If your business leases equipment to commercial or industrial companies, leasing equipment to the government can be a different and more complex process, including federal, state and municipal governments. In particular, government methods of equipment and transaction evaluation often require more detailed documentation, involving more bureaucratic hurdles.

Before entering this highly competitive state, local or federal government equipment leasing market, understand potential roadblocks and requirements that include:

1. Government procurement regulations, including Federal Acquisition Requirements (FAR)
2. The document review process
3. Custom-tailored government programs for vendors
4. GSA (Government Services Administration) scheduling for federal government leasing contracts

When leasing equipment to federal, state or municipal governments, there are several types of leasing agreements to consider, such as:

1. Straight or true government equipment leasing
2. Equipment leasing with an option to purchase
3. Lease to ownership plan
4. Tax-exempt lease purchase agreement, mostly pertaining to municipal equipment leasing

Equipment leasing agreements may be aimed at specific services or departments of federal, state or municipal governments, including:

1. Buildings and facilities
2. Communications
3. Construction
4. Emergency response
5. Engineering, testing and measuring
6. Vehicle fleets
7. Green and environmental solutions
8. Ground maintenance and landscaping
9. Highways, streets and bridges
10. Information management and technology
11. Material handling
12. Office equipment and supplies
13. Parks and recreation
14. Snow and ice control
15. Traffic and parking control
16. Waste management
17. Worker protection

Action Steps
The best contacts and resources to help you get it done

Learn about the types of government equipment leasing agreements available for vendors

Specific types of government equipment leasing agreements and government equipment lease rates apply to specific lease transactions with federal, state and/or local governments.

I recommend: A good starting point when learning about government equipment leasing is the glossary of leasing terms from Chase Bank. To learn about leasor competitors, GovPro.com, an information resource for doing business with government agencies, offers a directory of vendors leasing equipment to the government, including specific equipment category areas within federal, state and local governments. This may also be a good resource for learning about competitor government equipment lease rates. In addition, Chase Bank offers vendor consultation services for specific types of government equipment leases. Access Equipment Leasing, a leasing consultant, has an easy-to-understand overview of federal, state and municipal government equipment leasing.

Learn the specifics on leasing equipment to the government

Find out about federal equipment leasing to the US General Services Administration (GSA) and other agencies.

I recommend: FSM Leasing is a leading government leasing consultant service that acts as a third-party agent for the vendor in the transaction process of federal government equipment leasing, including negotiating government equipment rates. Or, you can do it yourself and learn how your company can get on the GSA Schedule as a leasor/contractor. GSA recommends that vendors participate in the GSA Schedules Program or take online courses from the GSA Center for Acquisition Excellence. Or, you can participate in the vendor "Pathway to Success" training web seminar. GSA Advantage is a purchasing service for federal employees offering equipment from vendors and advice on business issues, such as government equipment rates. See a typical GSA government lease contract, in this case for the Hertz Corporation (PDF). Learn about leases and lease purchases of capital assets via the Office of Federal Procurement Policy (OFPP) (PDF). Read the specific part of the Federal Acquisition Regulation (FAR) regarding equipment lease or purchase.

Find out how your business can do equipment leasing to state government and municipalities

For how-to advice, visit websites of major financial institutions and corporations that deal with state government leasing and city government leasing.

I recommend: As an example of state leasing, you can read the California Legislative Analyst's Office website about the state's GS $Mart Program geared to the issue of state government leasing and purchasing of equipment. See the Sony Corporation website for a corporate view dealing with state and city leasing agreements regarding equipment and products. For a financial view of leasing equipment and products to state and municipal governments, read extensive information from Bank of America Government Services. Find out about state and local government tax-exempt leasing from GE Capital Energy Services Group.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Typical equipment leased by the GSA includes IT equipment, office furniture, and construction and road maintenance equipment.