[Congressional Record (Bound Edition), Volume 162 (2016), Part 2]
[House]
[Pages 1461-1463]
[From the U.S. Government Publishing Office, www.gpo.gov]




                    CONSTRUCTION REFORM ACT OF 2016

  Mr. MILLER of Florida. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 3106) to authorize Department major medical 
facility construction projects for fiscal year 2015, to amend title 38, 
United States Code, to make certain improvements in the administration 
of Department medical facility construction projects, and for other 
purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 3106

       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 ``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

[[Page 1462]]

     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.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Florida (Mr. Miller) and the gentlewoman from Florida (Ms. Brown) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Florida.


                             General Leave

  Mr. MILLER of Florida. Mr. Speaker, I ask unanimous consent that all 
Members may have 5 legislative days in which to revise and extend their 
remarks and to add extraneous material on H.R. 3106, as amended.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Florida?
  There was no objection.
  Mr. MILLER of Florida. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I do rise in support of H.R. 3106, as amended, the 
Construction Reform Act of 2016. This bill would strengthen the 
Department of Veterans Affairs' major construction program by making a 
number of needed improvements to VA's construction management 
processes.
  As the owner and operator of one of the Federal Government's largest 
real property portfolios, VA manages a complex and costly major medical 
facility construction program.
  In recent years, that program has been fraught with failures and 
mismanagement that has led to millions of dollars of cost increases and 
years of schedule delays on all of VA's major medical facility 
construction projects.
  The most glaring example of these failings can be seen in the 
construction of the replacement VA medical center in Denver, Colorado.
  The discussion surrounding that facility--if my colleagues will 
recall--began more than 16 years ago, in 1999. Construction is now 
expected to conclude in 2018. Upon completion, that project will be 
more than $1 billion over budget and many, many years behind schedule. 
That is assuming, of course, that the project does not experience any 
further delays.
  To prevent any further construction calamities like the ongoing one 
in Denver, this bill would require VA to use industry standards, 
standard designs, and best practices for all medical facility 
construction projects; to complete a master plan for each VA medical 
facility; and to provide regular reports on super construction 
projects.
  To further strengthen oversight of VA's construction projects, the 
bill would also create an assistant inspector general for construction 
within the VA Office of Inspector General.
  These are commonsense reforms that will lead, ultimately, to better 
facilities for our veterans and better use of our taxpayers' hard-
earned dollars. I urge all my colleagues to support this legislation.
  I reserve the balance of my time.
  Ms. BROWN of Florida. Mr. Speaker, I yield myself such time as I may 
consume.
  I want to thank the chairman for his fair and even leadership on this 
committee. While we don't agree on all issues, I feel he has made an 
effort to allow all voices to be heard, and for that I want to thank 
him. I thank the chairman for bringing this important legislation to 
our attention.

[[Page 1463]]

  As we have seen by recent events, the VA has been challenged with 
major construction projects. Before they undertook the most recent 
medical center construction projects, it had been at least 15 years 
since a new medical center had been built.
  This lack of experience showed and continues to show today. Not one 
of the major hospitals is on its original timeline. However, the VA has 
demonstrated they are able to do small, less complicated projects on 
time and under budget.
  The bill also references ``a non-department Federal entity to provide 
full project management services for the super construction project, 
including management over the project design, acquisition, 
construction, and contract changes.''
  We all know from experience that there is only one Federal entity 
that fits that description, and that is the U.S. Army Corps of 
Engineers.
  For those projects that have not broken ground yet, the VA and the 
Corps of Engineers are already working on plans to include the Corps in 
the planning and construction of major projects over $100 million.
  I continue to believe that the threshold for a super construction 
project should be at least $250 million. As a member of the Committee 
on Transportation and Infrastructure, I know how busy the Army Corps is 
in responding to the projects that the committee requires them to 
complete. It is important that they do not get bogged down with 
projects of insufficient complexity. I will continue to watch the 
construction process and follow the complexity issue to determine if 
the threshold needs to be increased in the future.
  I am pleased this legislation also includes an assistant inspector 
general for construction. Oversight of the projects needs a person who 
has the expertise to evaluate the complexity of VA's ongoing 
construction projects.
  I urge my colleagues to join me in supporting this legislation.
  Mr. Speaker, I reserve the balance of my time.
  Mr. MILLER of Florida. Mr. Speaker, I yield 2 minutes to the 
gentleman from Colorado (Mr. Coffman), my good friend, a member of the 
Committee on Veterans' Affairs, and somebody who has been on this from 
the very, very beginning.
  Mr. COFFMAN. Mr. Speaker, I rise in support of the Construction 
Reform Act of 2016, an important piece of legislation that will further 
reform VA's severely troubled major construction program.
  For decades, the Government Accountability Office has documented 
hundreds of millions of dollars in cost overruns on mismanaged VA major 
construction projects. GAO reports from 1981, 1993, 2009, and 2013 all 
reflect a stunning degree of bureaucratic incompetence in VA's 
construction management. In my own district, a single VA hospital 
project is over $1 billion over budget, and years behind schedule.
  VA's construction failures represent billions of wasted tax dollars 
that should have gone towards VA's core mission: taking care of our 
Nation's veterans.

                              {time}  1515

  Since 2012, the House Veterans' Affairs Committee has conducted at 
least six separate hearings exploring the VA's construction failures, 
and this bill's reforms incorporate many of the committee's findings.
  First, it forces the VA to leave hospital construction to the 
experts--to Federal construction managers like the Army Corps of 
Engineers. In fact, the contractor on the troubled Aurora, Colorado, 
project demanded that the Army Corps of Engineers take over the project 
from the VA before they returned to work on the project.
  Previously, in 2014, the House unanimously passed my legislation, 
which required the Army Corps to take over the VA's most troubled 
projects, including the project in Aurora. I am pleased that my 
colleagues in both the House and the Senate are now fully supportive of 
this transfer of authority.
  Second, this bill introduces a much-needed improvement over the 
contract change order process. The GAO and the Veterans' Affairs 
Committee identified the VA's inept change order management as a major 
driver of both cost increases and project delays.
  Third, the bill creates a new, independent assistant inspector 
general for construction who would be required to report directly to 
Congress when significant construction problems have been discovered.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. MILLER of Florida. I yield the gentleman an additional 1 minute.
  Mr. COFFMAN. As we learned with the project in Aurora, the VA went to 
great lengths to hide the significant problems with the project from 
the American people, insisting in congressional hearing after hearing 
that the project was on time and on budget. It was not until the 
project's contractor sued the VA--and won on every count in December of 
2014--that the VA finally admitted it had significant problems with the 
Aurora project.
  I urge all of my colleagues to support this measure and continue with 
the long-needed construction reforms in the VA.
  Ms. BROWN of Florida. Mr. Speaker, I yield back the balance of my 
time.
  Mr. MILLER of Florida. Mr. Speaker, I encourage all Members to 
support H.R. 3106, as amended.
  I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Florida (Mr. Miller) that the House suspend the rules 
and pass the bill, H.R. 3106, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  The title of the bill was amended so as to read: ``A bill to amend 
title 38, United States Code, to make certain improvements in the 
administration of Department medical facility construction projects.''.
  A motion to reconsider was laid on the table.

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