59–006 

114TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 114–364 

CONSTRUCTION REFORM ACT OF 2015 

DECEMBER 3, 2015.—Committed to the Committee of the Whole House on the State 

of the Union and ordered to be printed 

Mr. MILLER of Florida, from the Committee on Veterans’ Affairs, 

submitted the following 

R E P O R T 

[To accompany H.R. 3106] 

[Including cost estimate of the Congressional Budget Office] 

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

bill (H.R. 3106) to authorize Department major medical facility construction projects for fiscal year 2015, to amend title 38, United 

States Code, to make certain improvements in the administration 

of Department medical facility construction projects, and for other 

purposes, having considered the same, report favorably thereon 

with an amendment and recommend that the bill as amended do 

pass. 

CONTENTS 

Page 

Amendment .............................................................................................................. 2 

Purpose and Summary ............................................................................................ 5 

Background and Need for Legislation .................................................................... 6 

Hearings ................................................................................................................... 9 

Subcommittee Consideration .................................................................................. 10 

Committee Consideration ........................................................................................ 10 

Committee Votes ...................................................................................................... 11 

Committee Oversight Findings ............................................................................... 11 

Statement of General Performance Goals and Objectives .................................... 11 

New Budget Authority, Entitlement Authority, and Tax Expenditures ............. 11 

Earmarks and Tax and Tariff Benefits .................................................................. 12 

Committee Cost Estimate ....................................................................................... 12 

Congressional Budget Office Estimate ................................................................... 12 

Federal Mandates Statement ................................................................................. 13 

Advisory Committee Statement .............................................................................. 13 

Constitutional Authority Statement ...................................................................... 13 

Applicability to Legislative Branch ........................................................................ 13 

Statement on Duplication of Federal Programs .................................................... 13 

Disclosure of Directed Rulemaking ........................................................................ 14 

Section-by-Section Analysis of the Legislation ...................................................... 14 

Changes in Existing Law Made by the Bill as Reported ...................................... 18 


SSpencer on DSK4SPTVN1PROD with REPORTS
2 

AMENDMENT

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Construction Reform Act of 2015’’. 

SEC. 2. DEPARTMENT OF VETERANS AFFAIRS CONSTRUCTION REFORMS. 

(a) PROJECT MANAGEMENT.—Section 8103 of title 38, United States Code, is 

amended by adding at the end the following new subsection: 

‘‘(e) In the case of any super construction project (as such term is defined in section 8104(a)(4)(C)), the Secretary shall enter into an agreement with an appropriate 

non-Department Federal entity to provide full project management services for the 

super construction project, including management over the project design, acquisition, construction, and contract changes. Such agreement shall provide that the Secretary shall reimburse such Federal entity for all costs associated with the provision 

of project management services under the agreement.’’. 

(b) APPLICATION OF INDUSTRY STANDARDS; ASSISTANCE.—Section 8103 of title 38, 

United States Code, as amended by subsection (a), is further 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 nonDepartment 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.’’. 

(c) 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 ComVerDate Sep 11 2014 07:21 Dec 05, 2015 Jkt 059006 PO 00000 Frm 00002 Fmt 6659 Sfmt 6621 E:\HR\OC\HR364.XXX HR364

SSpencer on DSK4SPTVN1PROD with REPORTS
3 

mittee 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. 

(d) 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.’’. 

(e) QUARTERLY REPORT ON SUPER CONSTRUCTION PROJECTS.— 

(1) IN GENERAL.—At the end of subchapter I of chapter 81 of title 38, United 

States Code, insert the following new section: 

‘‘§ 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 


SSpencer on DSK4SPTVN1PROD with REPORTS
4 

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 8103(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.’’. 

(f) 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. MODIFICATION OF AUTHORIZATION OF FISCAL YEAR 2008 MAJOR MEDICAL FACILITY 

PROJECT AT DEPARTMENT MEDICAL CENTER IN TAMPA, FLORIDA. 

(a) MODIFICATION OF AUTHORIZATION.—In chapter 3 of the Supplemental Appropriations Act, 2008 (Public Law 110–252; 122 Stat. 2326), in the matter under the 

heading ‘‘Department of Veterans Affairs–Departmental Administration–Construction, Major Projects’’, after ‘‘Five Year Capital Plan’’ insert the following: ‘‘and for 

constructing a new bed tower at the Department of Veterans Affairs medical center 

in Tampa, Florida, in lieu of providing bed tower upgrades at such medical center’’. 

(b) EMERGENCY DESIGNATION.— 

(1) IN GENERAL.—Subsection (a) is designated as an emergency requirement 

pursuant to section 4(g) of the Statutory Pay-As-You-Go Act of 2010 (2 U.S.C. 

933(g)). 

(2) DESIGNATION IN SENATE.—In the Senate, subsection (a) is designated as 

an emergency requirement pursuant to section 403(a) of S. Con. Res. 13 (111th 

Congress), the concurrent resolution on the budget for fiscal year 2010. 

SEC. 4. AUTHORIZATION OF FISCAL YEAR 2015 MAJOR MEDICAL FACILITY PROJECTS. 

(a) AUTHORIZATION.—The Secretary of Veterans Affairs may carry out the following major medical facility projects, with each project to be carried out in an 

amount not to exceed the amount specified for that project: 

(1) Construction of a community living center, outpatient clinic, renovated 

domiciliary, and renovation of existing buildings in Canandaigua, New York, in 

an amount not to exceed $158,980,000. 

(2) Seismic corrections to the mental health and community living center in 

Long Beach, California, in an amount not to exceed $126,100,000. 

(3) Seismic correction of 12 buildings in West Los Angeles, California, in an 

amount not to exceed $70,500,000. 

(4) Construction of a spinal cord injury building and seismic corrections in 

San Diego, California, in an amount not to exceed $205,840,000. 

(b) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated 

to the Secretary of Veterans Affairs for fiscal year 2015 or the year in which funds 

are appropriated for the Construction, Major Projects, account, a total of 

$561,420,000 for the projects authorized in subsection (a). 

(c) LIMITATION.—The projects authorized under this section may only be carried 

out using— 


SSpencer on DSK4SPTVN1PROD with REPORTS
5 

(1) funds appropriated for fiscal year 2015 pursuant to the authorization of 

appropriations in subsection (b); 

(2) funds available for Construction, Major Projects for a fiscal year before fiscal year 2015 that remain available for obligation; 

(3) funds available for Construction, Major Projects, for a fiscal year after fiscal year 2015 that remain available for obligation; 

(4) funds appropriated for Construction, Major Projects, for fiscal year 2015 

for a category of activity not specific to a project; 

(5) funds appropriated for Construction, Major Projects, for a fiscal year before 2015 for a category of activity not specific to a project; and 

(6) funds appropriated for Construction, Major Projects, for a fiscal year after 

2015 for a category of activity not specific to a project. 

SEC. 5. 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: 

‘‘§ 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.’’. 

PURPOSE AND SUMMARY

H.R. 3106, the Construction Reform Act of 2015, was introduced 

by Representative Jeff Miller of Florida on July 16, 2015. H.R. 

3106, as amended, would: (1) require the Department of Veterans 

Affairs (VA) to enter into an agreement with a non-Department 

federal entity to provide project management services for super 

construction projects involving a total expenditure of more than 

$100 million; (2) require the use of industry standards, standard 

designs, and best practices for VA medical facility construction 

projects; (3) prohibit VA from: obligating/expending funds for advance planning or design for any super construction project until 


SSpencer on DSK4SPTVN1PROD with REPORTS
6 

1See, the VA Construction Review Council Activity Report, November 2012. 

2See, Government Accountability Office report, ‘‘Additional Actions Needed to Decrease 

Delays and Lower Costs of Major Medical Facility Projects.’’ http://www.gao.gov/assets/660/ 

653585.pdf. 

60 days after congressional notification, obligating funds for a 

major medical facility project/super construction project by more 

than 10 percent of the amount approved by law without congressional approval, and using bid savings amounts/funds for other 

than their original purpose before 30 days after notifying such committees unless each committee approves the obligation; (4) require 

VA to report to the Committees on Veterans’ Affairs and Appropriations of the House of Representatives and the Senate on the 

use of bid savings; (5) require quarterly reports on super construction projects; (6) require VA to complete a master plan for each VA 

medical facility; (7) authorize VA to construct a new bed tower at 

the James A. Haley Veterans’ Hospital in Tampa, Florida; (8) authorize Major Construction projects in Canandaigua, New York, 

and Long Beach, San Francisco, West Los Angeles, and San Diego, 

California, and authorize the appropriation of $561.420 million to 

carry out these projects; and, (9) create, within VA’s Office of the 

Inspector General, an Assistant Inspector General for Construction 

to conduct, supervise, and coordinate audits, evaluations, and investigations into the planning, design, contracting, execution, and 

construction of VA facilities and infrastructure. 

BACKGROUND AND NEED FOR LEGISLATION

Section 2—Department of Veterans Affairs construction reforms 

VA operates one of the Federal government’s largest real property portfolios. Most of VA’s real property assets belong to the Veterans Health Administration (VHA), which operates more than 

7,000 owned and leased buildings encompassing over 160,000 

square feet of clinical and administrative space across more than 

15,000 acres of land.1 Much of VHA’s real property assets are outdated, with the average age of a VA medical facility approaching 

sixty years, making them ill-suited to the provision of 21st century 

health care. Updating these facilities necessitates a complex and 

costly major medical facility construction program. 

At the Committee’s request, the Government Accountability Office (GAO) undertook an audit and issued a report in April 2013 

entitled, ‘‘Additional Actions Needed to Decrease Delays and Lower 

Costs of Major Medical Facility Projects.’’ 2 In this report, GAO 

found that VA’s four largest medical center construction projects— 

in Denver, Colorado; Las Vegas, Nevada; New Orleans, Louisiana; 

and, Orlando, Florida—experienced significant cost increases and 

lengthy schedule delays. The cost delays for these projects ranged 

from 59 percent to 144 percent, as of November 2012, with a total 

cost increase of nearly $1.5 billion and an average cost increase of 

approximately $366 million. The schedule delays for these projects 

ranged from 14 to 74 months, with an average delay of 35 months. 

Unsurprisingly, GAO concluded that these findings indicated serious weaknesses in VA’s construction management processes. Despite numerous hearings by the Committee where VA officials were 

warned that these projects were significantly delayed and over 


SSpencer on DSK4SPTVN1PROD with REPORTS
7 

3Kiewit-Turner, A Joint Venture v. Department of Veterans Affairs CBCA3450 (December 9, 

2014). This decision led to the first time VA ever publicly admitted that this project was either 

over budget or delayed. 

budget, VA consistently maintained that the projects were both on 

time and on budget. 

These weaknesses are perhaps nowhere more apparent than in 

the management of the replacement medical center construction 

project in Denver, Colorado. The replacement of the existing Denver VA Medical Center began as a discussion in 1999 between VA 

and the University of Colorado regarding the possibility of a shared 

facility on the former Fitzsimmons Army base in Aurora, Colorado. 

After undergoing numerous scope changes over a period of several 

years, VA requested appropriations in 2010 for a standalone replacement medical center project with a total estimated cost of 

$800 million. Due to the issuance of contract modifications in December 2013, the original firm target price of $604 million (not to 

exceed $610 million) was revised to $615.9 million (not to exceed 

$621.8 million) and the entire project remained capped at $800 million. However, in December 2014, VA was found by the Civilian 

Board of Contract Appeals to be in breach of its contract with the 

project’s general contractor, Kiewit Turner (KT), who began to demobilize from the construction site.3 VA entered into an interim 

agreement with KT to resume construction on the project and later 

informed the Committee that an additional $830 million in funding, for a total authorization of $1.73 billion—triple the original authorization—was needed to continue the project, which Congress 

ultimately provided. VA subsequently turned to the Army Corps of 

Engineers, who revised the estimated completion cost to $1.675 billion, to manage the project to completion. Construction is expected 

to conclude on February 1, 2018. 

In light of the mismanagement of this and other VA major medical facility projects, the Committee strongly believes that VA’s construction management processes must be reformed, strengthened, 

and aggressively overseen. As a result, Section 2 of the bill would 

require VA to enter into an agreement with a non-VA entity to provide project management services for super construction projects 

involving a total expenditure of more than $100 million. Section 2 

of the bill would also require VA to use industry standards, standard designs, and best practices for all medical facility construction 

projects and to complete a master plan for each VA medical facility. 

Section 2 of the bill would further prohibit VA 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/super construction 

project by more than 10 percent of the amount approved by law 

without congressional approval, and using bid savings amounts or 

funds for other than their original purpose before 30 days after notifying such committees unless each committee approves the obligation. To ensure that Congress is kept fully informed about the status of VA construction projects, Section 2 of the bill would require 

VA to report regularly on the use of bid savings and on all super 

construction projects. In addition to the above reforms, the Committee urges VA to use competitively awarded third-party independent contracts to provide building information models, construction services for validating, measuring, and monitoring construcVerDate Sep 11 2014 07:21 Dec 05, 2015 Jkt 059006 PO 00000 Frm 00007 Fmt 6659 Sfmt 6602 E:\HR\OC\HR364.XXX HR364

SSpencer on DSK4SPTVN1PROD with REPORTS
8 

tion costs and materials, and for validation of contractor change 

order requests as well as to institute a competitively awarded 

building enterprise management system for the purpose of managing all ongoing super construction projects using real-time data 

information sharing between project contractors, non-Federal entities, and VA. 

Section 3—Modification of authorization of Fiscal Year 2008 major 

medical facility project at Department medical center in 

Tampa, Florida 

The Supplemental Appropriations Act, 2008 (P.L. 110–252; 122 

Stat. 2326) authorized VA to renovate and upgrade an existing bed 

tower at the James A. Haley Veterans’ Hospital in Tampa, Florida. 

However, VA’s Fiscal Year 2016 budget submission requested authority to construct a new, replacement bed tower, using funds previously made available, rather than renovation and upgrade of the 

existing bed tower. Section 3 of the bill would provide that authority. According to VA, constructing a new bed tower could be completed in 38 months, which is considerably faster than the 144 

months that a renovation would require. VA also claims that proceeding with construction instead of renovation would eliminate 

the need for 12 leases, leading to a potential cost avoidance of 

$3.84 million, and minimize both disruptions to facility operations 

and patient safety risks associated with a multi-phased renovation. 

VA has estimated that the new bed tower will consist of an approximately 220,000 gross square foot structure between four and 

six towers tall and will encompass 100 medical surgical single patient rooms and service spaces. 

Section 4—Authorization of Fiscal Year 2015 major medical facility 

projects 

Section 8104(2) of title 38, U.S.C., requires congressional authorization for VA major medical facility projects and major medical facility leases. A major medical facility project is defined as a project 

involving construction, alteration, or acquisition of a medical facility involving a total expenditure of more than $10,000,000. A major 

medical facility lease is defined as a lease for space for use as a 

new medical facility at an average annual rental of more than 

$1,000,000. Along with each major medical facility project or lease 

funding request, section 8104(b) of title 38 U.S.C., requires VA to 

submit a prospectus of the proposed medical facility to include a 

detailed description of the medical facility and an estimate of the 

cost for the construction, alteration, lease, or other acquisition as 

well as an estimate of the cost of the equipment required for operation of such facility, demographic data, current and projected 

workload and utilization data, current and projected operating 

costs, the priority score assigned to the project under the VA’s 

prioritization methodology, and a description of each alternative 

that was considered in the case of a new or replacement medical 

ideology. 

Section 4 of the bill would authorize Major Construction projects 

in Canandaigua, New York, and Long Beach, San Francisco, West 

Los Angeles, and San Diego, California, and authorize the appropriation of $561.420 million to carry out these projects. VA has reVerDate Sep 11 2014 07:21 Dec 05, 2015 Jkt 059006 PO 00000 Frm 00008 Fmt 6659 Sfmt 6602 E:\HR\OC\HR364.XXX HR364

SSpencer on DSK4SPTVN1PROD with REPORTS
9 

4See, Office of Inspector General Department of Veterans Affairs Semiannual Report to Congress October 1, 2014–March 31, 2015. http://www.va.gov/oig/pubs/sars/vaoig-sar-2015-1.pdf 

quested authorization for each of these projects and its justification 

for them can be found in VA’s Fiscal Year 2015 budget submission. 

Section 5—Assistant Inspector General for Construction 

The VA Office of the Inspector General (VAOIG) was established 

in 1978 by the Inspector General Act of 1978 (P.L. 95–452, 92 Stat. 

1101). Today, VAOIG is responsible for conducting and supervising 

audits and investigations; recommending policies designed to promote economy and efficiency, and to prevent and detect criminal 

activity, waste, abuse, and mismanagement in VA programs and 

operations; and keeping the VA Secretary and Congress fully informed about problems and deficiencies in VA programs and operations and the need for corrective action.4 VAOIG is currently organized to include four Assistant Inspectors General operating under 

the Inspector General and the Deputy Inspector General. The four 

current VAOIG Assistant Inspectors General are: the Assistant Inspector General for Investigations, the Assistant Inspector General 

for Audits and Evaluations, the Assistant Inspector General for 

Management and Administration, and the Assistant Inspector General for Healthcare Inspections. 

Due to the many deficiencies that have been uncovered regarding 

the management of VA’s construction program, the Committee believes that the addition of an Assistant Inspector General for Construction within VAOIG’s existing organizational structure would 

allow for greater oversight and scrutiny of VA construction 

projects. As such, Section 5 of the bill would create an Assistant 

Inspector General for Construction within VAOIG. The new Assistant Inspector General for Construction would be required to have 

expertise in construction and facilities management and would be 

responsible for conducting, supervising, and coordinating audits, 

evaluations, and investigations into the planning, design, contracting, execution, and construction of VA facilities and infrastructure. 

HEARINGS

There were no full Committee hearings held on H.R. 3106, as 

amended. 

On July 14, 2015, the Subcommittee on Health conducted a legislative hearing on various bills introduced and drafted in the 114th 

Congress, including draft legislation to authorize VA major medical 

facility construction projects for FY 2015 and to make certain improvements in the administration of VA medical facility construction projects. The draft bill was later introduced as H.R. 3106. The 

following witnesses testified: 

The Honorable Tim Walberg, U.S. House of Representatives, 7th 

Congressional District; Michigan; The Honorable Sean Duffy, U.S. 

House of Representatives, 7th Congressional District, Wisconsin; 

The Honorable Steve Stivers, U.S. House of Representatives, 15th 

Congressional District, Ohio; The Honorable Kyrsten Sinema, U.S. 

House of Representatives, 9th Congressional District, Arizona; The 

Honorable Doug Collins, U.S. House of Representatives, 9th Congressional District, Georgia; The Honorable Mike Coffman, U.S. 


SSpencer on DSK4SPTVN1PROD with REPORTS
10 

House of Representatives, 6th Congressional District, Colorado; 

The Honorable Jeff Denham, U.S. House of Representatives, 10th 

Congressional District, California; The Honorable Charles Boustany, U.S. House of Representatives, 3rd Congressional District, 

Louisiana; The Honorable Brad Wenstrup, U.S. House of Representatives, 2nd Congressional District, Ohio; Ian de Planque, 

Legislative Director American Legion; Adrian Atizado, Assistant 

National Legislative Director, Disabled American Veterans; Carlos 

Fuentes, Senior Legislative Associate, National Legislative Service 

Veterans of Foreign Wars of the United States; and, Madhulika 

Agarwal MD, MPH, Deputy Under Secretary for Health for Policy 

and Services, Veterans Health Administration U.S. Department of 

Veterans Affairs, who was accompanied by Janet P. Murphy MBA, 

Acting Deputy Under Secretary for Health for Operations and 

Management, Veterans Health Administration U.S. Department of 

Veterans Affairs and Jessica Tanner, General Attorney Office of 

General Counsel, U.S. Department of Veterans Affairs. 

Statements for the Record were submitted by: 

The American Academy of Audiology and the American SpeechLanguage Association; the Children of Vietnam Veterans Health 

Alliance, the International Hearing Society; Iraq and Afghanistan 

Veterans of America; the National Medical Association; Paralyzed 

Veterans of America; VetsFirst, a program of the United Spinal Association: Vietnam Veterans of America; Warrior Canine Connection; the American Academy of Ophthalmology; and, the American 

Medical Association. 

SUBCOMMITTEE CONSIDERATION

On July 22, 2015, the Subcommittee on Health met in open 

markup session, a quorum being present, and favorably forwarded 

H.R. 3106, as amended, favorably to the full Committee by voice 

vote. During consideration of the bill, the following amendment 

was considered: 

An amendment offered by Representative Mike Coffman from 

Colorado, which would require VA to share any information needed 

by the non-Department Federal entity construction agent to provide full project management services for a super construction 

project, provide mandatory guidelines for the handling of changeorders to the underlying construction or design contracts, and require VA to ensure that VA personnel with construction responsibility receive ongoing professional training and development on industry standards and best practices. The amendment was agreed 

to by voice vote. 

COMMITTEE CONSIDERATION

On September 17, 2015, the full Committee met in open markup 

session, a quorum being present, and ordered H.R. 3106, as amended, reported favorably to the House of Representatives, by voice 

vote. 

During consideration of the bill, the following amendments were 

considered: 

An amendment in the nature of a substitute by Representative 

Jeff Miller of Florida, which would create an Assistant Inspector 

General for Construction within VA’s Office of the Inspector GenVerDate Sep 11 2014 07:21 Dec 05, 2015 Jkt 059006 PO 00000 Frm 00010 Fmt 6659 Sfmt 6602 E:\HR\OC\HR364.XXX HR364

SSpencer on DSK4SPTVN1PROD with REPORTS
11 

eral to be responsible for conducting, supervising, and coordinating 

audits, evaluations, and investigations into the planning, design, 

contracting, execution, and construction of VA facilities and infrastructure. The amendment in the nature of a substitute was agreed 

to by voice vote. 

An amendment to the amendment in the nature of a substitute 

by Representative Julia Brownley of California, which would require the Assistant Inspector General for Construction to report to 

Congress 60 days after his/her appointment and quarterly thereafter and to notify Congress of the findings of any investigation undertaken as well as any serious or flagrant problems or deficiencies 

requiring immediate congressional action. The amendment to the 

amendment in the nature of a substitute was agreed to by voice 

vote. 

An amendment to the amendment in the nature of a substitute 

by Representative Kathleen Rice of New York, which would require 

VA to enter into a contract with an appropriate non-VA Federal entity to conduct forensic audits of any major medical facility or super 

construction project for which the total expenditures exceed the 

amount specified in law by more than 25 percent and would require VA to enter into a contract with an appropriate non-VA Federal entity to conduct a forensic audit of the replacement medical 

center construction project in Aurora, Colorado. The amendment to 

the amendment in the nature of a substitute 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, there were no recorded votes in connection with ordering H.R. 3106, as amended, reported to the House. 

A motion by Ranking Member Corrine Brown of Florida to report 

H.R. 3106, as amended, favorably to the House of Representatives 

was adopted by voice vote. 

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 that the Secretary will use these provisions to improve the management and strengthen the oversight of VA construction projects, modify the authorization of a Fiscal Year 2008 

VA major medical facility project in Tampa, Florida, and authorize 

Fiscal Year 2015 major medical facility projects. 

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 esVerDate Sep 11 2014 07:21 Dec 05, 2015 Jkt 059006 PO 00000 Frm 00011 Fmt 6659 Sfmt 6602 E:\HR\OC\HR364.XXX HR364

SSpencer on DSK4SPTVN1PROD with REPORTS
12 

timate 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. 3106, as amended, 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. 3106, 

as amended, 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. 3106, 

as amended, 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, October 22, 2015. 

Hon. JEFF MILLER, 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. 3106, the Construction 

Reform Act of 2015. 

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

to provide them. The CBO staff contact is Ann E. Futrell. 

Sincerely, 

KEITH HALL, Director. 

Enclosure. 

H.R. 3106—Construction Reform Act of 2015 

H.R. 3106 would require the Department of Veterans Affairs 

(VA) to hire an Assistant Inspector General for construction 

projects. That official would be responsible for assessing the planning, design, and execution of major construction projects and 

leases at VA. Based on the average salary of senior executive service employees at VA, we estimate the salary and benefits for this 

position would amount to about $215,000 in 2016. After adjusting 

for inflation, CBO estimates that implementing this provision 

would cost $1 million over the 2016–2020 period. 

The bill also would modify VA’s procedures for managing major 

construction projects, require employee training on industry standards of construction projects, and require quarterly reports. CBO 

expects preparing necessary regulations, developing online training 

modules, and preparing reports would cost less than $500,000 over 

the 2016–2020 period. 


SSpencer on DSK4SPTVN1PROD with REPORTS
13 

In addition, the bill would authorize new construction and renovation of five medical facilities for which funds have already been 

appropriated. Because spending on those projects would be limited 

to the amounts appropriated for those purposes, CBO estimates 

that implementing those provisions would not require additional 

appropriations. 

In total, CBO estimates that implementing H.R. 3106 would have discretionary costs of $1 million over the 2016–2020 period; 

such spending would be subject to the availability of appropriated 

funds. 

Enacting H.R. 3106 would not affect direct spending or revenues; 

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

CBO estimates that enacting H.R. 3106 would not increase net 

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

10-year periods beginning in 2026. 

H.R. 3106 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 Ann E. Futrell. 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. 3106, as amended, 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. 3106, as 

amended. 

STATEMENT OF CONSTITUTIONAL AUTHORITY

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

the reported bill 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 the legislation 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 section 3(g) of H. Res. 5, 114th Cong. (2015), the 

Committee finds that no provision of H.R. 3106, as amended, 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. 


SSpencer on DSK4SPTVN1PROD with REPORTS
14 

DISCLOSURE OF DIRECTED RULEMAKING

Pursuant to section 3(i) of H. Res. 5, 114th Cong. (2015), the 

Committee estimates that H.R. 3106, as amended, contains no directed rule making that would require the Secretary to prescribe 

regulations. 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1—Short title 

Section 1 would provide the short title of H.R. 3106, as amended, 

as the ‘‘Construction Reform Act of 2015.’’ 

Section 2—Department of Veterans Affairs construction reforms 

Section 2(a) would amend Section 8103 of title 38 U.S.C., by adding at the end a new subsection (e). Subsection (e) of section 8103 

of title 38 U.S.C., would require the Secretary to enter into an 

agreement with an appropriate non-Department Federal entity to 

provide full project management services—including the management over the project design, acquisition, construction, and contract 

change—for any super construction project and require the Secretary to reimburse such Federal entity for all costs associated with 

the provision of project management services under such agreement. 

Section 2(b) would amend section 8103 of title 38 U.S.C., by adding at the end new subsections (f), (g), (h), and (i). 

Proposed subsection (f) of section 8103 of title 38 U.S.C., would 

require the Secretary to use, to the maximum extent practicable, 

industry standard, standard designs, and best practices in carrying 

out the construction of medical facilities. 

Proposed subsection (g) of section 8103 of title 38 U.S.C., would 

require the Secretary to provide, on a non-reimbursable basis, a 

non-Department Federal entity with which the Secretary has entered into an agreement under subsection (e): 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; any documents or information 

needed for the entity to carry out the responsibilities of the entity 

with respect to the super construction project; and, upon the request of the entity, any other assistance that the entity determines 

necessary to carry out such responsibilities. 

Proposed subsection (h) of section 8103 of title 38 U.S.C., would 

require a non-Department Federal entity with which the Secretary 

has entered into an agreement under subsection (e) to issue a final 

decision on a proposed change to a contract entered into by the 

non-Department Federal entity that is estimated at a value of less 

than $250,000 by not later than 30 days after the date on which 

the change is proposed and, with respect to a proposed change to 

such contract that is estimated at a value of $250,000 or more, authorize the Secretary to provide the entity the Secretary’s recommendations regarding the change and authorize the Secretary to 

issue the final decision regarding such change during the 30-day 

period beginning on the date on which the entity furnished to the 

Secretary information regarding such change and, if the Secretary 

does not issue a final decision during the 30-day period described 

above, authorize the non-Department Federal entity to issue a final 


SSpencer on DSK4SPTVN1PROD with REPORTS
15 

decision regarding such change by no later than 90 days from the 

date the entity is furnished information regarding such change by 

the Secretary. 

Proposed subsection (i) of section 8103 of title 38 U.S.C., would 

require the Secretary to 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 designed to 

ensure that employees maintain adequate expertise relating to industry standards and best practices for the acquisition of design 

and construction services and authorize the Secretary to provide 

such training program through a contract or agreement with a nonDepartment Federal entity or with a non-Department Federal entity. 

Section 2(c) would amend section 8104(a) of title 38 U.S.C., by redesignating paragraph (3) as paragraph (4); by inserting after paragraph (2) a new paragraph (3). The new paragraph (3) would prohibit the Secretary from obligating or expending funds for advance 

planning or design for any super construction project until 60 days 

after the date on which the Secretary submits to the Committees 

on Veterans’ Affairs and Appropriations of the House of Representatives and Senate notice of such obligation or expenditure. The new 

paragraph (4), as redesignated in this section, contains a new subparagraph (C) that would define the term ‘‘super construction 

project’’ as a project for the construction, alteration, and acquisition 

of a medical facility involving a total expenditure of more than $1 

million but not an acquisition by exchange and stipulate that the 

amendments made in this section would be required to take effect 

on the date of the enactment of this Act and are required to apply 

with respect to a construction project that is initiated on or after 

that date. 

Section 2(d) would amend subsection (c) of section 8104 of title 

38 U.S.C., to prohibit the Secretary from obligating 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 not 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. This Section would also require the Secretary to 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 to 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.’’ Additionally, Section(2)(d) would amend subsection (d) of section 8104 of title 38 


SSpencer on DSK4SPTVN1PROD with REPORTS
16 

U.S.C. in paragraph (2)(B) in the matter preceding clause (i) by 

striking ‘‘Whenever’’ and inserting ‘‘Before’’ and by adding at the 

end a new paragraph preventing the Secretary from obligating any 

funds described in paragraph (1) or amounts described in (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. Section 2(d) would further amend subsection (d)(1) of section 8104 of 

title 38 U.S.C., 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’’ and 

amend subsection (d)(2)(B) of section 8104 of title 38 U.S.C., by 

adding at the end a new clause that would stipulate that, with respect to the major construction project that is the source of the bid 

savings, the amounts already obligated or available in the project 

reserve for such project, the percentage of such project that has 

been completed, and the amount of such bid savings that is already 

obligated or otherwise being used for a purpose other than such 

project. 

Section 2(e) would amend subchapter I of chapter 81 of title 38 

U.S.C., by inserting a new section entitled, ‘‘§ 8120. Quarterly report on super construction projects’’ and making relevant clerical 

amendments. 

Sec. 8120(a) would require the Secretary to submit, by not later 

than 30 days after the last day of each fiscal quarter, a quarterly 

report on the super construction projects carried out by the Secretary during such quarter to the Committees on Veterans’ Affairs 

of the Senate and the House of Representatives and would require 

the quarterly report to include, for each such project, the budgetary 

and scheduling status of the project as of the last day of the quarter covered by the report and the actual cost and schedule 

variances of the project as of such day compared to the planned 

cost and schedules for the project. 

Sec. 8120(b) would define the term ‘‘super construction project’’ 

as the meaning given such term in section 8103(a)(4)(C) of title 38 

U.S.C. 

Section 2(f) would require the Secretary to complete a master 

plan to inform investment decisions and funding requests over a 

10-year period by not later than December 31, 2016, for each medical facility to meet the health care needs of a changing veteran 

population through a combination of health care from VA and community resources and to maximize the best use of the land and 

structures compromising such medical facility. Section 2(f) would 

also require the Secretary to complete a master plan for each medical facility of the Department for which construction is completed 

after the date of the enactment of this Act by not later than the 

earlier of either the date on which activation is completed or the 

date of the formal dedication of the facility. 


SSpencer on DSK4SPTVN1PROD with REPORTS
17 

Section 3—Modification of authorization of fiscal year 2008 major 

medical facility project at department medical center in Tampa, 

Florida 

Section 3(a) would amend chapter 3 of the Supplemental Appropriations Act of 2008 (P.L. 110–252; 122 Stat. 2326) by inserting 

‘‘and for constructing a new bed tower in Tampa, Florida, in lieu 

of providing bed tower upgrades at such medical center’’ after ‘‘Five 

Year Capital Plan’’ under the heading ‘‘Department of Veterans Affairs—Departmental Administration—Construction, Major 

Projects’’. 

Section 3(b) would designate subsection (a) as an emergency requirement pursuant to section 4(g) of the Statutory Pay-As-You-Go 

Act of 2010 (2 U.S.C. 933(g)) and, in the Senate, designate subsection (a) as an emergency requirement pursuant to section 403(a) 

of S. Con. Res. 13 (111th Congress), the concurrent resolution on 

the budget for fiscal year 2010. 

Section 4—Authorization of Fiscal Year 2015 major medical facility 

projects 

Section 4(a) would authorize the Secretary of Veterans Affairs to 

carry out the following major medical facility projects, with each 

project to be carried out in an amount not to exceed the amount 

specified for that project: construction of a community living center, 

outpatient clinic, renovated domiciliary, and renovation of existing 

buildings in Canandaigua, New York, in an amount not to exceed 

$158,980,000; seismic corrections to the mental health and community living center in Long Beach, California, in an amount not to 

exceed $126,100,000; seismic corrections of 12 buildings in West 

Los Angeles, California, in an amount not to exceed $70,500,000; 

and the construction of a spinal cord injury building and seismic 

corrections in San Diego, California, in an amount not to exceed 

$205,840,000. 

Section 4(b) of the bill would authorize $561,420,000 to be appropriated to the Secretary of Veterans Affairs for Fiscal Year 2015 or 

the year in which funds are appropriated for the Construction, 

Major Projects account for the projects authorized in subsection (a). 

Section 4(c) would stipulate that the projects authorized under 

this Section may only be carried out using: funds appropriated for 

Fiscal Year 2015 pursuant to the authorization of appropriations in 

subsection (b); funds available for Construction, Major Projects for 

a fiscal year before Fiscal Year 2015 that remain available for obligation; funds available for Construction, Major Projects, for a fiscal 

year after Fiscal Year 2015 that remain available for obligation; 

funds appropriated for Construction, Major Projects, for Fiscal Year 

2015 for a category of activity not specific to a project; funds appropriated for Construction, Major Projects, for a Fiscal Year before 

2015 for a category of activity not specific to a project; and funds 

appropriated for Construction, Major Projects, for a Fiscal Year 

after 2015 for a category of activity not specific to a project. 

Section 5—Assistant Inspector General for Construction 

Section 5(a) would amend Chapter 3 of title 38 U.S.C. by inserting, after section 312, a new section entitled, ‘‘§ 312A. Assistant Inspector General for Construction.’’ 


SSpencer on DSK4SPTVN1PROD with REPORTS
18 

Proposed sec. 312A(a) would create an Assistant Inspector General for Construction within the VA Office of the Inspector General. 

The Assistant Inspector General for Construction would be responsible for conducting, supervising, and coordinating audits, evaluations, and investigations of the planning, design, contracting, execution, and construction of facilities and infrastructure of VA, including major and minor construction projects and leases. 

Proposed sec. 312A(b) would require any individual appointment 

as the Assistant Inspector General for Construction to have expertise in construction and facilities management. 

Proposed sec. 312A(c) would require the Assistant Inspector General for Construction to submit a report summarizing his/her activities during the 120-day period ending on the day of the report to 

the Committees on Veterans’ Affairs of the Senate and the House 

of Representatives by not later than 60 days after an Assistant Inspector General for Construction is appointed and quarterly after 

that. Sec. 312A(c) would also require the Assistant Inspector General for Construction to promptly provide the findings of any investigation undertaken to the Committees on Veterans’ Affairs of the 

Senate and the House of Representatives and to promptly notify 

the Committees if a serious or flagrant problem or deficiency relating to the administration or operation of any VA construction program is identifying if, during the course of the investigation, the 

Assistant Inspector General for Construction determines that Congress should take immediate action. Sec. 312A(c) would further 

stipulate the prohibition against public disclosure of any information that is specifically prohibited from disclosure by any other provision of law or 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 part of an ongoing criminal investigation. 

Section 5(b) would amend the table of contents at the beginning 

of Chapter 3 of title 38 U.S.C., by inserting ‘‘312A. Assistant Inspector General for Construction’’ after the item relating to section 

312. 

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 (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

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

roman): 

TITLE 38, UNITED STATES CODE 

* * * * * * * 


SSpencer on DSK4SPTVN1PROD with REPORTS
19 

PART I—GENERAL PROVISIONS 

* * * * * * * 

CHAPTER 3—DEPARTMENT OF VETERANS AFFAIRS 

Sec. 

301. Department. 

* * * * * * * 

312A. Assistant Inspector General for Construction. 

* * * * * * * 

§ 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. 

* * * * * * * 


SSpencer on DSK4SPTVN1PROD with REPORTS
20 

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. 

* * * * * * * 

8120. Quarterly report on super construction projects. 

* * * * * * * 

SUBCHAPTER I—ACQUISITION AND OPERATION OF 

MEDICAL FACILITIES 

* * * * * * * 

§ 8103. Authority to construct and alter, and to acquire sites 

for, medical facilities 

(a) Subject to section 8104 of this title, the Secretary— 

(1) may construct or alter any medical facility and may acquire, by purchase, lease, condemnation, donation, exchange, 

or otherwise, such land or interests in land as the Secretary 

considers necessary for use as the site for such construction or 

alteration; 

(2) may acquire, by purchase, lease, condemnation, donation, 

exchange, or otherwise, any facility (including the site of such 

facility) that the Secretary considers necessary for use as a 

medical facility; and 

(3) in order to assure compliance with section 8110(a)(2) of 

this title, in the case of any outpatient medical facility for 

which it is proposed to lease space and for which a qualified 

lessor and an appropriate leasing arrangement are available, 

shall execute a lease for such facility within 12 months after 

funds are made available for such purpose. 

(b) Whenever the Secretary considers it to be in the interest of 

the United States to construct a new medical facility to replace an 

existing medical facility, the Secretary (1) may demolish the existing facility and use the site on which it is located for the site of 

the new medical facility, or (2) if in the judgment of the Secretary 

it is more advantageous to construct such medical facility on a different site in the same locality, may exchange such existing facility 

and the site of such existing facility for the different site. 

(c) Whenever the Secretary determines that any site acquired for 

the construction of a medical facility is not suitable for that purpose, the Secretary may exchange such site for another site to be 

used for that purpose or may sell such site. 

(d)(1) The Secretary may provide for the acquisition of not more 

than three facilities for the provision of outpatient services or nursing home care through lease-purchase arrangements on real property under the jurisdiction of the Department of Veterans Affairs. 


SSpencer on DSK4SPTVN1PROD with REPORTS
21 

(2)(A) In carrying out this subsection and notwithstanding any 

other provision of law, the Secretary may lease, with or without 

compensation and for a period of not to exceed 35 years, to another 

party any of the real property described in paragraph (1) of this 

subsection. 

(B) Such real property shall be used as the site of a facility referred to in paragraph (1) of this subsection— 

(i) constructed and owned by the lessee of such real property; 

and 

(ii) leased under paragraph (3)(A) of this subsection to the 

Department for such use and for such other activities as the 

Secretary determines are appropriate. 

(3)(A) The Secretary may enter into a lease for the use of any facility described in paragraph (2)(B) of this subsection for not more 

than 35 years under such terms and conditions as may be in the 

best interests of the Department. 

(B) Each agreement to lease a facility under subparagraph (A) of 

this paragraph shall include a provision that— 

(i) the obligation of the United States to make payments 

under the agreement is subject to the availability of appropriations for that purpose; and 

(ii) the ownership of such facility shall vest in the United 

States at the end of such lease. 

(4)(A) The Secretary may sublease any space in such a facility to 

another party at a rate not less than— 

(i) the rental rate paid by the Secretary for such space under 

paragraph (3) of this subsection; plus 

(ii) the amount the Secretary pays for the costs of administering such facility (including operation, maintenance, utility, 

and rehabilitation costs) which are attributable to such space. 

(B) In any such sublease, the Secretary shall include such terms 

relating to default and nonperformance as the Secretary considers 

appropriate to protect the interests of the United States. 

(5) The Secretary shall use the receipts of any payment for the 

lease of real property under paragraph (2) for the payment of the 

lease of a facility under paragraph (3). 

(6) The authority to enter into an agreement under this subsection— 

(A) shall not take effect until the Secretary has entered into 

agreements under section 316 of this title to carry out at least 

three collocations; and 

(B) shall expire on October 1, 1993. 

(e) In the case of any super construction project (as such term is 

defined in section 8104(a)(4)(C)), the Secretary shall enter into an 

agreement with an appropriate non-Department Federal entity to 

provide full project management services for the super construction 

project, including management over the project design, acquisition, 

construction, and contract changes. Such agreement shall provide 

that the Secretary shall reimburse such Federal entity for all costs 

associated with the provision of project management services under 

the agreement. 

(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. 


SSpencer on DSK4SPTVN1PROD with REPORTS
22 

(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. 

§ 8104. Congressional approval of certain medical facility acquisitions 

(a)(1) The purpose of this subsection is to enable Congress to ensure the equitable distribution of medical facilities throughout the 

United States, taking into consideration the comparative urgency 

of the need for the services to be provided in the case of each particular facility. 


SSpencer on DSK4SPTVN1PROD with REPORTS
23 

(2) No funds may be appropriated for any fiscal year, and the 

Secretary may not obligate or expend funds (other than for advance 

planning and design), for any major medical facility project or any 

major medical facility lease unless funds for that project or lease 

have been specifically authorized by law. 

(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. 

ø(3)¿ (4) For the purpose of this subsection: 

(A) The term ‘‘major medical facility project’’ means a project 

for the construction, alteration, or acquisition of a medical facility involving a total expenditure of more than $10,000,000, 

but such term does not include an acquisition by exchange. 

(B) The term ‘‘major medical facility lease’’ means a lease for 

space for use as a new medical facility at an average annual 

rental of more than $1,000,000. 

(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. 

(b) Whenever the President or the Secretary submit to the Congress a request for the funding of a major medical facility project 

(as defined in subsection (a)(3)(A)) or a major medical facility lease 

(as defined in subsection (a)(3)(B)), the Secretary shall submit to 

each committee, on the same day, a prospectus of the proposed 

medical facility. Any such prospectus shall include the following: 

(1) A detailed estimate of the total costs of the medical facility to be constructed, altered, leased, or otherwise acquired 

under this subchapter, including a description of the location 

of such facility and, in the case of a prospectus proposing the 

construction of a new or replacement medical facility, a detailed report of the consideration that was given to acquiring 

an existing facility by lease or purchase and to the sharing of 

health-care resources with the Department of Defense under 

section 8111 of this title. Such detailed estimate shall include 

an identification of each of the following: 

(A) Total construction costs. 

(B) Activation costs. 

(C) Special purpose alterations (lump-sum payment) 

costs. 

(D) Number of personnel. 

(E) Total costs of ancillary services, equipment, and all 

other items. 

(2) Demographic data applicable to such facility, including 

information on projected changes in the population of veterans 

to be served by the facility over a five-year period, a ten-year 

period, and a twenty-year period. 

(3) Current and projected workload and utilization data regarding the facility, including information on projected changes 

in workload and utilization over a five-year period, a ten-year 

period, and a twenty-year period. 


SSpencer on DSK4SPTVN1PROD with REPORTS
24 

(4) Projected operating costs of the facility, including both recurring and non-recurring costs (including and identifying both 

recurring and non-recurring costs (including activation costs 

and total costs of ancillary services, equipment and all other 

items)) over a five-year period, a ten-year period, and a twentyyear period. 

(5) The priority score assigned to the project or lease under 

the Department’s prioritization methodology and, if the project 

or lease is being proposed for funding before a project or lease 

with a higher score, a specific explanation of the factors other 

than the priority score that were considered and the basis on 

which the project or lease is proposed for funding ahead of 

projects or leases with higher priority scores. 

(6) In the case of a prospectus proposing the construction of 

a new or replacement medical facility, each of the following: 

(A) A detailed estimate of the total costs (including total 

construction costs, activation costs, special purpose alterations (lump-sum payment) costs, number of personnel and 

total costs of ancillary services, equipment and all other 

items) for each alternative to construction of the facility 

that was considered. 

(B) A comparison of total costs to total benefits for each 

such alternative. 

(C) An explanation of why the preferred alternative is 

the most effective means to achieve the stated project 

goals and the most cost-effective alternative. 

(7) In the case of a prospectus proposing funding for a major 

medical facility lease, a detailed analysis of how the lease is 

expected to comply with Office of Management and Budget Circular A-11 and section 1341 of title 31 (commonly referred to 

as the ‘‘Anti-Deficiency Act’’). Any such analysis shall include— 

(A) an analysis of the classification of the lease as a 

‘‘lease-purchase’’, ‘‘capital lease’’, or ‘‘operating lease’’ as 

those terms are defined in Office of Management and 

Budget Circular A-11; 

(B) an analysis of the obligation of budgetary resources 

associated with the lease; and 

(C) an analysis of the methodology used in determining 

the asset cost, fair market value, and cancellation costs of 

the lease. 

ø(c) Not less than 30 days before obligating funds for a major 

medical facility project approved by a law described in subsection 

(a)(2) of this section 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, the Secretary 

shall provide the committees with notice of the Secretary’s intention to do so and the reasons for the specified amount being exceeded.¿ 

(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 ComVerDate Sep 11 2014 07:21 Dec 05, 2015 Jkt 059006 PO 00000 Frm 00024 Fmt 6659 Sfmt 6603 E:\HR\OC\HR364.XXX HR364

SSpencer on DSK4SPTVN1PROD with REPORTS
25 

mittee 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. 

(d)(1) Except as provided in paragraph (2), in any case in which 

the Secretary proposes that funds be used for a purpose other than 

the purpose for which such funds were appropriated, the Secretary 

shall promptly notify øeach committee¿ 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, in writing, of the particulars 

involved and the reasons why such funds were not used for the 

purpose for which appropriated. 

(2)(A) In any fiscal year, unobligated amounts in the Construction, Major Projects account that are a direct result of bid savings 

from a major construction project may only be obligated for major 

construction projects authorized for that fiscal year or a previous 

fiscal year. 

(B) øWhenever¿ Before the Secretary obligates amounts for a 

major construction project under subparagraph (A), the Secretary 

shall submit 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 the following: 

(i) The major construction project that is the source of the 

bid savings. 

(ii) The other major construction project for which the 

amounts are being obligated. 

(iii) The amounts being obligated for such other major construction project. 

(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. 

(C) The Secretary may not obligate an amount under subparagraph (A) to expand the purpose of a major construction project except pursuant to a provision of law enacted after the date on which 


SSpencer on DSK4SPTVN1PROD with REPORTS
26 

the Secretary submits to the committees described in subparagraph 

(B) notice of the following: 

(i) The major construction project that is the source of the 

bid savings. 

(ii) The major construction project for which the Secretary 

intends to expand the purpose. 

(iii) A description of such expansion of purpose. 

(iv) The amounts the Secretary intends to obligate to expand 

the purpose. 

(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. 

(e) The Secretary may accept gifts or donations for any of the 

purposes of this subchapter. 

(f) The Secretary may not obligate funds in an amount in excess 

of $500,000 from the Advance Planning Fund of the Department toward design or development of a major medical facility project (as 

defined in subsection (a)(3)(A)) until— 

(1) the Secretary submits to the committees a report on the 

proposed obligation; and 

(2) a period of 30 days has passed after the date on which 

the report is received by the committees. 

(g) The limitation in subsection (f) does not apply to a project for 

which funds have been authorized by law in accordance with subsection (a)(2). 

(h)(1) Not less than 30 days before entering into a major medical 

facility lease, the Secretary shall submit to the Committees on Veterans’ Affairs of the Senate and the House of Representatives— 

(A) notice of the Secretary’s intention to enter into the lease; 

(B) a detailed summary of the proposed lease; 

(C) a description and analysis of any differences between the 

prospectus submitted pursuant to subsection (b) and the proposed lease; and 

(D) a scoring analysis demonstrating that the proposed lease 

fully complies with Office of Management and Budget Circular 

A-11. 

(2) Each committee described in paragraph (1) shall ensure that 

any information submitted to the committee under such paragraph 

is treated by the committee with the same level of confidentiality 

as is required by law of the Secretary and subject to the same statutory penalties for unauthorized disclosure or use as the Secretary. 

(3) Not more than 30 days after entering into a major medical 

facility lease, the Secretary shall submit to each committee described in paragraph (1) a report on any material differences between the lease that was entered into and the proposed lease described under such paragraph, including how the lease that was 

entered into changes the previously submitted scoring analysis described in subparagraph (D) of such paragraph. 

* * * * * * * 


SSpencer on DSK4SPTVN1PROD with REPORTS
27 

§ 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 8103(a)(4)(C) of this title. 

* * * * * * * 

Æ 


SSpencer on DSK4SPTVN1PROD with REPORTS