Press Releases

House Unanimously Passes Carter's Legislation to Align Federal Acquisition Practices with the Private Sector

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Washington, November 13, 2017 | comments
Today the United States House of Representatives unanimously passed Congressman Earl L. "Buddy" Carter's (R-Ga.) 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.
 
"This measure will save taxpayer dollars and I am glad my colleagues joined me in passing this bill today," said Carter. "It's time for the federal government to get in line with private sector businesses, as well as state and local governments, who are turning to rentals of heavy equipment for significant cost savings. With our national debt out of control, this bill is exactly the kind of step we must start taking. I urge my colleagues in the Senate to work with us to rein in our national debt with commonsense solutions."

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 for equipment procurement.   
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