I 

115TH CONGRESS 

2D SESSION H. R. 7317 

To direct the Secretary of Veterans Affairs to carry out a pilot program 

under which the Secretary shall enter into agreements for the construction, renovation, improvement, and lease of facilities in order to address 

the deferred capital backlog of the Department of Veterans Affairs, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 17, 2018 

Mr. SHUSTER introduced the following bill; which was referred to the Committee on Veterans’ Affairs, and in addition to the Committee on Transportation and Infrastructure, for a period to be subsequently determined 

by the Speaker, in each case for consideration of such provisions as fall 

within the jurisdiction of the committee concerned 

A BILL 

To direct the Secretary of Veterans Affairs to carry out 

a pilot program under which the Secretary shall enter 

into agreements for the construction, renovation, improvement, and lease of facilities in order to address 

the deferred capital backlog of the Department of Veterans Affairs, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


pamtmann on DSKBFK8HB2PROD with BILLS
2 

•HR 7317 IH

1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Performance-based 

3 Building Act of 2018’’. 

4 SEC. 2. FINDINGS. 

5 Congress finds the following: 

6 (1) The deferred capital backlog for Depart7 ment of Veterans Affairs facilities (including hos8 pitals, clinics, housing and offices) is not sustain9 able. 

10 (2) There are insufficient discretionary funds 

11 available to meet the critical capital requirements of 

12 the Department in support of its mission. 

13 (3) Alternative authorities for the construction 

14 and improvement of capital facilities have proven 

15 successful, particularly with respect to military hous16 ing. 

17 SEC. 3. PILOT PROGRAM. 

18 (a) IN GENERAL.—The Secretary of Veterans Af19 fairs, in coordination with the Administrator of General 

20 Services, shall carry out a pilot program under which the 

21 Secretary may enter into agreements with appropriate 

22 non-Government entities under which— 

23 (1) the non-Government entity shall acquire, fi24 nance, and execute improvements or renovations to 

25 a Department of Veterans Affairs facility identified 

26 under subsection (b) or construct a new facility to 


pamtmann on DSKBFK8HB2PROD with BILLS
3 

•HR 7317 IH

1 address a shortage of capacity identified under such 

2 subsection; 

3 (2) the Secretary shall lease the facility from 

4 the non-Government entity for use by the Depart5 ment; and 

6 (3) the facility shall be operated and main7 tained by the non-Government entity subject to a 

8 performance-based management and operations 

9 agreement entered into between the entity and the 

10 Secretary. 

11 (b) IDENTIFICATION OF FACILITIES.— 

12 (1) COMPREHENSIVE EVALUATION OF DEPART13 MENT OF VETERANS AFFAIRS PROPERTY.— 

14 (A) REVIEW OF THE DEPARTMENT.—For 

15 purposes of carrying out the pilot program, not 

16 later than 180 days after the date of the enact17 ment of this Act, the Secretary shall provide to 

18 the Administrator a report identifying potential 

19 sites based on a comprehensive evaluation of 

20 the Department of Veterans Affairs real prop21 erty to determine conditions, continued 

22 connectivity, and relevance to the broader mis23 sion of the Department. The Secretary shall 

24 take into consideration such sites which the 


pamtmann on DSKBFK8HB2PROD with BILLS
4 

•HR 7317 IH

1 condition of facilities is negatively impacting the 

2 ability of the Department to fulfill its mission. 

3 (B) EVALUATION BY THE ADMINIS4 TRATOR.—The Administrator shall review the 

5 recommendations provided by the Department 

6 pursuant to subparagraph (A) and identify via7 ble recapitalization opportunities, consistent 

8 with other provisions of law. 

9 (C) CRITERIA.—In carrying out the eval10 uation under subparagraph (B), the Adminis11 trator shall implement criteria that— 

12 (i) are used to evaluate Federal as13 sets; 

14 (ii) ensure the modernization or re15 alignment of the capital facilities of the 

16 Department; and 

17 (iii) maximize the use of the capital 

18 assets of the Department (consistent with 

19 the Federal Assets Sale and Transfer Act 

20 of 2016 (40 U.S.C. 1303 note)). 

21 (2) GSA DETERMINATION.—Not later than 1 

22 year after the date of the enactment of this Act, 

23 based on the results of the evaluation under para24 graph (1), the Administrator shall identify— 


pamtmann on DSKBFK8HB2PROD with BILLS
5 

•HR 7317 IH

1 (A) department facilities that require im2 provements or renovations and would be appro3 priate for an agreement under the pilot pro4 gram; and 

5 (B) shortages of Department capacity that 

6 may be addressed through the construction of a 

7 new facility under such an agreement. 

8 (c) NUMBER OF PROJECTS.—The Secretary shall 

9 enter into agreements with respect to at least 5 and not 

10 more than 10 facilities under the pilot program, includ11 ing— 

12 (1) agreements providing for the construction, 

13 improvement, or renovation of facilities; and 

14 (2) operating leases, including enhanced use 

15 leases, ground lease or lease back arrangements, and 

16 leases that incorporate an option to purchase at less 

17 than fair market value. 

18 (d) REPORTS.— 

19 (1) PROJECT REPORTS.—The Administrator 

20 shall submit to the appropriate committees of Con21 gress a report on each facility that is improved, ren22 ovated, or constructed under an agreement under 

23 the pilot program. 

24 (2) FINAL REPORT.—Not later than 5 years 

25 after the determination under subsection (b)(2), the 


pamtmann on DSKBFK8HB2PROD with BILLS
6 

•HR 7317 IH

1 Administrator, in consultation with the Secretary, 

2 shall submit to Congress a final report on the effec3 tiveness of the pilot program in providing for the im4 provement of the assets of the Department. 

5 (e) TERMINATION.—The authority to enter into an 

6 agreement under this section shall terminate on the date 

7 that is 5 years after the date of the enactment of this 

8 Act. 

9 (f) EXPERTS AND CONSULTANTS.— 

10 (1) PERSONNEL.—In carrying out the pilot pro11 gram, the Administrator and Secretary shall identify 

12 and use General Services Administration and De13 partment personnel with knowledge and experience 

14 in complex real estate transactions. 

15 (2) EXPERTS AND CONTRACTED SERVICES.— 

16 The Administrator shall, to the extent practicable 

17 and subject to appropriations Acts, use contracts, in18 cluding non-appropriated contracts, for real estate 

19 services necessary to carry out this section. 

20 (g) SUBMISSION OF PROSPECTUSES.—Not later than 

21 1 year after the date of enactment of this Act, the Admin22 istrator shall submit to the Committee on Transportation 

23 and Infrastructure of the House of Representatives and 

24 the Committee on Environment and Public Works of the 

25 Senate prospectuses, in accordance with section 3307, of 


pamtmann on DSKBFK8HB2PROD with BILLS
7 

•HR 7317 IH

1 title 40, United States Code, for each project identified 

2 under this Act. 

3 (h) DEFINITION.—In this Act, the following defini4 tions apply: 

5 (1) PERFORMANCE-BASED MANAGEMENT AND

6 OPERATIONS AGREEMENT.—The term ‘‘performance7 based management and operations agreement’’ 

8 means an agreement that— 

9 (A) reflects an obligation by the non-Gov10 ernment entity to design, build, finance, deliver, 

11 operate and maintain an infrastructure asset; 

12 (B) requires the non-Government entity to 

13 provide the Department a single point of re14 sponsibility and obligation; 

15 (C) stipulates all requirements of the De16 partment and contains the terms and conditions 

17 for annual performance-based availability pay18 ments in accordance with the non-Government 

19 entity meeting or exceeding those requirements; 

20 and 

21 (D) stipulates the terms and conditions for 

22 reductions of any and all available payments to 

23 the non-Government entity for any given period 

24 the asset is unavailable to the Government or 

25 otherwise non delivered, operated, or mainVerDate Sep 11 2014 00:08 Dec 19, 2018 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H7317.IH H7317

pamtmann on DSKBFK8HB2PROD with BILLS
8 

•HR 7317 IH

1 tained in accordance with the requirements in2 cluded in the agreement. 

3 (2) ADMINISTRATOR.—The term ‘‘Adminis4 trator’’ means the Administrator of General Serv5 ices. 

6 (3) SECRETARY.—The term ‘‘Secretary’’ means 

7 the Secretary of Veterans Affairs. 

8 (4) DEPARTMENT.—The term ‘‘Department’’ 

9 means the Department of Veterans Affairs. 

Æ 


pamtmann on DSKBFK8HB2PROD with BILLS