I 
115TH CONGRESS 
2D SESSION 
H. R. 7352 
To direct the Administrator of General Services to carry out a pilot program 
under which the Administrator shall enter into agreements for the con-
struction, 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 19, 2018 
Mr. SHUSTER introduced the following bill; which was referred to the Com-
mittee on Transportation and Infrastructure, and in addition to the Com-
mittee on Veterans’ Affairs, 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 Administrator of General Services to carry 
out a pilot program under which the Administrator 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 Vet-
erans Affairs, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Performance-Based 
Building Act of 2018’’. 
SEC. 2. FINDINGS. 
Congress makes the following findings: 
(1) The deferred maintenance backlog for De-
partment of Veterans Affairs facilities (including 
hospitals, clinics, housing, and offices) is not sus-
tainable. 
(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 hous-
ing. 
SEC. 3. PILOT PROGRAM. 
(a) IN GENERAL.—The Administrator of General 
Services, in coordination with the Secretary of Veterans 
Affairs, shall carry out a pilot program using authorities 
of the Administrator pursuant to title 40, United States 
Code, under which the Administrator may enter into 
agreements with appropriate non-Government entities 
pursuant to which— 
(1) the non-Government entity will acquire 
through ground-lease, finance, and execute improve-
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ments or renovations to a Department of Veterans 
Affairs facility identified under subsection (b) or 
construct a new facility to address a shortage of ca-
pacity identified under such subsection; 
(2) the Administrator will leaseback the facility 
from the non-Government entity for use by the De-
partment; and 
(3) the facility shall be operated and main-
tained by the non-Government entity subject to a 
performance-based 
management 
and 
operations 
agreement entered into between the entity and the 
Administrator. 
(b) IDENTIFICATION OF FACILITIES.— 
(1) COMPREHENSIVE EVALUATION OF DEPART-
MENT OF VETERANS AFFAIRS PROPERTY.— 
(A) REVIEW OF THE DEPARTMENT.—For 
purposes of carrying out the pilot program, not 
later than 180 days from enactment of this Act, 
the Secretary shall provide to the Administrator 
of General Services a report identifying poten-
tial sites based on a comprehensive evaluation 
of Department of Veterans Affairs real property 
to determine conditions, continued connectivity, 
and relevance to the broader mission of the De-
partment. The Secretary shall take into consid-
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eration such sites where the condition of facili-
ties is negatively impacting the ability of the 
Department of Veterans Affairs to fulfill its 
mission. 
(B) 
EVALUATION
BY
THE
ADMINIS-
TRATOR.—The Administrator of General Serv-
ices shall review the recommendations provided 
by the Department pursuant to subparagraph 
(A) and identify viable recapitalization opportu-
nities, consistent with other provisions of law. 
(C) CRITERIA.—In carrying out the eval-
uation under subparagraph (B), the Adminis-
trator shall implement criteria that— 
(i) are used to evaluate Federal as-
sets; 
(ii) ensure the modernization or re-
alignment of the capital facilities of the 
Department; and 
(iii) maximize the use of the capital of 
the Department (consistent with the Fed-
eral Assets Sale and Transfer Act of 2016 
(40 U.S.C. 1303 note)). 
(2) GSA DETERMINATION.—Not later than one 
year after the date of the enactment of this Act, 
based on the results of the evaluation under para-
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graph (1), the Administrator of General Services 
shall identify— 
(A) Department facilities that require im-
provements or renovations and would be appro-
priate for an agreement under the pilot pro-
gram; and 
(B) shortages of Department capacity that 
could be addressed through the construction of 
a new facility under such an agreement. 
(c) NUMBER
OF PROJECTS.—The Administrator 
shall enter into agreements with respect to no less than 
five and no more than ten facilities under the pilot pro-
gram, 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 Congress a report on each facility 
that is improved, renovated, or constructed under an 
agreement under the pilot program. 
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(2) FINAL REPORT.—Not later than 5 years 
following the determination under subsection (b)(2), 
the Administrator, in consultation with the Sec-
retary, 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 
of Veterans Affairs. 
(e) TERMINATION.—The authority to enter into an 
agreement under this Act 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 pro-
gram the Administrator and Secretary shall identify 
and use General Services Administration and De-
partment 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, in-
cluding 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 Admin-
istrator shall submit to the Committee on Transportation 
and Infrastructure of the House of Representatives and 
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the Committee on Environment and Public Works of the 
Senate prospectuses, in accordance with section 3307 for 
each project identified under this Act. 
(h) DEFINITIONS.—In this Act, the following defini-
tions apply: 
(1) PERFORMANCE-BASED
MANAGEMENT
AND 
OPERATIONS AGREEMENT.—The term ‘‘performance- 
based management and operations agreement’’ 
means an agreement that— 
(A) reflects an obligation by the non-Gov-
ernment 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 re-
sponsibility and obligation; 
(C) stipulates all requirements of the De-
partment and contains the terms and conditions 
for annual performance-based availability pay-
ments 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 availability payments 
to the non-Government entity for any given pe-
riod the asset is unavailable to the Government 
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or otherwise not delivered, operated, or main-
tained in accordance with the requirements in-
cluded in the agreement. 
(2) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of General Serv-
ices. 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Veterans Affairs. 
(4) DEPARTMENT.—The term ‘‘Department’’ 
means the Department of Veterans Affairs. 
Æ 
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