Construction Reform Act of 2016

Summary: Construction Reform Act of 2016 (Sec. 2) This bill requires the Department of Veterans Affairs (VA) to use industry standards, standard designs, and best practices in carrying out medical facility construction. A super construction project is one for the construction, alteration, or acquisition of a medical facility involving a total expenditure of more than $100 million (but does not include an acquisition by exchange).  The VA shall provide, on a non-reimbursable basis, a non-VA federal entity with: (1) design, planning, and construction assistance; (2) project documents; and (3) other assistance upon request.  With respect to a proposed change to a contract entered into by a non-VA federal entity with which the VA has entered into an agreement that is estimated at a value of less than $250,000, the entity shall issue a final decision regarding such change within 30 days.   With respect to a proposed contract change estimated at a value of $250,000 or more:    the VA may make recommendations to the entity;   the VA may issue the final decision regarding the change within 30 days after the entity proposes it; and   if the VA does not issue a final decision within 60 days after the entity proposes the contract change, the entity shall issue a final decision regarding the change no later than 90 days after it proposes the change.    The VA shall ensure that each VA employee with responsibilities relating to the construction or alteration of medical facilities undergoes ongoing professional training and development.   The VA is prohibited from:    obligating or expending funds for advance planning or design for any super construction project until 60 days after congressional notification,  obligating funds for a major medical facility project or a super construction project by more than 10% of the amount approved by law unless certain congressional committees approve the obligation, or  using bid savings amounts or funds for other than their original purpose before 30 days after notifying those committees unless each committee approves the obligation.   The VA shall enter into a contract with an appropriate non-department federal entity to conduct an external forensic audit of: (1) the medical center construction project in Aurora, Colorado; and (2) the expenditures relating to any major medical facility or super construction project when such expenditures exceed the amount approved by law by more than 25%.  The VA must complete a 10-year master plan for: (1) each existing VA medical facility by December 31, 2016, and (2) each new VA medical facility by not later than the earlier of the date on which activation is completed or the date of the facility's formal dedication.  (Sec. 3) There is established in the Office of Inspector General an Assistant Inspector General for Construction who shall be responsible for conducting, supervising, and coordinating audits, evaluations, and investigations of the planning, design, contracting, and construction of VA facilities and infrastructure, including major and minor construction projects and leases.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Construction Reform Act of 2016''.

SEC. 2. DEPARTMENT OF VETERANS AFFAIRS CONSTRUCTION REFORMS.

    (a) Application of Industry Standards; Assistance.--Section 8103 of 
title 38, United States Code, is amended by adding at the end the 
following new subsections:
    ``(f) To the maximum extent practicable, the Secretary shall use 
industry standards, standard designs, and best practices in carrying 
out the construction of medical facilities.
    ``(g)(1) The Secretary shall provide to a non-Department Federal 
entity with which the Secretary has entered into an agreement under 
subsection (e)--
            ``(A) design, planning, and construction assistance before 
        the entity issues a request for proposals for the design or 
        construction of the super construction project covered by the 
        agreement;
            ``(B) any documents or information needed for the entity to 
        carry out the responsibilities of the entity with respect to 
        the super construction project; and
            ``(C) upon the request of the entity, any other assistance 
        that the entity determines necessary to carry out such 
        responsibilities.
    ``(2) Any assistance provided under paragraph (1) shall be provided 
to the non-Department Federal entity on a non-reimbursable basis.
    ``(h)(1) With respect to a proposed change to a contract entered 
into by a non-Department Federal entity with which the Secretary has 
entered into an agreement under subsection (e) that is estimated at a 
value of less than $250,000, the non-Department Federal entity shall 
issue a final decision regarding such change not later than 30 days 
after the date on which the change is proposed.
    ``(2) With respect to a proposed change to such a contract that is 
estimated at a value of $250,000 or more--
            ``(A) the Secretary may provide to the entity the 
        recommendations of the Secretary regarding such change;
            ``(B) during the 30-day period beginning on the date on 
        which the entity furnishes to the Secretary information 
        regarding such change, the Secretary may issue the final 
        decision regarding such change; and
            ``(C) if the Secretary does not issue a final decision 
        under subparagraph (B), during the 30-day period following the 
        period described in such paragraph, the entity shall issue a 
        final decision regarding such a change no later than 90 days 
        from when the entity furnished information regarding such a 
        change to the Secretary.
    ``(i) The Secretary shall ensure that each employee of the 
Department with responsibilities relating to the construction or 
alteration of medical facilities, including such construction or 
alteration carried out pursuant to contracts or agreements, undergoes a 
program of ongoing professional training and development. Such program 
shall be designed to ensure that employees maintain adequate expertise 
relating to industry standards and best practices for the acquisition 
of design and construction services. The Secretary may provide the 
program under this subsection through a contract or agreement with a 
non-Federal entity or with a non-Department Federal entity.''.
    (b) Limitation on Planning and Design for Super Construction 
Projects.--
            (1) In general.--Section 8104(a) of title 38, United States 
        Code, is amended--
                    (A) by redesignating paragraph (3) as paragraph 
                (4);
                    (B) by inserting after paragraph (2) the following 
                new paragraph (3):
    ``(3) The Secretary may not obligate or expend funds for advance 
planning or design for any super construction project, until the date 
that is 60 days after the date on which the Secretary submits to the 
Committee on Veterans' Affairs and the Committee on Appropriations of 
the Senate and the Committee on Veterans' Affairs and the Committee on 
Appropriations of the House of Representatives notice of such 
obligation or expenditure.''; and
                    (C) in paragraph (4), as redesignated by paragraph 
                (1) of this subsection, by adding at the end the 
                following new subparagraph:
            ``(C) The term `super construction project' means a project 
        for the construction, alteration, or acquisition of a medical 
        facility involving a total expenditure of more than 
        $100,000,000, but such term does not include an acquisition by 
        exchange.''.
            (2) Applicability.--The amendments made by paragraph (1) 
        shall take effect on the date of the enactment of this Act and 
        shall apply with respect to a construction project that is 
        initiated on or after that date.
    (c) Congressional Approval of Certain Projects.--
            (1) Projects that exceed specified amount.--Subsection (c) 
        of section 8104 of title 38, United States Code, is amended to 
        read as follows:
    ``(c)(1) The Secretary may not obligate funds for a major medical 
facility project or a super construction project approved by a law 
described in subsection (a)(2) in an amount that would cause the total 
amount obligated for that project to exceed the amount specified in the 
law for that project (or would add to total obligations exceeding such 
specified amount) by more than 10 percent unless the Committee on 
Veterans' Affairs and the Committee on Appropriations of the Senate and 
the Committee on Veterans' Affairs and the Committee on Appropriations 
of the House of Representatives each approve in writing the obligation 
of those funds.
    ``(2) The Secretary shall--
            ``(A) enter into a contract with an appropriate non-
        department Federal entity with the ability to conduct forensic 
        audits on medical facility projects for the conduct of an 
        external forensic audit of the expenditures relating to any 
        major medical facility or super construction project for which 
        the total expenditures exceed the amount specified in the law 
        for the project by more than 25 percent; and
            ``(B) enter into a contract with an appropriate non-
        department Federal entity with the ability to conduct forensic 
        audits on medical facility projects for the conduct of an 
        external audit of the medical center construction project in 
        Aurora, Colorado.''.
            (2) Use of extra amounts.--Subsection (d) of such section 
        is amended--
                    (A) in paragraph (2)(B), in the matter preceding 
                clause (i), by striking ``Whenever'' and inserting 
                ``Before''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(3) The Secretary may not obligate any funds described in 
paragraph (1) or amounts described in paragraph (2) before the date 
that is 30 days after the notification submitted under paragraph (1) or 
paragraph (2)(B), as the case may be, unless the Committee on Veterans' 
Affairs and the Committee on Appropriations of the Senate and the 
Committee on Veterans' Affairs and the Committee on Appropriations of 
the House of Representatives each approve in writing the obligation of 
those funds or amounts.''.
            (3) Notification requirements.--
                    (A) Committees required.--Subsection (d)(1) of such 
                section is amended by striking ``each committee'' and 
                inserting ``the Committee on Veterans' Affairs and the 
                Committee on Appropriations of the Senate and the 
                Committee on Veterans' Affairs and the Committee on 
                Appropriations of the House of Representatives''.
                    (B) Use of amounts from bid savings.--Subsection 
                (d)(2)(B) of such section is amended by adding at the 
                end the following new clause:
            ``(iv) With respect to the major construction project that 
        is the source of the bid savings--
                    ``(I) the amounts already obligated or available in 
                the project reserve for such project;
                    ``(II) the percentage of such project that has been 
                completed; and
                    ``(III) the amount of such bid savings that is 
                already obligated or otherwise being used for a purpose 
                other than such project.''.
    (d) Quarterly Report on Super Construction Projects.--
            (1) In general.--At the end of subchapter I of chapter 81 
        of title 38, United States Code, add the following new section:
``Sec. 8120. Quarterly report on super construction projects
    ``(a) Quarterly Reports Required.--Not later than 30 days after the 
last day of each fiscal quarter the Secretary shall submit to the 
Committees on Veterans' Affairs of the Senate and House of 
Representatives on the super construction projects carried out by the 
Secretary during such quarter. Each such report shall include, for each 
such project--
            ``(1) the budgetary and scheduling status of the project, 
        as of the last day of the quarter covered by the report; and
            ``(2) the actual cost and schedule variances of the 
        project, as of such day, compared to the planned cost and 
        schedules for the project.
    ``(b) Super Construction Project Defined.--In this section, the 
term `super construction project' has the meaning given such term in 
section 8104(a)(4)(C) of this title.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of the chapter is amended by adding at the end of the 
        items relating to such subchapter the following new item:

``8120. Quarterly report on super construction projects.''.
    (e) Accelerated Master Planning for Each Medical Facility of the 
Department of Veterans Affairs.--
            (1) Existing facilities.--Not later than December 31, 2016, 
        the Secretary of Veterans Affairs shall complete a master plan 
        described in paragraph (3) for each medical facility of the 
        Department of Veterans Affairs.
            (2) New facilities.--For each medical facility of the 
        Department for which construction is completed after the date 
        of the enactment of this Act, the Secretary shall complete a 
        master plan described in paragraph (3) for the facility by not 
        later than the earlier of the following dates:
                    (A) The date on which activation is completed.
                    (B) The date of the formal dedication of the 
                facility.
            (3) Master plan described.--A master plan described in this 
        paragraph is, with respect to a medical facility of the 
        Department, a plan to inform investment decisions and funding 
        requests over a 10-year period for construction projects at 
        such medical facility--
                    (A) to meet the health care needs of a changing 
                veteran population through a combination of health care 
                from the Department and other community resources; and
                    (B) to maximize the best use of the land and 
                structures comprising such medical facility.

SEC. 3. ASSISTANT INSPECTOR GENERAL FOR CONSTRUCTION.

    (a) In General.--Chapter 3 of title 38, United States Code, is 
amended by inserting after section 312 the following new section:
``Sec. 312A. Assistant Inspector General for Construction
    ``(a) In General.--There is in the Office of Inspector General an 
Assistant Inspector General for Construction. The Assistant Inspector 
General for Construction is responsible for conducting, supervising, 
and coordinating audits, evaluations, and investigations of the 
planning, design, contracting, execution, and construction of 
facilities and infrastructure of the Department, including major and 
minor construction projects and leases.
    ``(b) Qualifications.--Each individual appointed as Assistant 
Inspector General for Construction shall be an individual who has 
expertise in construction and facilities management.
    ``(c) Reports.--(1) Not later than 60 days after the appointment of 
an individual as the Assistant Inspector General for Construction, and 
every calendar quarter thereafter, the Assistant Inspector General for 
Construction shall submit to the Committees on Veterans' Affairs of the 
Senate and House of Representatives a report summarizing the activities 
of the Assistant Inspector General for Construction during the 120-day 
period ending on the date of such report.
    ``(2) In addition to the report required in paragraph (1), and the 
requirements contained in section 5 of the Inspector General Act of 
1978 (5 U.S.C. App.), the Assistant Inspector General for Construction 
shall promptly provide to the Committees on Veterans' Affairs of the 
Senate and House of Representatives the findings of any investigation 
undertaken by the Assistant Inspector General for Construction, and 
shall notify the Committees promptly if the Assistant Inspector General 
for Construction identifies any serious or flagrant problem or 
deficiency relating to the administration or operation of any 
construction program of the Department, if, during the course of any 
investigation, the Assistant Inspector General for Construction 
determines that Congress should take immediate action.
    ``(3) Nothing in this subsection shall be construed to authorize 
the public disclosure of information that is--
            ``(A) specifically prohibited from disclosure by any other 
        provision of law;
            ``(B) specifically required by Executive Order to be 
        protected from disclosure in the interest of national defense 
        or national security or in the conduct of foreign affairs; or
            ``(C) a part of an ongoing criminal investigation.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
312 the following new item:

``312A. Assistant Inspector General for Construction.''.

            Passed the House of Representatives February 9, 2016.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.