Performance-based Building Act of 2018

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. Short title This Act may be cited as the Performance-based Building 2. Findings Congress finds the following: (1) The deferred capital backlog for Department of Veterans Affairs facilities (including hospitals, clinics, housing and offices) is not sustainable. (2) There are insufficient discretionary funds available to meet the critical capital requirements of the Department in support of its mission. (3) Alternative authorities for the construction and improvement of capital facilities have proven successful, particularly with respect to military housing. 3. Pilot program (a) In general The Secretary of Veterans Affairs, in coordination with the Administrator of General Services, shall carry out a pilot program under which the Secretary may enter into agreements with appropriate non-Government entities under which— (1) the non-Government entity shall acquire, finance, and execute improvements or renovations to a Department of Veterans Affairs facility identified under subsection (b) or construct a new facility to address a shortage of capacity identified under such subsection; (2) the Secretary shall lease the facility from the non-Government entity for use by the Department; and (3) the facility shall be operated and maintained by the non-Government entity subject to a performance-based management and operations agreement entered into between the entity and the Secretary. (b) Identification of facilities (1) Comprehensive evaluation of Department of Veterans Affairs property (A) Review of the Department For purposes of carrying out the pilot program, not later than 180 days after the date of the enactment of this Act, the Secretary shall provide to the Administrator a report identifying potential sites based on a comprehensive evaluation of the Department of Veterans Affairs real property to determine conditions, continued connectivity, and relevance to the broader mission of the Department. The Secretary shall take into consideration such sites which the condition of facilities is negatively impacting the ability of the Department to fulfill its mission. (B) Evaluation by the Administrator The Administrator shall review the recommendations provided by the Department pursuant to subparagraph (A) and identify viable recapitalization opportunities, consistent with other provisions of law. (C) Criteria In carrying out the evaluation under subparagraph (B), the Administrator shall implement criteria that— (i) are used to evaluate Federal assets; (ii) ensure the modernization or realignment of the capital facilities of the Department; and (iii) maximize the use of the capital assets of the Department (consistent with the Federal Assets Sale and Transfer Act of 2016 ( 40 U.S.C. 1303 (2) GSA determination Not later than 1 year after the date of the enactment of this Act, based on the results of the evaluation under paragraph (1), the Administrator shall identify— (A) department facilities that require improvements or renovations and would be appropriate for an agreement under the pilot program; and (B) shortages of Department capacity that may be addressed through the construction of a new facility under such an agreement. (c) Number of projects The Secretary shall enter into agreements with respect to at least 5 and not more than 10 facilities under the pilot program, including— (1) agreements providing for the construction, improvement, or renovation of facilities; and (2) operating leases, including enhanced use leases, ground lease or lease back arrangements, and leases that incorporate an option to purchase at less than fair market value. (d) Reports (1) Project reports The Administrator shall submit to the appropriate committees of Congress a report on each facility that is improved, renovated, or constructed under an agreement under the pilot program. (2) Final report Not later than 5 years after the determination under subsection (b)(2), the Administrator, in consultation with the Secretary, shall submit to Congress a final report on the effectiveness of the pilot program in providing for the improvement of the assets of the Department. (e) Termination The authority to enter into an agreement under this section shall terminate on the date that is 5 years after the date of the enactment of this Act. (f) Experts and consultants (1) Personnel In carrying out the pilot program, the Administrator and Secretary shall identify and use General Services Administration and Department personnel with knowledge and experience in complex real estate transactions. (2) Experts and contracted services The Administrator shall, to the extent practicable and subject to appropriations Acts, use contracts, including non-appropriated contracts, for real estate services necessary to carry out this section. (g) Submission of prospectuses Not later than 1 year after the date of enactment of this Act, the Administrator shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Environment and Public Works of the Senate prospectuses, in accordance with section 3307, of title 40, United States Code, for each project identified under this Act. (h) Definition In this Act, the following definitions apply: (1) Performance-based management and operations agreement The term performance-based management and operations agreement (A) reflects an obligation by the non-Government entity to design, build, finance, deliver, operate and maintain an infrastructure asset; (B) requires the non-Government entity to provide the Department a single point of responsibility and obligation; (C) stipulates all requirements of the Department and contains the terms and conditions for annual performance-based availability payments in accordance with the non-Government entity meeting or exceeding those requirements; and (D) stipulates the terms and conditions for reductions of any and all available payments to the non-Government entity for any given period the asset is unavailable to the Government or otherwise non delivered, operated, or maintained in accordance with the requirements included in the agreement. (2) Administrator The term Administrator (3) Secretary The term Secretary (4) Department The term Department

Summary: Performance-Based Building Act of 2018 This bill requires the Department of Veterans Affairs (VA) and the General Services Administration (GSA) to develop a pilot program under which the VA may enter into agreements with non-government entities to ground-lease, finance, and execute improvements to identified VA facilities. Under the program, the VA shall lease the facility from the non-government entity, and the facility shall be operated and maintained by the non-government entity.