Review of the Lease Awarded to Westar Development Company, LLC for the Butler, Pennsylvania Health Care Center

In June 2013, we issued an Management Advisory Memorandum advising VA of the findings of our review of the lease awarded to Westar Development Company, LLC (Westar) for the Butler Healthcare Center. We found that Westar principals made false and misleading statements regarding its veteran ownership status, past performance and experience, and teaming arrangements. A follow-on review found that VA’s change to a one-step lease acquisition process created an advantage for Westar and that VA officials did little to verify material facts disclosed by Westar such as veteran ownership, past experience, and teaming arrangements. Our review also determined that VA did not have support for its decision to dismiss a protest of the lease awarded to Westar and that VA’s financial analysis of the lease cost was not accurate. VA Management did not agree with our findings relating to the identified deficiencies, but largely agreed with our recommendations.