What factor might justify a lease versus a buy decision according to FAR regulations?

The consideration of potential obsolescence of equipment is a key factor in the decision to lease rather than buy under FAR regulations. When a piece of equipment has a high likelihood of becoming outdated or replaced by newer technologies, leasing may be more favorable than purchasing. This is particularly relevant for items that evolve rapidly, such as technology-based equipment. By leasing, an organization can avoid the financial burden and risk associated with owning equipment that may no longer be effective or efficient within a short period.

Leasing provides the flexibility to regularly update or replace equipment without a significant initial outlay or the challenge of reselling outdated assets. This approach is aligned with prudent fiscal management, allowing agencies to respond dynamically to shifts in technology and operational needs.

Other factors such as long-term cost savings might indicate a preference for purchasing, especially if the equipment has a long useful life and low risk of obsolescence. Availability of alternative products and vendor preferences may influence decisions but are less critical than the potential risks associated with obsolescence when considering a lease versus buy scenario.