[House Report 113-586]
[From the U.S. Government Publishing Office]
113th Congress Report
} HOUSE OF REPRESENTATIVES {
2d Session } { 113-586
======================================================================
THE VA CONSTRUCTION ASSISTANCE ACT OF 2013
_______
September 15, 2014.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Miller of Florida, from the Committee on Veterans' Affairs,
submitted the following
R E P O R T
[To accompany H.R. 3593]
[Including cost estimate of the Congressional Budget Office]
The Committee on Veterans' Affairs, to whom was referred
the bill (H.R. 3593) to amend title 38, United States Code, to
improve the construction of major medical facilities, and for
other purposes, having considered the same, report favorably
thereon without amendment and recommend that the bill do pass.
CONTENTS
Page
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 2
Hearings......................................................... 3
Committee Consideration.......................................... 3
Committee Votes.................................................. 3
Committee Oversight Findings..................................... 3
Statement of General Performance Goals and Objectives............ 3
New Budget Authority, Entitlement Authority, and Tax Expenditures 3
Earmarks and Tax and Tariff Benefits............................. 4
Committee Cost Estimate.......................................... 4
Congressional Budget Office Estimate............................. 4
Federal Mandates Statement....................................... 5
Advisory Committee Statement..................................... 5
Constitutional Authority Statement............................... 5
Applicability to Legislative Branch.............................. 5
Statement on Duplication of Federal Programs..................... 5
Disclosure of Directed Rulemaking................................ 5
Section-by-Section Analysis of the Legislation................... 5
Changes in Existing Law Made by the Bill as Reported............. 7
Purpose and Summary
H.R. 3593, the VA Construction Assistance Act of 2013, was
introduced by Representative Coffman of Colorado and
Representative Kirkpatrick of Arizona on November 21, 2013.
H.R. 3593 would improve management of several major medical
center construction projects in Denver, Colorado; Orlando,
Florida, and New Orleans, Louisiana through implementation of
construction reforms and the use of an independent special
project manager from the Army Corps of Engineers.
Background and Need for Legislation
Section 2--Findings; Sense of Congress
Finding construction delays and cost overruns, the section
would express the Sense of Congress that management of major
medical center construction projects by the Department of
Veterans Affairs has been an abysmal failure and the Department
of Veterans Affairs should use a special project manager from
the Army Corps of Engineers and should fully implement all
recommendations of the Comptroller General in an April 2013
report which found that schedule delays have averaged 35 months
with average cost overruns of $336,000,000 per project.
Section 3--Implementation of Major Medical Facility Construction
Reforms
The United States Government Accountability Office, in a
report from April, 2013\1\ recommended a number of construction
reforms, including the use of a medical equipment planner, a
project management plan, construction peer review, and a
metrics program for the change-order process. This section
would implement these reforms to reduce construction delays and
minimize cost overruns.
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\1\Report of the General Accountability Office, ``VA Construction:
Additional Actions Needed to Decrease Delays and Lower Costs of Major
Medical-Facility Projects,'' April, 2013, GAO 13-302.
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Section 4--Special Project Manager for Certain Medical Center
Construction Projects
The recurring delays and cost overruns in major medical
facility construction projects of the Department of Veterans
Affairs have been well established through GAO reports and
House Committee on Veterans' Affairs oversight hearings. In
light of repeated project management failures by the
Department, an outside entity with experience managing major
construction projects for the Federal government would be able
to assist the Department of Veterans Affairs by offering its
technical expertise and advice. This section would require that
the Department of Veterans Affairs procure, on a reimbursable
basis, the services of an experienced special project manager
from the Army Corps of Engineers to oversee major medical
center construction projects in Denver, Colorado; Orlando,
Florida, and New Orleans, Louisiana. The duties of the special
project manager would be to conduct oversight with respect to
the performance of prime contractors and compliance with
acquisition regulations and to advise and assist the Department
about construction best practices to improve operations,
including the approval of the change-order requests. The duties
would also include the production of completion plans and
progress reports for the House and Senate Veterans Affairs
committees.
Hearings
On March 25, 2014, the Subcommittee on Oversight and
Investigations conducted a legislative hearing on various bills
introduced during the 113th Congress including H.R. 3593. The
following witnesses testified:
Ms. Stella S. Foites, Executive Director, Office of
Construction and Facilities Management, Office of Acquisition,
Logistics, and Construction, U.S. Department of Veterans
Affairs; Mr. Raymond C. Kelley, Director National Legislative
Service, Veterans of Foreign Wars; Mr. Davy Leghorn, Assistant
Director of the Veteran Education and Employment Commission of
the American Legion.
Committee Consideration
On September 10, 2014, the full Committee met in an open
markup session, a quorum being present, and ordered H.R. 3593
reported favorably to the House of Representatives by voice
vote.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the recorded
votes on the motion to report the legislation and amendments
thereto. There were no recorded votes taken on amendments or in
connection with ordering H.R. 3593 reported to the House. A
motion by Ranking Member Mike Michaud of Maine to order H.R.
3593 reported favorably to the House of Representatives was
agreed to by voice vote.
Committee Oversight Findings
In compliance with clause 3(c)(1) of rule XIII and clause
(2)(b)(1) of rule X of the Rules of the House of
Representatives, the Committee's oversight findings and
recommendations are reflected in the descriptive portions of
this report.
Statement of General Performance Goals and Objectives
In accordance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the Committee's performance
goals and objectives are reflected in the descriptive portions
of this report.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee adopts as its
own the estimate of new budget authority, entitlement
authority, or tax expenditures or revenues contained in the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
Earmarks and Tax and Tariff Benefits
H.R. 3593 does not contain any Congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9 of rule XXI of the Rules of the House of
Representatives.
Committee Cost Estimate
The Committee adopts as its own the cost estimate on H.R.
3593 prepared by the Director of the Congressional Budget
Office pursuant to section 402 of the Congressional Budget Act
of 1974.
Congressional Budget Office Cost Estimate
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
for H.R. 602 provided by the Congressional Budget Office
pursuant to section 402 of the Congressional Budget Act of
1974.
U.S. Congress,
Congressional Budget Office,
Washington, DC, September 12, 2014.
Hon. Jeff Miller,
Chairman, Committee on Veterans' Affairs,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 3593, the VA
Construction Assistance Act of 2013.
If you wish further details on this estimate, we will be
pleased to provide them. the CBO staff contact is Ann E.
Futrell.
Sincerely,
Douglas W. Elmendorf.
Enclosure.
H.R. 3593--The VA Construction Assistance Act of 2013
H.R. 3593 would require the Department of Veterans Affairs
(VA) to employ special project managers from the U.S. Army
Corps of Engineers to oversee three existing construction
projects in Colorado, Florida, and Louisiana. Because
construction on the facility in Florida is nearing completion,
CBO expects that implementing this provision would require
project managers and support teams at the Colorado and
Louisiana sites only, at a cost of $3 million over the 2015-
2019 period, assuming appropriation of the necessary amounts.
The bill also would codify in law certain practices
designed to ensure that construction of major VA medical
facilities is completed on time and within the planned budget.
Such practices include developing and using project management
plans, conducting peer reviews of projects, using medical
equipment planners, and developing a metrics program to monitor
the change-order process. Because VA has recently adopted these
practices, CBO estimates that implementing this provision would
have no budgetary impact.
Pay-as-you-go procedures do not apply to this legislation
because it would not affect direct spending or revenues.
H.R. 3593 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would not affect the budgets of state, local, or tribal
governments.
The CBO staff contact for this estimate is Ann E. Futrell.
The estimate was approved by Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates regarding H.R. 3593 prepared by the Director of the
Congressional Budget Office pursuant to section 423 of the
Unfunded Mandates Reform Act.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act would be created by H.R.
3593.
Statement of Constitutional Authority
Pursuant to Article I, section 8 of the United States
Constitution, the reported bill is authorized by Congress'
power to ``provide for the common Defense and general Welfare
of the United States.''
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Statement on Duplication of Federal Programs
Pursuant to section 3(j) of H. Res. 5, 113th Cong. (2013),
the Committee finds that no provision of H.R. 3593 establishes
or reauthorizes a program of the Federal Government known to be
duplicative of another Federal program, a program that was
included in any report from the Government Accountability
Office to Congress pursuant to section 21 of Public Law 111-
139, or a program related to a program identified in the most
recent Catalog of Federal Domestic Assistance.
Disclosure of Directed Rulemaking
Pursuant to section 3(k) of H. Res. 5, 113th Cong. (2013),
the Committee estimates that H.R. 3593 contains no directed
rule making requiring the Secretary to prescribe regulations.
Section-by-Section Analysis of the Legislation
Section 2--Findings; Sense of Congress
Subsection 2(a) contains the following Findings:
(1) The Director of Physical Infrastructure of the General
Accountability Office testified that schedule delays of major
medical center construction projects of the Department of
Veterans Affairs have averaged 35 months, with delays ranging
from 14 months to 74 months and (2) The average cost increase
attributed to such delays has been $336,000,000.
Subsection 2(b) would express the Sense of Congress that
(1) the management of the major medical center construction
projects of the Department of Veterans Affairs has been an
abysmal failure (2) the Secretary of Veterans Affairs should
fully implement all recommendations made by the Comptroller
General in an April 2013 report to improve construction
procedures and practices of the Department and (3) Projects in
Denver, Colorado; Orlando, Florida; and New Orleans, Louisiana
should be subject to oversight of a special project manager of
the Army Corps of Engineers because of delays and overruns.
Section 3--Implementation of Major Medical Facility Construction
Reforms
Section 3 would amend section 8104 of title 38, United
States Code, by adding a new subsection (i) that would require
the use of a medical equipment planner, a project management
plan, and construction peer excellence review. The section
would also require development of a metrics program to enable
monitoring of the change-order process, the use of a change
order process consistent with best practices, and the use of
design-build processes to minimize multiple change orders.
Section 4--Special Project Manager for Certain Medical Center
Construction Projects
Subsection 4(a) would require that the Department of
Veterans Affairs procure, on a reimbursable basis, the services
of an experienced special project manager from the Army Corps
of Engineers to oversee until completion major medical center
construction projects in Denver, Colorado; Orlando, Florida,
and New Orleans, Louisiana.
Subsection 4(b) would require the special project manager
to oversee all construction-related operations including the
performance of the Department of Veterans Affairs with the
prime contractor, the compliance of the Department with the
Federal Acquisition Regulation, including VA Acquisition
Regulations. The subsection would also require that the special
project manager advise and assist the Department in any
construction-related activity including the approval of change-
order requests for purposes of achieving timely completion of
the project. In addition, the subsection would require that the
special project manager recommend to the Department best
construction practices to improve operations of the project.
Subsection 4(c) would require that within 90 days of
appointment, the special project manager submit detailed plans
for the completion of the project to the House and Senate
committees on Veteran Affairs. The subsection would also
require submission of progress reports to the committees not
later than 180 days of the appointment of a special project
manager and each 180 day period thereafter. The progress
reports would include an analysis of all advice and assistance
provided to the Department and an analysis of all changes
ordered by the Department or claimed to have been made by
contract between the Department and prime contractor, including
the extent to which such changes comply with the Federal
Acquisition Regulation, including the VA Acquisition
Regulations. The progress reports would also include an
analysis of the communication and working relationship between
the Department and prime contractor, including any
recommendations made by the prime contractor to aid in
completion of the project.
In addition, the progress reports would include
identification of opportunities and recommendations with
respect to improving the operations of any construction-related
activity to reduce costs or complete the project in a more
timely manner.
Subsection 4(d) would require that the Secretary of
Veterans Affairs provide the special project manager with any
document or information necessary to carry out the duties of
the special project manager including the submission of
required reports. The subsection would also require the
Secretary to provide the special project manager with
administrative assistance necessary to carry out the duties of
the special project manager including the submission of
required reports.
Subsection 4(e) defines the ``covered projects'' as a
construction project that is a major medical facility project
(as defined in section 8104(a)(3)(A) of Title 38, United States
Code) being carried out as of the date of enactment of this Act
at the following locations:
(1) Denver, Colorado;
(2) Orlando, Florida;
(3) New Orleans, Louisiana.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (new matter is
printed in italic and existing law in which no change is
proposed is shown in roman):
TITLE 38, UNITED STATES CODE
* * * * * * *
PART VI--ACQUISITION AND DISPOSITION OF PROPERTY
* * * * * * *
CHAPTER 81--ACQUISITION AND OPERATION OF HOSPITAL AND DOMICILIARY
FACILITIES; PROCUREMENT AND SUPPLY; ENHANCED-USE LEASES OF REAL
PROPERTY
SUBCHAPTER I--ACQUISITION AND OPERATION OF MEDICAL FACILITIES
* * * * * * *
Sec. 8104. Congressional approval of certain medical facility
acquisitions
(a) * * *
* * * * * * *
(i)(1) With respect to each project described in paragraph
(2), the Secretary shall--
(A) use the services of a medical equipment planner
as part of the architectural and engineering firm for
the project;
(B) develop and use a project management plan to
ensure clear and consistent communication among all
parties;
(C) subject the project to construction peer
excellence review;
(D) develop--
(i) a metrics program to enable the
monitoring of change-order processing time; and
(ii) goals for the change-order process
consistent with the best practices of other
departments and agencies of the Federal
Government; and
(E) to the extent practicable, use design-build
processes to minimize multiple change orders.
(2) A project described in this paragraph is a construction
or alteration project that is a major medical facility project.
* * * * * * *