CBEMA Claims Congressional Decision on Computer Leasing Could Have Serious Impact on National Security

Article Abstract:

The Defense Department has had the option of buying computer equipment with capital funds or leasing with operating funds. Because of mismanagement of some leasing contracts, the House of Representatives has passed a bill requiring the Defense Department to buy all its future equipment and appropriating $150 million to buy presently leased equipment. Procurement funds will be cut by $680 million. This may force the department to buy less costly, obsolescent equipment. Continued leasing, with better management, is the answer according to Vico Enriques, president of the Computer and Business Equipment Manufacturers Association.

Legislative process, Government Agency, Security, National Government, Legislation, Defense Contract, EDP Budgeting

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OA Equipment: Should You...Lease? Buy?

Article Abstract:

The office automation (OA) market is rapidly growing. There are several ways of acquiring OA equipment while keeping costs down. Alternatives include corporate bonds, commercial bank loans, stock, and leasing. Leasing is most attractive as it allows flexibility to an expanding company, retention or passing of tax benefits, and the matching of cash inflows and outflows. An example outlining these advantages in regard to an expanding manufacturing firm is given. Several charts are used to illustrate the example.

Office automation, Office Equipment, Equipment Acquisition, Financing, Tutorial

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