IIB 

114TH CONGRESS 

2D SESSION H. R. 3106 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 10, 2016 

Received; read twice and referred to the Committee on Veterans’ Affairs 

AN ACT 

To amend title 38, United States Code, to make certain 

improvements in the administration of Department medical facility construction projects. 

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


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Construction Reform 

3 Act of 2016’’. 

4 SEC. 2. DEPARTMENT OF VETERANS AFFAIRS CONSTRUC5 TION REFORMS. 

6 (a) APPLICATION OF INDUSTRY STANDARDS; ASSIST7 ANCE.—Section 8103 of title 38, United States Code, is 

8 amended by adding at the end the following new sub9 sections: 

10 ‘‘(f) To the maximum extent practicable, the Sec11 retary shall use industry standards, standard designs, and 

12 best practices in carrying out the construction of medical 

13 facilities. 

14 ‘‘(g)(1) The Secretary shall provide to a non-Depart15 ment Federal entity with which the Secretary has entered 

16 into an agreement under subsection (e)— 

17 ‘‘(A) design, planning, and construction assist18 ance before the entity issues a request for proposals 

19 for the design or construction of the super construc20 tion project covered by the agreement; 

21 ‘‘(B) any documents or information needed for 

22 the entity to carry out the responsibilities of the en23 tity with respect to the super construction project; 

24 and 


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1 ‘‘(C) upon the request of the entity, any other 

2 assistance that the entity determines necessary to 

3 carry out such responsibilities. 

4 ‘‘(2) Any assistance provided under paragraph (1) 

5 shall be provided to the non-Department Federal entity 

6 on a non-reimbursable basis. 

7 ‘‘(h)(1) With respect to a proposed change to a con8 tract entered into by a non-Department Federal entity 

9 with which the Secretary has entered into an agreement 

10 under subsection (e) that is estimated at a value of less 

11 than $250,000, the non-Department Federal entity shall 

12 issue a final decision regarding such change not later than 

13 30 days after the date on which the change is proposed. 

14 ‘‘(2) With respect to a proposed change to such a con15 tract that is estimated at a value of $250,000 or more— 

16 ‘‘(A) the Secretary may provide to the entity 

17 the recommendations of the Secretary regarding 

18 such change; 

19 ‘‘(B) during the 30-day period beginning on the 

20 date on which the entity furnishes to the Secretary 

21 information regarding such change, the Secretary 

22 may issue the final decision regarding such change; 

23 and 

24 ‘‘(C) if the Secretary does not issue a final deci25 sion under subparagraph (B), during the 30-day peVerDate Sep 11 2014 22:52 Feb 10, 2016 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3106.RFS H3106

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1 riod following the period described in such para2 graph, the entity shall issue a final decision regard3 ing such a change no later than 90 days from when 

4 the entity furnished information regarding such a 

5 change to the Secretary. 

6 ‘‘(i) The Secretary shall ensure that each employee 

7 of the Department with responsibilities relating to the con8 struction or alteration of medical facilities, including such 

9 construction or alteration carried out pursuant to con10 tracts or agreements, undergoes a program of ongoing 

11 professional training and development. Such program 

12 shall be designed to ensure that employees maintain ade13 quate expertise relating to industry standards and best 

14 practices for the acquisition of design and construction 

15 services. The Secretary may provide the program under 

16 this subsection through a contract or agreement with a 

17 non-Federal entity or with a non-Department Federal en18 tity.’’. 

19 (b) LIMITATION ON PLANNING AND DESIGN FOR

20 SUPER CONSTRUCTION PROJECTS.— 

21 (1) IN GENERAL.—Section 8104(a) of title 38, 

22 United States Code, is amended— 

23 (A) by redesignating paragraph (3) as 

24 paragraph (4); 


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1 (B) by inserting after paragraph (2) the 

2 following new paragraph (3): 

3 ‘‘(3) The Secretary may not obligate or expend funds 

4 for advance planning or design for any super construction 

5 project, until the date that is 60 days after the date on 

6 which the Secretary submits to the Committee on Vet7 erans’ Affairs and the Committee on Appropriations of the 

8 Senate and the Committee on Veterans’ Affairs and the 

9 Committee on Appropriations of the House of Representa10 tives notice of such obligation or expenditure.’’; and 

11 (C) in paragraph (4), as redesignated by 

12 paragraph (1) of this subsection, by adding at 

13 the end the following new subparagraph: 

14 ‘‘(C) The term ‘super construction project’ 

15 means a project for the construction, alteration, or 

16 acquisition of a medical facility involving a total ex17 penditure of more than $100,000,000, but such term 

18 does not include an acquisition by exchange.’’. 

19 (2) APPLICABILITY.—The amendments made 

20 by paragraph (1) shall take effect on the date of the 

21 enactment of this Act and shall apply with respect 

22 to a construction project that is initiated on or after 

23 that date. 

24 (c) CONGRESSIONAL APPROVAL OF CERTAIN

25 PROJECTS.— 


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1 (1) PROJECTS THAT EXCEED SPECIFIED

2 AMOUNT.—Subsection (c) of section 8104 of title 38, 

3 United States Code, is amended to read as follows: 

4 ‘‘(c)(1) The Secretary may not obligate funds for a 

5 major medical facility project or a super construction 

6 project approved by a law described in subsection (a)(2) 

7 in an amount that would cause the total amount obligated 

8 for that project to exceed the amount specified in the law 

9 for that project (or would add to total obligations exceed10 ing such specified amount) by more than 10 percent unless 

11 the Committee on Veterans’ Affairs and the Committee 

12 on Appropriations of the Senate and the Committee on 

13 Veterans’ Affairs and the Committee on Appropriations 

14 of the House of Representatives each approve in writing 

15 the obligation of those funds. 

16 ‘‘(2) The Secretary shall— 

17 ‘‘(A) enter into a contract with an appropriate 

18 non-department Federal entity with the ability to 

19 conduct forensic audits on medical facility projects 

20 for the conduct of an external forensic audit of the 

21 expenditures relating to any major medical facility 

22 or super construction project for which the total ex23 penditures exceed the amount specified in the law 

24 for the project by more than 25 percent; and 


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1 ‘‘(B) enter into a contract with an appropriate 

2 non-department Federal entity with the ability to 

3 conduct forensic audits on medical facility projects 

4 for the conduct of an external audit of the medical 

5 center construction project in Aurora, Colorado.’’. 

6 (2) USE OF EXTRA AMOUNTS.—Subsection (d) 

7 of such section is amended— 

8 (A) in paragraph (2)(B), in the matter 

9 preceding clause (i), by striking ‘‘Whenever’’ 

10 and inserting ‘‘Before’’; and 

11 (B) by adding at the end the following new 

12 paragraph: 

13 ‘‘(3) The Secretary may not obligate any funds de14 scribed in paragraph (1) or amounts described in para15 graph (2) before the date that is 30 days after the notifi16 cation submitted under paragraph (1) or paragraph 

17 (2)(B), as the case may be, unless the Committee on Vet18 erans’ Affairs and the Committee on Appropriations of the 

19 Senate and the Committee on Veterans’ Affairs and the 

20 Committee on Appropriations of the House of Representa21 tives each approve in writing the obligation of those funds 

22 or amounts.’’. 

23 (3) NOTIFICATION REQUIREMENTS.— 

24 (A) COMMITTEES REQUIRED.—Subsection 

25 (d)(1) of such section is amended by striking 


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1 ‘‘each committee’’ and inserting ‘‘the Com2 mittee on Veterans’ Affairs and the Committee 

3 on Appropriations of the Senate and the Com4 mittee on Veterans’ Affairs and the Committee 

5 on Appropriations of the House of Representa6 tives’’. 

7 (B) USE OF AMOUNTS FROM BID SAV8 INGS.—Subsection (d)(2)(B) of such section is 

9 amended by adding at the end the following 

10 new clause: 

11 ‘‘(iv) With respect to the major construction 

12 project that is the source of the bid savings— 

13 ‘‘(I) the amounts already obligated or 

14 available in the project reserve for such project; 

15 ‘‘(II) the percentage of such project that 

16 has been completed; and 

17 ‘‘(III) the amount of such bid savings that 

18 is already obligated or otherwise being used for 

19 a purpose other than such project.’’. 

20 (d) QUARTERLY REPORT ON SUPER CONSTRUCTION

21 PROJECTS.— 

22 (1) IN GENERAL.—At the end of subchapter I 

23 of chapter 81 of title 38, United States Code, add 

24 the following new section: 


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1 ‘‘§ 8120. Quarterly report on super construction 

2 projects 

3 ‘‘(a) QUARTERLY REPORTS REQUIRED.—Not later 

4 than 30 days after the last day of each fiscal quarter the 

5 Secretary shall submit to the Committees on Veterans’ Af6 fairs of the Senate and House of Representatives on the 

7 super construction projects carried out by the Secretary 

8 during such quarter. Each such report shall include, for 

9 each such project— 

10 ‘‘(1) the budgetary and scheduling status of the 

11 project, as of the last day of the quarter covered by 

12 the report; and 

13 ‘‘(2) the actual cost and schedule variances of 

14 the project, as of such day, compared to the planned 

15 cost and schedules for the project. 

16 ‘‘(b) SUPER CONSTRUCTION PROJECT DEFINED.—In 

17 this section, the term ‘super construction project’ has the 

18 meaning given such term in section 8104(a)(4)(C) of this 

19 title.’’. 

20 (2) CLERICAL AMENDMENT.—The table of sec21 tions at the beginning of the chapter is amended by 

22 adding at the end of the items relating to such sub23 chapter the following new item: 

‘‘8120. Quarterly report on super construction projects.’’. 


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1 (e) ACCELERATED MASTER PLANNING FOR EACH

2 MEDICAL FACILITY OF THE DEPARTMENT OF VETERANS

3 AFFAIRS.— 

4 (1) EXISTING FACILITIES.—Not later than De5 cember 31, 2016, the Secretary of Veterans Affairs 

6 shall complete a master plan described in paragraph 

7 (3) for each medical facility of the Department of 

8 Veterans Affairs. 

9 (2) NEW FACILITIES.—For each medical facility 

10 of the Department for which construction is com11 pleted after the date of the enactment of this Act, 

12 the Secretary shall complete a master plan described 

13 in paragraph (3) for the facility by not later than 

14 the earlier of the following dates: 

15 (A) The date on which activation is com16 pleted. 

17 (B) The date of the formal dedication of 

18 the facility. 

19 (3) MASTER PLAN DESCRIBED.—A master plan 

20 described in this paragraph is, with respect to a 

21 medical facility of the Department, a plan to inform 

22 investment decisions and funding requests over a 10- 

23 year period for construction projects at such medical 

24 facility— 


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1 (A) to meet the health care needs of a 

2 changing veteran population through a com3 bination of health care from the Department 

4 and other community resources; and 

5 (B) to maximize the best use of the land 

6 and structures comprising such medical facility. 

7 SEC. 3. ASSISTANT INSPECTOR GENERAL FOR CONSTRUC8 TION. 

9 (a) IN GENERAL.—Chapter 3 of title 38, United 

10 States Code, is amended by inserting after section 312 the 

11 following new section: 

12 ‘‘§ 312A. Assistant Inspector General for Construction 

13 ‘‘(a) IN GENERAL.—There is in the Office of Inspec14 tor General an Assistant Inspector General for Construc15 tion. The Assistant Inspector General for Construction is 

16 responsible for conducting, supervising, and coordinating 

17 audits, evaluations, and investigations of the planning, de18 sign, contracting, execution, and construction of facilities 

19 and infrastructure of the Department, including major 

20 and minor construction projects and leases. 

21 ‘‘(b) QUALIFICATIONS.—Each individual appointed 

22 as Assistant Inspector General for Construction shall be 

23 an individual who has expertise in construction and facili24 ties management. 


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1 ‘‘(c) REPORTS.—(1) Not later than 60 days after the 

2 appointment of an individual as the Assistant Inspector 

3 General for Construction, and every calendar quarter 

4 thereafter, the Assistant Inspector General for Construc5 tion shall submit to the Committees on Veterans’ Affairs 

6 of the Senate and House of Representatives a report sum7 marizing the activities of the Assistant Inspector General 

8 for Construction during the 120-day period ending on the 

9 date of such report. 

10 ‘‘(2) In addition to the report required in paragraph 

11 (1), and the requirements contained in section 5 of the 

12 Inspector General Act of 1978 (5 U.S.C. App.), the Assist13 ant Inspector General for Construction shall promptly pro14 vide to the Committees on Veterans’ Affairs of the Senate 

15 and House of Representatives the findings of any inves16 tigation undertaken by the Assistant Inspector General for 

17 Construction, and shall notify the Committees promptly 

18 if the Assistant Inspector General for Construction identi19 fies any serious or flagrant problem or deficiency relating 

20 to the administration or operation of any construction pro21 gram of the Department, if, during the course of any in22 vestigation, the Assistant Inspector General for Construc23 tion determines that Congress should take immediate ac24 tion. 


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1 ‘‘(3) Nothing in this subsection shall be construed to 

2 authorize the public disclosure of information that is— 

3 ‘‘(A) specifically prohibited from disclosure by 

4 any other provision of law; 

5 ‘‘(B) specifically required by Executive Order to 

6 be protected from disclosure in the interest of na7 tional defense or national security or in the conduct 

8 of foreign affairs; or 

9 ‘‘(C) a part of an ongoing criminal investiga10 tion.’’. 

11 (b) CLERICAL AMENDMENT.—The table of sections 

12 at the beginning of such chapter is amended by inserting 

13 after the item relating to section 312 the following new 

14 item: 

‘‘312A. Assistant Inspector General for Construction.’’. 

Passed the House of Representatives February 9, 

2016. 

Attest: KAREN L. HAAS, 

Clerk. 


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