[Congressional Record Volume 162, Number 23 (Tuesday, February 9, 2016)]
[House]
[Pages H601-H603]
From the Congressional Record Online through the 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 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:
[[Page H602]]
``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.
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.
[[Page H603]]
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.
____________________