3326. LEASING COSTS OTHER THAN AUTOMATIC DATA PROCESSING EQUIPMENT

3326 LEASING COSTS OTHER THAN AUTOMATIC DATA PROCESSING EQUIPMENT 3326.1 Except as provided in §3320, leasing costs under operating leases shall be allowable to the extent that the rates are reasonable at the time of the lease decision, after consideration of the following: (a) Leasing costs of comparable property, if any; (b) Market conditions in the area; (c) The type, life expectancy, condition, and value of the property leased; (d) Alternatives available; and (e) Other provisions of the lease agreement. 3326.2 Leasing costs under a sale and leaseback arrangement shall be allowable only up to the amount the contractor would be allowed if the contractor retained title. 3326.3 Charges in the nature of leasing costs for property between any divisions, subsidiaries, or organization under common control shall be allowable to the extent that they do not exceed the normal costs of ownership, such as depreciation, taxes, insurance, and maintenance. No part of the costs shall duplicate any other allowed costs. SOURCE: Final Rulemaking published at 35 DCR 1665 (February 26, 1988).