15 FAM 330
LEASE PROCEDURES
(CT:OBO-38; 12-11-2013)
(Office of Origin: OBO)
15 FAM 331 Operating Leases (OL)
(CT:OBO-38; 12-11-2013)
a. Posts must refer to 15 FAM 300 exhibits for lease contracting procedures.
b. USAID contracting officers must follow the standard
contracting procedures outlined in Automated Directives System (ADS) 535 and 15 FAM 300 found on the USAID website.
15 FAM 332 Capital Leases (CL)
(CT:OBO-38; 12-11-2013)
a. OBO considers a CL as the
functional equivalent of a purchase of real
property. All of the rent is budgeted up
front instead of annually over the life of
the lease. Such leases may be appropriate and desirable under one or more of
the following conditions:
(1) When the post would normally buy such a property,
but the fee simple title (full rights of ownership and transfer in perpetuity)
is unobtainable by reason of legal or regulatory prohibitions of the host or
municipal government; or
(2) When the advance
payment of the lease cost is considered to be reasonable in view of the
expected length of occupancy and the U.S. Government intends to make a
substantial investment in major alterations to the building, its systems or structural elements, or
add new space to the building, or reconfigure the property to meet
its needs.
b. OBO and post need to perform the same due diligence on a
property made the subject of a capital lease as they would for a property to be
purchased.
c. Normally, it is in the U.S. Governments interest
to own or execute a capital lease for chanceries, residences for ambassadors and deputy chiefs of mission,
and Marine guard residences because of the
expected lengthy occupation and significant
modifications required.
d. Real property capital
leases funded with Department of State appropriations are managed and tracked
in accordance with 4 FAM 737.5-1, Capital Leases.
15 fam 333 through 339 unassigned