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Department of Veterans Affairs Department of Veterans Affairs VA Office of Construction & Facilities Management Veterans Affairs Construction Update SAME August 2017 Ms. Stella Fiotes Acting Principal Executive Director Office of Acquisitions, Logistics and Construction

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Page 1: Department of Veterans Affairs VA Office of Construction ......The Department of Veterans Affairs Expiring Authorities Act of 2015 requires VA to enter into an agreement with a non-Department

Department of Veterans Affairs

Department of Veterans Affairs VA Office of Construction & Facilities

Management

Veterans Affairs

Construction Update

SAME

August 2017

Ms. Stella Fiotes

Acting Principal Executive Director

Office of Acquisitions, Logistics

and Construction

Page 2: Department of Veterans Affairs VA Office of Construction ......The Department of Veterans Affairs Expiring Authorities Act of 2015 requires VA to enter into an agreement with a non-Department

Office of Acquisition, Logistics, and Construction Construction & Facilities Management 2

VA Mission & Vision

Mission

– To fulfill President Lincoln's promise “To care for him who shall have

borne the battle, and for his widow, and his orphan” by serving and

honoring the men and women who are America’s veterans.

Vision

– To provide veterans the world-class benefits and services they have

earned - and to do so by adhering to the highest standards of

compassion, commitment, excellence, professionalism, integrity,

accountability, and stewardship.

Page 3: Department of Veterans Affairs VA Office of Construction ......The Department of Veterans Affairs Expiring Authorities Act of 2015 requires VA to enter into an agreement with a non-Department

Office of Acquisition, Logistics, and Construction Construction & Facilities Management 3

VA Services for Veterans

Health Care

– 9.11 Million Enrollees.

– 103 Million Outpatient Visits.

– 714,000 Inpatient Admissions.

Benefits

– 3.95 Million Veterans received Disability Compensation.

– 1.09 Million Veterans received Education Support.

– 2.14 Million Active VA Home Loan Participants.

Memorial Benefit

– 125,000 Internments in National Cemeteries

– 3.4 Million Graves Maintained

– 354,943 Headstones Provided for Veterans in Private Cemeteries

Page 4: Department of Veterans Affairs VA Office of Construction ......The Department of Veterans Affairs Expiring Authorities Act of 2015 requires VA to enter into an agreement with a non-Department

Office of Acquisition, Logistics, and Construction Construction & Facilities Management 4

VA Facilities Inventory

6.283 Buildings

1,951 Leases

Over 155 Million GSF

Over 37,800 Owned Acres of Land

Average age approaching 60 years; Over 2,200 historic

buildings

Page 5: Department of Veterans Affairs VA Office of Construction ......The Department of Veterans Affairs Expiring Authorities Act of 2015 requires VA to enter into an agreement with a non-Department

Office of Acquisition, Logistics, and Construction Construction & Facilities Management 5

Rule of Two

Veterans First Contracting Program - the Program,

which gives preference to SDVOSBs and VOSBs, was

created by 38 U.S.C. 8127 and 8128 and implemented by

VA in 2009.

2016 Supreme Court (SCOTUS) Decision

• Prior to the decision, VA believed and two lower courts agreed, that

the Program did not apply when placing orders under FAR subpart

8.4, the Federal Supply Schedule (FSS).

• The SCOTUS decision overruled the lower courts and decided that

the Program does apply to FSS orders and is mandatory not

discretionary.

Page 6: Department of Veterans Affairs VA Office of Construction ......The Department of Veterans Affairs Expiring Authorities Act of 2015 requires VA to enter into an agreement with a non-Department

Office of Acquisition, Logistics, and Construction Construction & Facilities Management 6

Rule of Two (Continued)

Rule of Two – The process whereby a contracting officer of

the VA, “shall award contracts on the basis of competition

restricted to small business concerns owned and controlled

by veterans if the contracting officer has a reasonable

expectation that two or more small business concerns

owned and controlled by veterans will submit offers and

that the award can be made at a fair and reasonable price

that offers best value to the United States.”

Market Research - Must be conducted to support the

Government’s acquisition strategy.

Page 7: Department of Veterans Affairs VA Office of Construction ......The Department of Veterans Affairs Expiring Authorities Act of 2015 requires VA to enter into an agreement with a non-Department

Office of Acquisition, Logistics, and Construction Construction & Facilities Management 7

Rule of Two (Continued)

Impact: CFM anticipates that the Rule of Two decision will

not have a significant impact on Construction procurements,

but there is the potential for a noticeable increase in awards

to SDVOSB/VOSBs for A/E and other services.

Certification Requirement: In order to compete for awards

under the Veterans First Contracting Program, eligible

SDVOSBs/VOSBs must first be verified by the Center for

Verification and Evaluation (CVE).

Page 8: Department of Veterans Affairs VA Office of Construction ......The Department of Veterans Affairs Expiring Authorities Act of 2015 requires VA to enter into an agreement with a non-Department

Office of Acquisition, Logistics, and Construction Construction & Facilities Management 8

VA/CFM Small Business Statistics

Department of Veterans Affairs Goaling Report on Manageable Spend

Fiscal Year 2017 For the Period October 01, 2016, through June 30, 2017

Green: Meeting or exceeding goal. Yellow: Below goal but within 1.5%. Red: More than 1.5% below goal. Total awards to date: $107,148,760.62 This report excludes transactions that the Small Business Administration excludes from its analysis. Source: Federal Procurement Data System. Dataset downloaded on July 06, 2017.

CONSTRUCTION AND FACILITIES MANAGEMENT

Office of Construction and Facilities Management

Category Small Business SDVOSB VOSB HUBZone SDB WOSB

SB Goals 20.0% 8.0% 10.0% 3.0% 5.0% 5.0%

Results 43.6% 38.1% 38.4% 2.3% 10.0% 1.6%

Page 9: Department of Veterans Affairs VA Office of Construction ......The Department of Veterans Affairs Expiring Authorities Act of 2015 requires VA to enter into an agreement with a non-Department

Office of Acquisition, Logistics, and Construction Construction & Facilities Management 9

Sole Source Authority for SDVOSB/VOSB

Authority: Public Law 38 USC 8127 and VAAR

819.7007(b) and 7008(b) “Sole source authority for

SDVOSB and VOSB”, provide the Contracting Officer

(CO) authority to make sole source awards up to $5

million based on his/her own discretion, provided the

concern can be determined responsible and the award

can be made at a fair and reasonable price.

Restrictions: A restriction for sole source currently exists

within an internal Procurement Policy Memorandum

(PPM) that is being modified to align with the

authorizations found in 38 USC 8127 and the VAAR.

Page 10: Department of Veterans Affairs VA Office of Construction ......The Department of Veterans Affairs Expiring Authorities Act of 2015 requires VA to enter into an agreement with a non-Department

Office of Acquisition, Logistics, and Construction Construction & Facilities Management 10

VA Construction Program

Construction and Facilities Management • Leasing

• Major Construction

Medical Centers, Cemeteries • Minor Construction

• Non-Recurring Maintenance (NRM)

Office of Asset and Enterprise Management • Green Management Program

Page 11: Department of Veterans Affairs VA Office of Construction ......The Department of Veterans Affairs Expiring Authorities Act of 2015 requires VA to enter into an agreement with a non-Department

Office of Acquisition, Logistics, and Construction Construction & Facilities Management 11

Office of Real Property Update

VA currently occupies over 1,900 leased facilities

nationwide. Most are smaller (<10,000 square feet)

leases of existing buildings, managed by VHA leasing

officials.

In FY 2016, ORP delivered nine new leased facilities with

a total contract value of more than $845 million and

acquired four parcels of land for minor construction

projects.

ORP’s leasing program grew from $5.7 billion in 2015 to

over $6.5 billion in 2016, a 15% increase. It has grown

225% since 2013.

Page 12: Department of Veterans Affairs VA Office of Construction ......The Department of Veterans Affairs Expiring Authorities Act of 2015 requires VA to enter into an agreement with a non-Department

Office of Acquisition, Logistics, and Construction Construction & Facilities Management 12

Office of Real Property Update (Continued)

62 active leasing actions with a total contract value of

$2.874 Billion.

• 27 additional Major leasing actions delayed due to lack of

Congressional authorization, with a total contract value of $1.818

Billion.

Page 13: Department of Veterans Affairs VA Office of Construction ......The Department of Veterans Affairs Expiring Authorities Act of 2015 requires VA to enter into an agreement with a non-Department

Office of Acquisition, Logistics, and Construction Construction & Facilities Management 13

Upcoming Leasing Opportunities

Description NUSF Description NUSF

Ann Arbor, MI* - Outpatient Clinic 36,453 Ocala, FL* - Outpatient Clinic 45,499

Birmingham, AL* - Mental Health Clinic 59,744 Orangeburg, SC - Community Based Outpatient Clinic 17,723

Boston, MA* - Research 40,604 Oxnard, CA* - Outpatient Clinic 41,027

Brooksville, FL - Community Based Outpatient Clinic 41,297 Pike County, GA* - Outpatient Clinic 49,175

Charleston, SC* - Research 48,000 Pittsburgh, PA* - Outpatient Clinic 53,466

Corpus Christi, TX* - Outpatient Clinic 58,254 Portland, ME* - Outpatient Clinic 56,637

Daytona Beach, FL* - Outpatient Clinic 106,826 Raleigh, NC* - Outpatient Clinic 185,271

Denver, CO* - Buisness Office 184,718 Rapid City, SD* - Outpatient Clinic 62,916

Detroit, MI - Domiciliary 20,309 Rochester, NY* - Outpatient Clinic 31,064

Fredericksburg, VA* - Outpatient Clinic 378,461 Rock Hill, SC - Community Based Outpatient Clinic 15,962

Gainesville, FL* - Mental Health Clinic 39,932 San Diego, CA* - Research 27,923

Gainesville, FL* - Outpatient Clinic 70,849 Santa Rosa, CA* - Outpatient Clinic 53,870

Hampton Roads, VA* - Outpatient Clinic 155,169 Sumter, SC - Community Based Outpatient Clinic 19,918

Houston, TX - Domiciliary 35,827 Tampa - Lakeland, FL* - Outpatient Clinic 92,681

Houston, TX - Research 48,000 Tampa, FL* - Mental Health Clinic 114,098

Jacksonville, FL* - Outpatient Clinic 164,054 Tampa, FL* - Mental Health Clinic 114,098

LaCrosse, WI- Community Based Outpatient Clinic 15,997 Terre Haute, IN* - Outpatient Clinic 36,827

Lansing, MI - Community Based Outpatient Clinic 25,000 Terre Haute, IN* - Outpatient Clinic 36,827

Leavenworth, KS - Consolidated Mail Order Pharmacy 88,449 Traverse City, MI - Community Based Outpatient Clinic 22,500

Missoula, MT* - Outpatient Clinic 59,990 Tulsa, OK - Community Based Outpatient Clinic 140,000

Northern Colorado, CO* - Outpatient Clinic 75,645 West Indianapolis, IN* - Outpatient Clinic 67,721

Projects noted with a * are those that VA is awaiting authorization on.

Page 14: Department of Veterans Affairs VA Office of Construction ......The Department of Veterans Affairs Expiring Authorities Act of 2015 requires VA to enter into an agreement with a non-Department

Office of Acquisition, Logistics, and Construction Construction & Facilities Management 14

Public-Private Partnerships

CHIP-IN ACT

• The Communities Helping Invest through Property and Improvements

Needed for Veterans Act of 2016 or the “CHIP IN for Vets Act of 2016”

(H.R. 5099) authorizes VA to carry out a pilot program of five partnership

agreements to build new facilities combining VA and donor funding.

• The first pilot, the Omaha Ambulatory Care Center (ACC), will combine $56

million of VA funds with $28 million in donated funds to complete the

estimated $84 million project.

• VA will be soon be releasing a Request for Information seeking partners for

the four remaining authorized pilots.

Historic Reuse Program

• VA has authority to outlease or exchange historic facilities by partnering

with the private sector to develop the properties for reuse in a manner

consistent with the VA’s obligation to maintain historic assets.

• VA is conducting a pilot historic reuse project in Sausalito, CA and is

exploring additional opportunities nationwide.

Page 15: Department of Veterans Affairs VA Office of Construction ......The Department of Veterans Affairs Expiring Authorities Act of 2015 requires VA to enter into an agreement with a non-Department

Office of Acquisition, Logistics, and Construction Construction & Facilities Management 15

VA Major Construction Program (Continued)

Major Construction • Projects with a cost greater than $10 Million

• Requires a line item appropriation by Congress

• Also requires a specific authorizing legislation for medical projects

• Projects are solicited as either Design-Bid-Build or Design-Build

Page 16: Department of Veterans Affairs VA Office of Construction ......The Department of Veterans Affairs Expiring Authorities Act of 2015 requires VA to enter into an agreement with a non-Department

Office of Acquisition, Logistics, and Construction Construction & Facilities Management 16

VA Major Construction Program

50 major construction projects valued at over $13 billion.

New Orleans Medical first patient day achieved.

Denver Medical Center construction in motion under

USACE leadership. 8 buildings have now been turned over

to the Medical Center for use.

VA working to deliver high quality facilities to serve our

Veterans.

Page 17: Department of Veterans Affairs VA Office of Construction ......The Department of Veterans Affairs Expiring Authorities Act of 2015 requires VA to enter into an agreement with a non-Department

Office of Acquisition, Logistics, and Construction Construction & Facilities Management 17

VA USACE Partnership

The Department of Veterans Affairs Expiring Authorities Act

of 2015 requires VA to enter into an agreement with a non-

Department Federal Entity to provide design and

construction management services for all construction

projects with a total estimated cost over $100 million (Super

Construction Projects).

VA has entered into a agreement with the US Army Corps of

Engineers (USACE) for VA CFM Major Construction

Program to serve as construction agent for projects over

$100 Million.

Page 18: Department of Veterans Affairs VA Office of Construction ......The Department of Veterans Affairs Expiring Authorities Act of 2015 requires VA to enter into an agreement with a non-Department

Office of Acquisition, Logistics, and Construction Construction & Facilities Management 18

VA USACE Project Status

Page 19: Department of Veterans Affairs VA Office of Construction ......The Department of Veterans Affairs Expiring Authorities Act of 2015 requires VA to enter into an agreement with a non-Department

Office of Acquisition, Logistics, and Construction Construction & Facilities Management 19

Major Construction Procurements

Opportunities

Location Description

Alameda Outpatient Clinic & National Cemetery

American Lake

Building 81 Seismic Corrections, Renovation

of Bldg 81AC and 18 and Construction of New

Specialty Care Building 201

Canandaigua Construction & Renovation

Livermore Realignment and Closure of the Livermore

Campus

Long Beach Seismic Corrections- Mental Health and

Community Living Center

Louisville New Medical Facility

Perry Point Replacement Community Living Center

Page 20: Department of Veterans Affairs VA Office of Construction ......The Department of Veterans Affairs Expiring Authorities Act of 2015 requires VA to enter into an agreement with a non-Department

Office of Acquisition, Logistics, and Construction Construction & Facilities Management 20

Major Construction Procurements

Opportunities (continued)

Location Description

Reno Upgrade B1 Seismic, Life Safety, Utility

Correction and Expand Clinical Services

San Diego SCI and Seismic Building 11

San Francisco Seismic Retrofit/Replace Buildings 1, 6, 8,

and 12

St. Louis (JB) Medical Facility Improvements and Cemetery

Expansion

Elmira, NY New Cemetery - Western New York Area

Holly, MI Gravesite Expansion

Jacksonville Gravesite Expansion

Lake Worth, FL Gravesite Expansion

Las Animas New Cemetery - Southern Colorado Area

Page 21: Department of Veterans Affairs VA Office of Construction ......The Department of Veterans Affairs Expiring Authorities Act of 2015 requires VA to enter into an agreement with a non-Department

Office of Acquisition, Logistics, and Construction Construction & Facilities Management 21

Major Construction Procurements

Opportunities (continued)

Location Description

Morovis, PR Gravesite Expansion (Phase 1) on New Land

Rittman, OH Gravesite Expansion

St Louis, MO Gravesite Expansion

Scottsmoor, FL Gravesite Expansion

Nationwide A/E IDIQ (SDVOSB) IDIQ for National Cemetery Projects

Page 22: Department of Veterans Affairs VA Office of Construction ......The Department of Veterans Affairs Expiring Authorities Act of 2015 requires VA to enter into an agreement with a non-Department

Office of Acquisition, Logistics, and Construction Construction & Facilities Management 22

Issues Facing VA

Lease Program authorizations and GSA approval.

USACE/VA Partnership.

Aging infrastructure and a lack of funds to sustain/backlog

of projects.

Page 23: Department of Veterans Affairs VA Office of Construction ......The Department of Veterans Affairs Expiring Authorities Act of 2015 requires VA to enter into an agreement with a non-Department

Office of Acquisition, Logistics, and Construction Construction & Facilities Management 23

Thank You

Available Resources

• CFM Web Site: www.cfm.va.gov

• VA Forecast of Opportunities:

www.vendorportal.ecms.va.gov/eVP/fco/FCO.aspx

• VA FY 2018 Budget & Capital Plan:

www.va.gov/budget/products.asp

• This presentation: [email protected]