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Adds a new subsection (d) to 38 U.S.C. 8106 requiring the Secretary, when entering into a contract for design and construction of a building or facility, to use the procedures in 41 U.S.C. 3309; and, for a super construction project with project management services provided by a non-Department Federal entity under 38 U.S.C. 8103(e), prohibits the Secretary from discouraging that entity from using the procedures in 41 U.S.C. 3309.
Amends 38 U.S.C. 8103(g)(6)(A) by inserting additional text before the period at the end of that subparagraph (inserted text not shown in section).
Requires the Secretary of Veterans Affairs to use the federal design‑build selection procedures found in 41 U.S.C. 3309 when contracting for the design and construction of VA buildings and facilities, and directs that VA not discourage use of those procedures by other federal project managers on very large projects. It also records congressional findings that design‑build is an appropriate procurement method in many cases, can speed delivery, reduce change orders, and improve warranty protections when properly managed, and that problems at a single project should not rule out design‑build for VA work.
Since enactment of the Clinger-Cohen Act of 1996, it has been Federal Government policy that design-build construction methods shall be used when appropriate circumstances are present.
The Secretary of Veterans Affairs estimated in the fiscal year 2025 budget justification that the cost to implement the long-term capital plan of the Department may be as high as $184,000,000,0000, and that estimate has increased in every successive fiscal year’s budget request since the origination of the estimate.
The Secretary expects to open the replacement VA medical center in Louisville, Kentucky, in 2026; this will be the first replacement medical center constructed since the Rocky Mountain Regional VA Medical Center opened in Aurora, Colorado, in July 2018.
It is the sense of Congress that construction challenges with the Rocky Mountain Regional VA Medical Center involving the integrated design and construct acquisition method should not be interpreted to mean that a design-build construction method (as described in section 3309 of title 41, United States Code) is unsuitable for VA construction projects.
When used properly by adequately trained acquisition and construction management personnel and in appropriate circumstances, a design-build construction method is an effective construction acquisition method for the Department; it has been demonstrated to reduce change orders, decrease the duration between design completion and beneficial occupancy, and increase warranty protections.
Primary impacts:
Department of Veterans Affairs contracting and program offices: Must adopt and apply the competitive selection procedures in 41 U.S.C. 3309 for design‑build procurements. This will require updates to procurement policies, training for contracting staff, and possible changes to contract templates and evaluation boards.
Construction and design firms (contractors, architects, engineering firms): Increased use of the design‑build selection process may lead to more opportunities to bid on combined design‑and‑construction projects for VA work. Firms may need to adjust teaming arrangements and proposal approaches to compete under design‑build rules.
Veterans and VA facility users: Potentially benefit from faster delivery of new or replacement medical centers and other VA facilities if design‑build is used effectively to reduce schedule delays and change orders.
Other federal entities and non‑Department project managers on very large projects: The law directs VA not to discourage their use of design‑build procedures when they act as project managers, which may smooth interagency collaboration on large, joint projects.
Potential benefits:
Potential risks and implementation considerations:
Net effect:
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Read twice and referred to the Committee on Veterans' Affairs.
Introduced May 21, 2025 by James E. Banks · Last progress May 21, 2025
Read twice and referred to the Committee on Veterans' Affairs.
Introduced in Senate