1. FMFM Capital Planning September 22, 2005

2. FMFM “To honor America’s veterans by providing exceptional health care that improves their health and well-being” Veterans Health Administration Honoring Those Who Served

3. FMFM 3

4. FMFM 4 VBA - Assets VBA - Assets  62 VBA Regional Offices  $37.4 Billion in Entitlements (FY06)  120 National Cemeteries in 22 States & Puerto Rico  33 Soldier’s Lots and Monument Sites  86 State Veterans Cemeteries  $170.6 Billion (FY06) NCA - Assets

5. FMFM 5 VHA - Assets VHA - Assets  21 Veterans Integrated Service Networks (VISNs)  157 Hospitals  862 Clinics (Hospital, Community-Based and Independent)  134 Nursing Homes  206 Readjustment Counseling Centers  42 Domiciliaries  5.2 Million Veterans

6. FMFM 6 VA Capital Holdings Operating leases~ 1,000 Leased square feet (net usable square feet) > 10 Million Owned buildings> 5500 Owned gross square feet~ 150 Million Owned acres> 30,000

7. FMFM Implementation September 22, 2005

8. FMFM 8 The General Accounting Office (GAO) 1999 report, “Improvements Needed in Capital Asset Planning and Budgeting” found that : 1 of every 4 dollars spent on capital assets Inpatient capacity not up to standard Substandard outpatient capacity Safety concerns Implement a market based asset restructuring plan to allow reallocation of resources to improve veterans’ health care Capital Planning

9. FMFM 9 Capital Asset Realignment for Enhanced Services (CARES) The CARES process provided a data-driven assessment of: veterans’ health care needs within each market the condition and capacity of the infrastructure, and the strategic realignment of capital assets and related resources to better serve the needs of veterans.

10. FMFM 10 Capital Asset Realignment for Enhanced Services (CARES) The CARES Commission Report was presented in February 2004 After review the Secretary signed the plan in May 2004 The plan provided for the realignment and consolidation of VA facilities throughout the system

11. FMFM Major Construction Overview September 22, 2005

12. FMFM 12 Funding for Major & Minor Construction ($000)

13. FMFM 13 CARES Major Projects FY 2004-2005 n FY 04 – 18 Projects n Total Project Cost -- $1.849 billion n FY 05 – 12 Projects n Total Project Cost --$635 million n FY 04 Funding -- $613.2 million Includes $400 million from med care n FY 05 Funding -- $397.6 million

14. FMFM 14 FY 2006 n Two New Projects for Design n Five Projects for Construction n CARES Funding $750 Million n Funding: $589.8 Million  $539.8 FY 2006 Appropriation  $50.0 Proceeds from Lakeside EU

15. FMFM 15 CARES Major Projects FY 2004-2005 n Project Characteristics Design Build – 8 Design-Bid-Build – 22 Split Funded – 11

16. FMFM 16 New Hospitals n Denver -- $500,000,000 n Las Vegas -- $286,000,000 n Orlando -- $347,700,000

17. FMFM 17 Outpatient Clinics n Anchorage -- $75,270,000 n Columbus -- $94,800,000 n Fayetteville, AR -- $56,200,000 n Ft. Myers -- $65,100,000 n Pensacola -- $55,056,000

18. FMFM 18 Campus Consolidations n Biloxi -- $174,600,000 n Cleveland -- $102,300,000 n Pittsburgh -- $185,076,000

19. FMFM 19 Nursing Units/Clinical Improvements n Atlanta -- $20,500,000 n Chicago -- $98,500,000 n Durham -- $9,100,000 n Gainesville -- $85,200,000 n Indianapolis -- $27,400,000 n San Antonio -- $19,100,000 n Temple -- $55,552,000 n Tucson -- $12,100,000

20. FMFM 20 Spinal Cord Injury n Minneapolis -- $20,500,000 n Syracuse -- $53,469,000 n Tampa -- $7,043,000

21. FMFM 21 Seismic Safety/Infrastructure n Long Beach -- $103,000,000 n Los Angeles -- $79,900,000 n Palo Alto -- $66,934,000 n San Diego -- $48,000,000 n San Francisco -- $41,000,000 n San Juan -- $145,200,000 n Tampa Electrical -- $49,000,000

22. FMFM 22 Execution Schedule n Construction Contracts Awarded -- 3 n Contract Awards by Sept 30 – 8 n Contract Awards FY 2006 – 12

23. FMFM Meeting the Challenge September 22, 2005

24. FMFM 24 Meeting the Challenge n Streamlined Congressional Authorization Process n Use of Indefinite Quantity Indefinite Delivery A/Es n Letter Contracts to Jump Start Design A/E n Use of Design Build for Project Delivery

25. FMFM 25 Meeting the Challenge n Additional Project Managers n Additional Resident Engineers n Use of Project Specific CM n Use of Indefinite Quantity Indefinite Delivery CMs n Use of available technology where appropriate

26. FMFM 26

27. FMFM Thank You Check-out FM’s Web Site www.va.gov/facmgt