FAR 8.1104—Contract clauses.
Plain-English Summary
FAR 8.1104 tells contracting personnel which clauses must be included when the Government leases motor vehicles, and it creates a special clause package for that acquisition type. It covers four vehicle-lease-specific clauses: Vehicle Lease Payments, Condition of Leased Vehicles, Marking of Leased Vehicles, and a tagging clause for vehicles leased more than 60 days. It also requires inclusion of the standard FAR provisions and clauses that apply to fixed-price supply contracts, but it specifically carves out four clauses that do not apply in this leasing context: Variation in Quantity, Payments, Contracts for Materials, Supplies, Articles, and Equipment, and Responsibility for Supplies. In practice, this section is a clause-selection rule that helps ensure lease solicitations and contracts address payment, condition, identification, and tagging of leased vehicles while avoiding supply-contract clauses that do not fit a vehicle lease. It matters because missing a required clause can create administration problems, weaken the Government’s ability to enforce lease terms, or create inconsistent obligations for the contractor and the agency. The section also makes clear that these requirements do not apply when the vehicles are leased in foreign countries, so contracting officers must check the place of performance before using this clause set.
Key Rules
Use vehicle-lease clauses
For solicitations and contracts for leasing motor vehicles, the contracting officer must insert the clauses at 52.208-4, 52.208-5, and 52.208-6. These clauses address lease payments, the condition of the vehicles, and marking requirements specific to leased vehicles.
Add tagging clause for longer leases
For vehicles leased over 60 days, the contracting officer must include a clause substantially the same as 52.208-7, Tagging of Leased Vehicles. The rule ties the tagging requirement to the duration of the lease and references the applicable transportation property management regulation.
Include fixed-price supply clauses
The solicitation and contract must also include the provisions and clauses prescribed elsewhere in the FAR for supplies when a fixed-price contract is contemplated. This means the normal fixed-price supply clause framework applies unless specifically excluded.
Exclude four inapplicable clauses
Even though fixed-price supply clauses generally apply, the contracting officer must not include 52.211-16, Variation in Quantity; 52.232-1, Payments; 52.222-20, Contracts for Materials, Supplies, Articles, and Equipment; or 52.246-16, Responsibility for Supplies. These clauses are not used for this leasing situation.
Foreign-country leases are exempt
The clause requirements in this section apply unless the motor vehicles are leased in foreign countries. If the lease is performed overseas, the contracting officer must look to the applicable foreign-country rules rather than this domestic clause set.
Responsibilities
Contracting Officer
Identify whether the acquisition is for leasing motor vehicles and whether the lease is in a foreign country. Insert the required vehicle-lease clauses, include the applicable fixed-price supply clauses, and omit the four excluded clauses.
Contractor
Comply with the lease terms governing payment, vehicle condition, marking, and tagging. Provide vehicles and related documentation consistent with the incorporated clauses and maintain the leased vehicles as required by the contract.
Agency/Acquisition Team
Support correct clause selection by confirming the acquisition strategy, lease duration, and place of performance. Ensure the solicitation and contract package reflect the proper regulatory requirements for leased vehicles.
Practical Implications
Clause selection is critical in vehicle leases; using a standard supply contract template without tailoring can result in the wrong payment, inspection, or responsibility terms.
The 60-day threshold for tagging is easy to miss, so contracting officers should track lease duration carefully and ensure the tagging clause is added when required.
Because the section excludes certain supply clauses, do not assume every fixed-price supply clause belongs in a vehicle lease; the listed exclusions are deliberate and should be checked before award.
Foreign-country leases require a separate analysis, so teams should verify the place of performance early to avoid applying the wrong domestic clause set.
Missing the marking or tagging requirements can create property accountability and identification problems during performance, acceptance, or audits.
Official Regulatory Text
Insert the following clauses in solicitations and contracts for leasing of motor vehicles, unless the motor vehicles are leased in foreign countries: (a) The clause at 52.208-4 , Vehicle Lease Payments. (b) The clause at 52.208-5 , Condition of Leased Vehicles. (c) The clause at 52.208-6 , Marking of Leased Vehicles. (d) A clause substantially the same as the clause at 52.208-7 , Tagging of Leased Vehicles, for vehicles leased over 60 days (see subpart B of 41 CFR part 102 -34). (e) The provisions and clauses prescribed elsewhere in the FAR for solicitations and contracts for supplies when a fixed-price contract is contemplated, but excluding- (1) The clause at 52.211-16 , Variation in Quantity; (2) The clause at 52.232-1 , Payments; (3) The clause at 52.222-20 , Contracts for Materials, Supplies, Articles, and Equipment; and (4) The clause at 52.246-16 , Responsibility for Supplies.