‘‘(B) heating, ventilation, and air conditioning 
distribution and controls required to meet tenant- 
specific needs are included in the definition of ‘ten-
ant improvements’, unless otherwise negotiated. 
‘‘(3) For purposes of this subsection, the term ‘triple- 
net lease’ means a lease under which the lessee is respon-
sible for payment of real estate taxes, insurance, utilities, 
janitorial services, and routine operating costs. 
‘‘(n) CONSOLIDATION
OF DOCUMENTATION.—The 
Secretary shall consolidate internal documentation re-
quired to support lease decisions under this chapter into 
a single decision memorandum, to the maximum extent 
practicable. Such memorandum shall include project jus-
tification, site selection rationale, estimated costs, design 
summary, and other information necessary for internal ap-
proval and submission to Congress.’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
8104(a)(3)(B)(i) of title 38, United States Code, is 
amended by striking ‘‘through the General Services Ad-
ministration under section 3307(a) of title 40’’. 
(c) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN GENERAL.—There are authorized to be 
appropriated to the Veterans Leasing Fund estab-
lished under section 8103 of title 38, United States 
Code, (as amended by this Act), such amounts as 
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may be specifically authorized for lease obligations 
under subsection (i) of such section (as added by 
this Act). 
(2) DEPOSIT OF FUTURE APPROPRIATIONS.— 
Any amounts appropriated for lease obligations for 
a fiscal year shall be deposited in the Veterans Leas-
ing Fund. 
SEC. 3. COST ESTIMATION REQUIREMENTS FOR MAJOR 
MEDICAL FACILITY LEASES. 
Section 8104(b)(2) of such title is amended— 
(1) by striking ‘‘Whenever’’ and inserting ‘‘(A) 
Whenever’’; 
(2) by redesignating subparagraphs (A) through 
(E) as clauses (i) through (v), respectively; 
(3) in subparagraph (A), as designated by para-
graph (1)— 
(A) in clause (v), as so redesignated— 
(i) 
by 
redesignating 
clauses 
(i) 
through (iii) as subclauses (I) through 
(III), respectively; and 
(ii) by striking the period at the end 
and inserting ‘‘; and’’; and 
(B) by adding at the end the following new 
clause: 
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‘‘(vi) A market-based cost estimate for the 
facility to be leased that includes an evaluation 
of— 
‘‘(I) local land values; 
‘‘(II) applicable construction costs; 
and 
‘‘(III) other cost factors the Secretary 
determines relevant to build-to-suit facili-
ties.’’; and 
(4) by adding at the end the following new sub-
paragraph: 
‘‘(B)(i) The Secretary shall adopt and apply a 
standardized methodology for estimating the full 
life-cycle cost of major medical facility leases and 
prospectus-level leases. 
‘‘(ii) Such methodology shall include, at a min-
imum— 
‘‘(I) base rent projections over the full 
lease term; 
‘‘(II) tenant improvement and buildout 
costs based on current medical facility stand-
ards; 
‘‘(III) estimated operating expenses, in-
cluding utilities, maintenance, and security; 
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‘‘(IV) annual escalation factors tied to con-
struction cost indices, labor rates, and market 
trends; 
‘‘(V) cost assumptions for option periods 
or potential renewal terms; and 
‘‘(VI) geographic adjustments using cur-
rent regional market data to reflect location- 
specific construction and leasing conditions. 
‘‘(iii) To reflect inflation and market escalation, 
the Secretary shall annually adjust each cost esti-
mate for a lease submitted to Congress for author-
ization or prospectus approval during the period be-
ginning on the date on which the Secretary submits 
the first cost estimate for the lease and ending on 
the projected award date for the lease. In adjusting 
a cost estimate pursuant to this subparagraph, the 
Secretary shall use such medical construction or real 
estate indices as the Secretary determines appro-
priate. 
‘‘(iv) If the Secretary does not award a lease 
during the one year period beginning on the date on 
which the Secretary completes a cost estimate for 
the lease pursuant to this paragraph, the Secretary 
shall update and revalidate such cost estimate prior 
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to obligating any funds for the lease or submitting 
such cost estimate to Congress.’’. 
SEC. 4. DEVELOPMENT OF STREAMLINED PROCUREMENT 
MODEL; REPORT. 
Not later than 180 days after the date of enactment 
of this Act, the Secretary of Veterans Affairs, in consulta-
tion with the Comptroller General of the United States, 
the Director of the Office of Management and Budget, and 
private sector stakeholders, shall develop a revised process 
for the procurement of major medical facility leases under 
chapter 81 of title 38, United States Code, and submit 
to the Committees on Veterans’ Affairs of the House of 
Representatives and the Senate a report that includes a 
description of such revised process. 
Æ 
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