39–006 

113TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 113–586 

THE VA CONSTRUCTION ASSISTANCE ACT OF 2013 

SEPTEMBER 15, 2014.—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. 3593] 

[Including cost estimate of the Congressional Budget Office] 

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

bill (H.R. 3593) to amend title 38, United States Code, to improve 

the construction of major medical facilities, and for other purposes, 

having considered the same, report favorably thereon without 

amendment and recommend that the bill do pass. 

CONTENTS 

Page 

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

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

Hearings ................................................................................................................... 3 

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

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

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

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

New Budget Authority, Entitlement Authority, and Tax Expenditures ............. 3 

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

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

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

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

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

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

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

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

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

Section-by-Section Analysis of the Legislation ...................................................... 5 

Changes in Existing Law Made by the Bill as Reported ...................................... 7 

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1 Report of the General Accountability Office, ‘‘VA Construction: Additional Actions Needed to 

Decrease Delays and Lower Costs of Major Medical-Facility Projects,’’ April, 2013, GAO 13–302. 

PURPOSE AND SUMMARY

H.R. 3593, the VA Construction Assistance Act of 2013, was introduced by Representative Coffman of Colorado and Representative Kirkpatrick of Arizona on November 21, 2013. H.R. 3593 would 

improve management of several major medical center construction 

projects in Denver, Colorado; Orlando, Florida, and New Orleans, 

Louisiana through implementation of construction reforms and the 

use of an independent special project manager from the Army 

Corps of Engineers. 

BACKGROUND AND NEED FOR LEGISLATION

Section 2—Findings; Sense of Congress 

Finding construction delays and cost overruns, the section would 

express the Sense of Congress that management of major medical 

center construction projects by the Department of Veterans Affairs 

has been an abysmal failure and the Department of Veterans Affairs should use a special project manager from the Army Corps of 

Engineers and should fully implement all recommendations of the 

Comptroller General in an April 2013 report which found that 

schedule delays have averaged 35 months with average cost overruns of $336,000,000 per project. 

Section 3—Implementation of Major Medical Facility Construction 

Reforms 

The United States Government Accountability Office, in a report 

from April, 2013 1 recommended a number of construction reforms, 

including the use of a medical equipment planner, a project management plan, construction peer review, and a metrics program for 

the change-order process. This section would implement these reforms to reduce construction delays and minimize cost overruns. 

Section 4—Special Project Manager for Certain Medical Center 

Construction Projects 

The recurring delays and cost overruns in major medical facility 

construction projects of the Department of Veterans Affairs have 

been well established through GAO reports and House Committee 

on Veterans’ Affairs oversight hearings. In light of repeated project 

management failures by the Department, an outside entity with experience managing major construction projects for the Federal government would be able to assist the Department of Veterans Affairs by offering its technical expertise and advice. This section 

would require that the Department of Veterans Affairs procure, on 

a reimbursable basis, the services of an experienced special project 

manager from the Army Corps of Engineers to oversee major medical center construction projects in Denver, Colorado; Orlando, Florida, and New Orleans, Louisiana. The duties of the special project 

manager would be to conduct oversight with respect to the performance of prime contractors and compliance with acquisition regulations and to advise and assist the Department about construction 

best practices to improve operations, including the approval of the 

change-order requests. The duties would also include the producmstockstill on DSK4VPTVN1PROD with HEARINGS

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tion of completion plans and progress reports for the House and 

Senate Veterans Affairs committees. 

HEARINGS

On March 25, 2014, the Subcommittee on Oversight and Investigations conducted a legislative hearing on various bills introduced 

during the 113th Congress including H.R. 3593. The following witnesses testified: 

Ms. Stella S. Foites, Executive Director, Office of Construction 

and Facilities Management, Office of Acquisition, Logistics, and 

Construction, U.S. Department of Veterans Affairs; Mr. Raymond 

C. Kelley, Director National Legislative Service, Veterans of Foreign Wars; Mr. Davy Leghorn, Assistant Director of the Veteran 

Education and Employment Commission of the American Legion. 

COMMITTEE CONSIDERATION

On September 10, 2014, the full Committee met in an open 

markup session, a quorum being present, and ordered H.R. 3593 

reported favorably to the House of Representatives by voice vote. 

COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee to list the recorded votes on the motion to report the legislation and amendments thereto. There were 

no recorded votes taken on amendments or in connection with ordering H.R. 3593 reported to the House. A motion by Ranking 

Member Mike Michaud of Maine to order H.R. 3593 reported favorably to the House of Representatives was agreed to 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 reflected in the descriptive portions of this report. 

NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

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

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

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

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EARMARKS AND TAX AND TARIFF BENEFITS

H.R. 3593 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. 3593 

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. 602 

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, September 12, 2014. 

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. 3593, the VA Construction Assistance Act of 2013. 

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

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

Sincerely, 

DOUGLAS W. ELMENDORF. 

Enclosure. 

H.R. 3593—The VA Construction Assistance Act of 2013 

H.R. 3593 would require the Department of Veterans Affairs 

(VA) to employ special project managers from the U.S. Army Corps 

of Engineers to oversee three existing construction projects in Colorado, Florida, and Louisiana. Because construction on the facility 

in Florida is nearing completion, CBO expects that implementing 

this provision would require project managers and support teams 

at the Colorado and Louisiana sites only, at a cost of $3 million 

over the 2015–2019 period, assuming appropriation of the necessary amounts. 

The bill also would codify in law certain practices designed to ensure that construction of major VA medical facilities is completed 

on time and within the planned budget. Such practices include developing and using project management plans, conducting peer reviews of projects, using medical equipment planners, and developing a metrics program to monitor the change-order process. Because VA has recently adopted these practices, CBO estimates that 

implementing this provision would have no budgetary impact. 

Pay-as-you-go procedures do not apply to this legislation because 

it would not affect direct spending or revenues. 

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H.R. 3593 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 Theresa Gullo, Deputy Assistant Director for Budget Analysis. 

FEDERAL MANDATES STATEMENT

The Committee adopts as its own the estimate of Federal mandates regarding H.R. 3593 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. 3593. 

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(j) of H. Res. 5, 113th Cong. (2013), the 

Committee finds that no provision of H.R. 3593 establishes or reauthorizes a program of the Federal Government known to be duplicative of another Federal program, a program that was included in 

any report from the Government Accountability Office to Congress 

pursuant to section 21 of Public Law 111–139, or a program related 

to a program identified in the most recent Catalog of Federal Domestic Assistance. 

DISCLOSURE OF DIRECTED RULEMAKING

Pursuant to section 3(k) of H. Res. 5, 113th Cong. (2013), the 

Committee estimates that H.R. 3593 contains no directed rule making requiring the Secretary to prescribe regulations. 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 2—Findings; Sense of Congress 

Subsection 2(a) contains the following Findings: 

(1) The Director of Physical Infrastructure of the General Accountability Office testified that schedule delays of major medical 

center construction projects of the Department of Veterans Affairs 

have averaged 35 months, with delays ranging from 14 months to 

74 months and (2) The average cost increase attributed to such 

delays has been $336,000,000. 

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Subsection 2(b) would express the Sense of Congress that (1) the 

management of the major medical center construction projects of 

the Department of Veterans Affairs has been an abysmal failure (2) 

the Secretary of Veterans Affairs should fully implement all recommendations made by the Comptroller General in an April 2013 

report to improve construction procedures and practices of the Department and (3) Projects in Denver, Colorado; Orlando, Florida; 

and New Orleans, Louisiana should be subject to oversight of a 

special project manager of the Army Corps of Engineers because of 

delays and overruns. 

Section 3—Implementation of Major Medical Facility Construction 

Reforms 

Section 3 would amend section 8104 of title 38, United States 

Code, by adding a new subsection (i) that would require the use of 

a medical equipment planner, a project management plan, and construction peer excellence review. The section would also require development of a metrics program to enable monitoring of the 

change-order process, the use of a change order process consistent 

with best practices, and the use of design-build processes to minimize multiple change orders. 

Section 4—Special Project Manager for Certain Medical Center 

Construction Projects 

Subsection 4(a) would require that the Department of Veterans 

Affairs procure, on a reimbursable basis, the services of an experienced special project manager from the Army Corps of Engineers 

to oversee until completion major medical center construction 

projects in Denver, Colorado; Orlando, Florida, and New Orleans, 

Louisiana. 

Subsection 4(b) would require the special project manager to 

oversee all construction-related operations including the performance of the Department of Veterans Affairs with the prime contractor, the compliance of the Department with the Federal Acquisition Regulation, including VA Acquisition Regulations. The subsection would also require that the special project manager advise 

and assist the Department in any construction-related activity including the approval of change-order requests for purposes of 

achieving timely completion of the project. In addition, the subsection would require that the special project manager recommend 

to the Department best construction practices to improve operations of the project. 

Subsection 4(c) would require that within 90 days of appointment, the special project manager submit detailed plans for the 

completion of the project to the House and Senate committees on 

Veteran Affairs. The subsection would also require submission of 

progress reports to the committees not later than 180 days of the 

appointment of a special project manager and each 180 day period 

thereafter. The progress reports would include an analysis of all 

advice and assistance provided to the Department and an analysis 

of all changes ordered by the Department or claimed to have been 

made by contract between the Department and prime contractor, 

including the extent to which such changes comply with the Federal Acquisition Regulation, including the VA Acquisition Regulations. The progress reports would also include an analysis of the 

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communication and working relationship between the Department 

and prime contractor, including any recommendations made by the 

prime contractor to aid in completion of the project. 

In addition, the progress reports would include identification of 

opportunities and recommendations with respect to improving the 

operations of any construction-related activity to reduce costs or 

complete the project in a more timely manner. 

Subsection 4(d) would require that the Secretary of Veterans Affairs provide the special project manager with any document or information necessary to carry out the duties of the special project 

manager including the submission of required reports. The subsection would also require the Secretary to provide the special 

project manager with administrative assistance necessary to carry 

out the duties of the special project manager including the submission of required reports. 

Subsection 4(e) defines the ‘‘covered projects’’ as a construction 

project that is a major medical facility project (as defined in section 

8104(a)(3)(A) of Title 38, United States Code) being carried out as 

of the date of enactment of this Act at the following locations: 

(1) Denver, Colorado; 

(2) Orlando, Florida; 

(3) New Orleans, Louisiana. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

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

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

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

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

roman): 

TITLE 38, UNITED STATES CODE 

* * * * * * * 

PART VI—ACQUISITION AND DISPOSITION OF 

PROPERTY 

* * * * * * * 

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

AND SUPPLY; ENHANCED-USE LEASES OF REAL PROPERTY 

SUBCHAPTER I—ACQUISITION AND OPERATION OF 

MEDICAL FACILITIES 

* * * * * * * 

§ 8104. Congressional approval of certain medical facility acquisitions 

(a) * * * 

* * * * * * * 

(i)(1) With respect to each project described in paragraph (2), the 

Secretary shall— 

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(A) use the services of a medical equipment planner as part 

of the architectural and engineering firm for the project; 

(B) develop and use a project management plan to ensure 

clear and consistent communication among all parties; 

(C) subject the project to construction peer excellence review; 

(D) develop— 

(i) a metrics program to enable the monitoring of changeorder processing time; and 

(ii) goals for the change-order process consistent with the 

best practices of other departments and agencies of the Federal Government; and 

(E) to the extent practicable, use design-build processes to 

minimize multiple change orders. 

(2) A project described in this paragraph is a construction or alteration project that is a major medical facility project. 

* * * * * * * 

Æ 

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