49 C.F.R. § 639.21 Determination of cost-effectiveness.
Title 49 - Transportation
(a) To qualify a lease for capital assistance, a recipient must— (1) Make a written comparison of the cost of leasing the asset with the cost of purchasing or constructing it; and (2) Certify to FTA before entering into the lease or before receiving a capital grant for the asset, whichever is later, that obtaining the asset by lease is more cost-effective than purchase or construction of such asset. (b) For purposes of this part, obtaining the asset by lease is more cost-effective than purchase or construction when the lease cost calculated under §639.25 of this part is less than the purchase cost calculated under §639.23 of this part. (c) If a recipient is unable to perform the prescribed cost-effectiveness comparison as described in this subpart, it may ask FTA to approve an alternate form of cost-effectiveness evaluation.
Title 49: Transportation
PART 639—CAPITAL LEASES
Subpart C—Cost-Effectiveness
§ 639.21 Determination of cost-effectiveness.
