Pilot program for partnership agreements to construct new facilities for the Department of Veterans Affairs

(a)

In general

The Secretary of Veterans Affairs may carry out a program under which the Secretary may enter into up to 5 partnership arrangements with a State or local authority, a 501(c)(3) corporation, a limited liability corporation, private entity, donor or donor group, or other non-Federal entity, to conduct one or more super construction projects (as defined in section 8103 of title 38, United States Code), major construction projects (as defined in section 8104 of title 38, United States Code), or major construction projects to construct a new cemetery, or to develop additional gravesites or columbarium niches at an existing cemetery. (b)

Application of certain laws

This authority may be carried out notwithstanding any other law (including section 8103(e) of the title 38, United States Code), except for those Federal laws relating to environmental and historic preservation, and the Davis-Bacon Act (sections 3141 through 3148 of title 40, United States Code). (c)

Selection of projects

The projects that the Secretary may select for this program may be ones for which— (1) (A)Congress has appropriated partial funding for the designated project; or (B)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 (SCIP) priority list, submitted to Congress in its annual budget submission; and (2)a non-Federal entity has or is willing to enter into a formal agreement with the Secretary, to independently finance and/or donate funds towards the underlying project, in an amount acceptable and at no additional cost to the government. (d)

Agreements

Each partnership agreement for regarding the designated project shall provide: (1)The non-Federal 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. (2)The non-Federal entity shall use Veterans Affairs construction standards when designing and building the project, except to the extent the Secretary deems otherwise. (3)The non-Federal entity shall form a Board of Directors comprised of between 5 and 10 members, and a designated Chair to oversee the Board. At least 1 member of the Board shall be a Veteran who is not an employee of the Department of Veterans Affairs. The proposed or existing Board members shall be required to promptly disclose any actual or potential conflicts to the Secretary, and must agree as a condition of their appointment, to remove themselves from Board membership if the Chairman and Secretary agree that doing so is appropriate due to an underlying apparent or existing conflict. At least 1 member of the Board shall be an employee of the Department of Veterans Affairs, and function as a non-voting member of the Board. (4)Within 180 days of inception or other timeframe as the Secretary shall approve, the Board shall establish a written Charter of the Board of Directors, to describe the roles, responsibilities, policies, and procedures of operation, to help ensure successful project management, design, and construction, and completion of the designated project. The Board shall be responsible for overseeing the activities needed to finance, design, and construct the designated project for the Department. The Board shall provide written updates to the Secretary regarding the status of the designated project, on occasions and a frequency that he shall approve. (5)The Board shall defer to the Secretary on all matters that are inherent to the Department’s mission and operations, including conditional or final acceptance of the designated project. The Board shall not dissolve until after the Department has provided its final acceptance of the completed designated project, plus any additional time or later event that the Board of Directors and Secretary shall jointly approve. (e)

Project funds

Except as to the designated project identified in subsection (j) and except to the extent that Congress later provides a future appropriation of additional funds to support the project, the Secretary may provide funds to help finance, design, and construct the designated project, in an amount not to exceed the total dollars that Congress has appropriated at the time of the partnership agreement between the Department and non-Federal entity. The Secretary shall be permitted to provide such funds under terms, conditions, and schedule that the Secretary deems appropriate. The non-Federal entity shall be required to contribute the balance of the funds needed to complete the designated project. (f)

Application

To be eligible to participate in the program to be established under subsection (a), the non-Federal entities shall submit to the Secretary an application to address facility needs, including healthcare, as identified in the Veterans Affairs Construction and Long-range Capital Plan, at such time, in such manner, and containing such information as the Secretary may require, including the following: (1)The name, resume, and experience of the project manager for each designated project that the non-Federal entity is proposing to pursue with the Secretary under this program. (2)A description of the non-Federal entity’s proposed monetary and non-monetary contributions for the designated project, and how future funding will be secured. (3)A description of the process the non-Federal entity would utilize to select a third party contractor or developer as applicable, to perform the work necessary to complete the designated project. (4)A description of the Board of Directors and project management plan that the non-Federal entity will use, to ensure concise and consistent communication of all parties involved in the project. (5)A description of the procedures that the non-Federal entity will utilize to review, monitor, and process change orders when received, including how the Department’s input and feedback will be incorporated, particularly for issues that would affect the time or cost of the designated project(s). (6)A detailed estimate of costs to complete the designated project. (7)A description of the estimated timelines, and milestones associated with the activities needed to finance, design, and construct the designated project. (8)Agree to obtain an independent annual financial audit of all activities and costs relating to the underlying designated project, in accordance with generally accepted accounting principles. (9)Such other information as the Secretary may require. (g)

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. (h)

Report

The Secretary shall provide a report to the Veterans Affairs Committees as part of the Department’s annual budget submission, upon acceptance of a donation under this authority. The report shall provide a detailed status of the Project, including the percentage complete. (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. (j)

Selected department of veterans affairs construction project(s)

One of the 5 partnership agreement projects that the Secretary is permitted to pursue with a non-Federal entity under subsection (a) a project to design, finance, and construct a new ambulatory care center in Omaha, Nebraska. Any such project shall include necessary space and parking as determine by the Secretary. The Secretary shall be permitted to contribute funds towards the project in an amount not to exceed $56,000,000, and in no event shall the Secretary’s contribution or liability exceed such amount, unless and the extent that Congress later provides a future appropriation of additional funds to support the project.