[Congressional Record Volume 148, Number 100 (Monday, July 22, 2002)]
[House]
[Pages H5008-H5013]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
VETERANS HEALTH CARE AND PROCUREMENT IMPROVEMENT ACT OF 2002
Mr. MORAN of Kansas. Mr. Speaker, I move to suspend the rules and
pass the bill (H.R. 3645) to amend title 38, United States Code, to
provide for improved procurement practices by the Department of
Veterans Affairs in procuring health-care items, as amended.
The Clerk read as follows:
H.R. 3645
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Veterans
Health Care and Procurement Improvement Act of 2002''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. References to title 38, United States Code.
[[Page H5009]]
Sec. 3. Limitation on use of local contracts for Department of Veterans
Affairs procurement of health-care items.
Sec. 4. Enhancements to enhanced-use lease authority.
Sec. 5. Eligibility for Department of Veterans Affairs health care of
certain additional Filipino World War II veterans
residing in the United States.
Sec. 6. Outpatient dental care for all former prisoners of war.
Sec. 7. Improved accountability of research corporations established at
Department of Veterans Affairs medical centers.
Sec. 8. Department of Defense participation in Revolving Supply Fund
purchases.
Sec. 9. Name of Department of Veterans Affairs outpatient clinic, New
London, Connecticut.
SEC. 2. REFERENCES TO TITLE 38, UNITED STATES CODE.
Except as otherwise expressly provided, whenever in this
Act an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the
reference shall be considered to be made to a section or
other provision of title 38, United States Code.
SEC. 3. LIMITATION ON USE OF LOCAL CONTRACTS FOR DEPARTMENT
OF VETERANS AFFAIRS PROCUREMENT OF HEALTH-CARE
ITEMS.
(a) In General.--Section 8125 is amended to read as
follows:
``Sec. 8125. Procurement of health-care items
``(a) Except as provided in subsection (b), any procurement
of a health-care item by the Department shall be made through
the use of a Federal Supply Schedule contract, or a national
contract, that meets the requirements of subsection (d).
``(b)(1) Subsection (a) does not apply to a procurement of
a health-care item in any of the following cases:
``(A) A procurement that is necessary to meet a current or
near-term medical emergency at a medical center.
``(B) A procurement that is for a health-care item that is
not listed in the Federal Supply Schedule or as part of a
national contract and for which there is a valid clinical
need.
``(C) A procurement that is for a specialized health-care
item not listed in the Federal Supply Schedule or as part of
a national contract and that is to meet the special needs of
an individual patient who has one of the special needs
identified in section 1706(b) of this title and who has a
valid clinical need for the item.
``(D) A procurement that is part of an approved sharing
agreement between the Department of Defense and the
Department of Veterans Affairs with demonstrable cost-per-
item savings for a health-care item listed on the Federal
Supply Schedule or a national contract.
``(E) A procurement that supports a prime contract or a
subcontract with a small business concern qualifying for a
procurement preference program under section 8 or 15 of the
Small Business Act (15 U.S.C. 637, 644).
``(2) A procurement may be made as authorized under
subparagraph (B) of paragraph (1) only if the procurement is
specifically authorized in advance in writing by the
Secretary. The authority of the Secretary under the preceding
sentence may only be delegated to the Deputy Secretary or to
an official of the Veterans Health Administration not below
the level of a Deputy Under Secretary (or equivalent) acting
jointly with a procurement executive of the Department not
below the level of an Associate Deputy Assistant Secretary.
``(c) In the case of an emergency procurement of a health-
care item as authorized by subsection (b)(1)(A), the quantity
of the item procured may not exceed the quantity of that item
that is the reasonably foreseeable need for the item at the
medical center concerned until resupply can be achieved
through procurement actions other than emergency procurement.
``(d) A contract meets the requirements of this subsection
if the contract includes--
``(1) provisions referred to as `preaward and postaward
audit clauses'; and
``(2) a provision referred to as a `price reduction
clause'.
``(e)(1) The Secretary shall establish procedures to assure
compliance by each Department medical facility with the
provisions of this section and with applicable Federal and
Department procurement regulations.
``(2) The procedures established by the Secretary under
paragraph (1) shall be designed to maximize health-care item
variety and the use of the Federal Supply Schedule.
``(3) The Secretary shall establish and enforce procedures
limiting the standardization of items at the local, regional,
or national level to provide special patient populations (as
identified in section 1706(b) of this title) with the range
and types of health-care items required to meet their
clinical and quality-of-life needs.
``(4) The Advisory Committee on Prosthetics and Special-
Disabilities Programs established under section 543 of this
title shall review the procedures established under paragraph
(3), including the implementation of those procedures, and
shall advise the Secretary when those procedures are not
effectively enforced by the Department.
``(f)(1) The Secretary shall establish annual goals for
Department medical centers for the purchase of health-care
items from Federal Supply Schedule and national contracts
meeting the requirements of subsection (d). Such goals shall
be designed to maximize the percentage of such purchases that
are made through such contracts.
``(2) The Secretary shall establish goals for the
Department for procurements from small business concerns
qualifying for a procurement preference program under section
8 or 15 of the Small Business Act (15 U.S.C. 637, 644). Such
goals shall be no less than the national goal for each such
procurement preference program under either of those
sections.
``(3) Achievement of the goals established under this
subsection shall be an element in the performance standards
for employees of the Department who have the authority and
responsibility for achieving those goals.
``(g) A provision of law that is inconsistent with any
provision of this section shall not apply, to the extent of
the inconsistency, to the procurement of a health-care item
for the Department.
``(h)(1) Not later than December 31 each year, the
Secretary shall submit to the Committees on Veterans' Affairs
of the Senate and House of Representatives a report on the
procurement of health-care items during the preceding fiscal
year. Each such report shall include, for the year covered by
the report, the following:
``(A) The total dollar amount of all items listed in
Federal Supply Classification (FSC) Group 65 or 66 and the
total dollar value of the exceptions to subsection (a) under
each of subparagraphs (A), (B), (C), (D), and (E) of
subsection (b)(1), shown by medical facility.
``(B) A detailed explanation for exceptions to subsection
(a), including--
``(i) the rationale for use of emergency procurement at
Department medical facilities;
``(ii) the rationale for approval of requests under
subsection (b)(1)(B) for procurement of items not listed on
the Federal Supply Schedule or on national contracts; and
``(iii) exceptions granted for special health-care needs of
veterans with disabilities described in section 1706(b) of
this title.
``(C) Analysis of sharing agreements between the Department
and the Department of Defense to indicate the basic written
sharing initiative and the division of financial
responsibility between the two Departments.
``(D) The stated goal under each procurement preference
program, together with an assessment of the performance of
the Department toward achievement of that goal, especially
with respect to the goal for contracting with businesses that
are owned by veterans with service-connected disabilities.
``(2) The Advisory Committee on Prosthetics and Special-
Disabilities Programs of the Department shall submit comments
on each report under paragraph (1) before the report is
submitted under that paragraph, and the Secretary shall
include those comments in the report as submitted.
``(i) For the purposes of this subsection:
``(1) The term `health-care item' includes any item other
than services listed in, or (as determined by the Secretary)
of the same nature as an item listed in, Federal Supply
Classification (FSC) Group 65 or 66.
``(2) The term `national contract' means a contract for
procurement of an item that is entered into by the National
Acquisition Center of the Department or another Department
procurement activity, as authorized by the Secretary, that is
available for use by all Department medical facilities.
``(3) The term `valid clinical need' means in the
professional judgment of an appropriate clinician. Such term
applies to health care items, prosthetic appliances, sensory
or mobility aids and supplies that are prescribed by a
physician for special patient populations such as veterans
with spinal cord dysfunction, blindness, amputations, and
other veterans included in section 1706(b) of this title.
``(4) The term `Federal Supply Schedule contract' means a
contract that is awarded and administered by the National
Acquisition Center of the Department under a delegation of
authority from the Administrator of the General Services
Administration.
``(5) The term `emergency procurement' means a procurement
necessary to meet an emergency need affecting the health or
safety of a person being furnished health-care services by
the Department.''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect on September 30, 2003, and shall apply to
procurements by the Secretary of Veterans Affairs after that
date.
SEC. 4. ENHANCEMENTS TO ENHANCED-USE LEASE AUTHORITY.
(a) Increased Flexibility Under Enhanced-Use Leases.--
Section 8162(a)(2)(B) is amended--
(1) by striking ``proposed by the Under Secretary for
Health'' and inserting ``proposed by one of the Under
Secretaries''; and
(2) by striking ``to the provision of medical care and
services'' and inserting ``to the programs and activities of
the Department''.
(b) Notification of Property To Be Leased.--Section 8163 is
amended--
(1) in the first sentence of subsection (a)--
(A) by striking ``designate a property to be leased under
an enhanced-use lease'' and inserting ``enter into an
enhanced-use lease with respect to certain property''; and
(B) by striking ``before making the designation'' and
inserting ``before entering into the lease'';
(2) in subsection (b), by striking ``of the proposed
designation'' and inserting ``to the congressional veterans'
affairs committees and to the public of the proposed lease'';
and
[[Page H5010]]
(3) in subsection (c)--
(A) in paragraph (1)--
(i) by striking ``designate the property involved'' and
inserting ``enter into an enhanced-use lease of the property
involved''; and
(ii) by striking ``to so designate the property'' and
inserting ``to enter into such lease'';
(B) in paragraph (2), by striking ``90-day period'' and
inserting ``45-day period'';
(C) in paragraph (3)--
(i) by striking ``general description'' in subparagraph (D)
and inserting ``description of the provisions''; and
(ii) by adding at the end the following new subparagraph:
``(G) A summary of a cost-benefit analysis of the proposed
lease.''; and
(D) by striking paragraph (4).
(c) Disposition of Leased Property.--Section 8164 is
amended--
(1) in subsection (a)--
(A) by striking ``by requesting the Administrator of
General Services to dispose of the property pursuant to
subsection (b)'' in the first sentence; and
(B) by striking the third sentence;
(2) in subsection (b)--
(A) by striking ``Secretary and the Administrator of
General Services jointly determine'' and inserting
``Secretary determines''; and
(B) by striking ``Secretary and the Administrator
consider'' and inserting ``Secretary considers''; and
(3) in subsection (c), by striking ``90 days'' and
inserting ``45 days''.
(d) Use of Proceeds.--Section 8165 is amended--
(1) in subsection (a)--
(A) by striking ``(1)'' after ``(a)'';
(B) by inserting after ``of this title'' the following: ``,
except that any funds received by the Department under an
enhanced-use lease in support of the Veterans Benefits
Administration or the National Cemetery Administration and
remaining after any deduction from such funds under
subsection (b) shall be credited to applicable appropriations
of that Administration''; and
(C) by striking paragraph (2);
(2) in subsection (b), by adding at the end the following
new sentence: ``The Secretary may use the proceeds from any
enhanced-use lease to reimburse applicable appropriations of
the Department for any expenses incurred in the development
of additional enhanced-use leases.''; and
(3) by striking subsection (c).
(e) Clerical Amendments.--(1) The heading of section 8163
is amended to read as follows:
``Sec. 8163. Hearing and notice requirements regarding
proposed leases''.
(2) The item relating to section 8163 in the table of
sections at the beginning of chapter 81 is amended to read as
follows:
``8163. Hearing and notice requirements regarding proposed leases.''.
SEC. 5. ELIGIBILITY FOR DEPARTMENT OF VETERANS AFFAIRS HEALTH
CARE OF CERTAIN ADDITIONAL FILIPINO WORLD WAR
II VETERANS RESIDING IN THE UNITED STATES.
(a) Eligibility for Health Care.--The text of section 1734
is amended to read as follows:
``(a) The Secretary shall furnish hospital and nursing home
care and medical services to any individual described in
subsection (b) in the same manner, and subject to the same
terms and conditions, as apply to the furnishing of such care
and services to individuals who are veterans as defined in
section 101(2) of this title. Any disability of an individual
described in subsection (b) that is a service-connected
disability for purposes of this subchapter (as provided for
under section 1735(2) of this title) shall be considered to
be a service-connected disability for purposes of furnishing
care and services under the preceding sentence.
``(b) Subsection (a) applies to any individual who is a
Commonwealth Army veteran or new Philippine Scout and who--
``(1) is residing in the United States; and
``(2) is a citizen of the United States or an alien
lawfully admitted to the United States for permanent
residence.''.
(b) Limitation.--The amendment made by subsection (a) shall
take effect on the date on which the Secretary of Veterans
Affairs submits to the Committees on Veterans' Affairs of the
Senate and House of Representatives and publishes in the
Federal Register a certification that sufficient resources
are available for the fiscal year during which the
certification is submitted to carry out section 1734 of title
38, United States Code, as amended by such amendment, during
that fiscal year at those facilities of the Department of
Veterans Affairs where the majority of veterans described in
subsection (b) of such section will receive hospital and
nursing home care and medical services authorized by
subsection (a) of such section.
SEC. 6. OUTPATIENT DENTAL CARE FOR ALL FORMER PRISONERS OF
WAR.
Section 1712(a)(1)(F) is amended by striking ``and who was
detained or interned for a period of not less than 90 days''.
SEC. 7. IMPROVED ACCOUNTABILITY OF RESEARCH CORPORATIONS
ESTABLISHED AT DEPARTMENT OF VETERANS AFFAIRS
MEDICAL CENTERS.
(a) Audits and Improved Annual Report.--Subsection (b) of
section 7366 is amended to read as follows:
``(b)(1) Not later than March 1 each year, each such
corporation shall submit to the Secretary a report concerning
the preceding calendar year. Each such annual report shall
include the following:
``(A) A detailed statement of the corporation's operations,
activities, and accomplishments during the preceding calendar
year.
``(B) A description of each research project or activity
for which funds were provided by the corporation during that
year or for which funds were provided by the corporation
during a preceding year and that is ongoing during the year
covered by the report, including, for each such project or
activity, the title of the project or activity and a
description of the purpose of the project or activity.
``(C) A statement of the amount of funds controlled by the
corporation as of the first day, and as of the last day, of
the year covered by the report and a statement of the amount
of funds received, shown by source, during the year.
``(D) An itemized accounting of all disbursements made
during the year.
``(E) The most recent audit of the corporation under
paragraph (2).
``(F) Such other information as may be necessary to enable
the Secretary to prepare the annual report to congressional
committees required under section 7367 of this title.
``(2) A corporation with a balance of funds under its
control in excess of $300,000 at any time during a calendar
year shall obtain an audit of the corporation for that year.
Any other corporation shall obtain an independent audit of
the corporation at least once every three years. The report
on any such audit shall specifically state whether the
corporation audited made any payment, or provided any travel,
during the period covered by the audit to a member of the
board of directors of the corporation and, if so, the amount
and recipient of any such payment or travel.
``(3) Any audit under paragraph (2) shall be performed by
an independent auditor and shall be performed in accordance
with generally accepted Government auditing standards and in
accordance with Office of Management and Budget Circular A-
133.
``(4) The Inspector General of the Department shall each
year review the most recent audit under paragraph (2) of not
less than 10 percent of the corporations described in the
first sentence of paragraph (2) and not less than 10 percent
of the corporations described in the second sentence of that
paragraph. As part of such review, the Inspector General
shall determine whether the audit was carried out in
accordance with generally accepted Government auditing
standards, as required by paragraph (3).''.
(b) Annual Report of Secretary.--(1) Subchapter IV of
chapter 73 is amended--
(A) by inserting after subsection (c) of section 7366 the
following:
``Sec. 7367. Annual report to congressional committees'';
and
(B) in the text immediately following the section heading
inserted by subparagraph (A)--
(i) by striking ``(d)'' and inserting ``(a)'';
(ii) by inserting after the first sentence the following
new sentence: ``Each such report shall be based on the annual
reports submitted by the corporations to the Secretary under
section 7366(b) of this title and shall be submitted not
later than May 1 of the year following the year covered by
such reports.''; and
(iii) by striking ``The report shall'' and inserting the
following:
``(b) Each such report shall''.
(2) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section
7366 the following new item:
``7367. Annual report to congressional committees.''.
(c) Extension of Authority To Establish Research
Corporations.--Section 7368 is amended by striking ``December
31, 2003'' and inserting ``December 31, 2006''.
SEC. 8. DEPARTMENT OF DEFENSE PARTICIPATION IN REVOLVING
SUPPLY FUND PURCHASES.
(a) Enhancement of Department of Defense Participation.--
Section 8121 is amended--
(1) by redesignating subsection (b) and (c) as subsections
(d) and (e), respectively;
(2) by designating the last sentence of subsection (a) as
subsection (c); and
(3) by inserting after paragraph (3) of subsection (a) the
following new subsection:
``(b) The Secretary may authorize the Secretary of Defense
to make purchases through the fund in the same manner as
activities of the Department. When services, equipment, or
supplies are furnished to the Secretary of Defense through
the fund, the reimbursement required by paragraph (2) of
subsection (a) shall be made from appropriations made to the
Department of Defense, and when services or supplies are to
be furnished to the Department of Defense, the fund may be
credited, as provided in paragraph (3) of subsection (a),
with advances from appropriations available to the Department
of Defense.''.
(b) Effective Date.--The amendments made by subsection (a)
shall apply only with respect to funds appropriated for a
fiscal year after fiscal year 2002.
SEC. 9. NAME OF DEPARTMENT OF VETERANS AFFAIRS OUTPATIENT
CLINIC, NEW LONDON, CONNECTICUT.
The Department of Veterans Affairs outpatient clinic
located in New London, Connecticut, shall after the date of
the enactment of this Act be known and designated as
[[Page H5011]]
the ``John J. McGuirk Department of Veterans Affairs
Outpatient Clinic''. Any reference to such outpatient clinic
in any law, regulation, map, document, record, or other paper
of the United States shall be considered to be a reference to
the John J. McGuirk Department of Veterans Affairs Outpatient
Clinic.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Kansas (Mr. Moran) and the gentleman from Mississippi (Mr. Shows) each
will control 20 minutes.
The Chair recognizes the gentleman from Kansas (Mr. Moran).
Mr. MORAN of Kansas. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, H.R. 3645 was introduced by the gentleman from Illinois
(Mr. Evans) earlier this year. I would like to take this time to
commend the gentleman from Illinois as well as our chairman, the
gentleman from New Jersey (Mr. Smith), and the gentleman from
California (Mr. Filner), the ranking member of our Subcommittee on
Health, which I am privileged to chair. In addition, I would like to
thank the gentleman from Indiana (Mr. Buyer), chairman of the
Subcommittee on Oversight and Investigations and the gentleman from
Connecticut (Mr. Simmons) for their work on this bill.
Introduced by the gentleman from Illinois (Mr. Evans), H.R. 3645
represents an important reform to the manner in which the VA obtains
medical supply items for VA health care, and it is a good-government
measure. On June 26 of this year, the VA Subcommittee on Health held a
legislative hearing to explore the merits of this bill. As a result of
our hearing and subsequent meetings with veterans' organizations,
changes were made to the bill to ensure that the VA may continue to
obtain specialized health care items that severely disabled veterans
require. These changes are addressed in section 3 of the bill.
Also, Mr. Speaker, several other measures were incorporated into this
legislation. To summarize, the VA Subcommittee on Health held a hearing
on June 13 regarding access to VA health care to Filipino veterans of
World War II who now reside in this country. These veterans fought
alongside our troops in the Philippines and deserve access to VA health
care. Section 5 of the amendment includes the health care-related
provisions of H.R. 4904, a bill that the gentleman from California (Mr.
Filner) introduced that would extend these services to our World War II
allies who served in the Commonwealth Army of the Philippines. The VA
Subcommittees on Health and Oversight and Investigations held a joint
hearing on May 16 to address our concerns about activities of the
research and education corporations that aid the VA in conducting
outside funded research and provide certain health education funding
for VA clinicians.
As a result of issues arising at that hearing, the gentleman from
Indiana (Mr. Buyer) introduced H.R. 5084, the contents of which are now
included in section 7 of this bill.
Mr. Speaker, the VA also requested the inclusion of three additional
provisions, provisions to streamline the procedures for awarding
enhanced-use leases of certain VA real properties, to expand dental
care for all former prisoners of war, and to authorize the VA Secretary
to permit the Department of Defense to use the VA supply fund to obtain
medical supply items for DOD health care facilities. These provisions
are part of this bill in sections 4, 6 and 8, respectively.
Finally, the gentleman from Connecticut (Mr. Simmons) introduced a
bill, H.R. 3418, to name the New London, Connecticut, VA clinic in
honor of the late John McGuirk, a prominent World War II veteran from
New London. The gentleman from Connecticut's bill, cosponsored by the
entire Connecticut delegation, is in full compliance with our
committee's policy for naming VA facilities and is included as an
amendment to this legislation. Last week, our Subcommittee on Health
met and marked up this bill and the full committee did so later in the
week as well.
Mr. Speaker, H.R. 3645 is a good bill. I urge its support.
Mr. Speaker, I reserve the balance of my time.
Mr. SHOWS. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I am very pleased that H.R. 3645, as amended, is being
considered by the House today. In addition to providing needed reforms
to VA procurement, it also authorizes medical care for veterans and
expedites the process for enhanced use lease of VA assets.
I sincerely appreciate the cooperation of the gentleman from New
Jersey (Mr. Smith) and the gentleman from Illinois (Mr. Evans) on this
bill. I also want to thank the chairman and ranking member of the
Subcommittee on Health, the gentleman from Kansas (Mr. Moran) and the
gentleman from California (Mr. Filner), for their assistance and
valuable contributions.
H.R. 3645 was introduced to reform VA procurement for medical and
surgical supplies. For too long, VA has not leveraged its enormous
purchasing power to obtain the best possible prices. Unfortunately, VA
has also failed to include price reduction provisions in procurement
contracts and did not consistently conduct pre- and post-award audits.
The procurement reform provisions in the Veterans Health Care
Procurement Reform and Improvement Act of 2002 are about good
government, obtaining the best prices for medical and surgical supplies
used to provide VA medical care and saving taxpayer dollars.
Additionally, I also recognize the persistence of the gentleman from
California (Mr. Filner) to win health care benefits for certain
Filipino veterans. I have long supported his efforts and am pleased
that the health benefits he has advocated are included in the
legislation before us today.
Mr. Speaker, I reserve the balance of my time.
Mr. MORAN of Kansas. Mr. Speaker, I yield myself such time as I may
consume.
I thank the gentleman from Mississippi for his remarks and also agree
with him about the importance of this legislation, particularly the
good-government aspects that the gentleman from Illinois (Mr. Evans),
our ranking member, has pursued by introduction of this bill, and also
the Filipino veteran issue that the gentleman from California (Mr.
Filner), the ranking member of the Subcommittee on Health, who is en
route back to Washington today from California, his effort over many
years to try to address the issues of the Filipino veterans.
{time} 1600
And finally I thank the gentleman from Connecticut (Mr. Simmons) for
his effort to recognize one of his outstanding World War II veterans
from Connecticut. So this legislation really is a result of a
bipartisan effort and a number of Members' special interests in issues
that affect veterans not only in our country but especially in their
own districts.
Mr. CUNNINGHAM. Mr. Speaker, I rise in support of H.R. 3645 and thank
you for the opportunity to speak about this bill. While this issue, as
a matter of national honor, is one of the most important subjects that
we will discuss this session, It does not capture the headlines and few
Americans are even aware of it. Yet it requires no debate to determine
the only honorable and right course of action.
When we went to war in 1941, the people of the Philippines, then an
American Commonwealth, went with us. Under Executive Order by President
Roosevelt, the 4000,000 men of the Philippines military were called on
to join our forces under General Douglas MacArthur. They faithfully
fought with us throughout the war. They walked side by side with us
during the Bataan Death March, dying at a rate exceeding that of the
American troops., After the war, we passed legislation that denied
these brave men status as US veterans, denying them access to veterans'
benefits. I am proud to count myself among the many that fee this was
wrong and not worthy of our Nation's honor.
I believe that a promise made is a debt unpaid, and it is far past
the proper time to correct this longstanding wrong. While passage of
H.R. 3645 does not correct the entire problem it is a step in the right
direction. This bill will take the step of extending VA benefits to the
11,000 Filipino WWII veterans that are living in the United States. I
hope we will eventually extend this benefit to the 34,000 veterans that
chose to stay in the Philippines. With passage of this bill, we will be
closer to this goal. Failure to take action is a stain on our national
character. As Americans we can and must set a higher standard.
Mr. GILMAN. Mr. Speaker, I rise today in strong support of H.R. 3645,
the Veterans Health-Care Items Procurement Reform and Improvement Act
of 2002. I urge my colleagues to lend their support to this measure.
[[Page H5012]]
This legislation reforms the Department of Veterans Affairs (VA)
programs and policies that procure certain health-care items used by
the VA to care for veterans; address specialized accountability; and
strengthens reporting for exceptions made to the reformed policies.
The measure also streamlines the procedures that govern the VA's use
of enhance-use lease authority and provide the VA additional
flexibility to enhance use of VA properties in complementary
activities. The largest VA facility near my congressional district,
located in Montrose, NY, has been taking advantage of enhance-lease
authority for several years. The primary goal of enhance leasing should
be to promote tenants and projects that will complement existing VA
medical services. The language in this portion of H.R. 3645 should help
ensure that the needs of veterans come first with any future enhanced
leasing that occurs at the Montrose Medical Center.
I am especially pleased to note the provision that provides hospital
and nursing home care and medical services to certain Filipino World
War II veterans of the Philippines Commonwealth army and former
Philippines ``New Scouts'' who now permanently reside in the United
States. The inclusion of this section marks another milestone in our
long-standing effort to extend overdue recognition and benefits to
Filipino veterans of World War II. As a leader in the fight to restore
these benefits over the past ten years, I am grateful my colleagues
from California, congressmen Filner and Cunningham for their work
within the Veterans Affairs Committee to see that this section was
adopted.
Finally, H.R. 3645 expands eligibility for outpatient dental care for
all former prisoners for VA research and education corporations
established at VA medical centers.
Mr. Speaker, this is a good bill that provides numerous benefits to
those who served their country in the Armed Forces. I urge my
colleagues to support its passage.
Mrs. MINK of Hawaii. Mr. Speaker, I rise in strong support of H.R.
3645, the Veterans Health-Care Items Procurement Reform and Improvement
Act of 2002.
The bill includes provisions to expand health care benefits for World
War II Filipino veterans residing in the U.S. The bill moves us one
step closer to restoring the veterans' benefits taken away from
Filipino soldiers who fought for the U.S. military during the Second
World War.
Before World War II, the Philippines had been a U.S. possession for
42 years. Located off the coast of mainland Asia, Filipinos found
themselves a short distance from the hostilities that would soon draw
the whole world into a war to avenge the bombing of Pearl Harbor, and
the atrocities in the European Theater.
The U.S. asked the Philippines to help America fight the long and
difficult battles to come. When President Roosevelt issued Military
Order No. 1 on July 26, 1941, nearly 200,000 Filipinos responded. They
responded without hesitation to defend their homeland and to answer the
call for help.
From 1941 to 1945, Filipino soldiers fought alongside American
soldiers. They defended Bataan and Corregidor, which helped ensure
General MacArthur's ultimate victory. Thousands of Filipino prisoners
of war endured the infamous Bataan Death March, and many more died in
prisons.
When the Filipino soldiers with America in its struggle to defend
freedom, the members of the Commonwealth Army expected to receive their
benefits at the end of the war. When the Philippines was forced to form
guerrilla forces during the Japanese occupation, these brave soldiers
also expected to receive their benefits.
After the war, the U.S. Congress established the New Philippine
Scouts by enacting the Armed Forces Voluntary Recruitment Act (Public
Law 79-190) in October 1945. From 1945 through 1946, the New Philippine
Scouts helped defend the Philippines as the nation worked to rebuild
itself.
President Roosevelt promised that Filipino veterans would become U.S.
citizens and thus have the same benefits given to all other U.S.
veterans. In October 1945 General Omar Bradley, Administrator of the
Veterans Administration, reaffirmed that they were to be treated like
all other American veterans and would receive full benefits. But the
U.S. Congress broke this promise to the Commonwealth Army and the
recognized guerrilla forces by enacting the Rescission Act (Public Law
79-301). Congress broke the promise to New Philippine Scouts when it
passed the Second Rescission Act (Public Law 79-391).
The Rescission Acts stated that the World War II service of Filipinos
shall not be deemed to be service in the military or national forces of
the U.S. or any component thereof. Exceptions only were given to those
who died, were maimed, or were separated from active service due to
physical disability.
Since passing the Rescission Acts, the U.S. government has done
little to recognize the service of World War II Filipino soldiers. In
the 1948 (PL 80-865), 1963 (PL 88-40), 1973 (PL 93-82), and 1981 (97-
72), the U.S. Congress passed legislation to help the Philippine
government provided limited medical care at special VA facilities in
Manila.
The equality movement has made significant strides during the last 12
years. In 1990, Public Law 101-649 made certain Filipino veterans who
served during World War II eligible for U.S. citizenship. Under this
law, over twenty eight thousand veterans became naturalized citizens
and seventeen thousand moved to U.S.
In 1999 Congress passed Public Law 106-169. It expanded U.S. income-
based Social Security disability benefits to certain World War II
veterans, including Filipino veterans of World War II who served in the
organized military forces of the Philippines.
The following year, Congress passed two laws for Filipino veterans.
Public Law 106-377 allowed Commonwealth Army Veterans and veterans of
the recognized guerrilla forces to receive disability compensation at
the full statutory rate and visit VA medical facilities for those
disabilities, if they are permanent legal residents.
Public Law 106-419 provided full burial benefits for Commonwealth
Army Veterans and veterans of the recognized guerrilla force if they
are permanent residents of the U.S. and met certain other entitling
conditions.
Even after passing multiple bills to correct the injustice of the
Rescission Acts, there is still much work to do to help Filipino
veterans legally residing in the U.S. New Philippine Scouts are denied
most non-health care benefits and all health care benefits for non-
service connected injuries. The surviving spouses of veterans from the
Commonwealth Army and the guerrilla forces do not receive full
dependency and indemnity compensation rates.
I sponsored H.R. 594 in the 107th Congress to amend the Social
Security Act and allow World War II Filipino veterans to obtain health
care benefits through Medicare. Under my bill, qualified World War II
Filipino veterans living in the U.S. would be entitled to Medicare Part
A benefits and the option to enroll in Part B. With the current
veterans' health care system (TRICARE) using Medicare as a primary
insurer, my bill would have provided a ready basis for providing full
health care benefits to all surviving World War II Filipino veterans
living in the U.S.
Congressman Filner introduced H.R. 4904 on June 11, 2002. I am an
original cosponsor of this bill. H.R. 4904 will provide VA medical care
to World War II Filipino veterans who live in the U.S. and are U.S.
citizens or legal permanent residents. It will provide the full
dependency and indemnity compensation (DIC) rates to surviving spouses
of Filipino veterans, and the bill includes benefits for New Philippine
Scouts.
During a hearing before House Veterans' Affairs Subcommittee on
Benefits, Veterans Administration Secretary Anthony Principi stated his
support for H.R. 4909 and agreed to act on its provisions as soon as it
is signed by the President.
The key provisions of H.R. 4904 have been incorporated into H.R.
3645, the bill that is before us today. H.R. 3645 provides hospital,
nursing home, and medical services to certain Filipino World War II
veterans of the Philippines Commonwealth Army and former Philippines
New Scouts who now permanently reside in the U.S.
I am disappointed that the bill does not include the more
comprehensive language offered by Congressman Filner in committee. His
amendment would have raised the unfair compensation rate of New Scouts
who live in the U.S. New Filipino Scouts receive half the normal rate
because they originally lived in the Philippines. This must change
because many New Scouts moved to U.S. after Congress passed Public Law
106-419. I look forward to working with my colleagues to address this
injustice in future legislation.
I urge my colleagues to vote for H.R. 3645 so we can get this bill to
the President's desk before the end of the year. Fewer than 14,000
Filipino veterans live in the U.S. and that number is rapidly falling.
Every day will lose more and more of these brave veterans. The Veterans
Administration estimates that the Filipino population will decrease by
one-third by 2010.
For more than fifty years Filipino veterans have been denied the
veterans' benefits they earned during World War II. Now is the time to
fulfill our obligation to these brave veterans. They are entitled to VA
health care benefits the same as any other veteran.
Mr. SIMMONS. Mr. Speaker, I rise today in support of H.R. 3645, the
``Veterans Health-Care Items Procurement Reform and Improvement Act of
2002.'' I would also like to take a moment and praise the hard work of
the Veterans' Affairs Committee and staff for their endless support of
veterans throughout the years.
Included in this bill is legislation (H.R. 3418) I introduced earlier
this year to name the U.S. Department of Veterans Affairs Community
Based Outreach Clinic (CBOC), located on the
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grounds of the United States Coast Guard Academy in New London, CT, the
``John J. McGuirk Department of Veterans Affairs Outpatient Clinic.''
John J. McGuirk was a devoted patriot, a dedicated sailor and a great
American. Working his way across the South Pacific as an enlisted
salvage diver in the United States Navy during World War II, John
McGuirk began his life long commitment to his nation and fellow
veterans.
Following his honorable discharge from the Navy, he served veterans
across Connecticut. Whether it was finding a pair of crutches, gaining
access for disabled veterans to vote or working with the VA Healthcare
system to expand availability--John gave it his all.
John saw first hand the extensive hardships placed on veterans as
they traveled from all over the state to West Haven, CT to see VA
physicians. John felt that veterans should not travel such distances to
get proper treatment and worked tirelessly to open a VA clinic in
Southeastern Connecticut. The VA opened a Veterans Outreach Clinic in
New London with the willing help of the Coast Guard Academy, enabling
veterans access to heathcare services.
On behalf of the Members of the Connecticut delegation, Disabled
Veterans of America, Paralyzed Veterans of America, American Legion,
Veterans of Foreign wars, AMVETS and the United States Coast Guard
Academy, I ask that all Members of Congress support this bill and honor
the memory of John J. McGuirk.
Mr. EVANS. Mr. Speaker, H.R. 3645, the Veterans Health Care and
Procurement Improvement Act of 2002, as reported, deserves the support
of every Member of this House. When enacted, H.R. 3645 will improve the
delivery of important benefits to veterans, expedite the process
associated with enhanced use of VA assets and improve the cost-
effectiveness of VA procurement of medical and surgical items resulting
in wiser and more effective use of taxpayer dollars to provide medical
care to our Nation's veterans. Other key provisions of this bill add or
strengthen benefits for certain Filipino veterans or for U.S. former
prisoners of war.
As the author of H.R. 3645, I appreciate and recognize the
cooperation and assistance provided by the Chairman of our Committee,
Chris Smith, in guiding H.R. 3645 through Committee consideration. I am
also grateful to the Chairman and Ranking Member of our Health
Subcommittee, Jerry Moran and Bob Filner, for their conscientious
efforts to improve H.R. 3645. Their contributions are both welcome and
appreciated. I also appreciate the work and contributions of other
Members and staff from both sides of the aisle.
Last year, VA reportedly spent approximately $1.5 billion on medical
supplies and prosthetics. The Department of Veterans Affairs (VA)
Office of Inspector General has repeatedly documented inefficient and
wasteful procurement of medical supplies and prosthetics by VA.
Sporadic and uncoordinated purchasing practices do not allow VA to
leverage its significant purchasing power to obtain the best prices for
the government. The result is chronic over spending for items VA could
buy at lower costs; diminished accountability for items purchased
locally; and limited availability of cost effective health-care items.
The procurement reforms in H.R. 3645 will unquestionably result in
procurement cost savings for VA when fully implemented. The
Congressional Budget Office agrees this provision will save scarce VA
and taxpayer dollars.
Last May, VA's Office of the Inspector General (VA IG) published an
evaluation of VA purchasing practices that found a pressing need for
reform. That evaluation identified numerous deficiencies in current
purchasing practices and linked the cause of deficiencies to an earlier
decision not to require health-care item purchases from the cost-
effective Federal Supply Schedule (FSS). By eliminating the mandate for
FSS procurements, VA decentralized the contracting and procurement
process. This provided a financial incentive for many vendors of
health-care items to remove their products from the FSS and to seek
product sales in generally more profitable local markets.
The VA IG found that local-market purchases had proliferated, often
under contracts without the advantage of audit requirements or most-
favored customer pricing for the government. Some much ballyhooed
success in local purchases of health-care items were overshadowed by
many other, less efficient, local contracts.
In June 2001, Secretary Principi created an internal task force to
evaluate the procurement system and recommend improvements. Earlier
this year, in May 2002, VA issued the Procurement Reform Task Force
Report. The report recognized the need for a hierarchical approach to
purchasing by using supply schedules or blanket purchase agreements to
procure most of its medical supplies. The approach would share some of
the characteristics from the oft-praised approach VA takes to
purchasing pharmaceuticals. The approach used for the National Drug
Formulary ensures that VA closely assesses all the medications within a
drug class and makes educated purchases for its facilities based on
both the price and the quality of each pharmaceutical in that class.
The savings from the National Drug Formulary approach is now estimated
at over $200 million annually.
While VA supports the goal of procurement reform, it wants to use its
own unidentified means to ensure that it makes better use of its
purchasing power. My concern is that VA will slow walk its own effort
through by allowing the vital savings that would accrue to its
financially ailing health care system to slip through its fingers. Mr.
Speaker, I believe the time for enacting needed VA procurement reform
legislation is now.
As I noted before, H.R. 3645 contains numerous provisions. One of
these provisions authorizes health care benefits to Filipino veterans.
While this provision has long-standing bipartisan support, it has been
championed by one Member, Bob Filner. At Bob's request, as then
Chairman of the Oversight and Investigations Subcommittee, I conducted
a hearing near San Diego on the importance of providing Filipino
veterans health care services. I commend the dogged determination of
the Ranking Member of the Health Subcommittee, Bob's Filner, for his
work in attempting to win health and benefits parity for certain
Filipino veterans. I have long supported his efforts and am pleased the
health benefits are included in the legislation.
Mr. Speaker, again, I thank Chairman Smith and the Chairman and
Ranking Member of the Health Subcommittee for a true collaboration on
the measure before us today. This measure reflects the best of the
bipartian tradition of the House Committee on Veteran' Affairs. I urge
all Members to support H.R. 3645, as amended.
Mr. MORAN of Kansas. Mr. Speaker, I yield back the balance of my
time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Kansas (Mr. Moran) that the House suspend the rules and
pass the bill, H.R. 3645, as amended.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
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