JULY 2005
lease, care should be taken to ensure that
vacant space to be demised as separate
favorable provisions, such as termination rights
premises in line with the Subletting and
on behalf of VA, are protected to the maximum
Assignment Clause of the General Clauses;
extent possible. When the cost of the lease for
or Negotiate a "lease buy-out" at an
the firm term is ,000 or less, the ACO is
equitable price with respect to the vacant
required only to prepare a Justification for Other
premises.
Than Full and Open Competition (JOTFOC), for
inclusion in the lease contract file. If the cost will
Permanent Vacancy
exceed ,000, the next higher contracting
authority must approve such a JOTFOC before it
When all of a leased facility becomes vacant
is placed in the lease contract file.
and there is no prospect for further use by VA or
any other Government agency, then the lease
When the necessary approvals have been
for the vacant facility should be terminated. If
obtained, a space requirements package
the lease does not contain termination or
containing the total space needs and current
cancellation provisions, there are several
lease provisions will be furnished to the Lessor;
possible alternatives:
and lease procurement procedures described
earlier will be followed.
Negotiate with the Lessor to cancel the
lease on the vacant space without cost to
EXPANSION REQUIREMENTS
VA;
SLAs for expansion space cannot exceed the
Sublease the space to a third party;
term of the original lease. When occupying the
Negotiate a "lease buy-out" with the Lessor
space under an existing lease that has
at an equitable price; or
expansion requirements within the scope of the
lease, an increase in space of less than ten
If the Lessor refuses to negotiate on any
percent (10%), the ACO does a JOTFOC.
basis and the lease will expire in less than a
Accordingly, negotiations can be conducted with
year, it may be kept in the VA inventory until
the present Lessor on a sole-source basis to
the lease expires. When the remaining firm
lease the required space. If the additional
term is for more than one year, it should be
requirement exceeds the scope of the present
reported as Excess Real Property to GSA
lease, action must be taken to determine the
for disposal in accordance with FPMR 101-
availability of alternate space.
When the
47.
proposed expansion space is outside the scope
of the lease, the following conditions apply:
Property Inspection
In all cases, the vacant space should be
If no suitable alternate space is available and
properly secured and regularly inspected until
the cost of the space exceeds 0,000, a
the space is occupied or the lease is terminated.
JOTFOC approved by the next higher
Regular inspections are recommended so that
contracting authority than the ACO is required
potential problems can be identified before they
before the ACO can initiate negotiations with the
become a liability to the VA.
Lessor for expansion space. If the estimated
cost is 0,000 or less, an approved JOTFOC
SUPERSEDING LEASES
is not required; however, the ACO must prepare
a JOTFOC for inclusion in the lease contract file.
When the changes or modifications contem-
plated under an existing lease are so numerous
If a market survey reveals suitable alternate
or detailed as to cause complications or
locations which can satisfy the total space
substantially change the lease, the ACO should
requirement, a cost comparison will be
consider executing a superseding lease rather
performed to determine whether it is in VA' best
s
than an SLA. The superseding lease would
interest to relocate. This should include a
replace the present one. This would entail
comparison in which the cost of alternate space
competition, prior to award of such lease, or
is burdened with the cost of relocating and
formal justification as set forth in FAR Part 6.3
duplicating existing improvement and the cost of
for failure to do so.
the un-expired portion of the firm term or cost to
terminate the lease . If the ACO determines that
If space under separate leases in the same
it will be cost effective to lease expansion space
building is consolidated into a superseding
VA DESIGN GUIDE
LEASE BASED OUTPATIENT CLINICS
SECTION 9-8
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