JULY 2005
prevailing rental rates for comparable space.
at the existing location and the necessary
Advertising is required only when the size of the
approvals have been received, a SRP for the
space requirements exceeds 10,000 USF. The
additional space will be furnished to the Lessor;
market survey should be documented and the
and negotiations will be conducted in accor-
report placed in the lease contract file.
dance with procedures described above in
Informational quotations in response to adver-
Section 7, Issuance of SFO Through Award of
tising may be oral or written and should be
Contract. If it is concluded that it would be cost
documented with the name, title, and address of
effective to lease alternate space, SFOs will be
the person giving the quote and a description of
issued to all parties, including the present
the space, including the services to be provided.
Lessor if this Lessor is interested, requesting
The cost of moving and special requirements
lease proposals on the total requirements.
must be estimated and added to the quoted
Thereafter, the lease contracting process
rentals. The ACO should not let the landlord
described in Section 7 will be followed.
believe that VA has no other alternative but to
LEASE EXTENSIONS
exercise the renewal right, even though that may
be the case. In exercising a renewal option, the
The term of an existing lease may be extended,
ACO must follow procedures in GSAR (Subpart
usually for not more than one year, upon receipt
570.401).
by the ACO of official authorization. However,
the total lease term with such extensions may
Re-Appraisal
not exceed 20 years. The authorizing office is
If lease renewal is the alternative selected, the
that which issued the original authorization to
original appraisal must be updated to a current
procure the lease.
date or a new appraisal performed.
RENEWAL OPTIONS
Exercise of Options
Validation
When the above steps have been taken, the
Validate continuing need for space by obtaining
notice to renew the lease must be sent to the
necessary staffing and workload data from the
Lessor within the time frame specified in the
Using Service.
lease.
Notification
Alternate Actions
It is the ACO' responsibility to ensure that
s
The ACO may conclude it is in VA' best interest
s
notification to renew the lease is given in
to acquire alternate space if one of the following
accordance with the terms of the lease. Failure
instances applies:
to do so may result in VA paying a higher rental
for a succeeding lease or having to vacate the
Alternate space is available at a more
leased premises. Lease contracts having a
reasonable cost, considering all factors such
renewal provision specify the number of days'
as rent, moving costs, and changing tele-
advance notice that must be given to the Lessor.
phone service. If alternate space is to be
It is the ACO' responsibility to establish
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leased, the procedures in Sections 5
sufficient lead time that will allow the necessary
through 7 will be followed.
steps required prior to exercising the renewal
option or to leasing alternate space. During the
The Lessor' present performance under the
s
evaluation process, the ACO should not hesitate
lease is unsatisfactory, and the Lessor
to attempt to negotiate with the Lessor for a
refuses to comply with the terms of the
more reasonable rental rate for the renewal
lease. If the present Lessor is not per-
period if the rate stipulated within the lease is
forming in accordance with the requirements
considered unreasonable. Likewise, the ACO
of the lease and such failure to perform is
should be sure there are no deficiencies in the
during the firm term of the lease, then VA
space or in the Lessor' performance.
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has the right to demand that he cure. The
ACO may take action to terminate the lease
Market Survey
for default if no cure is forthcoming in
accordance with the terms of the cure
A market survey must be performed to
notice.
determine the availability and cost of potential
locations. The survey should focus on the
VA DESIGN GUIDE
LEASE BASED OUTPATIENT CLINICS
SECTION 9-9
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