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T3W_09

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  1. Historically our office has leased equipment without performing a lease vs. buy analysis. Now that we have done the analysis, it is clear that we should buy. Of course, we do not have funds to replace all of the leased equipment at once and would like to begin leasing with the option to purchase as described in FAR clause 52.207-5, Option to Purchase Equipment. 52.207-5, when included appears to give the Government the unilateral right to purchase at any point during the lease. Paragraph (c) references, the purchase conversion cost (purchase price minus total purchase option credits accumulated during the period of lease, calculated by "A FORMULA CONTAINED ELSEWHERE IN THIS CONTRACT.") Does anyone have experience with lease with the option to purchase and have a sample formula to calculate a purchase conversion cost that they would be willing to share?
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