DAU Contracting Certification Practice Exam

The determination of whether to lease or purchase equipment is made prior to initially acquiring the equipment for several key reasons. It is during this phase that agencies can accurately analyze their requirements, budget constraints, and the total cost of ownership for either option, which includes initial costs, ongoing maintenance, and potential depreciation.

By considering the leasing versus purchasing decision early on, agencies can align their procurement strategy with their operational needs and financial resources. This proactive decision-making aspect allows agencies to optimize their asset management and ensure they choose the most effective and economical way to obtain the resources required for their operations.

In contrast, other options suggest timing that doesn't align with best practices in procurement. For example, waiting until a contract award or the expiration of an existing lease misses the opportunity for thorough consideration of all factors affecting the best choice. Determining this only once an urgent need is established can lead to hasty decisions that may not be in the agency's best interest, as it limits the analysis to immediate needs rather than a comprehensive view of long-term efficiency.