Report Summary

Title: Review of the Enhanced Use Lease between the Department of Veterans Affairs and Veterans Development, LLC
Report Number: 12-00375-290
Issue Date: 9/28/2012
City/State: Cleveland, OH
VA Office: Veterans Health Administration (VHA)
Office of General Counsel (OGC)
Office of Management
Report Author: Office of Contract Review
Report Type: Audits, Reviews & Evaluations
Release Type: Unrestricted
Summary: VA Management inappropriately used VA's Enhanced Use Lease authority to procure office space, parking, and domiciliary services at the Louis Stokes VA Medical Center. The space and services procured through the Enhanced Use Lease with Veterans Development, LLC significantly exceeded any in-kind consideration for the Brecksville campus. By using VA's Enhanced Use Lease authority, VA Management was able to circumvent the normal rules and processes for procuring space and services, including healthcare services. This eliminated competition and caused VA to overpay for space and services and caused an increase risk in security. VA Management largely disagreed with our findings; however, our review of their response found it to be unsupported and unresponsive to our concerns and findings.