LEASES FOR ACCESS TO CARE. George Boguslawski, Director VHA Center for Leasing Excellence VHA Procurement & Logistics Office November 18, 2015

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1 LEASES FOR ACCESS TO CARE George Boguslawski, Director VHA Center for Leasing Excellence VHA Procurement & Logistics Office November 18, 2015

2 Overview VHA Procurement & Logistics Office: Mission & Responsibilities VHA Procurement & Logistics Office VHA Procurement Policy VHA Center for Leasing Excellence Leasehold Interests in Real Property Veterans Access, Choice and Accountability Act of 2014 (VACAA) Title VIII - Other Matters, Section 801. Appropriation of Amounts Emergency and Pipeline Leases Lease Acquisition Phases 1

3 VHA Procurement & Logistics Office: Mission & Responsibilities DIVIDER PAGE

4 VHA Procurement & Logistics Office: Mission & Responsibilities The Veterans Health Administration (VHA) is the largest administration within Veterans Affairs Mission: To honor America s Veterans by providing exceptional health care that improves their health and well being Responsibilities: Providing service, supply, construction and specialized procurement support to its VHA customers VHA personnel are currently organized within Service Areas Offices (SAOs) nation-wide and are directly involved in making decisions that affect timely delivery of best value procurements to meet the VHA mission. 3

5 VHA Procurement & Logistics Office: Mission & Responsibilities Within each SAO area are Network Contracting Offices (NCOs) that provide direct procurement services to VA Medical Centers. The VA Secretary has directed a reorganization of the regions and their networks in an effort to improve upon service to veterans. The three SAOs will become five Districts. NCO assets are currently being realigned to match the five Districts. 4

6 VHA Procurement Policy Mission: To exceed customer expectations of service and fulfillment of their procurement needs while continually improving processes Responsibilities: Ensuring the quality and assurance and compliance of VHA procurements and continually assessing their procurement functions 5

7 VHA Center for Leasing Excellence Mission: To provide oversight, advisory guidance and quality & assurance for all real property procured by VHA which include: Minor Lease Projects (Less than $10 Million in estimated value) Responsibilities: Ensuring the quality and assurance and compliance with applicable policies and regulations for real property lease solicitations and contracts Developing lease administration policy to ensure efficient operations and management throughout the lease procurement process lifecycle 6

8 Leasehold Interests in Real Property

9 Leasehold Interests in Real Property Lease or Leasehold Interest is: A conveyance to the Government of the right of exclusive possession of real property for a definite time period by a Landlord. It may include: Buildout of Tenant Improvements Operational Services: Heating, Ventilation and Air Conditioning (HVAC) Utilities Custodial Services Lease Space can be provided via: Modification of an existing building New Construction Lease Acquisition is: The acquiring by lease of a interest in improved real property for use by the Government, whether the space already exists or by way of construction. 8

10 Leasehold Interests in Real Property: Authorities Currently, VA has the following authorities to acquire leasehold interests in Real Property: Direct Authority (5 Years) Medical Facilities (38 USC 8103 in conjunction with 41 USC 3903, aka FASA ) Parking Facilities (38 USC 8109 in conjunction with FASA) Delegation from GSA (20 Years) Title 40 USC 585 Federal Management Regulation Bulletin C-2 VA acquires the following types of space: Medical Outpatient and Specialty Care Clinics Readjustment Counseling Centers Homeless Domiciliary and Residential Facilities Research Laboratories Administrative and Warehouse Parking 9

11 Leasehold Interests in Real Property: Procurement Process Procurement Process Lease acquisitions are considered specialized or unique and unusual agreements They often have a lengthy procurement process due to the fact that they must be reviewed to ensure compliance with Federal and Agency policies and regulations. Currently, the lease acquisition process takes 26 months or more. This includes acquisition planning through award, and design and delivery. Lease Acquisition Milestones The following are lease acquisition milestones: Acquisition Planning SCIP Approval GSA/VA Delegation Phase I: Requirements Received Advertisement (FBO.gov) Solicitation Development Phase II: Solicitation Issued Compliance Review Solicitation Issuance Market Survey Solicitation Responses Received Phase III: Proposals Received Abstract of Offers and Competitive Range Establishment Technical Evaluation of Offers Negotiation Phase IV: Evaluations Completed Compliance Review Phase V: Award Finalized 10

12 Leasehold Interests in Real Property: Strategic Capital Investment Planning Process VA s Budget Process: Strategic Capital Investment Planning Process (SCIP) The basis for the VA s capital budget request during the formulation phase Includes all capital projects Major and Minor Construction Non-Recurring Maintenance (NRM) Major and Minor Leases Goal of SCIP is aimed toward improving delivery of services and benefits to Veterans and to produce an annual consolidated list of capital projects that significantly reduce and/or close performance gaps in access and workload/utilization over a 10 year period Uses Administration and staff office data in its current gap status as well as where and to what extent the gaps are projected to exist in the future A Strategic Capital Assessment and a project specific 10 year plan is developed to close the gaps 11

13 Leasehold Interests in Real Property: Strategic Capital Investment Planning Process VA s Budget Process: Strategic Capital Investment Planning Process (SCIP) SCIP has a threshold for its projects which is developed annually Projects above this threshold must be accompanied with business cases for prioritization in order to be included in the budget. Ultimately, those projects that are scored and provided as a part of VA s budget submission 12

14 Leasehold Interests in Real Property: Small Business Concerns Veterans First Contracting Program Created under Public Law for Veteran-Owned Small Business (VOSB) and expanded the Service-Disabled Veteran Owned Small Business (SDVOSB) contracting program for VA procurements. Its purpose is to ensure that legitimately owned and controlled VOSBs and SDVOSBs are able to compete for set-asides. While this program mandates set-asides to VOSB and SDVOSB concerns during the procurements of goods and services, real property procurements are exempt. 13

15 Leasehold Interests in Real Property: Small Business Concerns General Services Acquisition Manual (GSAM) GSAM applies to acquisitions of leasehold interests in real property In general, the Federal Acquisition Regulation (FAR) does not apply to leasehold acquisitions of real property. Where the FAR is referenced in GSAM, FAR provisions have been adopted based on a statutory requirement applicable to lease acquisitions or as a matter of policy VA Solicitation for Offers and Design Guide for Lease Construction Applies to major and some minor acquisitions of leasehold interests in real property for specialized medical facilities 14

16 Leasehold Interests in Real Property: Small Business Concerns The following regulations and provisions are applicable concerning Small Business Programs in leasing: The Small Business Subcontracting Program (GSAM 519.7) Leases with estimated values expected to exceed $700,000 require the successful offeror to subcontract to Small Businesses, SDVOSBs, VOSBs, HUBZone, Small Disadvantaged Businesses and WOSBs The Small Disadvantaged Business Participation Program (GSAM ) A solicitation may separately contain source selection factors or subfactors for small businesses and women-owned small business concerns 15

17 Veterans Access, Choice and Accountability Act of 2014 (VACAA)

18 Veterans Access, Choice and Accountability Act of 2014 (VACAA) The Choice Act of 2014 provided new authorities, funding, and other tools to help support and reform VA Title VIII - Other Matters, Section 801. Appropriation of Amounts: To carry out leases for the facilities of the Department of Veterans Affairs In 2015, VHA awarded and obligated the following leases: Emergency Leases: Leases awarded with VACCA Funds in accordance with the VA Choice Act $19.1 Million Pipeline Leases: Leases approved during VA s Budget Process, which were funded with VACCA Funds in accordance with the VA Choice Act $38.4 Million 17

19 Veterans Access, Choice and Accountability Act of 2014 (VACAA) In addition to Choice Act Leases, the Secretary authorizes the award of emergency leases to assist with access to care issues. These leases may be partially funded with VACAA funds and have similar priority for award to serve Veterans. During FY 2016, approximately 250 minor, emergency and VACAA leases are authorized for award in the operating plan. 18

20 Questions

21 Helpful Links

22 Helpful Links Acquisition Central: Federal Business Opportunities: VA Office of Small and Disadvantaged Business Utilization (OSDBU): VA Forecast of Contracting Opportunities: 21

23 Contacts George Boguslawski, VHA Center for Leasing Excellence Phone: (202)