A bill to establish a pilot program on partnership agreements to construct new facilities for the Department of Veterans Affairs.

SECTION 1. PILOT PROGRAM FOR PARTNERSHIP AGREEMENTS TO CONSTRUCT NEW 
              FACILITIES FOR THE DEPARTMENT OF VETERANS AFFAIRS.

    (a) Program Authorized.--
            (1) In general.--The Secretary of Veterans Affairs may 
        carry out a program under which the Secretary may enter into 
        not more than five partnership agreements with entities 
        described in paragraph (2) to conduct one or more--
                    (A) super construction projects (as defined in 
                section 8103(e)(3) of title 38, United States Code);
                    (B) major medical facility projects (as defined in 
                section 8104(a)(3) of title 38, United States Code); or
                    (C) major construction projects to construct new 
                cemeteries or to develop additional gravesites or 
                columbarium niches at existing cemeteries.
            (2) Entities described.--Entities described in this 
        paragraph are the following:
                    (A) A State or local authority.
                    (B) An organization that is described in section 
                501(c)(3) of the Internal Revenue Code of 1986 and is 
                exempt from taxation under section 501(a) of such Code.
                    (C) A limited liability corporation.
                    (D) A private entity.
                    (E) A donor or donor group.
                    (F) Any other non-Federal Government entity.
    (b) Application of Certain Laws.--The authority under this section 
may be carried out notwithstanding any other provision of law 
(including section 8103(e) of title 38, United States Code), except 
for--
            (1) Federal laws relating to environmental and historic 
        preservation; and
            (2) subchapter IV of chapter 31 of title 40, United States 
        Code (commonly referred to as the ``Davis-Bacon Act'').
    (c) Selection of Projects.--
            (1) In general.--Except as provided in paragraph (2), the 
        projects that the Secretary may select for the program are 
        projects for which--
                    (A)(i) Congress has appropriated partial funding 
                for the project; or
                    (ii) The Department of Veterans Affairs has 
                identified a need for the project through its long-
                range capital planning process by listing the project 
                on the Major Construction Strategic Capital Investment 
                Planning priority list included in the budget submitted 
                to Congress by the President pursuant to section 
                1105(a) of title 31, United States Code; and
                    (B) an entity described in subsection (a)(2) has 
                entered into or is willing to enter into a formal 
                agreement with the Secretary to independently finance 
                or donate amounts for the project, in an amount 
                acceptable and at no additional cost to the Federal 
                Government.
            (2) Selected construction project.--
                    (A) In general.--One of the five partnership 
                agreements that the Secretary is authorized to enter 
                into under subsection (a) is a partnership agreement to 
                conduct a project to design, finance, and construct a 
                new ambulatory care center in Omaha, Nebraska.
                    (B) Space and parking.--The project described in 
                subparagraph (A) shall include space and parking as 
                determined necessary by the Secretary.
                    (C) Contribution of funds.--The Secretary may 
                contribute funds for the project described in 
                subparagraph (A) in an amount not to exceed 
                $56,000,000, and in no event shall the contribution or 
                liability of the Secretary exceed such amount except to 
                the extent that additional funds are appropriated for 
                the project.
    (d) Requirements of Entities.--
            (1) Agreements.--Each partnership agreement entered into 
        under subsection (a) with an entity described in paragraph (2) 
        of that subsection for the conduct of a project under this 
        section shall provide for the following:
                    (A) The entity shall conduct any necessary 
                environmental and historic preservation due diligence, 
                comply with local zoning requirements (except for 
                studies and consultations required of the Department 
                under Federal law), and obtain any permits required 
                before beginning construction in connection with the 
                project.
                    (B) The entity shall use construction standards 
                required of the Department when designing and building 
                the project, except to the extent the Secretary 
                determines otherwise.
                    (C) The entity shall establish a Board of Directors 
                described in paragraph (2) to oversee the conduct of 
                the project (in this section referred to as the 
                ``Board'').
            (2) Board of directors.--
                    (A) Composition.--
                            (i) In general.--The Board shall be 
                        comprised of not fewer than 5 and not more than 
                        10 members as follows:
                                    (I) Not fewer than one member shall 
                                be a veteran who is not an employee of 
                                the Department.
                                    (II) Not fewer than one member 
                                shall be an employee of the Department 
                                and function as a nonvoting member of 
                                the Board.
                            (ii) Chair.--The Board shall designate a 
                        Chair from among the members of the Board to 
                        oversee the activities of the Board.
                            (iii) Conflicts.--All current or proposed 
                        members of the Board shall promptly disclose 
                        any actual or potential conflicts to the 
                        Secretary and must agree as a condition of 
                        their appointment to the Board to remove 
                        themselves from membership on the Board if the 
                        Chair and Secretary jointly agree that doing so 
                        is appropriate due to an actual or potential 
                        conflict.
                    (B) Charter.--Not later than 180 days after 
                inception, or such other timeframe as the Secretary may 
                approve, the Board shall establish a written charter to 
                describe the roles, responsibilities, policies, and 
                procedures of operation of the Board to ensure 
                successful project management, design, and 
                construction, and completion of the designated project.
                    (C) Duties.--
                            (i) In general.--The Board shall be 
                        responsible for overseeing the activities 
                        needed to finance, design, and construct the 
                        designated project for the Department.
                            (ii) Updates.--The Board shall submit to 
                        the Secretary written updates regarding the 
                        status of the designated project at such time 
                        and in such manner as the Secretary shall 
                        specify.
                    (D) Defense to department.--The Board shall defer 
                to the Secretary on all matters that are inherent to 
                the mission and operations of the Department, including 
                conditional or final acceptance of the designated 
                project.
                    (E) Dissolution.--The Board may not dissolve until 
                after the Secretary has provided final acceptance of 
                the completion of the designated project to the Board, 
                plus such additional time or contingencies as the Board 
                and the Secretary may jointly approve.
    (e) Project Funds.--
            (1) From department.--
                    (A) In general.--Except as provided in subsection 
                (c)(2), and except to the extent that additional funds 
                are appropriated for a project, the Secretary may 
                provide funds to help finance, design, and construct 
                the project in an amount not to exceed the total amount 
                appropriated for the project at the time of the 
                partnership agreement under subsection (a) between the 
                Department and the entity described in subsection 
                (a)(2) that is conducting the project.
                    (B) Terms and conditions.--The Secretary shall 
                provide funds pursuant to subparagraph (A) under such 
                terms, conditions, and schedule as the Secretary 
                determines appropriate.
            (2) From entity.--The entity described in subsection (a)(2) 
        that is conducting the project shall be required to contribute 
        all funds in addition to the funds provided under paragraph (1) 
        that are needed to complete the project.
    (f) Application.--To be eligible to participate in the program 
under this section, entities described in subsection (a)(2) shall 
submit to the Secretary an application to address needs relating to 
facilities of the Department, including health care needs, identified 
in the Construction and Long-Range Capital Plan of the Department, at 
such time, in such manner, and containing such information as the 
Secretary may require, including the following:
            (1) The name, resume, and description of the experience of 
        the project manager for each project that the entity is 
        proposing to pursue with the Secretary under the program.
            (2) A description of the proposed monetary and non-monetary 
        contributions of the entity for the project, and how future 
        funding will be secured.
            (3) A description of the process the entity would use to 
        select a third-party contractor or developer, as applicable, to 
        perform the work necessary to complete the project.
            (4) A description of the Board and project management plan 
        that the entity will use, to ensure concise and consistent 
        communication between all parties involved in the project.
            (5) A description of the procedures that the entity will 
        use to review, monitor, and process change orders when 
        received, including how input and feedback by the Department 
        will be incorporated, particularly for issues that would affect 
        the time or cost of the project.
            (6) A detailed estimate of the costs to complete the 
        project.
            (7) A description of the estimated timeline for completion 
        of the project and milestones associated with the activities 
        needed to finance, design, and construct the project.
            (8) An agreement to obtain an independent annual financial 
        audit of all activities and costs relating to the project in 
        accordance with generally accepted accounting principles.
            (9) Such other information as the Secretary may require.
    (g) Annual Report on Projects.--
            (1) In general.--The Secretary shall include in the budget 
        submitted to Congress by the President pursuant to section 
        1105(a) of title 31, United States Code, information regarding 
        any projects conducted under this section during the year 
        preceding the submittal of the budget.
            (2) Elements.--Each report submitted under paragraph (1) 
        shall provide a detailed status of projects conducted under 
        this section, including the percentage completion of the 
        project.
    (h) Comptroller General Report.--The Comptroller General of the 
United States shall submit to Congress a biennial report on the 
partnership agreements entered into under the program under this 
section.
    (i) Rule of Construction.--Nothing in this section shall be 
construed as a limitation on the authority of the Secretary to enter 
into other agreements that are authorized by law and not inconsistent 
with this section.

Summary: This bill authorizes the Department of Veterans Affairs (VA) to carry out a program under which it may enter into up to five partnership arrangements with a state or local authority, a tax exempt non-profit corporation, a limited liability corporation, a private entity, a donor, or other non-federal entity to conduct:   super construction projects (a project for the construction, alteration, or acquisition of a medical facility involving a total expenditure of more than $100 million); major medical facility projects (a project for the construction, alteration, or acquisition of a medical facility involving a total expenditure of more than $10 million, excluding an acquisition by exchange); or  major construction projects to construct a new cemeteries or to develop additional gravesites or columbarium niches at existing cemeteries.   The VA may select projects for which: (1) Congress has appropriated partial funding or the VA has identified a need through its long-range capital planning process by listing it on the Major Construction Strategic Capital Investment Planning priority list included in the annual budget submitted to Congress by the President, and (2) a non-federal entity has entered into or is willing to enter into a formal agreement with the VA to independently finance or donate an acceptable amount of project funds at no additional cost to the federal government. One of the non-federal entity partnership agreements shall be a project to design, finance, and construct a new ambulatory care center in Omaha, Nebraska.  Each partnership agreement shall require the partner entity to:   conduct necessary environmental and historic preservation due diligence, comply with local zoning requirements, and obtain any permits required for construction; use construction standards required of the VA when designing and building the project, except to the extent the VA determines otherwise; and    establish a Board of Directors to oversee the project.  The VA shall include in the annual budget submitted to Congress by the President information regarding any projects conducted under this bill during the preceding year.