Contractor Leased Equipment
When a contractor obtains equipment through a third party rental agreement for use in a force account situation, his/her cost will normally be the invoice cost. The invoice cost should be comparable with other rental rates of the area. The Associated Equipment Distributors (AED) Rental Rate and Specifications book may be used to evaluate the contractor's proposed costs for such equipment rental.
Since rental agreements vary, the specific operating costs included in the rental agreement may need to be determined. There may be additional eligible operating costs not covered by the agreement which the contractor has incurred and should be reimbursed for, such as fuel, lubrication, field repairs, etc.
Source: US Department of Transportation


