JULY 2005
occupancy costs for each respective reloca-
tion alternative.
If such a comparison
indicates that relocations costs may be
Notice of Intent to Vacate Premises. The first
recovered through, the ACO should proceed
step in vacating leased space is notice from the
to prepare an SFO and follow the
Using Service to the ACO of VA' intent to
s
procedures described in this Design Guide.
vacate the premises. The ACO promptly notifies
If the ACO determines that VA' relocation
s
the Lessor of VA' intent to vacate in
s
costs cannot be recovered through compe-
accordance with the notice provisions of the
tition, he or she should prepare a JOTFOC
lease.
to negotiate directly with the present lessor
in accordance with FAR Subpart 6 and
Preliminary Inspection. The next step is to
GSAR Section 570.402-4. The results of the
schedule a preliminary inspection of the leased
CBA, which should include updated scoring
premises sufficiently in advance of the lease
to ensure no capital lease status, must be
expiration date to allow VA adequate time to
documented and retained in the succeeding
make any necessary repairs to the premises of
lease file.
items that cannot be classified as normal wear
Solicitation for Offers
and tear.
The procedures for preparing and distributing
Move-out Planning. During this step, the Using
the SFO are the same as for a new lease.
Service and ACO make plans to move all
Remember that the SFO will be incorporated
personal property from the leased premises,
into the lease document. Precisely follow the
disconnect and forward all telephone lines, notify
procedures for acquiring a new lease detailed in
customers and vendors of a change of address,
this Design Guide.
remove data and telephone equipment, and
remove any bulk trash from the premises during
Contract Preparation, Clearance, and Award
the last week of occupancy.
Since a succeeding lease is a new lease,
Liquidated Damages. Liquidated damages are
competitive negotiation procedures are to be
a remedy under the law that one party to a
followed and all actions are to be conducted as
contract may seek against the other party for
with any other new lease.
failure to perform. Liquidated damages are
FAILURE TO PERFORM
typically first encountered in the lease acquisi-
tion process immediately after the lease is
VA has certain rights if the Lessor fails to
executed. At that point in the process, the
perform in accordance with the terms and
Lessor is expected to perform its obligations by
conditions of the lease. GSA Form 3517B,
constructing the premises to the specifications
Clause 15 (GSAR 552.270-10 - Failure in
stated in the lease and delivering the premises
Performance) describes VA' rights if the Lessor
s
ready for occupancy on the agreed date.
fails to provide any service, utility, maintenance,
repair, or replacement required under the lease.
At the end of the lease, the Lessor may invoke
These rights are in addition to any other
the liquidated damages provision relative to VA'
s
remedies available under the law.
failure to perform. The performance agreed to
by VA in the lease is that of refraining from
VACATING PREMISES
damage of the premises over and above what
Determining Need to Vacate
may be considered reasonable wear and tear. If
the leased premises have been damaged over
At some point during occupancy, VA determines
the life of the lease beyond that extent, then VA
that its mission no longer requires the leased
agrees to pay the lessor for the excess damage.
premises. Ideally, this determination is made
The amount of the payment will be based upon
sufficiently in advance of the lease expiration
the actual damage, which can be calculated as
date to permit VA to undertake the orderly
the difference in the appraised value between
vacating and surrendering of the leased
that of the premises with only ordinary wear and
premises. Several steps must be accomplished
tear and that with the existing degree of
to vacate the space.
The Initial Condition
damage.
Survey Report shall be referred to when
vacating premises.
VA DESIGN GUIDE
LEASE BASED OUTPATIENT CLINICS
SECTION 9-12
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