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Q: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Construction Reform Act of 2016''.

SEC. 2. DEPARTMENT OF VETERANS AFFAIRS CONSTRUCTION REFORMS.

(a) Application of Industry Standards; Assistance.--Section 8103 of
title 38, United States Code, is amended by adding at the end the
following new subsections:
''(f) To the maximum extent practicable, the Secretary 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-Department Federal
entity with which the Secretary has entered into an agreement under
subsection (e)--
''(A) design, planning, and construction assistance before
the entity issues a request for proposals for the design or
construction of the super construction project covered by the
agreement;
''(B) any documents or information needed for the entity to
carry out the responsibilities of the entity with respect to
the super construction project; and
''(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 contract 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 contract 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 decision
under subparagraph (B), during the 30-day period following the
period described in such paragraph, the entity shall issue a
final decision regarding 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 construction or
alteration of medical facilities, including such construction or
alteration carried out pursuant to contracts or agreements, undergoes a
program of ongoing professional training and development. Such program
shall be designed to ensure that employees maintain adequate 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 entity.''.
(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);
(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 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 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 expenditure 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.--
(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 exceeding 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 expenditures exceed the amount specified in the law
for the project by more than 25 percent; and
''(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 described in
paragraph (1) or amounts described in paragraph (2) before the date
that is 30 days after the notification submitted under paragraph (1) or
paragraph (2)(B), as the case may be, 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 or amounts.''.
(3) Notification requirements.--
(A) Committees required.--Subsection (d)(1) of such
section is amended by striking ''each committee'' and
inserting ''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''.
(B) Use of amounts from bid savings.--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:
''Sec. 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' Affairs 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 sections at the
beginning of the chapter is amended by adding at the end of the
items relating to such subchapter the following new item:

''8120. Quarterly report on super construction projects.''.
(e) Accelerated Master Planning for Each Medical Facility of the
Department of Veterans Affairs.--
(1) Existing facilities.--Not later than December 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 completed 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 completed.
(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--
(A) to meet the health care needs of a changing
veteran population through a combination 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 CONSTRUCTION.

(a) In General.--Chapter 3 of title 38, United States Code, is
amended by inserting after section 312 the following new section:
''Sec. 312A. Assistant Inspector General for Construction
''(a) In General.--There is in the Office of Inspector General an
Assistant Inspector General for Construction. The Assistant Inspector
General for Construction is responsible for conducting, supervising,
and coordinating audits, evaluations, and investigations of the
planning, design, 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 facilities management.
''(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
Construction shall submit to the Committees on Veterans' Affairs of the
Senate and House of Representatives a report summarizing 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 Assistant Inspector General for Construction
shall promptly provide to the Committees on Veterans' Affairs of the
Senate and House of Representatives the findings of any investigation
undertaken by the Assistant Inspector General for Construction, and
shall notify the Committees promptly if the Assistant Inspector General
for Construction identifies any serious or flagrant problem or
deficiency relating to the administration or operation of any
construction program of the Department, if, during the course of any
investigation, the Assistant Inspector General for Construction
determines that Congress should take immediate action.
''(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 national defense
or national security or in the conduct of foreign affairs; or
''(C) a part of an ongoing criminal investigation.''.
(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.
A:
Construction Reform Act of 2016 (Sec. 2) This bill requires the Department of Veterans Affairs (VA) to use industry standards, standard designs, and best practices in carrying out medical facility construction. A super construction project is one for the construction, alteration, or acquisition of a medical facility involving a total expenditure of more than $100 million (but does not include an acquisition by exchange). The VA shall provide, on a non-reimbursable basis, a non-VA federal entity with: (1) design, planning, and construction assistance; (2) project documents; and (3) other assistance upon request. With respect to a proposed change to a contract entered into by a non-VA federal entity with which the VA has entered into an agreement that is estimated at a value of less than $250,000, the entity shall issue a final decision regarding such change within 30 days. With respect to a proposed contract change estimated at a value of $250,000 or more: the VA may make recommendations to the entity; the VA may issue the final decision regarding the change within 30 days after the entity proposes it; and if the VA does not issue a final decision within 60 days after the entity proposes the contract change, the entity shall issue a final decision regarding the change no later than 90 days after it proposes the change. The VA shall ensure that each VA employee with responsibilities relating to the construction or alteration of medical facilities undergoes ongoing professional training and development. The VA is prohibited from: obligating or expending funds for advance planning or design for any super construction project until 60 days after congressional notification, obligating funds for a major medical facility project or a super construction project by more than 10% of the amount approved by law unless certain congressional committees approve the obligation, or using bid savings amounts or funds for other than their original purpose before 30 days after notifying those committees unless each committee approves the obligation. The VA shall enter into a contract with an appropriate non-department federal entity to conduct an external forensic audit of: (1) the medical center construction project in Aurora, Colorado; and (2) the expenditures relating to any major medical facility or super construction project when such expenditures exceed the amount approved by law by more than 25%. The VA must complete a 10-year master plan for: (1) each existing VA medical facility by December 31, 2016, and (2) each new VA medical facility by not later than the earlier of the date on which activation is completed or the date of the facility's formal dedication. (Sec. 3) There is established in the Office of Inspector General an Assistant Inspector General for Construction who shall be responsible for conducting, supervising, and coordinating audits, evaluations, and investigations of the planning, design, contracting, and construction of VA facilities and infrastructure, including major and minor construction projects and leases.