Press Releases

A hearing of the Economic Development, Public Buildings, and Emergency Management Subcommittee, chaired by U.S. Rep. Lou Barletta (R-PA), will focus on a recent Government Accountability Office (GAO) report on Department of Veterans Affairs (VA) leasing for health care facilities, and whether the VA and the General Services Administration (GSA) are ensuring the costs associated with the facilities are managed appropriately.

After the Congressional Budget Office and the Office of Management and Budget raised questions about whether VA exceeded its authority to lease medical facilities, in 2014, VA began working with GSA to execute leases pursuant to the Public Buildings Act and to ensure the leases conformed with legal and budgetary laws.

As a result, the VA uses the GSA’s leasing authority to acquire medical facilities.  Under a delegation of authority agreement between the two agencies, any leases exceeding $2.85 million require the authorization of the Transportation and Infrastructure Committee.  In its recent report, the GAO identified areas where improvements are still needed, including more transparency in the VA’s preference for leasing and cost comparison data.

The hearing will review the findings of the GAO report, the agencies’ management of leasing costs, and the progress and timing on the VA lease prospectuses to be submitted to the Transportation and Infrastructure Committee for approval.

Next week’s hearing, entitled, “Department of Veterans Affairs Leases: Is the VA Over-Paying for Leased Medical Facilities?” is scheduled to begin at 10:30 a.m. on Wednesday, September 28, 2016, in 2253 Rayburn House Office Building.

Witness List: