1. Department of Veterans Affairs Department of Veterans Affairs VA Office of Construction & Facilities Management Veterans Affairs Construction Update Dennis Milsten Associate Executive Director, Facilities Programs and Plans April 2014

2. Office of Acquisition, Logistics, and Construction Construction & Facilities Management 1 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

3. Office of Acquisition, Logistics, and Construction Construction & Facilities Management 2 VA Services for Veterans  Health Care (FY 13) –8.9 Million Enrollees –85 Million Outpatient Visits This Year –678,000 Inpatients Admissions  Benefits (FY 14 Projected) –4.1 Million Veterans will receive Compensation –783,000 Veterans will receive Education Support –460,000 Veterans will receive Guaranteed Home Loans Support  Memorial Benefit (FY 13) –125,000 Internments in National Cemeteries –3.3 Million Graves Maintained –358,000 Headstones Provided for Veterans in Private Cemeteries

4. Office of Acquisition, Logistics, and Construction Construction & Facilities Management 3 VA Facilities Inventory  6,037 Buildings  1,907 Leases  174,120,582 SF  34,396 Land acres  Average age approaching 60 years

5. Office of Acquisition, Logistics, and Construction Construction & Facilities Management 4 VA Construction Program  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 –Typically designed by an Architectural/Engineering Firm and constructed by a general contractor  Minor Construction –Projects with a cost less than $10 Million –Appropriation by Congress not project specific –Designed by an Architectural/Engineering Firm and constructed by a general contractor –Typically administered at each medical center, cemetery or VBA office building

6. Office of Acquisition, Logistics, and Construction Construction & Facilities Management 5 VA Construction Program  Non-Reoccurring Maintenance (NRM) –Primarily address correcting facility deficiencies and renovating existing space Including the repair or replacement of existing building systems –Typically administered at each medical center or cemetery –NRM projects are funded through the VHA’s medical facilities account or NCA’s operations and maintenance account –Designed by an Architectural/Engineering Firm and constructed by a general contractor  Green Management Program –Under Control of the Office of Asset and Enterprise Management –Energy Conservation Programs –Energy Generation Programs –Energy Assessments

7. Office of Acquisition, Logistics, and Construction Construction & Facilities Management 6 VA Construction Program  Leasing –Congressional approvals if rent is greater than $1 million –Varying approvals required based on space and rent levels –CFM’s Real Property Service manages the acquisition of large leases –Local or VISN personnel manage smaller leases –Typically contract with a developer –Leasing program at risk due to CBO scoring of leases

8. Office of Acquisition, Logistics, and Construction Construction & Facilities Management 7 Construction Funding ($000’s)

9. Office of Acquisition, Logistics, and Construction Construction & Facilities Management 8 FY 2014 Major Construction Management Procurements  Construction Management Contracts (replacement) –Multi award –5 year IDIQ type –Late FY 14 (July)  New Philosophy –Project specific CM contract –Construction scheduling contracts

10. Office of Acquisition, Logistics, and Construction Construction & Facilities Management 9 FY 2014 Major Construction Procurements LocationDescriptionEstimated ($000) Seattle, WAMedical Center123,000 Biloxi, MSMedical Center33,000 Manhattan, NYMedical Center54,123 Manhattan, NYMedical Center14,500 New Orleans,. LAMedical Center68,000 Palo Alto, CAMedical Center115,025 Orlando, FLMedical Center20,000 Omaha, NENew Cemetery30,000 Central East, FLNew Cemetery25,000 Tallahassee, FLNew Cemetery25,000

11. Office of Acquisition, Logistics, and Construction Construction & Facilities Management 10 Major Leasing-2014 Procurements LocationFacility TypeNUSF Boston, MAReplacement Clinic29,000 South Bend, INNew Clinic65,000 Lafayette, LAReplacement Clinic29,600 Lake Charles, LANew Clinic24,000 Bakersfield, CAReplacement Clinic30,000 Mobile, ALReplacement Clinic65,000 San Jose, CANew Clinic72,000 Springfield, MOReplacement Clinic68,000

12. Office of Acquisition, Logistics, and Construction Construction & Facilities Management 11 FY 2015 Major Construction Procurements LocationDescription Estimated ($000) West Los AngelesSeismic Correction - 12 Buildings 35,000 Long BeachSeismic Corrections- Mental Health and Community Living Center 101,900 CanandaiguaConstruction & Renovation122,400 San DiegoSCI and Seismic Building 11187,500 Opportunity, Growth and Security Initiative San FranciscoBuildings 1, 6, and 8 Seismic Retrofit/Bldg 12 Replacement 183,000

13. Office of Acquisition, Logistics, and Construction Construction & Facilities Management 12 Major Leasing 2015 Procurements LocationDescriptionNUSF Bakersfield, CAReplacement CBOC 30,107 Binghamton, NYReplacement CBOC 24,888 Boston, MAReplacement CBOC 28,700 Brandon, FL (S. Hillsborough) New OPC 50,000 Charlotte Hall, MDReplacement CBOC 17,741 Columbus, GAReplacement OPC 55,000 Mobile, ALReplacement OPC 65,125 Rochester, NYReplacement OPC 84,000 San Jose, CAReplacement OPC 72,000 San Juan, PRNew Mental Health Residential & Psychosocial Rehab 52,000 Springfield, MOReplacement OPC 68,000 St. Augustine, FLReplacement CBOC 16,595

14. Office of Acquisition, Logistics, and Construction Construction & Facilities Management 13 Issues Facing VA  CBO Scoring of leases as Capital leases  National Trust for Historic Preservation –Report: Honoring Our Nation’s Veterans: Saving their Places of Health Care and Healing – released November 2013  Aging infrastructure and a lack of funds to sustain/Backlog of projects and Funding

15. Office of Acquisition, Logistics, and Construction Construction & Facilities Management 14 Thank You  Available Resources –CFM Web Site: www.cfm.va.govwww.cfm.va.gov –VA Forecast of Opportunities: www.vendorportal.ecms.va.gov/eVP/fco/FCO.aspx –VA FY 2014 Budget & Capital Plan: www.va.gov/budget/products.asp www.va.gov/budget/products.asp