Press Releases

Carter Introduces Legislation to Align Federal Acquisition Practices with the Private Sector

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Washington, July 7, 2017 | comments
Congressman Earl L. "Buddy" Carter (GA-01) has introduced legislation to align the federal government's acquisition practices with those of the private sector while delivering taxpayer savings in the process. 

Currently, 99% of heavy equipment used by the federal government is purchased due to Federal Acquisition Regulations predominately only allowing leasing or purchasing of heavy equipment. The Government Accountability Office (GAO) found that federal agencies many times did not even perform a lease versus purchase analysis when making acquisition decisions leading to purchasing for nearly all decisions.

Carter's legislation works to implement common sense reforms to encourage renting when possible to provide the government significant cost savings.

"Private sector businesses, as well as state and local governments, are turning to rentals instead of purchases or leases of heavy equipment across the country," said Carter. "This has led to significant cost savings and the federal government should do the same for taxpayers. I am proud to introduce this legislation because it's past time for the federal government to get in line with the cost savings measures of businesses and state governments throughout the nation. I urge my colleagues to join me in this common sense mission to save taxpayer dollars through rentals."

Background:

The private sector continues to increase the use of rentals when procuring heavy equipment to decrease costs. It has been estimated that private sector companies rent nearly 60% of heavy equipment. In comparison, the federal government purchases 99% of heavy equipment. 

Additionally, state and local governments have used rentals to save taxpayer dollars. The Texas Department of Transportation estimates that its rental program has resulted in a positive financial impact of $10.8 million as of fiscal year 2016. 

Carter's legislation, the Federal Acquisition Savings Act, requires the heads of executive agencies to consider equipment rental in any cost-effective analysis opposed to leasing or purchasing.  
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