Department of Veterans Affairs Capital Asset Programs

& American Reinvestment and

Recovery Act (ARRA)

Peter Yakowicz, PE, MHAVISN 23 Capital Asset Mgr.

Department of Veterans Affairs

• Three Major Administrations FY 09 Budget appr.

• Veterans Health Administration $41.645 B• Veterans Benefits Administration $46.435 B• National Cemetery Administration $ 5.405 B

» Total VA FY 2009 Budget Authority $93.666 B

http://www.va.gov/about_va/mission.asp

VA’s Mission, Vision, Core Values and Strategic Goals

• VHA Program Offices

Office of Academic Affiliations

Office of Finance

Office of Health Information

Office of the Medical Inspector

Office of Patient Care Services

Patient Safety (National Center for Patient Safety)

Policy and Planning

Office of Public Health and Environmental Hazards

Office of Quality and Performance

Office of Research & Development

Office of Research Oversight

Vet Centers (Readjustment Counseling)

Veterans Integrated Service Networks (sort of like regional offices)

VISN 23 Facilities

Black Hills Health Care System -- Fort Meade-- Hot Springs

Central Iowa Health Care System -- Des Moines-- Knoxville

Fargo VA Medical Center Iowa City VA Medical Center Minneapolis VA Medical Center Nebraska/Western Iowa Health Care System

-- Omaha-- Lincoln-- Grand Island

Sioux Falls VA Medical Center St. Cloud VA Medical Center

Nebraska-Western Iowa Healthcare System

• Omaha• Grand Island• Lincoln

• North Platte• Norfolk• Holdrege• Shenandoah• Bellevue• O’Neill

Capital Asset Manager Areas of Responsibility

• Major Construction• Minor Construction• Non-Recurring Maintenance• Clinical Specific Improvements• 5-Yr Strategic Capital Plan• Delegated Leases• Enhanced Use Leases• Capital Asset Inventory• Facility Condition Assessments• Environment of Care Surveys• Master Planning• Activations

• Real Property• Capital Leases• Disposals• Energy• Vehicle Fleet Mgt.• Space Driver• SEPS II• Project Tracking• Equipment Site Prep• Reports• Database Mgmnt.• CBOC Build-Outs

– Major Construction– Projects > $10M, Line Item Appropriation

– Clinical Specific Initiatives– Projects >$500 < $5M, Part of Medical Care Appropriation– New SF except for site prep of HT/HC equipment

– Non-Recurring Maintenance – Projects up to $10M, part of Medical Care Appropriation– Building systems upgrades, renovations, new SF to $500K

– Minor Construction (Adds new SF)– Projects >$500 < $10M, “Grouped” Appropriation

Types of Capital Investments

Construction Program DefinitionsNon-Recurring Maintenance

(NRM) Projects

Clinical Specific Improvements (CSI)

Projects Minor Construction Major Construction

Description: -Renovation, repair, maintenance, modernization of existing infrastructure-focuses on correcting Facility Condition deficiencies, meeting applicable codes, and modernizes infrastructure to current standards of care. -Stand alone demolition is considered NRM-Up to $500k for expansion of existing square feet- New surface parking/roads- New utility buildings and structures

-Projects expand square footage-Greater than $500k

for expansion -High-tech/High-cost equipment can be 100% renovation-Projects addressing the following VHA high profile categories: •

Polytrauma•

OIF/OEF•

Mental Health•

High-tech/high cost Medical Equipment Installations•

Long-term care

-Projects expanding the existing facility square footage

-Greater than $500k for expansion of existing square feet-Projects addressing workload gaps, seismic deficiencies, and providing access to care for our veterans.- Parking Structures - Seismic projects can be 100% renovation

Improvements to medical centers to provide state-of- the art healthcare.

Lower Limit: $25,000 $500,000 $500,000 $10,000,000

Upper Limit: -Up to $10,000,000 for renovation of existing square footage;

-Up to $500k for expansion of existing facility square footage; -No upper limit for pure utility/building system projects

$5,000,000 $10,000,000 No upper limit

• Construction Authority By ProgramFY 2009 Appropriation

Major $ 581.6 M $ 0Minor $ 329.4 M $ 13.2 MNRM $ 1 Billion $ 51.9 MCSI $ 100 Million $ 5.2 M

National VISN 23 Share

Major Project Dollars Awarded Per Average Veteran since FY 2004

VISN

VISN­HQ

Total Award

#Veterans

$ Per VeteranV19   Glendale, CO  $769,200,000  221,711  $3,469.38V08   Bay Pines, FL  $1,695,051,000  678,562  $2,498.01V16   Jackson, MS  $1,063,919,000  623,067  $1,707.55V21   Mare Island, C  $579,032,000  340,363  $1,701.22V22   Long Beach,  $604,060,400  428,286  $1,410.41V10   Cincinnati, OH  $197,100,000  278,018  $   708.95V04   Pittsburgh, PA  $295,600,000     435,526  $   678.72V15   Kansas City,  $160,330,000  307,349  $   521.65V17   Arlington, TX  $140,652,000  331,560  $   424.21V12   Hines, IL  $131,000,000  336,554  $   389.24V02   Albany, NY  $77,269,000  211,876  $   364.69V20   Portland, OR  $75,308,220  323,663  $   232.68V11   Ann Arbor, M  $40,400,000  306,947  $   131.62V23   Minneapolis, M  $46,050,000   366,782  $  125.55V07   Duluth, GA  $20,534,000  433,296  $    47.39V18   Mesa, AZ  $13,300,000  313,632    $    42.41V06   Durham, NC  $9,100,000  361,838  $    25.15

*2009 and 2010 Data includes enrollments for 1qtr 2009 and future projects recorded in 2010

Major Construction Projects• Completed

– Minneapolis SCI/D Center

• On-Going– New CLC at Des Moines

• Planned (2012 Applications Due 3/31/09)– Omaha Space and Technical Deficiency Corrections– Minneapolis Polytrauma Expansion– Sioux Falls Clinical Addition and CLC– Fargo Specialty Care Addition

Minneapolis SCI Center

Des Moines CLC

Facility Condition Assessments

• All Building Systems are graded on a scale of A thru F

• Information is kept in the Capital Asset Inventory Database

• “Corrective Action” Costs are estimates to correct items graded as D or F only

Minor Construction• FY 08 Funded (On-going)

– Sioux Falls Surgery Suite (Design)– Minneapolis Hem/Onc– Multi-Site MRI (DM. MPLS, SF)– Des Moines OP Svcs Consolidation– Des Moines Dental Consolidation– Des Moines Kitchen/VCS Remodel– Iowa City 3rd Research Bldg (Des)– St. Cloud Exp Specialty Care, B1– St. Cloud Exp Primary Care, B1– Des Moines Remodel Dietetics

• FY 09 Funded (Current)

– Fargo Audiology/Eye Clinic (Design)– Fargo Replace ORs (Design)– Sioux Falls Surgery Suite– Iowa City 3rd Research Bldg– Hot Springs Renovate Dom (Des)**

FY 2010 DRAFT PLAN

437-306 Audiology-Eye-Ophthalmology 4,011,000 3,669,627

437-308 Replace operating rooms 6,975,553 6,369,000

437-310 B1 Additional Outpatient Treatment 9,763,484 848,992

437-311 TCU Expand/Remodel 8,604,761 748,240

568-403 Renovate Dom for Patient Privacy 5,087,000 382,000

636-308 SPD to 4th Floor OPC (Omaha) 9,528,474 915,659

636-326 Research Bldg 4th Floor Addition-Research (Omaha) 9,325,246 895,056

636-343 ED Expand/Renovate (Des Moines) 4,633,155 456,000

636-345 3B Expansion/Renovation (Des Moines) 5,295,500 521,000

636-402 400 Car Parking Garage (Iowa City) 9,663,933 9,663,933

636-403 Relocate Surgical OP Rooms (Iowa City) 9,939,645 809,062

656-317 Expand/Renovate Wards B49, 1st and 2nd Floors 9,478,780 815,000

656-329 Long Term/Interim Psychology 8,378,700 741,500

St. Cloud Surgery Addition

St. Cloud VA Medical Center

Construction 2009

•Replace Primary Electrical Distribution (Spring 2009)

•Replace Alternate Electrical Feed (Spring 2009)

•Replace Boilers (Underway)

•Replace Secondary Electrical Panels (Underway)

•Wind Turbine (Summer 2009)

NRM Funding History

$20.6M Spent to Date

$45.7M is 6/30 Target

FCA Correction Values per VISN

VISN Corrective Action Totals

1 $892,625,688

2 $379,424,708

3 $542,066,283

4 $447,619,492

5 $167,171,441

6 $422,437,000

7 $435,596,854

8 $571,922,310

9 $210,743,811

10 $425,928,933

11 $239,619,447

12 $671,793,747

15 $491,036,926

16 $365,726,941

17 $108,793,096

18 $197,159,274

19 $176,234,904

20 $573,144,122

21 $395,716,019

22 $715,357,090

23 $316,676,226

Facility GSFReplacement

TotalCorrection

Total

% Correction to

Replace -ment

Black Hills Ft. Meade 825,731 142,210,247 13,323,807 9%

Black Hills Hot Springs 461,159 115,053,919 18,746,646 16%

Des Moines 403,981 98,977,006 14,368,900 15%

Fargo 439,448 133,215,638 21,468,982 16%

Grand island 227,373 67,965,501 7,875,694 12%

Iowa City 579,695 184,028,886 53,384,497 29%

Knoxville 789,393 192,514,692 5,177,743 3%

Lincoln 248,896 81,902,192 9,466,482 12%

Minneapolis 1,729,962 695,497,846 42,478,783 6%

Omaha 591,941 182,584,931 54,204,658 30%

Sioux Falls 456,344 122,062,910 32,404,288 27%

St. Cloud 845,534 222,676,799 43,775,746 20%

VISN 23 Corrective Value information

Facility GSFReplacement

TotalCorrection

Total

% Correction to

Replace -ment

Black Hills Ft. Meade 825,731 142,210,247 13,323,807 9%

Black Hills Hot Springs 461,159 115,053,919 18,746,646 16%

Des Moines 403,981 98,977,006 14,368,900 15%

Fargo 439,448 133,215,638 21,468,982 16%

Grand island 227,373 67,965,501 7,875,694 12%

Iowa City 579,695 184,028,886 53,384,497 29%

Knoxville 789,393 192,514,692 5,177,743 3%

Lincoln 248,896 81,902,192 9,466,482 12%

Minneapolis 1,729,962 695,497,846 42,478,783 6%

Omaha 591,941 182,584,931 54,204,658 30%

Sioux Falls 456,344 122,062,910 32,404,288 27%

St. Cloud 845,534 222,676,799 43,775,746 20%

Nurses Station Patient Room

Isolation Room

Minneapolis Dialysis Renovation

Iowa City Main 

Entrance (Old)

Iowa City Main Entrance (Renovated)

St. Cloud CT Scanner

Des Moines MH Annex

Minneapolis New Chiller

St. Cloud Boiler 

Replacement

New Boiler Hot Springs

FY 09 Economic Stimulus • Myth – Additional $$ for All Const Programs• FACT – Bill only provides NRM Dollars

• Myth – This is “No Year” Money• FACT -- $$ Must be obligated by 09/2010

• Myth – This is Additional Money to VA• FACT – This is an advance of 2010 NRM $$

• FACT—This money will be tracked to the nth degree and reporting will be required (probably) on a weekly basis

• VHA is getting $1B in NRM Dollars• $200M for Energy, $800M to VISNs• VISN 23 share is $37.4M• Distribution based on blend of

Sustainment and FCA• Each project on stimulus list has its

own unique ACC Code set by Fiscal• Funds must be requested on an

individual case-by-case basis.

VISN

Option 2

60% Sustainment / 40% FCA

1 52,183,299

2 32,203,576

3 66,701,115

4 48,285,776

5 21,272,116

6 34,644,205

7 34,977,003

8 43,784,677

9 28,204,167

10 30,952,921

11 34,463,322

12 58,229,124

15 38,379,325

16 41,550,437

17 23,870,304

18 19,972,448

19 18,125,738

20 44,888,962

21 38,426,799

22 51,448,892

23 37,435,793

Sum 800,000,000

FY 09 Stimulus (ARRA)

VISN 23 ARRA Distribution by Facility

Facility Targeted Amount Plan AmountFargo $ 2,523,172 $ 3,266,230S. Falls $ 2,238,660 $ 2,768,657BHHCS $ 4,428,654 $ 4,735,000Mpls $ 9,194,230 $ 9,425,000NWI $ 5,484,343 $ 7,500,000Cent Iowa $ 5,327,113 $ 5,705,201Iowa City $ 3,365,478 $ 4,140,000St. Cloud $ 4,874,140 $ 5,260,000VISN TOT $ 37,435,793 $ 42,800,088

About 40% of Plan Amount ($16.3 M) will go towards FCA corrections

The Nebraska Impact

Omaha 68501 Lancaster Repair/Replace Roofs Buildings 12, 24 and 45 $ 300,000

Omaha 68501 Lancaster Repair/Upgrade Main Fire Alarm Panel $ 500,000

Omaha 68501 Lancaster Repair/Update Condensate Pipes and Pumps $ 125,000

Omaha 68501 Lancaster Replace/Update Water Softeners for Boilers and Domestic Water Systems $ 150,000

Omaha 68105 Douglas Remodel Operating Room/Post Anesthesia Care Unit $ 2,520,000

Omaha 68105 Douglas Renovate Radiology for Position Electron Transformation (PET) CT Install $ 1,920,000

Omaha 68105 Douglas Renovate for New Coolers and Freezers $ 225,000

Omaha 68105 Douglas Repair/Replace Steam Condensate Lines, Tanks and Pumps $ 300,000

Omaha 68803 Hall Replace Air Handlers for Laboratory Space $ 500,000

Omaha 68803 Hall Replace Electrical Distribution System $ 750,000

Omaha 68803 Hall Replace/Upgrade Domestic Hot Water Heaters $ 210,000

$ 7,500,000

•It created chaos for a few weeks. Rules changed hourly on what could or could not be submitted.

•It advances FY 2010 funding by $1B, leaving only $400M for all VISNs for both NRM and CSI projects.

•People were not allowed to make changes or updates to lists once they were submitted.

•VACO was making changes to the list without telling us—mostly in project titles.

•Contracting rules have tightened with requirement for maximum competition in bidding process.

•An 80/20 rule put into effect for FY 09 is being applied to the ARRA list even though it is a supplemental appropriation

•Delays in finalizing list, approval, contracting rules, establishing funding, the 80/20 rule, etc. are all slowing us down in trying to stimulate the economy!

Impact of the ARRA FundingThe Bad

The Good

• We are able to address some needed projects a little more quickly than usual

• Facilities were required to take a rational approach to developing a two-year program for facility improvements.

• Contracting and engineering staff had to collaboratively lay out obligation plans over an 18-month period.

• Engineers and contracting staff can “re-group” and catch their breath in FY 2010

• The competitve process does usually yield better cost controls.

• The system of accountability being established is good standard practice.

• I’m better educated in counties and congressional districts!!!

• Some questions still unanswered regarding deadlines, etc.

• Accountability is a good thing, but it means more time counting beans and less time doing projects.

• Requesting funding for every obligation (even changes) no matter how small will be laborious.

• A lot of people will be watching the shenanigans.• Some of the cost estimating done in preparing

the projects were better “educated guesses” than others, but we will be held to the estimates.

The Ugly (?)

Questions ????????????

If you think of some later…

Peter.Yakowicz@va.gov or   612‐467‐2656