Leasing Equipment to Private Operators
Federal government funded equipment may be leased to private operators with the following provisions in the lease agreement...
- project equipment shall be operated by the lessee to serve the best interest and welfare of the project sponsor and public
- the lessee shall maintain equipment at a high level of cleanliness, safety, and mechanical soundness under maintenance procedures outlined by the project sponsor.
- The project sponsor and/or FTA shall have its right to conduct periodic inspections
- The lease shall cross-reference to a service agreement whereby a default in the lease is a default in the service agreement and vice versa.
2005 - Federal Transit Administration