DA Form 4881-5: US Army Materiel Lease Agreement

DA Form 4881-5: US Army Materiel Lease Agreement – DA Form 4881-5 serves as the official Agreement for the Lease of US Army Materiel. It formalizes leases of non-excess US Army property to eligible non-federal parties under 10 U.S.C. 2667. This form is essential for state and local governments, private individuals, and commercial entities seeking temporary access to Army equipment when it benefits national defense or public interest.

What Is DA Form 4881-5?

DA Form 4881-5 (July 2004 edition) is the prescribed lease agreement for US Army materiel. It is used when the Army leases personal property (such as equipment, vehicles, or other materiel) that is not excess and not currently needed for public use.

The form cites authority under 10 U.S.C. 2667 and references AR 700-131 (Loan, Lease, and Donation of Army Materiel). It outlines terms including property description (in Schedule A), rental rates, duration, responsibilities for maintenance/return, liability, and termination conditions.

Download the official form here: DA Form 4881-5 PDF.

The primary purpose is to enable leases that promote national defense or serve the public interest while ensuring the Army receives fair monetary rental and protects government property. Leases must meet these statutory criteria:

  • The materiel is not needed for public use during the lease period.
  • It is not excess property.
  • The lease provides a fair return (based on commercial rates, including capital investment, administrative costs, and depreciation).

Leases are generally limited to one year (with possible extensions, but total not exceeding 5 years in many cases). The Secretary of the Army or authorized representative must approve them.

This differs from DA Form 4881 (or 4881-R) used for loans (often no-cost or limited reimbursement to other federal or authorized entities). Leases involve rental payments to the government.

Who Can Lease US Army Materiel?

Eligible lessees under DA Form 4881-5 include:

  • State and local government agencies.
  • Private individuals.
  • Commercial activities.

Common uses include specialized equipment for public projects, training, avalanche control programs (for state organizations), or other authorized public-benefit activities. Not all materiel is available—availability depends on Army needs, item type (e.g., restrictions on arms, sensitive equipment), and approval.

Key Provisions of the Lease Agreement

The form includes detailed standard clauses covering:

  • Property Description and Schedule A — Lists specific items, quantities, values, and rental rates.
  • Term and Termination — Starts upon approval and notice; terminable with notice (e.g., 90 days) or by the Secretary of the Army at any time.
  • Condition and Maintenance — Lessee accepts “as is,” maintains at own expense, makes repairs, and returns in good condition (reasonable wear and tear excepted).
  • Payment — Rent paid monthly or as specified; additional reimbursable costs per AR 700-131 (e.g., packing, handling, repairs beyond fair wear).
  • Liability and Insurance — Lessee assumes responsibility for loss, damage, or third-party claims; government may require insurance.
  • Restrictions — No subleasing, mortgaging, or unauthorized modifications without approval.
  • Return and Settlement — Detailed procedures for return, including transportation costs and valuation if not returned properly.
  • Disputes and Other Clauses — Governed by the Contract Disputes Act; officials-not-to-benefit; covenant against contingent fees.

How to Complete and Use DA Form 4881-5?

  1. Request Process — Submit a request through appropriate Army channels (often via DA Form 4881-6-R for request and approval). Route per AR 700-131 to the relevant approving authority.
  2. Prepare the Agreement — Complete lessee details, property schedule, payment info, and term.
  3. Approval — Obtain signatures and written approval from the Secretary of the Army or designee. The lease is not binding until approved.
  4. Execution — Take possession, pay rents, maintain property, and comply with all terms.
  5. Termination/Return — Return property as specified and settle any final accounts.

Consult the full AR 700-131 for detailed procedures, reimbursement rules, and accountable officer responsibilities. Legal and contracting officer review is typically required.

  • AR 700-131 — Primary regulation for policies on loans, leases, and donations.
  • DA Form 4881-6-R — Request and Approval for Loan or Lease.
  • 10 U.S.C. 2667 — Statutory authority for leases of non-excess property.
  • Supporting forms may include exhibits for property lists, certifications, or bonds.

Important Considerations for Lessees

  • Costs — Expect fair rental plus potential reimbursable expenses. Failure to pay or return property can lead to collection actions or liability for full value.
  • Accountability — Lessees must protect, inventory (as required), and allow Army access for inspection.
  • Compliance — Strict adherence to terms is mandatory. Violations can result in early termination, financial penalties, or legal action.
  • Availability — Approval is discretionary and depends on Army priorities. Not all requests are granted.

For the most current guidance, visit official Army Publishing Directorate resources or contact the relevant Army command or contracting office. Policies can be updated, so verify with primary sources.

Download DA Form 4881-5: Official PDF

This article provides general information based on publicly available official US Army sources. It is not legal advice. Consult qualified Army personnel or legal experts for specific lease inquiries.