52.208-5 Condition of Leased Vehicles
Source: FAR 52.208-5 on acquisition.gov
Leased vehicles for government use must meet strict federal and state safety standards, and failure to provide compliant vehicles can result in contract termination or financial penalties.
Overview
FAR 52.208-5, Condition of Leased Vehicles, establishes the minimum quality and safety requirements for motor vehicles leased by the government (except those leased in foreign countries). The clause mandates that all leased vehicles must be of good quality, in safe operating condition, and compliant with both Federal Motor Vehicle Safety Standards (49 CFR 571) and applicable state safety regulations. The government is required to promptly inspect and accept or reject vehicles upon receipt. If a vehicle does not meet contract requirements, the Contracting Officer will notify the contractor in writing. The contractor must then either replace the vehicle or correct the defects. Failure to do so allows the government to either correct the defect at the contractor's expense or terminate the contract for default.
Key Rules
- Vehicle Quality and Safety
- All leased vehicles must be of good quality, safe, and compliant with federal and state safety standards.
- Inspection and Acceptance
- The government must promptly inspect and accept or reject vehicles upon delivery.
- Remedy for Noncompliance
- Contractors must replace or repair noncompliant vehicles upon written notice; failure to do so allows the government to seek remedies, including contract termination.
Responsibilities
- Contracting Officers: Inspect vehicles, notify contractors of noncompliance, and enforce remedies if defects are not corrected.
- Contractors: Provide vehicles that meet all quality and safety standards, and promptly address any deficiencies identified by the government.
- Agencies: Ensure oversight of vehicle quality and compliance with applicable regulations.
Practical Implications
- This clause ensures that government-leased vehicles are safe and reliable, protecting both government personnel and public safety.
- Contractors must be diligent in vehicle maintenance and regulatory compliance to avoid costly remedies or contract termination.
- Common pitfalls include failing to meet federal/state standards or not responding promptly to defect notifications.
As prescribed in 8.1104(b), insert the following clause in solicitations and contracts for leasing motor vehicles, unless the motor vehicles are leased in foreign countries:
Condition of Leased Vehicles (Apr 1984)
Each vehicle furnished under this contract shall be of good quality and in safe operating condition, and shall comply with the Federal Motor Vehicle Safety Standards (49 CFR571) and State safety regulations applicable to the vehicle. The Government shall accept or reject the vehicles promptly after receipt. If the Contracting Officer determines that any vehicle furnished is not in compliance with this contract, the Contracting Officer shall promptly inform the Contractor in writing. If the Contractor fails to replace the vehicle or correct the defects as required by the Contracting Officer, the Government may-
(a) By contract or otherwise, correct the defect or arrange for the lease of a similar vehicle and shall charge or set off against the Contractor any excess costs occasioned thereby; or
(b) Terminate the contract under the Default clause of this contract.
(End of clause)