69–006 

115TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 115–246 

VA PROCUREMENT EFFICIENCY AND TRANSPARENCY 

ACT 

JULY 24, 2017.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. ROE of Tennessee, from the Committee on Veterans’ Affairs, 

submitted the following 

R E P O R T 

[To accompany H.R. 2006] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Veterans’ Affairs, to whom was referred the 

bill (H.R. 2006) to amend title 38, United States Code, to improve 

the procurement practices of the Department of Veterans Affairs, 

and for other purposes, having considered the same, report favorably thereon without amendment and recommend that the bill do 

pass. 

CONTENTS 

Page 

Purpose and Summary ............................................................................................ 2 

Background and Need for Legislation .................................................................... 2 

Hearings ................................................................................................................... 2 

Subcommittee Consideration .................................................................................. 3 

Committee Consideration ........................................................................................ 3 

Committee Votes ...................................................................................................... 3 

Committee Oversight Findings ............................................................................... 3 

Statement of General Performance Goals and Objectives .................................... 3 

New Budget Authority, Entitlement Authority, and Tax Expenditures ............. 4 

Earmarks and Tax and Tariff Benefits .................................................................. 4 

Committee Cost Estimate ....................................................................................... 4 

Congressional Budget Office Estimate ................................................................... 4 

Federal Mandates Statement ................................................................................. 5 

Advisory Committee Statement .............................................................................. 5 

Constitutional Authority Statement ...................................................................... 5 

Applicability to Legislative Branch ........................................................................ 5 

Statement on Duplication of Federal Programs .................................................... 5 

Disclosure of Directed Rulemaking ........................................................................ 5 

Section-by-Section Analysis of the Legislation ...................................................... 6 

Changes in Existing Law Made by the Bill as Reported ...................................... 6 

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PURPOSE AND SUMMARY

H.R. 2006, the ‘‘VA Procurement Efficiency and Transparency 

Act,’’ was introduced by Representative Mike Coffman of Colorado 

on April 6, 2017. This bill would improve procurement within the 

Department of Veterans Affairs (VA) by putting in place consistent 

parameters for VA to measure its cost savings from competition 

and encouraging VA to organize its templates for key procurement 

documents and share them across the organization. 

BACKGROUND AND NEED FOR LEGISLATION

VA currently calculates cost savings achieved by competitive contracting in an inconsistent manner. Cost savings information is recorded for some contracts but not others. Cost savings information 

is recorded by some procurement offices but not others. There is no 

consistent standard for how the savings must be calculated, leading 

to divergent methods and misleading information. There is no central repository for the information, causing the picture of the magnitude of competition to be incomplete. Hence, when VA reports 

savings generated by competition, the information is unreliable and 

often selective. While there is no legal or regulatory requirement 

for federal agencies to measure and record such savings, other 

agencies have found it to be beneficial and opted to do it. Reporting 

aggregated competitive cost savings would indicate the effects of 

changing business conditions and contracting strategies used by 

the Department. 

Additionally, all government contracting relies heavily on templates for documents, such as statements of work, terms and conditions, clauses, and evaluation criteria. These documents, collectively, make up the contract. Government contract specialists tailor 

the templates to specific situations. Many agencies have instituted 

central, organized repositories of such templates, usually on the 

procurement organizations’ intranet websites. VA has no template 

repository. VA has designated its contract writing software’s database as the official place of record in which awarded contracts’ files 

are stored (rather than the old method of maintaining physical contract files). Thus, contract documents are stored in electronic formats. Contract specialists are able to browse through the database, 

retrieve documents, and edit and reuse them to produce new contracts. This is significantly less efficient than utilizing a central organized repository of templates, because it requires the contract 

specialist to hunt for a previous contract that is similar to what is 

desired and rewrite the document more than would be necessary 

when using a template. Instituting a template repository would 

also help VA standardize practices among the many offices that 

make up its heterogeneous procurement organization. 

HEARINGS

There were no full Committee hearings held on H.R. 2006. 

On June 29, 2017, the Subcommittee on Oversight and Investigations conducted a legislative hearing on: H.R. 2006, H.R. 2749, 

H.R. 2781, and a draft bill to improve the hiring, training, and efficiency of acquisition personnel and organizations of the Department of Veterans Affairs, and for other purposes (now H.R. 3169). 

The following witnesses testified: 

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The Honorable Jack Bergman of Michigan; the Honorable 

Ann McLane Kuster of New Hampshire; the Honorable Mike 

Coffman of Colorado; the Honorable Neal Dunn of Florida; the 

Honorable Jimmy Panetta of California; the Honorable Bruce 

Poliquin of Maine; Mr. Thomas Burgess, Associate Deputy Assistant Secretary, Office of Logistics and Supply Chain Management, Department of Veterans Affairs; Mr. Thomas Leney 

Executive Director, Small and Veteran Business Programs, Office of Small and Disadvantaged Business Utilization, Department of Veterans Affairs; Ms. Kaitlin Gray, Assistant Director, 

National Veterans Employment and Education Division, The 

American Legion; Mr. Patrick Murray, Associate Director, National Legislative Service, Veterans of Foreign Wars of the 

United States; and Mr. Wayne Simpson, Member, National 

Veterans Small Business Coalition. 

A statement for the record was submitted by: 

The Associated General Contractors of America. 

SUBCOMMITTEE CONSIDERATION

On July 12, 2017, the Subcommittee on Oversight and Investigations met in open markup session, a quorum being present, and ordered H.R. 2006 reported favorably to the full Committee. A motion 

by Representative Ann McLane Kuster of New Hampshire to report 

H.R. 2006 favorably to the House of Representatives was agreed to 

by voice vote. 

COMMITTEE CONSIDERATION

On July 19, 2017, the full Committee met in open markup session, a quorum being present, and ordered H.R. 2006 reported favorably to the House of Representatives by voice vote. A motion by 

Representative Tim Walz of Minnesota to report H.R. 2006 favorably to the House of Representatives was agreed to by voice vote. 

COMMITTEE VOTES

In compliance with clause 3(b) of rule XIII of the Rules of the 

House of Representatives, no recorded votes were taken on amendments or in connection with ordering H.R. 2006, reported to the 

House. 

COMMITTEE OVERSIGHT FINDINGS

In compliance with clause 3(c)(1) of rule XIII and clause (2)(b)(1) 

of rule X of the Rules of the House of Representatives, the Committee’s oversight findings and recommendations are reflected in the 

descriptive portions of this report. 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

In accordance with clause 3(c)(4) of rule XIII of the Rules of the 

House of Representatives, the Committee’s performance goals and 

objectives are to improve transparency and efficiency in VA procurement by standardizing its measurement of cost savings from 

competition and ensuring its templates for key procurement documents are organized and shared across VA. 

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NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House of Representatives, the Committee adopts as its own the estimate of new budget authority, entitlement authority, or tax expenditures or revenues contained in the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

EARMARKS AND TAX AND TARIFF BENEFITS

H.R. 2006 does not contain any Congressional earmarks, limited 

tax benefits, or limited tariff benefits as defined in clause 9 of rule 

XXI of the Rules of the House of Representatives. 

COMMITTEE COST ESTIMATE

The Committee adopts as its own the cost estimate on H.R. 2006 

prepared by the Director of the Congressional Budget Office pursuant to section 402 of the Congressional Budget Act of 1974. 

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

Pursuant to clause 3(c)(3) of rule XIII of the Rules of the House 

of Representatives, the following is the cost estimate for H.R. 2006 

provided by the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974: 

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, July 21, 2017. 

Hon. PHIL ROE, MD, 

Chairman, Committee on Veterans’ Affairs, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 2006, the VA Procurement Efficiency and Transparency Act. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Dwayne M. Wright. 

Sincerely, 

MARK P. HADLEY

(For Keith Hall). 

Enclosure. 

H.R. 2006—VA Procurement Efficiency and Transparency Act 

H.R. 2006 would require the Department of Veterans Affairs 

(VA) to calculate and record any cost savings realized from using 

competitive procedures for contracts awarded by the department. 

H.R. 2006 also would require VA to develop and use standard procurement templates across the department, where applicable. 

On the basis of information from VA, CBO expects that the requirement to both calculate and record cost savings could be implemented without increasing VA’s staffing levels. Additionally, according to VA, the agency currently attempts to standardize the 

procurement process to the extent possible, so developing standard 

procurement templates for contracts would not require a significant 

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departure from current practice. Therefore, CBO estimates that implementing H.R. 2006 would cost less than $500,000 over the 2017– 

2022 period, subject to the availability of appropriations. 

Enacting H.R. 2006 would not affect direct spending or revenues; 

therefore, pay-as-you-go procedures do not apply. 

CBO estimates that enacting H.R. 2006 would not increase net 

direct spending or on-budget deficits in any of the four consecutive 

10-year periods beginning in 2028. 

H.R. 2006 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would 

not affect the budgets of state, local, or tribal governments. 

The CBO staff contact for this estimate is Dwayne M. Wright. 

The estimate was approved by H. Samuel Papenfuss, Deputy Assistant Director for Budget Analysis. 

FEDERAL MANDATES STATEMENT

The Committee adopts as its own the estimate of Federal mandates regarding H.R. 2006, prepared by the Director of the Congressional Budget Office pursuant to section 423 of the Unfunded 

Mandates Reform Act. 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act would be created by H.R. 2006. 

CONSTITUTIONAL AUTHORITY STATEMENT

Pursuant to Article I, section 8 of the United States Constitution, 

H.R. 2006 is authorized by Congress’ power to ‘‘provide for the common Defense and general Welfare of the United States.’’ 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that H.R. 2006 does not relate to the terms 

and conditions of employment or access to public services or accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act. 

STATEMENT ON DUPLICATION OF FEDERAL PROGRAMS

Pursuant to clause 3(c)(5) of rule XIII of the Rules of the House 

of Representatives, the Committee finds that no provision of H.R. 

2006 establishes or reauthorizes a program of the Federal Government known to be duplicative of another Federal program, a program that was included in any report from the Government Accountability Office to Congress pursuant to section 21 of Public 

Law 111–139, or a program related to a program identified in the 

most recent Catalog of Federal Domestic Assistance. 

DISCLOSURE OF DIRECTED RULEMAKING

Pursuant to section 3(i) of H. Res. 5, 115th Cong. (2017), H.R. 

2006 contains no directed rule making that would require the Secretary to prescribe regulations. 

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SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title 

Section 1 cites the short title of H.R. 2006, to be the ‘‘VA Procurement Efficiency and Transparency Act.’’ 

Section 2. Information on cost or price savings from competition 

Section 2(a) would amend chapter 81 of title 38, U.S.C., by inserting a new section 8129 entitled, ‘‘Information on cost or price 

savings from competition.’’ 

Section 8129(a) would require VA to record information on cost 

or price savings realized by competitive procedures involving any 

VA contract awarded that is reported in the Federal Procurement 

Data System or any successor system. 

Section 8129(b) would require VA to place the information recorded under subsection (a) in the Electronic Contract Management 

System, or any successor system, if the contract was recorded in 

that system. If the contract was not recorded in that system, the 

Secretary must determine an appropriate location to record the information. 

Section 8129(c) would require VA to calculate the cost or price 

savings from subsection (a) by: (A) subtracting the total value of 

the selected offer or quote from the average of the total values of 

all offers or quotes evaluated; or (B) subtracting the total value of 

the selected offer or quote from the total value of the median offer 

or quote evaluated. If the difference calculated is negative, VA 

would be required to record that amount as zero. Section 8129(c) 

would also require the Secretary to make the calculation required 

under this subsection at the time when funds are obligated under 

the contract or at the time when an option is exercised, if appropriate. 

Section 2(b) would provide a clerical amendment. 

Section 3. Use of standardized procurement templates 

Section 3 would require the Secretary to make available and use 

standardized procurement templates across the department to the 

extent practicable. The Secretary would be able to customize templates to address specific procurement situations. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

existing law in which no change is proposed is shown in roman): 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (new matter is printed in italic, 

and existing law in which no change is proposed is shown in 

roman): 

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TITLE 38, UNITED STATES CODE 

* * * * * * * 

PART VI—ACQUISITION AND DISPOSITION OF 

PROPERTY 

* * * * * * * 

CHAPTER 81—ACQUISITION AND OPERATION OF HOSPITAL AND DOMICILIARY FACILITIES; PROCUREMENT 

AND SUPPLY; ENHANCED-USE LEASES OF REAL PROPERTY 

* * * * * * * 

SUBCHAPTER I—ACQUISITION AND OPERATION OF MEDICAL FACILITIES 

Sec. 

8101. Definitions. 

* * * * * * * 

SUBCHAPTER II—PROCUREMENT AND SUPPLY 

* * * * * * * 

8129. Information on cost or price savings from competition. 

* * * * * * * 

SUBCHAPTER II—PROCUREMENT AND SUPPLY 

* * * * * * * 

§ 8129. Information on cost or price savings from competition 

(a) RECORDING OF INFORMATION.—With respect to any contract 

awarded by the Secretary that is reported in the Federal Procurement Data System described in section 1122(a)(4)(A) of title 41, 

United States Code, or any successor system, the Secretary shall 

record information on the amount of any cost or price savings realized by using competitive procedures in awarding such contract. 

(b) PLACEMENT OF RECORDS.—The Secretary shall place recorded 

information under subsection (a) as follows: 

(1) With respect to contracts recorded in the Electronic Contract Management System, or any successor system, in such system. 

(2) With respect to contracts not covered by paragraph (1), in 

a location determined appropriate by the Secretary. 

(c) CALCULATION OF COST SAVINGS.—(1) In carrying out subsection (a), the Secretary shall calculate the amount of cost or price 

savings realized by using competitive procedures in awarding a contract by— 

(A) subtracting the total value of the selected offer or quote 

from the average of the total values of all offers or quotes evaluated; or 

(B) subtracting the total value of the selected offer or quote 

from the total value of the median offer or quote evaluated. 

(2) If the difference calculated pursuant to paragraph (1) is negative, the Secretary shall record such difference as zero. 

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(3) The Secretary shall make calculations under paragraph (1) 

with respect to a contract— 

(A) at the time at which the Secretary obligates amounts 

under such contract; or 

(B) if such contract contains options, at the time at which the 

option is exercised. 

* * * * * * * 

Æ