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 pur-
poses. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Comprehensive De-
partment of Veterans Affairs Performance Management 
and Accountability Reform Act of 2014’’. 
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SEC. 2. IMPROVEMENT OF PERFORMANCE APPRAISAL OF 
SENIOR EXECUTIVES OF THE DEPARTMENT 
OF VETERANS AFFAIRS. 
(a) PERFORMANCE APPRAISAL SYSTEM.— 
(1) IN GENERAL.—Chapter 7 of title 38, United 
States Code, is amended by adding at the end the 
following new section: 
‘‘§ 713. Senior Executive Service: performance ap-
praisal 
‘‘(a) PERFORMANCE APPRAISAL SYSTEM.—The Sec-
retary shall be responsible for carrying out the require-
ments of subchapter II of chapter 43 of title 5. 
‘‘(b) ORGANIZATIONAL
PERFORMANCE
REQUIRE-
MENTS.—(1) In implementing the performance appraisal 
system for senior executives of the Department required 
by section 4312 of title 5, the Secretary shall issue, by 
not later than September 1 of each year, organizational 
performance requirements to be used to inform the estab-
lishment of performance requirements for each senior ex-
ecutive of the Department. The performance requirements 
of each senior executive shall be achievable by each senior 
executive and shall be consistent with the organizational 
performance requirements issued by the Secretary. 
‘‘(2) Not less than half of the annual summary rating 
of a senior executive of the Department under section 
4314 of title 5 shall be based on the organizational per-
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formance requirements issued under this subsection and 
applicable to such senior executive. 
‘‘(3) Not later than December 15 of each year, the 
Secretary shall submit to the Committees on Veterans’ Af-
fairs of the Senate and House of Representatives certifi-
cation that for the fiscal year during which the certifi-
cation is submitted that— 
‘‘(A) all individual and organizational perform-
ance requirements applicable to senior executives of 
the Department pursuant to section 4312 of title 5 
accurately reflected the organizational performance 
requirements of the Department; and 
‘‘(B) the performance requirements established 
for each senior executive are expected to lead to the 
overall success of the Department in meeting its or-
ganizational performance requirements. 
‘‘(c) ADDITIONAL REQUIREMENTS.—(1) In imple-
menting the performance appraisal system for senior ex-
ecutives of the Department required by section 4312 of 
title 5, the Secretary shall ensure that such system is de-
signed to— 
‘‘(A) evaluate the contribution of each senior 
executive to the overall mission and objectives of the 
Department; 
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‘‘(B) ensure that each senior executive is ac-
countable for efforts undertaken to further the ob-
jectives of the Departments; and 
‘‘(C) evaluate the contribution of each senior 
executive in ensuring the Department meets the 
needs of veterans and their dependants. 
‘‘(2)(A) The performance review board established 
pursuant to section 4314 of title 5 shall ensure that— 
‘‘(i) the performance requirements for each sen-
ior executive of the Department clearly and dis-
tinctly address both individual and organizational 
performance; and 
‘‘(ii) the performance of each senior executive is 
evaluated based on such performance requirements 
together with the demonstrated accountability, exec-
utive, and leadership capabilities of the senior execu-
tive. 
‘‘(B) In evaluating the performance of a senior execu-
tive of the Department, the performance review board 
shall take into consideration each of the following: 
‘‘(i) Any deficiencies identified by the Inspector 
General of the Department or the Comptroller Gen-
eral of the United States in the performance of du-
ties or areas managed by the senior executive. 
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‘‘(ii) Any final determination in response to a 
formal complaint submitted regarding the perform-
ance of the senior executive or a deficiency in a pro-
gram under the direction of the senior executive. 
‘‘(iii) The findings of any final report relating 
to the performance of the senior executive or to a 
deficiency in a program under the direction of the 
senior executive. 
‘‘(d) ANNUAL SUMMARY RATINGS.—(1) The Sec-
retary shall provide in a timely manner to any senior exec-
utive who receives an annual summary rating under sec-
tion 4314(a) of title 5 of any level of performance lower 
than fully successful a detailed explanation of the perform-
ance deficiencies of the senior executive. 
‘‘(2) In the case of a senior executive for whom it 
is determined during a mid-year review that the senior ex-
ecutive is likely to receive an annual summary rating of 
less than fully successful, the Secretary shall ensure that 
senior executive is provided a plan to address performance 
deficiencies before the end of the evaluation period. 
‘‘(3) Any senior executive of the Department who re-
ceives two annual summary ratings of any level of per-
formance lower than fully successful shall be removed 
from the Senior Executive Service. 
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(iii) by inserting after subparagraph 
(A) the following new subparagraph: 
‘‘(B) Under the performance appraisal system under 
subparagraph (A), performance shall be evaluated based 
on both individual and organizational performance and 
specific goals or objectives shall be explicitly linked to im-
proved health care outcomes and quality as well as the 
Department’s overall effectiveness in providing quality 
health care services. The specific goals and objectives shall 
be consistent with the overarching objectives and goals of 
the Department. 
‘‘(C) Under such performance appraisal system, each 
physician and dentist employed by the Department shall 
receive an annual review by the Under Secretary of 
Health. For each year, the Under Secretary shall submit 
to the Secretary certification that such reviews are con-
ducted.’’; 
(B) by striking paragraph (3) and redesig-
nating paragraph (2) as paragraph (3); 
(C) by inserting after paragraph (1) the 
following new paragraph (2): 
‘‘(2) Under the performance appraisal system estab-
lished under paragraph (1)— 
‘‘(A) on or before the beginning of each rating 
period, performance requirements for each physician 
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or dentist shall be established in consultation with, 
and communicated to, each physician or dentist; 
‘‘(B) written appraisals of performance shall be 
based on the individual and organizational perform-
ance requirements established for the rating period 
involved; and 
‘‘(C) each physician or dentist shall be provided 
a copy of the appraisal and the physician or den-
tist’s performance appraisal rating and shall be 
given an opportunity to respond in writing and have 
the rating reviewed by the Under Secretary for 
Health before the rating becomes final.’’; 
(D) in paragraph (3), as redesignated by 
subparagraph (B)— 
(i) by inserting ‘‘only’’ after ‘‘paid’’; 
and 
(ii) by striking ‘‘on the basis’’ and in-
serting ‘‘who receives a level of perform-
ance of fully successful under the perform-
ance appraisal system established under 
paragraph (1) and whose performance ex-
ceeds the specific goals and performance 
objectives established under such system.’’; 
(E) in paragraph (4), by striking ‘‘para-
graph (2)’’ and inserting ‘‘this subsection’’; 
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(F) in paragraph (5)(B), by striking ‘‘7.5 
percent’’ and inserting ‘‘5 percent’’; and 
(G) by striking paragraph (6); and 
(4) by adding at the end the following new sub-
section: 
‘‘(i) FAILURE TO MAINTAIN A LICENSE.—A physi-
cian or dentist who has not maintained an appropriate 
professional license may not be paid.’’. 
(c) STUDY.—Not later than one year after the date 
of the enactment of this Act, the Secretary shall submit 
to the Committees on Veterans’ Affairs of the Senate and 
House of Representatives a report on the training pro-
gram of the Department of Veterans Affairs for senior ex-
ecutives. Such report shall include— 
(1) an evaluation of succession planning and 
long-term career development plans for senior execu-
tives and efforts undertaken by the Department to 
improve cross-Department opportunities for senior 
executives; and 
(2) the recommendations of the Secretary for 
improving the mobility and effectiveness of senior 
executives. 
Æ 
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