equipment and accessories to be furnished with each vehicle. This ensures the Government receives the correct fleet configuration and standard features.
Assign operating consumables
The contract must state whether the contractor or the Government will furnish gasoline, motor oil, antifreeze, and similar items. This allocation matters because it affects total cost, logistics, and day-to-day vehicle operation.
Address maintenance duties
Unless the contracting officer determines Government performance is more economical, the contract must state that the contractor will perform all maintenance on the vehicles. The default expectation is contractor maintenance unless a documented economy determination supports Government performance.
Cover legal compliance
The contract must state how pertinent State and local laws and regulations apply and which party is responsible for compliance. This is important because vehicle leasing often involves registration, inspection, safety, and operational rules that vary by location.
Define emergency support roles
The contract must assign responsibility for emergency repairs and services. This should make clear who responds to breakdowns, roadside incidents, and urgent repair needs, and who pays for those services.
Responsibilities
Contracting Officer
Include all required items in each motor vehicle lease contract, ensure the scope and payment method are clearly stated, specify vehicle quantities and equipment, assign consumable and emergency-service responsibilities, and determine whether it is more economical for the Government to perform maintenance before deviating from the default contractor-maintenance approach.
Contractor
Provide the leased vehicles and any required equipment/accessories, perform maintenance when assigned by the contract, furnish gasoline, motor oil, antifreeze, or similar items if the contract places that duty on the contractor, comply with applicable State and local laws and regulations as assigned, and provide emergency repairs and services if responsible under the contract.
Government
Accept the responsibilities assigned in the contract for consumables, maintenance, compliance, or emergency services when those duties are allocated to the Government, and ensure operational use of the vehicles aligns with the contract terms and applicable laws.
Practical Implications
This section functions like a mandatory checklist for vehicle lease contracts; missing one of the required items can create ambiguity or an incomplete contract file.
The maintenance clause is especially important: contractor maintenance is the default unless the Government documents that it is more economical to do the work itself.
Payment terms should be precise enough to avoid disputes over what drives the price, especially if the lease includes mileage, usage, or service-based adjustments.
State and local compliance should not be treated as generic boilerplate; vehicle registration, inspections, emissions, safety, and operating rules can vary significantly by location.
Emergency repair responsibilities should be spelled out in operational terms, including response expectations and cost responsibility, because breakdowns and roadside incidents are common sources of delay and disagreement.
Official Regulatory Text
Contracting officers shall include the following items in each contract for leasing motor vehicles: (a) Scope of contract. (b) Method of computing payments. (c) A listing of the number and type of vehicles required, and the equipment and accessories to be provided with each vehicle. (d) Responsibilities of the contractor or the Government for furnishing gasoline, motor oil, antifreeze, and similar items. (e) Unless it is determined that it will be more economical for the Government to perform the work, a statement that the contractor shall perform all maintenance on the vehicles. (f) A statement as to the applicability of pertinent State and local laws and regulations, and the responsibility of each party for compliance with them. (g) Responsibilities of the contractor or the Government for emergency repairs and services.