I 

113TH CONGRESS 

2D SESSION H. R. 4399 

To amend title 38, United States Code, to improve the performance appraisal 

system for senior executives of the Department of Veterans Affairs, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 4, 2014 

Mr. MICHAUD introduced the following bill; which was referred to the 

Committee on Veterans’ Affairs 

A BILL 

To amend title 38, United States Code, to improve the 

performance appraisal system for senior executives 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, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Comprehensive De5 partment of Veterans Affairs Performance Management 

6 and Accountability Reform Act of 2014’’. 


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1 SEC. 2. IMPROVEMENT OF PERFORMANCE APPRAISAL OF 

2 SENIOR EXECUTIVES OF THE DEPARTMENT 

3 OF VETERANS AFFAIRS. 

4 (a) PERFORMANCE APPRAISAL SYSTEM.— 

5 (1) IN GENERAL.—Chapter 7 of title 38, United 

6 States Code, is amended by adding at the end the 

7 following new section: 

8 ‘‘§ 713. Senior Executive Service: performance ap9 praisal 

10 ‘‘(a) PERFORMANCE APPRAISAL SYSTEM.—The Sec11 retary shall be responsible for carrying out the require12 ments of subchapter II of chapter 43 of title 5. 

13 ‘‘(b) ORGANIZATIONAL PERFORMANCE REQUIRE14 MENTS.—(1) In implementing the performance appraisal 

15 system for senior executives of the Department required 

16 by section 4312 of title 5, the Secretary shall issue, by 

17 not later than September 1 of each year, organizational 

18 performance requirements to be used to inform the estab19 lishment of performance requirements for each senior ex20 ecutive of the Department. The performance requirements 

21 of each senior executive shall be achievable by each senior 

22 executive and shall be consistent with the organizational 

23 performance requirements issued by the Secretary. 

24 ‘‘(2) Not less than half of the annual summary rating 

25 of a senior executive of the Department under section 

26 4314 of title 5 shall be based on the organizational perVerDate Mar 15 2010 22:42 Apr 05, 2014 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4399.IH H4399

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1 formance requirements issued under this subsection and 

2 applicable to such senior executive. 

3 ‘‘(3) Not later than December 15 of each year, the 

4 Secretary shall submit to the Committees on Veterans’ Af5 fairs of the Senate and House of Representatives certifi6 cation that for the fiscal year during which the certifi7 cation is submitted that— 

8 ‘‘(A) all individual and organizational perform9 ance requirements applicable to senior executives of 

10 the Department pursuant to section 4312 of title 5 

11 accurately reflected the organizational performance 

12 requirements of the Department; and 

13 ‘‘(B) the performance requirements established 

14 for each senior executive are expected to lead to the 

15 overall success of the Department in meeting its or16 ganizational performance requirements. 

17 ‘‘(c) ADDITIONAL REQUIREMENTS.—(1) In imple18 menting the performance appraisal system for senior ex19 ecutives of the Department required by section 4312 of 

20 title 5, the Secretary shall ensure that such system is de21 signed to— 

22 ‘‘(A) evaluate the contribution of each senior 

23 executive to the overall mission and objectives of the 

24 Department; 


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1 ‘‘(B) ensure that each senior executive is ac2 countable for efforts undertaken to further the ob3 jectives of the Departments; and 

4 ‘‘(C) evaluate the contribution of each senior 

5 executive in ensuring the Department meets the 

6 needs of veterans and their dependants. 

7 ‘‘(2)(A) The performance review board established 

8 pursuant to section 4314 of title 5 shall ensure that— 

9 ‘‘(i) the performance requirements for each sen10 ior executive of the Department clearly and dis11 tinctly address both individual and organizational 

12 performance; and 

13 ‘‘(ii) the performance of each senior executive is 

14 evaluated based on such performance requirements 

15 together with the demonstrated accountability, exec16 utive, and leadership capabilities of the senior execu17 tive. 

18 ‘‘(B) In evaluating the performance of a senior execu19 tive of the Department, the performance review board 

20 shall take into consideration each of the following: 

21 ‘‘(i) Any deficiencies identified by the Inspector 

22 General of the Department or the Comptroller Gen23 eral of the United States in the performance of du24 ties or areas managed by the senior executive. 


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1 ‘‘(ii) Any final determination in response to a 

2 formal complaint submitted regarding the perform3 ance of the senior executive or a deficiency in a pro4 gram under the direction of the senior executive. 

5 ‘‘(iii) The findings of any final report relating 

6 to the performance of the senior executive or to a 

7 deficiency in a program under the direction of the 

8 senior executive. 

9 ‘‘(d) ANNUAL SUMMARY RATINGS.—(1) The Sec10 retary shall provide in a timely manner to any senior exec11 utive who receives an annual summary rating under sec12 tion 4314(a) of title 5 of any level of performance lower 

13 than fully successful a detailed explanation of the perform14 ance deficiencies of the senior executive. 

15 ‘‘(2) In the case of a senior executive for whom it 

16 is determined during a mid-year review that the senior ex17 ecutive is likely to receive an annual summary rating of 

18 less than fully successful, the Secretary shall ensure that 

19 senior executive is provided a plan to address performance 

20 deficiencies before the end of the evaluation period. 

21 ‘‘(3) Any senior executive of the Department who re22 ceives two annual summary ratings of any level of per23 formance lower than fully successful shall be removed 

24 from the Senior Executive Service. 


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1 ‘‘(4) Any senior executive who receives three consecu2 tive annual summary ratings of the highest level of per3 formance shall be provided with an opportunity to obtain 

4 a different position within the Department with more re5 sponsibility, if such a position is available. 

6 ‘‘(e) ANNUAL REPORTS.—Not later than January 1 

7 of each year, the Secretary shall submit to the Committees 

8 on Veterans’ Affairs of the Senate and House of Rep9 resentatives a report on the senior executive performance 

10 appraisal system of the Department for the fiscal year pre11 ceding the fiscal year during which the report is sub12 mitted. Each such report shall include, for the year cov13 ered by the report, each of the following: 

14 ‘‘(1) The number of senior executives who re15 ceived summary ratings. 

16 ‘‘(2) The number of senior executives who re17 ceived a summary rating at each level of perform18 ance. 

19 ‘‘(3) Any actions taken with respect to senior 

20 executives who received ratings at a level of perform21 ance lower than fully successful. 

22 ‘‘(4) The number of initial annual summary 

23 ratings that were raised or lowered by the perform24 ance review board.’’. 


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1 (2) CLERICAL AMENDMENT.—The table of sec2 tions at the beginning of such chapter is amended 

3 by adding at the end the following new item: 

‘‘713. Senior Executive Service: performance appraisal.’’. 

4 (b) PERFORMANCE PAY FOR PHYSICIANS AND DEN5 TISTS.—Section 7431 of title 38, United States Code, is 

6 amended— 

7 (1) in subsection (b)(3), by inserting after 

8 ‘‘dentist’’ the following: ‘‘who received a fully suc9 cessful level of performance at the physician or den10 tist’s most recent performance appraisal’’; 

11 (2) in subsection (c)— 

12 (A) in paragraph (2)— 

13 (i) by inserting ‘‘(A)’’ before ‘‘Market 

14 pay’’; and 

15 (ii) by adding at the end the following 

16 new subparagraph: 

17 ‘‘(B) The Secretary shall submit to the Com18 mittees on Veterans’ Affairs of the Senate and 

19 House of Representatives a semi-annual report on 

20 health care trends, including anticipated shortages 

21 of health care professionals by specific specialty and 

22 location, which shall be used in determining the re23 cruitment and retention needs of the Department for 

24 purposes of this subsection. The Secretary may not 

25 provide market pay to a physician or dentist under 


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1 this subsection unless the payment of market pay to 

2 the physician or dentist meets a specialty or location 

3 need of the Department as articulated in a report 

4 submitted under this subparagraph.’’. 

5 (B) in paragraph (4)(B)— 

6 (i) in clause (i), by striking the last 

7 sentence; and 

8 (ii) in clause (iii), by striking ‘‘should, 

9 to the extent practicable,’’ and inserting 

10 ‘‘shall’’; and 

11 (3) in subsection (d)— 

12 (A) in paragraph (1)— 

13 (i) by inserting ‘‘(A)’’ before ‘‘One ele14 ment’’; and 

15 (ii) by adding at the end the fol16 lowing: ‘‘The Secretary shall establish a 

17 performance appraisal system for physi18 cians and dentists. The performance ap19 praisal system shall provide for annual 

20 summary ratings of levels of performance 

21 as follows:’’ 

22 ‘‘(A) one or more fully successful levels; 

23 ‘‘(B) a minimally satisfactory level; and 

24 ‘‘(C) an unsatisfactory level.’’; 


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1 (iii) by inserting after subparagraph 

2 (A) the following new subparagraph: 

3 ‘‘(B) Under the performance appraisal system under 

4 subparagraph (A), performance shall be evaluated based 

5 on both individual and organizational performance and 

6 specific goals or objectives shall be explicitly linked to im7 proved health care outcomes and quality as well as the 

8 Department’s overall effectiveness in providing quality 

9 health care services. The specific goals and objectives shall 

10 be consistent with the overarching objectives and goals of 

11 the Department. 

12 ‘‘(C) Under such performance appraisal system, each 

13 physician and dentist employed by the Department shall 

14 receive an annual review by the Under Secretary of 

15 Health. For each year, the Under Secretary shall submit 

16 to the Secretary certification that such reviews are con17 ducted.’’; 

18 (B) by striking paragraph (3) and redesig19 nating paragraph (2) as paragraph (3); 

20 (C) by inserting after paragraph (1) the 

21 following new paragraph (2): 

22 ‘‘(2) Under the performance appraisal system estab23 lished under paragraph (1)— 

24 ‘‘(A) on or before the beginning of each rating 

25 period, performance requirements for each physician 


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1 or dentist shall be established in consultation with, 

2 and communicated to, each physician or dentist; 

3 ‘‘(B) written appraisals of performance shall be 

4 based on the individual and organizational perform5 ance requirements established for the rating period 

6 involved; and 

7 ‘‘(C) each physician or dentist shall be provided 

8 a copy of the appraisal and the physician or den9 tist’s performance appraisal rating and shall be 

10 given an opportunity to respond in writing and have 

11 the rating reviewed by the Under Secretary for 

12 Health before the rating becomes final.’’; 

13 (D) in paragraph (3), as redesignated by 

14 subparagraph (B)— 

15 (i) by inserting ‘‘only’’ after ‘‘paid’’; 

16 and 

17 (ii) by striking ‘‘on the basis’’ and in18 serting ‘‘who receives a level of perform19 ance of fully successful under the perform20 ance appraisal system established under 

21 paragraph (1) and whose performance ex22 ceeds the specific goals and performance 

23 objectives established under such system.’’; 

24 (E) in paragraph (4), by striking ‘‘para25 graph (2)’’ and inserting ‘‘this subsection’’; 


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1 (F) in paragraph (5)(B), by striking ‘‘7.5 

2 percent’’ and inserting ‘‘5 percent’’; and 

3 (G) by striking paragraph (6); and 

4 (4) by adding at the end the following new sub5 section: 

6 ‘‘(i) FAILURE TO MAINTAIN A LICENSE.—A physi7 cian or dentist who has not maintained an appropriate 

8 professional license may not be paid.’’. 

9 (c) STUDY.—Not later than one year after the date 

10 of the enactment of this Act, the Secretary shall submit 

11 to the Committees on Veterans’ Affairs of the Senate and 

12 House of Representatives a report on the training pro13 gram of the Department of Veterans Affairs for senior ex14 ecutives. Such report shall include— 

15 (1) an evaluation of succession planning and 

16 long-term career development plans for senior execu17 tives and efforts undertaken by the Department to 

18 improve cross-Department opportunities for senior 

19 executives; and 

20 (2) the recommendations of the Secretary for 

21 improving the mobility and effectiveness of senior 

22 executives. 

Æ 


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