I 
115TH CONGRESS 
2D SESSION 
H. R. 7317 
To direct the Secretary of Veterans Affairs to carry out a pilot program 
under which the Secretary shall enter into agreements for the construc-
tion, 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 17, 2018 
Mr. SHUSTER introduced the following bill; which was referred to the Com-
mittee on Veterans’ Affairs, and in addition to the Committee on Trans-
portation and Infrastructure, 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 Secretary of Veterans Affairs to carry out 
a pilot program under which the Secretary shall enter 
into agreements for the construction, renovation, im-
provement, 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 finds the following: 
(1) The deferred capital backlog for Depart-
ment of Veterans Affairs facilities (including hos-
pitals, clinics, housing and offices) is not sustain-
able. 
(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 Secretary of Veterans Af-
fairs, 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, fi-
nance, and execute improvements or renovations to 
a Department of Veterans Affairs facility identified 
under subsection (b) or construct a new facility to 
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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 Depart-
ment; 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 
Secretary. 
(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 after the date of the enact-
ment 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 prop-
erty 
to 
determine 
conditions, 
continued 
connectivity, and relevance to the broader mis-
sion of the Department. The Secretary shall 
take into consideration such sites which the 
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condition of facilities is negatively impacting the 
ability of the Department to fulfill its mission. 
(B) 
EVALUATION
BY
THE
ADMINIS-
TRATOR.—The Administrator shall review the 
recommendations provided by the Department 
pursuant to subparagraph (A) and identify via-
ble recapitalization opportunities, 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 
assets of the Department (consistent with 
the Federal Assets Sale and Transfer Act 
of 2016 (40 U.S.C. 1303 note)). 
(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 para-
graph (1), the Administrator shall identify— 
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(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 
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, includ-
ing— 
(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 Con-
gress a report on each facility that is improved, ren-
ovated, 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 
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Administrator, in consultation with the Secretary, 
shall submit to Congress a final report on the effec-
tiveness of the pilot program in providing for the im-
provement 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 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 
the Committee on Environment and Public Works of the 
Senate prospectuses, in accordance with section 3307, of 
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title 40, United States Code, for each project identified 
under this Act. 
(h) DEFINITION.—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 available payments to 
the non-Government entity for any given period 
the asset is unavailable to the Government or 
otherwise non delivered, operated, or main-
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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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