Ratification of Unauthorized Leasing Actions.

Acquisition of Real Property by Lease and by Assignment from General
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VA Directive 7815

April 22, 1998

for those leases acquired using the Simplified Lease Acquisition Procedure, must be

reviewed by Regional Counsel prior to issuance. All leases will be reviewed by

Regional Counsel. When Lease Management Service (184B) reviews such leases, the

legal review will be conducted by General Counsel (025). For all leases negotiated by

Real Property Management Office

a review of the lease prior to execution will be

conducted by General Counsel (025).

(d) Simplified Lease Acquisition Procedures (SLA

Expedited Lease

Procedure). The Simplified Lease Acquisition Procedures may be used only for award

of leasing actions when the average annual rent over the term of the lease, including

options, is 0,000 or less, excluding the cost of operational services, such as heat,

light, and janitorial services. The contracting officer must also determine that the extent

of special purpose build-out is not too great to allow effective use of SLAP. All leases

having an average annual rental without services over 0,000 must be acquired

utilizing standard competitive negotiation procedures.

(e) Ratification of Unauthorized Leasing Actions. The medical facility must ensure, to

the maximum extent possible, that necessary action is taken to prevent the need for

ratification. Although procedures are set forth in pertinent acquisition regulations, these

procedures may not be used in a way that encourages unauthorized commitments to

be made by Government personnel. The contracting officer shall comply with the

Federal Acquisition Regulation (FAR), Subpart 1.602-3 and VA Acquisition Regulation

(VAAR), Subpart 801.602-3, for unauthorized commitments made by individuals lacking

contracting authority. This also includes unauthorized commitments made by

contracting officers who exceed their warranted authority.

Competition in Contracting Act

Requirements Justification for Other Than

Full and Open Competition. Pursuant to CICA, leases must be procured through

competitive procedures set forth in the FAR/General Services Acquisition Regulation

(GSAR) unless a Justification for Other Than Full and Open Competition is prepared

and approved in accordance with FAR Part 6.3 and VAAR Subpart 806.304.

(g) Appraisal Requirement to Determine Fair Annual Rental. All leases, except those

in which VA is paying a total consideration of ,500 or less over the full term of the

lease, must be supported by a professionally prepared appraisal indicating Fair Annual

Rental of the space and Fair Market Value of the building in which the space is to be

leased.

(h) Davis-Bacon Act Requirements. All leases should be reviewed to assure their

compliance with the Davis-Bacon Act. The Davis-Bacon Act is applicable to all

construction, alteration, or repair of public buildings or public works in excess of ,000,

including such work within buildings in which VA is seeking a leasehold interest.