Title: Performance-based Building Act of 2018
Policy area: Government Operations and Politics

Summary:
Performance-Based Building Act of 2018
This bill requires the Department of Veterans Affairs (VA) and the General Services Administration (GSA) to develop a pilot program under which the VA may enter into agreements with non-government entities to ground-lease, finance, and execute improvements to identified VA facilities. Under the program, the VA shall lease the facility from the non-government entity, and the facility shall be operated and maintained by the non-government entity.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7317 Introduced in House (IH)]

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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 
construction, 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 
  Committee on Veterans' Affairs, and in addition to the Committee on 
  Transportation 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, improvement, and lease of facilities in order 
 to address the deferred capital backlog of the Department of Veterans 
                    Affairs, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

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 Department of Veterans 
        Affairs facilities (including hospitals, clinics, housing and 
        offices) is not sustainable.
            (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 housing.

SEC. 3. PILOT PROGRAM.

    (a) In General.--The Secretary of Veterans Affairs, 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, finance, and 
        execute improvements or renovations to a Department of Veterans 
        Affairs facility identified under subsection (b) or construct a 
        new facility to 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 Department; and
            (3) the facility shall be operated and maintained 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 department 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 enactment 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 
                property to determine conditions, continued 
                connectivity, and relevance to the broader mission of 
                the Department. The Secretary shall take into 
                consideration such sites which the condition of 
                facilities is negatively impacting the ability of the 
                Department to fulfill its mission.
                    (B) Evaluation by the administrator.--The 
                Administrator shall review the recommendations provided 
                by the Department pursuant to subparagraph (A) and 
                identify viable recapitalization opportunities, 
                consistent with other provisions of law.
                    (C) Criteria.--In carrying out the evaluation under 
                subparagraph (B), the Administrator shall implement 
                criteria that--
                            (i) are used to evaluate Federal assets;
                            (ii) ensure the modernization or 
                        realignment 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 paragraph (1), the Administrator shall 
        identify--
                    (A) department facilities that require improvements 
                or renovations and would be appropriate for an 
                agreement under the pilot program; 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, including--
            (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 Congress a report on each facility 
        that is improved, renovated, 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 Administrator, in 
        consultation with the Secretary, shall submit to Congress a 
        final report on the effectiveness of the pilot program in 
        providing for the improvement 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 program, the 
        Administrator and Secretary shall identify and use General 
        Services Administration and Department 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, including 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 Administrator 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 title 40, 
United States Code, for each project identified under this Act.
    (h) Definition.--In this Act, the following definitions 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-Government 
                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 responsibility and 
                obligation;
                    (C) stipulates all requirements of the Department 
                and contains the terms and conditions for annual 
                performance-based availability payments 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 maintained in accordance with 
                the requirements included in the agreement.
            (2) Administrator.--The term ``Administrator'' means the 
        Administrator of General Services.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Veterans Affairs.
            (4) Department.--The term ``Department'' means the 
        Department of Veterans Affairs.
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