(3) Establish and implement a plan to transi-
tion from the business processes identified under 
paragraph (1) to the reengineered and standardized 
businesses established pursuant to paragraph (2). 
(4) Establishment of a comprehensive database 
containing third-party payor information for vet-
erans receiving health care and services at the facil-
ity. 
(f) VHA PROJECT MANAGER.—As part of the dem-
onstration project, the Secretary shall ensure that a Vet-
erans Health Administration employee is designated to be 
the full-time project manager for the project and that such 
employee’s duty station is at one of the facilities at which 
the project is conducted, with provision for visits as needed 
to the other facility at which the project is conducted. 
(g) EMPLOYEE PROTECTION.—The Secretary shall 
administer the demonstration project so that during the 
period of the conduct of the demonstration project there 
is no reduction in active full-time equivalent employees of 
the Department of Veterans Affairs at the facilities at 
which the project is conducted that is attributable to the 
conduct of the demonstration project. 
(h) REPORTS TO CONGRESS.—
(1) PERIODIC PROGRESS REPORTS ON PROJECT 
IMPLEMENTATION.—
(A) REPORTS REQUIRED.—The Secretary 
shall submit to Congress progress reports on 
the 
implementation 
of 
the 
demonstration 
project. 
(B) TIME
FOR
PROGRESS
REPORTS.— 
Such reports shall be submitted as expeditiously 
as feasible after the end of—
(i) the 60-day period and the 90-day 
period beginning on the date of the enact-
ment of this Act; and 
(ii) the 60-day period, the 90-day pe-
riod, and the 180-day period beginning on 
the date of the award of the contract 
under subsection (d). 
(C) MATTER TO BE INCLUDED.—Each re-
port under this paragraph shall set out the 
progress to date of the demonstration project, 
including—
(i) before the contractor has been se-
lected, progress toward selection of the 
contractor (identified by the steps in the 
acquisition process that have been accom-
plished and that remain to be accom-
plished); and
(ii) after the contractor has been se-
lected—
(I) the contractor’s progress in 
initiating and carrying out the dem-
onstration project in accordance with 
the requirements of this section; and 
(II) a copy of each contract 
under the demonstration project and 
any change order or modification to 
any such contract. 
(2) INTERIM
REPORTS
ON
PROJECT
OPER-
ATION.—After the completion of the first 12 months, 
and after the completion of the first 18 months, of 
the demonstration project, the Secretary shall sub-
mit to Congress an interim report on the operation 
of the demonstration project to that date. Each such 
report shall include the following: 
(A) The assessment of the Secretary as to 
whether the rate of recovery or collection of in-
debtedness owed the United States from third-
party payors has improved by reason of the 
project. 
(B) The assessment of the Secretary as to 
the performance of the contractor. 
(3) FINAL REPORT.—
(A) REQUIREMENT.—After the conclusion 
of the demonstration project, the Secretary 
shall submit to Congress a final report on the 
project. 
(B) CONTENT.—The Secretary shall in-
clude in that report—
(i) the matters specified in paragraph 
(2); 
(ii) the Secretary’s estimate of cost 
savings to the Department attributable to 
the reengineered business processes imple-
mented under the demonstration project, 
with supporting evidence and documenta-
tion for such estimate; and 
(iii) the Secretary’s recommendation 
for implementing on a permanent basis the 
recovery or collection system demonstrated 
in the project and expanding the project to 
other facilities of the Veterans Health Ad-
ministration. 
(C) SUBMISSION.—The final report shall 
be submitted not later than 90 days after the 
conclusion of the demonstration project. 
(i) COMPTROLLER
GENERAL
REVIEW
AND
RE-
PORTS.—