IIB 
114TH CONGRESS 
2D SESSION 
H. R. 3106 
IN THE SENATE OF THE UNITED STATES 
FEBRUARY 10, 2016 
Received; read twice and referred to the Committee on Veterans’ Affairs 
AN ACT 
To amend title 38, United States Code, to make certain 
improvements in the administration of Department med-
ical facility construction projects. 
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 ‘‘Construction Reform 
Act of 2016’’. 
SEC. 2. DEPARTMENT OF VETERANS AFFAIRS CONSTRUC-
TION REFORMS. 
(a) APPLICATION OF INDUSTRY STANDARDS; ASSIST-
ANCE.—Section 8103 of title 38, United States Code, is 
amended by adding at the end the following new sub-
sections: 
‘‘(f) To the maximum extent practicable, the Sec-
retary shall use industry standards, standard designs, and 
best practices in carrying out the construction of medical 
facilities. 
‘‘(g)(1) The Secretary shall provide to a non-Depart-
ment Federal entity with which the Secretary has entered 
into an agreement under subsection (e)— 
‘‘(A) design, planning, and construction assist-
ance before the entity issues a request for proposals 
for the design or construction of the super construc-
tion project covered by the agreement; 
‘‘(B) any documents or information needed for 
the entity to carry out the responsibilities of the en-
tity with respect to the super construction project; 
and 
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‘‘(C) upon the request of the entity, any other 
assistance that the entity determines necessary to 
carry out such responsibilities. 
‘‘(2) Any assistance provided under paragraph (1) 
shall be provided to the non-Department Federal entity 
on a non-reimbursable basis. 
‘‘(h)(1) With respect to a proposed change to a con-
tract entered into by a non-Department Federal entity 
with which the Secretary has entered into an agreement 
under subsection (e) that is estimated at a value of less 
than $250,000, the non-Department Federal entity shall 
issue a final decision regarding such change not later than 
30 days after the date on which the change is proposed. 
‘‘(2) With respect to a proposed change to such a con-
tract that is estimated at a value of $250,000 or more— 
‘‘(A) the Secretary may provide to the entity 
the recommendations of the Secretary regarding 
such change; 
‘‘(B) during the 30-day period beginning on the 
date on which the entity furnishes to the Secretary 
information regarding such change, the Secretary 
may issue the final decision regarding such change; 
and 
‘‘(C) if the Secretary does not issue a final deci-
sion under subparagraph (B), during the 30-day pe-
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riod following the period described in such para-
graph, the entity shall issue a final decision regard-
ing such a change no later than 90 days from when 
the entity furnished information regarding such a 
change to the Secretary. 
‘‘(i) The Secretary shall ensure that each employee 
of the Department with responsibilities relating to the con-
struction or alteration of medical facilities, including such 
construction or alteration carried out pursuant to con-
tracts or agreements, undergoes a program of ongoing 
professional training and development. Such program 
shall be designed to ensure that employees maintain ade-
quate expertise relating to industry standards and best 
practices for the acquisition of design and construction 
services. The Secretary may provide the program under 
this subsection through a contract or agreement with a 
non-Federal entity or with a non-Department Federal en-
tity.’’. 
(b) LIMITATION ON PLANNING AND DESIGN FOR 
SUPER CONSTRUCTION PROJECTS.— 
(1) IN GENERAL.—Section 8104(a) of title 38, 
United States Code, is amended— 
(A) by redesignating paragraph (3) as 
paragraph (4); 
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(B) by inserting after paragraph (2) the 
following new paragraph (3): 
‘‘(3) The Secretary may not obligate or expend funds 
for advance planning or design for any super construction 
project, until the date that is 60 days after the date on 
which the Secretary submits to the Committee on Vet-
erans’ Affairs and the Committee on Appropriations of the 
Senate and the Committee on Veterans’ Affairs and the 
Committee on Appropriations of the House of Representa-
tives notice of such obligation or expenditure.’’; and 
(C) in paragraph (4), as redesignated by 
paragraph (1) of this subsection, by adding at 
the end the following new subparagraph: 
‘‘(C) The term ‘super construction project’ 
means a project for the construction, alteration, or 
acquisition of a medical facility involving a total ex-
penditure of more than $100,000,000, but such term 
does not include an acquisition by exchange.’’. 
(2) APPLICABILITY.—The amendments made 
by paragraph (1) shall take effect on the date of the 
enactment of this Act and shall apply with respect 
to a construction project that is initiated on or after 
that date. 
(c) 
CONGRESSIONAL
APPROVAL
OF
CERTAIN 
PROJECTS.— 
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(1) 
PROJECTS
THAT
EXCEED
SPECIFIED 
AMOUNT.—Subsection (c) of section 8104 of title 38, 
United States Code, is amended to read as follows: 
‘‘(c)(1) The Secretary may not obligate funds for a 
major medical facility project or a super construction 
project approved by a law described in subsection (a)(2) 
in an amount that would cause the total amount obligated 
for that project to exceed the amount specified in the law 
for that project (or would add to total obligations exceed-
ing such specified amount) by more than 10 percent unless 
the Committee on Veterans’ Affairs and the Committee 
on Appropriations of the Senate and the Committee on 
Veterans’ Affairs and the Committee on Appropriations 
of the House of Representatives each approve in writing 
the obligation of those funds. 
‘‘(2) The Secretary shall— 
‘‘(A) enter into a contract with an appropriate 
non-department Federal entity with the ability to 
conduct forensic audits on medical facility projects 
for the conduct of an external forensic audit of the 
expenditures relating to any major medical facility 
or super construction project for which the total ex-
penditures exceed the amount specified in the law 
for the project by more than 25 percent; and 
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‘‘(B) enter into a contract with an appropriate 
non-department Federal entity with the ability to 
conduct forensic audits on medical facility projects 
for the conduct of an external audit of the medical 
center construction project in Aurora, Colorado.’’. 
(2) USE OF EXTRA AMOUNTS.—Subsection (d) 
of such section is amended— 
(A) in paragraph (2)(B), in the matter 
preceding clause (i), by striking ‘‘Whenever’’ 
and inserting ‘‘Before’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(3) The Secretary may not obligate any funds de-
scribed in paragraph (1) or amounts described in para-
graph (2) before the date that is 30 days after the notifi-
cation submitted under paragraph (1) or paragraph 
(2)(B), as the case may be, unless the Committee on Vet-
erans’ Affairs and the Committee on Appropriations of the 
Senate and the Committee on Veterans’ Affairs and the 
Committee on Appropriations of the House of Representa-
tives each approve in writing the obligation of those funds 
or amounts.’’. 
(3) NOTIFICATION REQUIREMENTS.— 
(A) COMMITTEES REQUIRED.—Subsection 
(d)(1) of such section is amended by striking 
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‘‘each committee’’ and inserting ‘‘the Com-
mittee on Veterans’ Affairs and the Committee 
on Appropriations of the Senate and the Com-
mittee on Veterans’ Affairs and the Committee 
on Appropriations of the House of Representa-
tives’’. 
(B) USE
OF
AMOUNTS
FROM
BID
SAV-
INGS.—Subsection (d)(2)(B) of such section is 
amended by adding at the end the following 
new clause: 
‘‘(iv) With respect to the major construction 
project that is the source of the bid savings— 
‘‘(I) the amounts already obligated or 
available in the project reserve for such project; 
‘‘(II) the percentage of such project that 
has been completed; and 
‘‘(III) the amount of such bid savings that 
is already obligated or otherwise being used for 
a purpose other than such project.’’. 
(d) QUARTERLY REPORT ON SUPER CONSTRUCTION 
PROJECTS.— 
(1) IN GENERAL.—At the end of subchapter I 
of chapter 81 of title 38, United States Code, add 
the following new section: 
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‘‘§ 8120. Quarterly report on super construction 
projects 
‘‘(a) QUARTERLY REPORTS REQUIRED.—Not later 
than 30 days after the last day of each fiscal quarter the 
Secretary shall submit to the Committees on Veterans’ Af-
fairs of the Senate and House of Representatives on the 
super construction projects carried out by the Secretary 
during such quarter. Each such report shall include, for 
each such project— 
‘‘(1) the budgetary and scheduling status of the 
project, as of the last day of the quarter covered by 
the report; and 
‘‘(2) the actual cost and schedule variances of 
the project, as of such day, compared to the planned 
cost and schedules for the project. 
‘‘(b) SUPER CONSTRUCTION PROJECT DEFINED.—In 
this section, the term ‘super construction project’ has the 
meaning given such term in section 8104(a)(4)(C) of this 
title.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of the chapter is amended by 
adding at the end of the items relating to such sub-
chapter the following new item: 
‘‘8120. Quarterly report on super construction projects.’’. 
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(e) ACCELERATED MASTER PLANNING FOR EACH 
MEDICAL FACILITY OF THE DEPARTMENT OF VETERANS 
AFFAIRS.— 
(1) EXISTING FACILITIES.—Not later than De-
cember 31, 2016, the Secretary of Veterans Affairs 
shall complete a master plan described in paragraph 
(3) for each medical facility of the Department of 
Veterans Affairs. 
(2) NEW FACILITIES.—For each medical facility 
of the Department for which construction is com-
pleted after the date of the enactment of this Act, 
the Secretary shall complete a master plan described 
in paragraph (3) for the facility by not later than 
the earlier of the following dates: 
(A) The date on which activation is com-
pleted. 
(B) The date of the formal dedication of 
the facility. 
(3) MASTER PLAN DESCRIBED.—A master plan 
described in this paragraph is, with respect to a 
medical facility of the Department, a plan to inform 
investment decisions and funding requests over a 10- 
year period for construction projects at such medical 
facility— 
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(A) to meet the health care needs of a 
changing veteran population through a com-
bination of health care from the Department 
and other community resources; and 
(B) to maximize the best use of the land 
and structures comprising such medical facility. 
SEC. 3. ASSISTANT INSPECTOR GENERAL FOR CONSTRUC-
TION. 
(a) IN GENERAL.—Chapter 3 of title 38, United 
States Code, is amended by inserting after section 312 the 
following new section: 
‘‘§ 312A. Assistant Inspector General for Construction 
‘‘(a) IN GENERAL.—There is in the Office of Inspec-
tor General an Assistant Inspector General for Construc-
tion. The Assistant Inspector General for Construction is 
responsible for conducting, supervising, and coordinating 
audits, evaluations, and investigations of the planning, de-
sign, contracting, execution, and construction of facilities 
and infrastructure of the Department, including major 
and minor construction projects and leases. 
‘‘(b) QUALIFICATIONS.—Each individual appointed 
as Assistant Inspector General for Construction shall be 
an individual who has expertise in construction and facili-
ties management. 
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‘‘(c) REPORTS.—(1) Not later than 60 days after the 
appointment of an individual as the Assistant Inspector 
General for Construction, and every calendar quarter 
thereafter, the Assistant Inspector General for Construc-
tion shall submit to the Committees on Veterans’ Affairs 
of the Senate and House of Representatives a report sum-
marizing the activities of the Assistant Inspector General 
for Construction during the 120-day period ending on the 
date of such report. 
‘‘(2) In addition to the report required in paragraph 
(1), and the requirements contained in section 5 of the 
Inspector General Act of 1978 (5 U.S.C. App.), the Assist-
ant Inspector General for Construction shall promptly pro-
vide to the Committees on Veterans’ Affairs of the Senate 
and House of Representatives the findings of any inves-
tigation undertaken by the Assistant Inspector General for 
Construction, and shall notify the Committees promptly 
if the Assistant Inspector General for Construction identi-
fies any serious or flagrant problem or deficiency relating 
to the administration or operation of any construction pro-
gram of the Department, if, during the course of any in-
vestigation, the Assistant Inspector General for Construc-
tion determines that Congress should take immediate ac-
tion. 
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‘‘(3) Nothing in this subsection shall be construed to 
authorize the public disclosure of information that is— 
‘‘(A) specifically prohibited from disclosure by 
any other provision of law; 
‘‘(B) specifically required by Executive Order to 
be protected from disclosure in the interest of na-
tional defense or national security or in the conduct 
of foreign affairs; or 
‘‘(C) a part of an ongoing criminal investiga-
tion.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the item relating to section 312 the following new 
item: 
‘‘312A. Assistant Inspector General for Construction.’’. 
Passed the House of Representatives February 9, 
2016. 
Attest: 
KAREN L. HAAS, 
Clerk. 
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