Section 3-122-147 - Lease contract(a) A lease is a contract for the use of goods under which title does not pass to the agency.(b) A lease may be entered into provided: (1) It is in the best interest of the purchasing agency;(2) All conditions for renewal and costs of termination are set forth in the lease; and(3) The lease is not used to circumvent normal procurement procedures.(c) A lease contract shall comply with the certification of funds requirement, pursuant to section 3-122-102(b).(d) The following lease arrangements are subject to the competitive sealed bidding or proposals process when section 103D-305, HRS, does not apply: (1) When a lease is for at least one year;(2) When a lease agreement contains an option to purchase and the total expenditure under this option includes lease or rental payments; or(3) When the total expenditure is for a multi-term contract.(e) When the lease arrangement is subject to the competitive sealed bidding or proposals process and an option to purchase is contemplated, an option to purchase provision shall be included in the solicitation. The provision shall provide that to exercise the option is at the purchasing agency's discretion only, and not subject to agreement or acceptance by the contractor. Before exercising the option the procurement officer shall: (1) Investigate alternative means of procuring comparable goods; and(2) Compare estimated costs and benefits associated with the alternative means and the exercise of the option, for example, the benefit of buying new state-of-the-art goods compared to the estimated, initial savings associated with exercise of a purchase option.[Eff 12/15/95; am and comp 11/17/97; am and comp MAR 21 2008] (Auth: HRS §§ 103D-202, 1D3D-313) (Imp: HRS § 103D-313)