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Title I — Personnel and accountability matters

S. 2921 · 114th Congress · May 11, 2016 · Lineage

I Personnel and accountability matters

A Office of Accountability and Whistleblower Protection

Sec. 101 Office of Accountability and Whistleblower Protection

(a)
In general— Chapter 3 of title 38, United States Code, is amended by adding at the end the following new section:

“323. Office of Accountability and Whistleblower Protection

“(a) Establishment—There is established in the Department an office to be known as the Office of Accountability and Whistleblower Protection (in this section referred to as the “Office”).

“(b) Head of Office

“(1) The head of the Office shall be responsible for the functions of the Office and shall be appointed by the President pursuant to section 308(a) of this title.

“(2) The head of the Office shall be known as the “Assistant Secretary for Accountability and Whistleblower Protection”.

“(3) The Assistant Secretary shall report directly to the Secretary on all matters relating to the Office.

“(4) Notwithstanding section 308(b) of this title, the Secretary may only assign to the Assistant Secretary responsibilities relating to the functions of the Office set forth in subsection (c).

“(c) Functions

“(1) The functions of the Office are as follows:

“(A) Advising the Secretary on all matters of the Department relating to accountability, including accountability of employees of the Department, retaliation against whistleblowers, and such matters as the Secretary considers similar and affect public trust in the Department.

“(B) Issuing reports and providing recommendations related to the duties described in subparagraph (A).

“(C) Receiving whistleblower disclosures.

“(D) Referring whistleblower disclosures received under subparagraph (C) for investigation to the Office of the Medical Inspector, the Office of Inspector General, or other investigative entity, as appropriate, if the Assistant Secretary has reason to believe the whistleblower disclosure is evidence of a violation of a provision of law, mismanagement, gross waste of funds, abuse of authority, or a substantial and specific danger to public health and safety.

“(E) Receiving and referring disclosures from the Special Counsel for investigation to the Medical Inspector of the Department, the Inspector General of the Department, or such other person with investigatory authority, as the Assistant Secretary considers appropriate.

“(F) Recording, tracking, reviewing, and confirming implementation of recommendations from audits and investigations carried out by the Inspector General of the Department, the Medical Inspector of the Department, the Special Counsel, and the Comptroller General of the United States, including the imposition of disciplinary actions and other corrective actions contained in such recommendations.

“(G) Analyzing data from the Office and the Office of Inspector General telephone hotlines, other whistleblower disclosures, disaggregated by facility and area of health care if appropriate, and relevant audits and investigations to identify trends and issue reports to the Secretary based on analysis conducted under this subparagraph.

“(H) Receiving, reviewing, and investigating allegations of misconduct, retaliation, or poor performance involving—

“(i) an individual in a senior executive position (as defined in section 713(d) of this title) in the Department;

“(ii) an individual employed in a confidential, policy-making, policy-determining, or policy-advocating position in the Department; or

“(iii) a supervisory employee, if the allegation involves retaliation against an employee for making a whistleblower disclosure.

“(I) Making such recommendations to the Secretary for disciplinary action as the Assistant Secretary considers appropriate after substantiating any allegation of misconduct or poor performance pursuant to an investigation carried out as described in subparagraph (F) or (H).

“(2) In carrying out the functions of the Office, the Assistant Secretary shall ensure that the Office maintains a toll-free telephone number and Internet website to receive anonymous whistleblower disclosures.

“(3) In any case in which the Assistant Secretary receives a whistleblower disclosure from an employee of the Department under paragraph (1)(C), the Assistant Secretary may not disclose the identity of the employee without the consent of the employee, except in accordance with the provisions of section 552a of title 5, or as required by any other applicable provision of Federal law.

“(d) Staff and resources—The Secretary shall ensure that the Assistant Secretary has such staff, resources, and access to information as may be necessary to carry out the functions of the Office.

“(e) Relation to Office of General Counsel—The Office shall not be established as an element of the Office of the General Counsel and the Assistant Secretary may not report to the General Counsel.

“(f) Reports

“(1)

“(A) Not later than June 30 of each calendar year, beginning with June 30, 2017, the Assistant Secretary shall submit to the Committee on Veterans' Affairs of the Senate and the Committee on Veterans' Affairs of the House of Representatives a report on the activities of the Office during the calendar year in which the report is submitted.

“(B) Each report submitted under subparagraph (A) shall include, for the period covered by the report, the following:

“(i) A full and substantive analysis of the activities of the Office, including such statistical information as the Assistant Secretary considers appropriate.

“(ii) Identification of any issues reported to the Secretary under subsection (c)(1)(G), including such data as the Assistant Secretary considers relevant to such issues and any trends the Assistant Secretary may have identified with respect to such issues.

“(iii) Identification of such concerns as the Assistant Secretary may have regarding the size, staffing, and resources of the Office and such recommendations as the Assistant Secretary may have for legislative or administrative action to address such concerns.

“(iv) Such recommendations as the Assistant Secretary may have for legislative or administrative action to improve—

“(I) the process by which concerns are reported to the Office; and

“(II) the protection of whistleblowers within the Department.

“(v) Such other matters as the Assistant Secretary considers appropriate regarding the functions of the Office or other matters relating to the Office.

“(2) If the Secretary receives a recommendation for disciplinary action under subsection (c)(1)(I) and does not take or initiate the recommended disciplinary action before the date that is 60 days after the date on which the Secretary received the recommendation, the Secretary shall submit to the Committee on Veterans' Affairs of the Senate and the Committee on Veterans' Affairs of the House of Representatives a detailed justification for not taking or initiating such disciplinary action.

“(g) Definitions—In this section:

“(1) The term supervisory employee means an employee of the Department who is a supervisor as defined in section 7103(a) of title 5.

“(2) The term whistleblower means one who makes a whistleblower disclosure.

“(3) The term whistleblower disclosure means any disclosure of information by an employee of the Department or individual applying to become an employee of the Department which the employee or individual reasonably believes evidences—

“(A) a violation of a provision of law; or

“(B) gross mismanagement, a gross waste of funds, an abuse of authority, or a substantial and specific danger to public health or safety.”

(b)
Conforming amendment— Section 308(b) of such title is amended by adding at the end the following new paragraph:

“(12) The functions set forth in section 323(c) of this title.”

(c)
Clerical amendment— The table of sections at the beginning of chapter 3 of such title is amended by adding at the end the following new item:

Sec. 102 Protection of whistleblowers in Department of Veterans Affairs

(a)
In general— Chapter 7 of title 38, United States Code, is amended by adding at the end the following new sections:

“720. Protection of whistleblowers as criteria in evaluation of supervisors

“(a) Development and use of criteria required—The Secretary, in consultation with the Assistant Secretary of Accountability and Whistleblower Protection, shall develop criteria that—

“(1) the Secretary shall use as a critical element in any evaluation of the performance of a supervisory employee; and

“(2) promotes the protection of whistleblowers.

“(b) Principles for protection of whistleblowers—The criteria required by subsection (a) shall include principles for the protection of whistleblowers, such as the degree to which supervisory employees respond constructively when employees of the Department report concerns, take responsible action to resolve such concerns, and foster an environment in which employees of the Department feel comfortable reporting concerns to supervisory employees or to the appropriate authorities.

“(c) Supervisory employee and whistleblower defined—In this section, the terms supervisory employee and whistleblower have the meanings given such terms in section 323 of this title.

“721. Training regarding whistleblower disclosures

“(a) Training—Not less frequently than once every two years, the Secretary, in coordination with the Whistleblower Protection Ombudsman designated under section 3(d)(1)(C) of the Inspector General Act of 1978 (5 U.S.C. App.), shall provide to each employee of the Department training regarding whistleblower disclosures, including—

“(1) an explanation of each method established by law in which an employee may file a whistleblower disclosure;

“(2) the right of the employee to petition Congress regarding a whistleblower disclosure in accordance with section 7211 of title 5;

“(3) an explanation that the employee may not be prosecuted or reprised against for disclosing information to Congress, the Inspector General, or another investigatory agency in instances where such disclosure is permitted by law, including under sections 5701, 5705, and 7732 of this title, under section 552a of title 5 (commonly referred to as the Privacy Act), under chapter 93 of title 18, and pursuant to regulations promulgated under section 264(c) of the Health Insurance Portability and Accountability Act of 1996 (Public Law 104–191);

“(4) an explanation of the language that is required to be included in all nondisclosure policies, forms, and agreements pursuant to section 115(a)(1) of the Whistleblower Protection Enhancement Act of 2012 (5 U.S.C. 2302 note); and

“(5) the right of contractors to be protected from reprisal for the disclosure of certain information under section 4705 or 4712 of title 41.

“(b) Manner training is provided—The Secretary shall ensure, to the maximum extent practicable, that training provided under subsection (a) is provided in person.

“(c) Certification—Not less frequently than once every two years, the Secretary shall provide training on merit system protection in a manner that the Special Counsel certifies as being satisfactory.

“(d) Publication—The Secretary shall publish on the Internet website of the Department, and display prominently at each facility of the Department, the rights of an employee to make a whistleblower disclosure, including the information described in paragraphs (1) through (5) of subsection (a).

“(e) Whistleblower disclosure defined—In this section, the term whistleblower disclosure has the meaning given such term in section 323 of this title.”

(b)
Clerical amendment— The table of sections at the beginning of such chapter, is amended by adding at the end the following new items:

Sec. 103 Treatment of congressional testimony by Department of Veterans Affairs employees as official duty

(a)
In general— Chapter 7 of title 38, United States Code, as amended by section 102, is further amended by adding at the end the following new section:

“722. Congressional testimony by employees: treatment as official duty

“(a) Congressional testimony—An employee of the Department is performing official duty during the period with respect to which the employee is testifying in an official capacity in front of either chamber of Congress, a committee of either chamber of Congress, or a joint or select committee of Congress.

“(b) Travel expenses—The Secretary shall provide travel expenses, including per diem in lieu of subsistence, in accordance with applicable provisions under subchapter I of chapter 57 of title 5, to any employee of the Department of Veterans Affairs performing official duty described under subsection (a).”

(b)
Clerical amendment— The table of sections at the beginning of such chapter, as amended by section 102, is further amended by inserting after the item relating to section 721 the following new item:

Sec. 104 Report on methods used to investigate employees of Department of Veterans Affairs

(a)
Report required— Not later than 540 days after the date of the enactment of this Act, the Assistant Secretary for Accountability and Whistleblower Protection shall submit to the Secretary, the Committee on Veterans' Affairs of the Senate, and the Committee on Veterans' Affairs of the House of Representatives a report on methods used to investigate employees of the Department of Veterans Affairs and whether such methods are used to retaliate against whistleblowers.
(b)
Contents— The report required by subsection (a) shall include the following:
(1)
An assessment of the use of administrative investigation boards, peer review, searches of medical records, and other methods for investigating employees of the Department.
(2)
A determination of whether and to what degree the methods described in paragraph (1) are being used to retaliate against whistleblowers.
(3)
Recommendations for legislative or administrative action to implement safeguards to prevent the retaliation described in paragraph (2).
(c)
Whistleblower defined— In this section, the term whistleblower has the meaning given such term in section 323 of title 38, United States Code, as added by section 101.

B Supervisors and senior executives

Sec. 111 Treatment of Medical Center Directors and Directors of Veterans Integrated Service Networks

(a)
Establishment of VISN Directors in Office of Under Secretary for Health— Subsection (a)(4) of section 7306 of title 38, United States Code, is amended—
(1)
by striking “Such Medical Directors” and inserting “Such Medical Center Directors and Directors of Veterans Integrated Service Networks”; and
(2)
by striking “, who shall be either a qualified doctor of medicine or a qualified doctor of dental surgery or dental medicine”.
(b)
Qualifications— Such section is amended by adding at the end the following new subsection:

“(g) Notwithstanding any provision of law that requires the Office of Personnel Management to determine qualifications or certify a candidate for appointment under this section, Medical Center Directors and Directors of Veterans Integrated Service Networks may be appointed under subsection (a)(4) in accordance with qualifications established by the Secretary for purposes of this section.”

(c)
Ability to transfer—
(1)
In general— Subject to such regulations as the Director of the Office of Personnel Management may prescribe, the Secretary of Veterans Affairs and the Director shall enter into an agreement that permits employees appointed under section 7306(a)(4) of title 38, United States Code, as amended by subsection (a), to transfer to Senior Executive Service positions in other Federal agencies and to be deemed career appointees who are not subject to competition or certification by a qualifications review board under section 3393 of title 5, United States Code.
(2)
Definitions— In this subsection, the terms Senior Executive Service position and career appointee have the meanings given those terms in section 3132(a) of title 5, United States Code.

Sec. 112 Pay for Medical Center Directors and Directors of Veterans Integrated Service Networks

(a)
In general— Chapter 74 of title 38, United States Code, is amended by adding at the end the following new subchapter:

“VII Pay for Medical Center Directors and Directors of Veterans Integrated Service Networks

“7481. Pay for Medical Center Directors and Directors of Veterans Integrated Service Networks

“(a) Elements of pay—Pay for a Medical Center Director or Director of a Veterans Integrated Service Network appointed under section 7306(a)(4) of this title (in this section referred to as a “Director”) shall consist of basic pay set forth under section 7404(a) of this title and market pay determined under subsection (b).

“(b) Market pay

“(1) Each Director is eligible for market pay determined under this subsection.

“(2) The amount of market pay payable to a Director under this section shall be determined by the Secretary on a case-by-case basis and shall consist of pay intended to reflect needs of the Department with respect to the recruitment and retention (as determined by the Secretary) of such Director.

“(3) In determining the amount of market pay payable to a Director under this section, the Secretary shall—

“(A) consult not fewer than two national surveys on pay for hospital directors, medical facility directors, or other similar positions, whether prepared by private, public, or quasi-public entities, to make a general assessment of the range of potential pay for the Director; and

“(B) take into account—

“(i) the experience of the Director in managing facilities or program offices of the Department, including the complexity of such facilities or offices;

“(ii) the complexity of the facility or facilities to be managed by the Director;

“(iii) the labor market, in such geographic area as the Secretary considers relevant, for hospital directors, medical facility directors, and other similar positions;

“(iv) the experience of the Director in managing medical facilities for other Federal agencies, private entities, or non-profit entities; and

“(v) such other considerations as the Secretary considers appropriate.

“(4)

“(A) The Secretary shall evaluate the amount of market pay payable to a Director under this section not less frequently than once every two years and may adjust the market pay payable to such Director as a result of such evaluation.

“(B) A Director whose market pay is evaluated under subparagraph (A) shall receive written notice of the results of such evaluation.

“(c) Requirements and limitations on total pay

“(1) Not less frequently than once every two years, the Secretary shall set forth a departmentwide minimum and maximum amount for total annual pay under subsection (a) that may be paid to a Director and shall publish each such amount in the Federal Register.

“(2) The minimum and maximum amounts set forth under paragraph (1) shall take effect not earlier than the date that is 60 days after the publication of such amounts under such paragraph.

“(3) The sum of the basic pay set forth under section 7404(a) of this title and market pay determined under subsection (b) for a Director for a calendar year—

“(A) may not be less than the most recent minimum amount set forth under paragraph (1) before the beginning of such calendar year; and

“(B) may not be more than the most recent maximum amount set forth under such paragraph before the beginning of such calendar year.

“(4) The total amount of compensation paid to a Director under this title in any calendar year may not exceed the amount of annual compensation (excluding expenses) of the President under section 102 of title 3.

“(5) The Secretary may not delegate to an officer or employee of the Department the requirement of the Secretary to set forth a departmentwide minimum and maximum amount under paragraph (1).

“(d) Treatment of pay—Pay under this section shall be considered pay for all purposes, including retirement benefits under chapters 83 and 84 of title 5 and other benefits.

“(e) Ancillary effects of decreases in pay

“(1) A decrease in pay of a Director resulting from an adjustment in the amount of market pay of the Director under subsection (b) shall not be treated as an adverse action.

“(2) A decrease in the amount of pay of a Director resulting from an involuntary reassignment in connection with a disciplinary action taken against the Director is not subject to appeal or judicial review.”

(b)
Clerical amendment— The table of sections at the beginning of chapter 74 of such title is amended by adding at the end the following:
(c)
Effective date— The amendments made by this section shall take effect on the date that is one year after the date of the enactment of this Act.

Sec. 113 Improved authorities of Secretary of Veterans Affairs to improve accountability of senior executives

(a)
Accountability of senior executives—
(1)
In general— Section 713 of title 38, United States Code, is amended to read as follows:

“713. Accountability of senior executives

“(a) Authority

“(1) The Secretary may, as provided in this section, reprimand or suspend, involuntarily reassign, demote, or remove a covered individual from a senior executive position at the Department if the Secretary determines that the misconduct or performance of the covered individual warrants such action.

“(2) If the Secretary so removes such an individual, the Secretary may remove the individual from the civil service (as defined in section 2101 of title 5).

“(b) Rights and procedures

“(1) A covered individual who is the subject of an action under subsection (a) is entitled to—

“(A) be represented by an attorney or other representative of the covered individual’s choice;

“(B) not fewer than 10 business days advance written notice of the charges and evidence supporting the action and an opportunity to respond, in a manner prescribed by the Secretary, before a decision is made regarding the action; and

“(C) grieve the action in accordance with an internal grievance process that the Secretary, in consultation with the Assistant Secretary for Accountability and Whistleblower Protection, shall establish for purposes of this subsection.

“(2)

“(A) The Secretary shall ensure that the grievance process established under paragraph (1)(C) takes fewer than 21 days.

“(B) The Secretary shall ensure that, under the process established pursuant to paragraph (1)(C), grievances are reviewed only by employees of the Department.

“(3) A decision or grievance decision under paragraph (1)(C) shall be final and conclusive.

“(4) A covered individual adversely affected by a final decision under paragraph (1)(C) may obtain judicial review of the decision.

“(5) In any case in which judicial review is sought under paragraph (4), the court shall review the record and may set aside any Department action found to be—

“(A) arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with a provision of law;

“(B) obtained without procedures required by a provision of law having been followed; or

“(C) unsupported by substantial evidence.

“(c) Relation to other provisions of law

“(1) The authority provided by subsection (a) is in addition to the authority provided by section 3592 or subchapter V of chapter 75 of title 5.

“(2) Section 3592(b)(1) of title 5 and the procedures under section 7543(b) of such title do not apply to an action under subsection (a).

“(d) Definitions—In this section:

“(1) The term covered individual means—

“(A) a career appointee (as that term is defined in section 3132(a)(4) of title 5); or

“(B) any individual who occupies an administrative or executive position and who was appointed under section 7306(a) or section 7401(1) of this title.

“(2) The term misconduct includes neglect of duty, malfeasance, or failure to accept a directed reassignment or to accompany a position in a transfer of function.

“(3) The term senior executive position means—

“(A) with respect to a career appointee (as that term is defined in section 3132(a) of title 5), a Senior Executive Service position (as such term is defined in such section); and

“(B) with respect to a covered individual appointed under section 7306(a) or section 7401(1) of this title, an administrative or executive position.”

(2)
Conforming amendment— Section 7461(c)(1) of such title is amended by inserting “employees in senior executive positions (as defined in section 713(d) of this title) and” before “interns”.
(b)
Performance management—
(1)
In general— The Secretary of Veterans Affairs shall establish a performance management system for employees in senior executive positions, as defined in section 713(d) of title 38, United States Code, as amended by subsection (a), that ensures performance ratings and awards given to such employees—
(A)
meaningfully differentiate extraordinary from satisfactory contributions; and
(B)
substantively reflect organizational achievements over which the employee has responsibility and control.
(2)
Regulations— The Secretary shall prescribe regulations to carry out paragraph (1).

Sec. 114 Reduction of benefits for members of the Senior Executive Service within the Department of Veterans Affairs convicted of certain crimes

(a)
In general— Chapter 7 of title 38, United States Code, as amended by subtitle A, is further amended by inserting after section 713 the following new section:

“714. Senior executives: reduction of benefits of individuals convicted of certain crimes

“(a) Reduction of annuity for removed individual—The covered service of an individual removed from a senior executive position at the Department by the Secretary for performance or misconduct shall not be considered creditable service under section 8332 or section 8411 of title 5 for purposes of calculating an annuity with respect to such individual under chapter 83 or chapter 84 of such title if the individual is convicted of a felony (and the conviction is final) that was related, as determined by the Director of the Office of Personnel Management, to the individual’s performance while employed in such senior executive position.

“(b) Reduction of annuity for retired individual

“(1) The Secretary may order that the covered service of an individual who is subject to a removal or transfer from a senior executive position at the Department by the Secretary for performance or misconduct but who leaves employment at the Department prior to the issuance of a final decision with respect to such removal or transfer shall not be considered creditable service under section 8332 or section 8411 of title 5 for purposes of calculating an annuity with respect to such individual under chapter 83 or chapter 84 of such title if the individual is convicted of a felony (and the conviction is final) that was related, as determined by the Director of the Office of Personnel Management, to the individual’s performance while employed in such senior executive position.

“(2) The Secretary shall make such an order not later than seven days after the date on which such individual is convicted of such felony.

“(3) Not later than 30 days after the Secretary issues any order with respect to an individual under paragraph (1), the Director of the Office of Personnel Management shall recalculate the annuity of the individual.

“(c) Lump-sum annuity credit—Any individual with respect to whom an annuity is reduced under subsection (a) or (b) shall be entitled to be paid so much of such individual’s lump-sum credit as is attributable to the period of covered service.

“(d) Review of reduction of annuity—Any individual with respect to whom an annuity is reduced under subsection (a) or (b) may appeal the reduction to the Director of the Office of Personnel Management pursuant to such regulations as the Director may prescribe for purposes of this section.

“(e) Definitions—In this section:

“(1) The term covered service means, with respect to an individual subject to a removal or transfer from a senior executive position at the Department for performance or misconduct, the period of service beginning on the date that the Secretary determines under such section that such individual engaged in activity that gave rise to such action and ending on the date that such individual is removed from the civil service or leaves employment at the Department prior to the issuance of a final decision with respect to such action, as the case may be.

“(2) The term lump-sum credit has the meaning given such term in section 8331 or 8401 of title 5, as the case may be.

“(3) The term senior executive position has the meaning given such term in section 713(d) of this title.

“(4) The term service has the meaning given such term in section 8331 or 8401 of title 5, as the case may be.”

(b)
Application— Section 714 of such title, as added by subsection (a), shall apply to any action of removal or transfer from a senior executive position (as defined in section 713(d) of such title) at the Department of Veterans Affairs commencing on or after the date of the enactment of this title.
(c)
Clerical amendment— The table of sections at the beginning of such chapter, as amended by subtitle A, is further amended by inserting after the item relating to section 713 the following new item:

Sec. 115 Independent review and assessment of management training and appraisal at Department of Veterans Affairs

(a)
Review and assessment—
(1)
In general— Not later than 180 days after the date of the enactment of this title, the Secretary of Veterans Affairs shall enter into a contract with a nongovernmental entity to review and assess the following:
(A)
The management training program for individuals employed in senior executive positions of the Department of Veterans Affairs that is being provided as of the date of the enactment of this title.
(B)
The performance appraisal system of the Department in effect on the day before the date of the enactment of this title for individuals employed in senior executive positions.
(2)
Elements— The review and assessment required by paragraph (1) shall include the following:
(A)
A comparison of the training provided by the Department to the management training provided for senior executives of other Federal departments and agencies and to the management training provided to senior executives in the private sector.
(B)
Recommendations for improving the program described in paragraph (1)(A).
(C)
Recommendations for improving the system described in paragraph (1)(B).
(D)
An assessment of the ability of the Department to attract and develop employees suitable for senior executive service positions of the Department.
(E)
An assessment of the leadership and management actions of the Department resulting from Department of Veterans Affairs Performance and Accountability Reports submitted in the two most recent fiscal years ending before the date of the enactment of this title.
(F)
A review of the strategy of the Secretary called “Lean Management”.
(G)
An assessment of the compliance of the Department with provisions of law added or amended by the GPRA Modernization Act of 2010 (Public Law 111–352) and an explanation of the changes made to the Department and the activities carried out by the Secretary in response to the enactment of such Act.
(H)
An assessment of the results of the most recent Annual Employee Survey carried out pursuant to part 250 of title 5, Code of Federal Regulations.
(I)
An assessment of the efforts of the Secretary to conduct data-driven reviews and develop a results-oriented culture pursuant to part 6 of Circular A–11 of the Office of Management and Budget.
(J)
An assessment of the Department of Veterans Affairs Federal Performance Improvement Officer role and oversight function.
(K)
A survey of the morale of employees and their satisfaction with their work and work environment in each Department of Veterans Affairs staff organization, staff office, and administration as described by Directive 0211 of the Department and provided for in version 3.0a of the Functional Organization Manual of the Department.
(3)
Report to Secretary— The contract required by paragraph (1) shall provide that the nongovernmental entity must complete and submit to the Secretary a report containing the findings and conclusions of the review by not later than 180 days after the date on which the Secretary and the nongovernmental entity enter into the contract.
(b)
Report to Congress— Not later than 60 days after the date on which the Secretary receives the report under subsection (a)(3), the Secretary shall submit to the Committee on Veterans’ Affairs of the Senate and the Committee on Veterans' Affairs of the House of Representatives the report together with a plan for carrying out the recommendations contained in the report or, as the case may be, a detailed explanation and justification for the Secretary's determination not to implement any of the recommendations contained in the report.
(c)
Senior executive position defined— In this section, the term senior executive position has the meaning given that term in section 713(d) of title 38, United States Code.

Sec. 116 Accountability of leaders for managing the Department of Veterans Affairs

(a)
In general— Chapter 7 of title 38, United States Code, is further amended by inserting after section 709 the following new section:

“710. Annual performance plan for political appointees

“(a) In general—The Secretary shall conduct an annual performance plan for each political appointee of the Department that is similar to the annual performance plan conducted for an employee of the Department who is appointed as a career appointee in a Senior Executive Service position at the Department.

“(b) Elements of plan—Each annual performance plan conducted under subsection (a) with respect to a political appointee of the Department shall include, to the extent applicable, an assessment of whether the appointee is meeting the following goals:

“(1) Recruiting, selecting, and retaining well-qualified individuals for employment at the Department.

“(2) Engaging and motivating employees.

“(3) Training and developing employees and preparing those employees for future leadership roles within the Department.

“(4) Holding each employee of the Department that is a supervisor accountable for addressing issues relating to performance, in particular issues relating to the performance of employees that report to the supervisor.

“(5) Promoting a positive culture of service that—

“(A) reflects the mission of the Department and the values of integrity, commitment, advocacy, respect, and excellence; and

“(B) emphasizes the greatest degree of performance and conduct.

“(c) Definitions—In this section:

“(1) The terms career appointee and Senior Executive Service position have the meanings given such terms in section 3132(a) of title 5.

“(2) The term supervisor has the meaning given such term in section 7103(a) of such title.”

(b)
Clerical amendment— The table of sections at the beginning of chapter 7 of such title is further amended by inserting after the item relating to section 709 the following new item:

Sec. 117 Accountability of supervisors at Department of Veterans Affairs for hiring well-qualified people

(a)
Assessment during probationary period—
(1)
Determination required— With respect to any employee of the Department of Veterans Affairs who is required to serve a probationary period in a position in the Department, the Secretary of Veterans Affairs shall require the supervisor of such employee to determine, during the 30-day period ending on the date on which the probationary period ends, whether the employee—
(A)
has demonstrated successful performance; and
(B)
should continue past the probationary period.
(2)
Limitation on employment after probationary period—
(A)
In general— Except as provided in subparagraph (B), no employee of the Department serving a probationary period as described in paragraph (1) may complete that probationary period unless and until the supervisor of the employee, or another supervisor capable of making the requisite determination, has made an affirmative determination under such paragraph.
(B)
Probationary period deemed completed—
(i)
No determination— If no determination under paragraph (1) is made with respect to an employee before the end of the 60-day period following the end of the 30-day period specified in such paragraph, the employee shall be deemed to have completed the probationary period of the employee effective as of the end of that 60-day period.
(ii)
Retroactive effect of determination— If an affirmative determination under paragraph (1) is made with respect to an employee after the end of the 30-day period specified in such paragraph, the employee shall be deemed to have completed the probationary period of the employee effective as of the end of that 30-day period.
(3)
Notification to Congress regarding determinations— Not less frequently than monthly, the Secretary shall notify the Committee on Veterans’ Affairs of the Senate and the Committee on Veterans’ Affairs of the House of Representatives regarding—
(A)
each instance during such month in which a supervisor did not make a determination required under paragraph (1) during the period required in such paragraph; and
(B)
each such instance included in a previous notification under this paragraph for which the supervisor still has not made such a determination.
(b)
Supervisors— With respect to any employee of the Department who is serving a probationary period in a supervisory position at the Department, successful performance under subsection (a) shall include demonstrating management competencies in addition to the technical skills required for such position.
(c)
Performance plan— Each annual performance plan conducted for a supervisor of an employee serving a probationary period shall hold the supervisor accountable for—
(1)
providing regular feedback to such employee during such period before making a determination under subsection (a) regarding the probationary status of such employee; and
(2)
making a timely determination under subsection (a) regarding the probationary status of such employee.
(d)
Supervisor defined— In this section, the term supervisor has the meaning given such term in section 7103(a) of title 5, United States Code.

Sec. 118 Accountability of supervisors at Department of Veterans Affairs for addressing performance of employees

(a)
In general— The Secretary of Veterans Affairs shall ensure that, as a part of the annual performance plan of a supervisor in the Department, the supervisor is evaluated on the following:
(1)
Taking action to address poor performance and misconduct among the employees that report to the supervisor.
(2)
Taking steps to improve or sustain high levels of employee engagement.
(3)
Promoting a positive culture of service that—
(A)
reflects the mission of the Department and the values of integrity, commitment, advocacy, respect, and excellence; and
(B)
emphasizes the greatest degree of performance and conduct.
(b)
Supervisor defined— In this section, the term supervisor has the meaning given such term in section 7103(a) of title 5, United States Code.

Sec. 119 Improvement of training for supervisors

(a)
In general— The Secretary of Veterans Affairs shall provide to each employee of the Department of Veterans Affairs who is employed as a supervisor periodic training on the following:
(1)
The rights of whistleblowers and how to address a report by an employee of a hostile work environment, reprisal, or harassment.
(2)
How to effectively motivate, manage, and reward the employees who report to the supervisor.
(3)
How to effectively manage employees who are performing at an unacceptable level and access assistance from the human resources office of the Department and the Office of the General Counsel of the Department with respect to those employees.
(b)
Definitions— In this section:
(1)
Supervisor— The term supervisor has the meaning given such term in section 7103(a) of title 5, United States Code.
(2)
Whistleblower— The term whistleblower has the meaning given such term in section 323(g) of title 38, United States Code, as added by section 101.

Sec. 120 Assessment and report on effect on senior executives at Department of Veterans Affairs

(a)
In general— Not later than two years after the date of the enactment of this Act, the Secretary of Veterans Affairs shall—
(1)
measure and assess the effect of the enactment of this title on the morale, engagement, hiring, promotion, retention, discipline, and productivity of individuals in senior executive positions at the Department of Veterans Affairs; and
(2)
submit to the Committee on Veterans' Affairs of the Senate and the Committee on Veterans' Affairs of the House of Representatives a report on the findings of the Secretary with respect to the measurement and assessment carried out under paragraph (1).
(b)
Elements— The assessment required by subsection (a)(1) shall include the following:
(1)
With respect to engagement, trends in morale of individuals in senior executive positions and individuals aspiring to senior executive positions.
(2)
With respect to promotions—
(A)
whether the Department is experiencing an increase or decrease in the number of employees participating in leadership development and candidate development programs with the intention of becoming candidates for senior executive positions; and
(B)
trends in applications to senior executive positions within the Department.
(3)
With respect to retention—
(A)
trends in retirement rates of individuals in senior executive positions at the Department;
(B)
trends in quit rates of individuals in senior executive positions at the Department;
(C)
rates of transfer of—
(i)
individuals from other Federal agencies into senior executive positions at the Department; and
(ii)
individuals from senior executive positions at the Department to other Federal agencies; and
(D)
trends in total loss rates by job function.
(4)
With respect to disciplinary processes—
(A)
regarding individuals in senior executive positions at the Department who are the subject of disciplinary action—
(i)
the length of the disciplinary process in days for such individuals both before the date of the enactment of this Act and under the provisions of this Act described in subsection (a)(1); and
(ii)
the extent to which appeals by such individuals are upheld under such provisions as compared to before the date of the enactment of this Act;
(B)
the components or offices of the Department which experience the greatest number of proposed adverse actions against individuals in senior executive positions and components and offices which experience the least relative to the size of the components or offices’ total number of senior executive positions;
(C)
the tenure of individuals in senior executive positions who are the subject of disciplinary action;
(D)
whether the individuals in senior executive positions who are the subject of disciplinary action have previously been disciplined; and
(E)
the number of instances of disciplinary action taken by the Secretary against individuals in senior executive positions at the Department as compared to governmentwide discipline against individuals in Senior Executive Service positions (as defined in section 3132(a) of title 5, United States Code) as a percentage of the total number of individuals in senior executive positions at the Department and Senior Executive Service positions (as so defined).
(5)
With respect to hiring—
(A)
the degree to which the skills of newly hired individuals in senior executive positions at the Department are appropriate with respect to the needs of the Department;
(B)
the types of senior executive positions at the Department most commonly filled under the authorities in the provisions described in subsection (a)(1);
(C)
the number of senior executive positions at the Department filled by hires outside of the Department compared to hires from within the Department;
(D)
the length of time to fill a senior executive position at the Department and for a new hire to begin working in a new senior executive position;
(E)
the mission-critical deficiencies filled by newly hired individuals in senior executive positions and the connection between mission-critical deficiencies filled under the provisions described in subsection (a) and annual performance of the Department;
(F)
the satisfaction of applicants for senior executive positions at the Department with the hiring process, including the clarity of job announcements, reasons for withdrawal of applications, communication regarding status of applications, and timeliness of hiring decision; and
(G)
the satisfaction of newly hired individuals in senior executive positions at the Department with the hiring process and the process of joining and becoming oriented with the Department.
(c)
Senior executive position defined— In this section, the term senior executive position has the meaning given such term in section 713 of title 38, United States Code.

C Employees

Sec. 121 Removal of employees of Department of Veterans Affairs based on performance or misconduct

(a)
In general— Chapter 7 of title 38, United States Code, as amended by subtitles A and B, is further amended by inserting after section 714, as added by section 114, the following new section:

“715. Employees: removal based on performance or misconduct

“(a) In general

“(1) The Secretary may remove a covered individual who is an employee of the Department if the Secretary determines that—

“(A) the performance or misconduct of the covered individual warrants such removal; and

“(B) in the case of removal for performance, a portion of such performance occurred during the two-year period ending on the date of the determination.

“(2) If the Secretary removes a covered individual under paragraph (1), the Secretary may remove the covered individual from the civil service (as defined in section 2101 of title 5).

“(3) Nothing in this section may be construed to authorize a finalized performance appraisal of an employee to be retroactively amended.

“(b) Notice to Congress—Not later than 30 days after removing a covered individual under subsection (a), the Secretary shall submit to the Committees on Veterans' Affairs of the Senate and House of Representatives notice in writing of such removal and the reason for such removal.

“(c) Procedure

“(1) An employee removed under subsection (a) is entitled, before removal, to—

“(A) at least 10 business days written notice (which, in the case of removal for performance, shall identify specific instances as described in clause (i) of section 4303(b)(1)(A) of title 5 and critical elements as described in clause (ii) of such section), unless there is reasonable cause to believe that the employee committed a crime for which a sentence of imprisonment can be imposed—

“(i) stating the specific reasons for the proposed action; and

“(ii) including a file containing all evidence in support of the proposed action;

“(B) 10 business days to answer the charges orally and in writing and to furnish affidavits and other documentary evidence in support of the answer;

“(C) be represented by an attorney or other representative;

“(D) a review of the case by the Secretary before a decision adverse to the employee is made final;

“(E) as soon as practicable, a decision of the Secretary with respect to the charges of the employee; and

“(F) a written statement of the decision of the Secretary that—

“(i) includes the specific reasons of the decision; and

“(ii) in the case of a removal based on performance, complies with section 4303(b)(1)(D) of title 5.

“(2)

“(A) Subject to subparagraph (B) and subsection (e), any final decision of the Secretary regarding removal under subsection (a) may be appealed to the Merit Systems Protection Board.

“(B) An appeal under subparagraph (A) of a removal may only be made if such appeal is made not later than 10 business days after the date of such removal.

“(C)

“(i) Subject to clause (ii), the decision of the Secretary shall be sustained under subparagraph (A) only if the Secretary's decision—

“(I) in the case of an action based on performance, is supported by substantial evidence; or

“(II) in any other case, is supported by a preponderance of the evidence.

“(ii) Notwithstanding clause (i), the Secretary's decision may not be sustained under subparagraph (A) if the covered individual—

“(I) shows harmful error in the application of the Secretary's procedures in arriving at such decision;

“(II) shows that the decision was based on any prohibited personnel practice described in section 2302(b) of title 5; or

“(III) shows that the decision was not in accordance with law.

“(3) The procedures under section 7513(b) of title 5 and chapter 43 of such title shall not apply to a removal under this section.

“(d) Expedited review

“(1) The Merit Systems Protection Board shall promulgate such rules as the Board considers appropriate to expedite appeals under subsection (c)(2).

“(2) The Board shall ensure that a final decision on an appeal described in paragraph (1) is issued not later than 90 days after the appeal is made.

“(3) During the period beginning on the date on which a covered individual appeals a removal from the civil service under subsection (c)(2) and ending on the date that the Board issues a final decision on such appeal, such covered individual may not receive any pay, awards, bonuses, incentives, allowances, differentials, student loan repayments, special payments, or benefits.

“(4) To the maximum extent practicable, the Secretary shall provide to the Merit Systems Protection Board such information and assistance as may be necessary to ensure an appeal under subsection (c)(2) is expedited.

“(e) Relation to title 5—The authority provided by this section is in addition to the authority provided by subchapter V of chapter 75 of title 5 and chapter 43 of such title.

“(f) Definitions—In this section:

“(1) The term covered individual means an individual occupying a position at the Department but does not include—

“(A) an individual, as that term is defined in section 713(d); or

“(B) a political appointee.

“(2) The term misconduct includes a violation of paragraph (8) or (9) of section 2302(b) of title 5, neglect of duty, malfeasance, or failure to accept a directed reassignment or to accompany a position in a transfer of function.

“(3) The term political appointee means an individual who is—

“(A) employed in a position described under sections 5312 through 5316 of title 5 (relating to the Executive Schedule);

“(B) a limited term appointee, limited emergency appointee, or noncareer appointee in the Senior Executive Service, as defined under paragraphs (5), (6), and (7), respectively, of section 3132(a) of title 5; or

“(C) employed in a position of a confidential or policy-determining character under schedule C of subpart C of part 213 of title 5 of the Code of Federal Regulations.”

(b)
Clerical and conforming amendments—
(1)
Clerical— The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 714, as added by section 114, the following new item:
(2)
Conforming—
(A)
Title 5— Section 4303(f) of title 5, United States Code, is amended—
(i)
in paragraph (2), by striking “or” at the end;
(ii)
in paragraph (3), by striking the period at the end and inserting “, or”; and
(iii)
by adding at the end the following:

“(4) any removal under section 715 of title 38.”

(B)
Title 38— Subchapter V of chapter 74 of title 38, United States Code, is amended—
(i)
in section 7461(b)(1), by striking “If the” and inserting “Except as provided in section 715 of this title, if the”; and
(ii)
in section 7462—
(I)
in subsection (a)(1), by striking “Disciplinary” and inserting “Except as provided in section 715 of this title, the Disciplinary”; and
(II)
in subsection (b)(1), by striking “In any case” and inserting “Except as provided in section 715 of this title, in any case”.

Sec. 122 Prohibition on award of bonuses to employees of Department of Veterans Affairs under consideration for adverse actions or subject of adverse findings

(a)
In general— Chapter 7 of title 38, United States Code, is further amended by inserting after section 715, as added by section 121, the following new section:

“716. Prohibition on award of bonuses to employees under consideration for adverse actions or subject of adverse findings

“(a) Under consideration for adverse action—Notwithstanding any other provision of law, the Secretary may not pay any bonus to any employee of the Department, including an employee in a senior executive position (as defined in section 713(d) of this title), while the Secretary is considering carrying out an adverse personnel action with respect to the employee under this title or title 5.

“(b) Subject of adverse finding

“(1) Notwithstanding any other provision of law, in a case in which the Secretary makes an adverse finding relating to an employee of the Department, the Secretary may not award a bonus to such employee until the earlier of—

“(A) such date as the Secretary considers appropriate, but not sooner than the date that is two years after the end of the fiscal year in which the adverse finding was made and not more than five years after the end of such fiscal year; or

“(B) the date that the finding is found to have been made in error.

“(2) The Secretary may base an adverse finding under paragraph (1) on an investigation by, determination of, or information provided by the Inspector General of the Department or another senior ethics official of the Department or the Comptroller General of the United States in connection with the carrying out by such official of an activity, authority, or function under a provision of law other than this section.

“(c) Previously awarded bonuses

“(1) If the Secretary makes an adverse finding relating to an employee under subsection (b), the Secretary, after notice and an opportunity for a hearing, shall issue an order directing the employee to repay the amount of any bonus awarded to the employee during the year during which the adverse finding is made, unless such finding is found to have been made in error.

“(2) A hearing under paragraph (1) shall be conducted in accordance with regulations relating to hearings promulgated by the Secretary under chapter 75 of title 5.

“(d) Condition of receipt—As a condition of receiving a bonus awarded after the date of the enactment of this section, an employee of the Department shall sign a certification stating that the employee shall repay the bonus in accordance with a final order issued in accordance with subsection (c).

“(e) Appeal—An employee determined to be ineligible for a bonus under subsection (b) or against whom an order is issued under subsection (c) may appeal to the Merit Systems Protection Board under section 7701 of title 5.

“(f) Rulemaking—The Secretary may promulgate such rules as the Secretary considers appropriate to carry out this section.

“(g) Definitions—In this section:

“(1) The term adverse finding relating to an employee means a determination that the conduct of the employee—

“(A) violated a policy of the Department for which the employee may be removed or suspended for a period of not less than 14 days; or

“(B) violated a law for which the employee may be imprisoned for more than 1 year.

“(2) The term adverse personnel action means any of the adverse actions described in section 7461(c)(2) of this title.

“(3) The term bonus means any bonus or cash award, including—

“(A) an award under chapter 45 of title 5;

“(B) an award under section 5384 of such title; and

“(C) a retention bonus under section 5754 of such title.”

(b)
Clerical amendment— The table of sections at the beginning of such chapter is further amended by inserting after the item relating to section 715, as added by section 121, the following new item:

Sec. 123 Retention of records of reprimands and admonishments received by employees of the Department of Veterans Affairs

(a)
In general— Chapter 7 of title 38, United States Code, is further amended by inserting after section 716, as added by section 122, the following new section:

“717. Record of reprimands and admonishments

“(a) In general—Except as provided in subsection (b), if any employee of the Department receives a reprimand or admonishment from the Secretary, the Secretary shall retain a copy of such reprimand or admonishment in the permanent record of the employee for not less than three years after the date on which the employee received the reprimand or admonishment.

“(b) Removal—After the end of the three-year period specified in subsection (a) with respect to a reprimand or admonishment received by an employee, the Secretary shall remove the reprimand or admonishment, as the case may be, from the permanent record of the employee on the earlier of the following:

“(1) The date on which the Secretary determines that the reprimand or admonishment merits removal from the permanent record of the employee.

“(2) The date that is five years after the date on which the employee received the reprimand or admonishment.

“(c) Appeals—If an employee receives a reprimand or admonishment that the employee believes he or she received improperly, the employee may immediately appeal the reprimand or admonishment.”

(b)
Clerical amendment— The table of sections at the beginning of such chapter is further amended by inserting after the item relating to section 716, as added by section 122, the following new item:

Sec. 124 Limitation on administrative leave for employees of Department of Veterans Affairs

(a)
In general— Chapter 7 of title 38, United States Code, is further amended by inserting after section 717, as added by section 123, the following new section:

“718. Administrative leave limitation and report

“(a) Limitation applicable to employees within the Department

“(1) The Secretary may not place any covered individual on administrative leave for more than a total of 14 business days during any 365-day period.

“(2)

“(A) The Secretary may waive the limitation under paragraph (1) and extend the period of administrative leave of a covered individual if the Secretary submits to the Committee on Veterans’ Affairs of the Senate and the Committee on Veterans’ Affairs of the House of Representatives a detailed explanation of the reasons the covered individual was placed on administrative leave and the reasons for the extension of such leave.

“(B) Such explanation shall include the position of the covered individual and the location where the covered individual is employed.

“(3) In this subsection, the term covered individual means an employee of the Department, including an employee in a senior executive position (as defined in section 713(d) of this title)—

“(A) who is subject to an investigation for purposes of determining whether such individual should be subject to any disciplinary action under this title or title 5; or

“(B) against whom any disciplinary action is proposed or initiated under this title or title 5.

“(b) Report on administrative leave

“(1) Not later than 30 days after the end of each fiscal year, the Secretary shall submit to the Committee on Veterans’ Affairs of the Senate and the Committee on Veterans’ Affairs of the House of Representatives a report listing the position of each employee of the Department (if any) who has been placed on administrative leave for a period longer than 14 business days during such fiscal year.

“(2) Each report submitted under paragraph (1) shall include, with respect to each employee listed in such report, the following:

“(A) The position occupied by the employee.

“(B) The number of business days of such leave.

“(C) The reason that such employee was placed on such leave.

“(3) In submitting each report under paragraph (1), the Secretary shall take such measures to protect the privacy of the employees listed in the report as the Secretary considers appropriate.

“(c) Administrative leave defined—In this section, the term administrative leave—

“(1) means an administratively authorized absence from duty without loss of pay or charge to leave, for which the employee is placed—

“(A) due to an investigation; or

“(B) while disciplinary action is proposed or initiated; and

“(2) includes any type of paid nonduty status without a charge to leave.”

(b)
Application—
(1)
Administrative leave limitation— Subsection (a) of section 718 of title 38, United States Code, as added by subsection (a) of this section, shall apply to any period of administrative leave (as defined in such section) commencing on or after the date of the enactment of this title.
(2)
Report— The report under section 718(b) of such title (as added by subsection (a)) shall apply beginning in the first quarter that ends after the date that is 180 days after the date of the enactment of this Act.
(c)
Clerical amendment— The table of sections at the beginning of chapter 7 of such title is further amended by inserting after the item relating to section 717, as added by section 123, the following new item:

Sec. 125 Measurement of Department of Veterans Affairs disciplinary process outcomes and effectiveness

(a)
Measuring and collecting—
(1)
In general— The Secretary of Veterans Affairs shall measure and collect information on the outcomes of disciplinary actions carried out by the Department of Veterans Affairs during the three-year period ending on the date of the enactment of this Act and the effectiveness of such actions.
(2)
Elements— In measuring and collecting pursuant to paragraph (1), the Secretary shall measure and collect information regarding the following:
(A)
The average time from the initiation of an adverse action against an employee at the Department to the final resolution of that action.
(B)
The number of distinct steps and levels of review within the Department involved in the disciplinary process and the average length of time required to complete these steps.
(C)
The rate of use of alternate disciplinary procedures compared to traditional disciplinary procedures and the frequency with which employees who are subject to alternative disciplinary procedures commit additional offenses.
(D)
The number of appeals from adverse actions filed against employees of the Department, the number of appeals upheld, and the reasons for which the appeals were upheld.
(E)
The use of paid administrative leave during the disciplinary process and the length of such leave.
(b)
Report—
(1)
In general— Not later than December 31, 2016, the Secretary shall submit to the appropriate committees of Congress a report on the disciplinary procedures and actions of the Department.
(2)
Contents— The report submitted under paragraph (1) shall include the following:
(A)
The information collected under subsection (a).
(B)
The findings of the Secretary with respect to the measurement and collection carried out under subsection (a).
(C)
An analysis of the disciplinary procedures and actions of the Department.
(D)
Suggestions for improving the disciplinary procedures and actions of the Department.
(E)
Such other matters as the Secretary considers appropriate.
(3)
Appropriate committees of Congress— In this subsection, the term appropriate committees of Congress means—
(A)
the Committee on Appropriations and the Committee on Veterans' Affairs of the Senate; and
(B)
the Committee on Appropriations and the Committee on Veterans' Affairs of the House of Representatives.

D Other personnel and accountability matters

Sec. 131 Written opinion on certain employment restrictions after terminating employment with the Department of Veterans Affairs

(a)
In general— Chapter 7 of title 38, United States Code, as amended by subtitles A, B, and C, is further amended by inserting after section 718, as added by section 124, the following new section:

“719. Written opinion on certain employment restrictions after terminating employment with the Department

“(a) In general—Before terminating employment with the Department, any official of the Department who has participated personally and substantially during the one-year period ending on the date of the termination in an acquisition by the Department that exceeds $10,000,000 shall obtain a written opinion from an appropriate ethics counselor at the Department regarding any restrictions on activities that the official may undertake on behalf of a covered contractor during the two-year period beginning on the date on which the official terminates such employment.

“(b) Covered contractor defined—In this section, the term covered contractor means a contractor carrying out a contract entered into with the Department, including pursuant to a subcontract.”

(b)
Clerical amendment— The table of sections at the beginning of chapter 7 of such title is further amended by inserting after the item relating to section 718, as added by section 124, the following new item:

Sec. 132 Requirement for contractors of the Department employing certain recently separated Department employees

(a)
In general— Subchapter II of chapter 81 of title 38, United States Code, is amended by adding at the end the following new section:

“8129. Requirement for contractors employing certain recently separated Department employees

“(a) In general—A covered contractor may not knowingly provide compensation to an individual described in subsection (b) during the two-year period beginning on the date on which the individual terminates employment with the Department unless the covered contractor determines that the individual—

“(1) has obtained the written opinion required under section 719(a) of this title; or

“(2) has requested such written opinion not later than 30 days before receiving compensation from the covered contractor.

“(b) Individual described—An individual described in this subsection is any official of the Department who participated personally and substantially during the one-year period ending on the date of the termination of the individual's employment with the Department in an acquisition by the Department that exceeds $10,000,000.

“(c) Covered contractor defined—In this section, the term covered contractor means a contractor carrying out a contract entered into with the Department, including pursuant to a subcontract.”

(b)
Application— The requirement under section 8129(a) of title 38, United States Code, as added by subsection (a), shall apply with respect to any entity that enters into a contract with the Department on or after the date of the enactment of this title.
(c)
Clerical amendment— The table of sections at the beginning of chapter 81 of such title is amended by inserting after the item relating to section 8128 the following new item:

Sec. 133 Department of Veterans Affairs program of internal audits

(a)
In general— Subchapter II of chapter 5 of title 38, United States Code, is amended by inserting after section 527 the following new section:

“527A. Program of internal audits

“(a) Program required

“(1) The Secretary shall carry out a program of internal audits and self-analysis to improve the furnishing of benefits and health care to veterans and their families.

“(2) The Secretary shall carry out the program required by paragraph (1) through an office the Secretary shall establish for purposes of the program within the office of the Secretary that is interdisciplinary and independent of—

“(A) the other offices within the office of the Secretary; and

“(B) the covered administrations (or functions of such administrations), staff organizations, and staff offices identified under subsection (b)(1)(A).

“(b) Program requirements

“(1) In carrying out the program required by subsection (a), the Secretary shall—

“(A) conduct periodic risk assessments of the Department to identify those covered administrations (or functions of such administrations), staff organizations, and staff offices of the Department the audit of which would lead towards the greatest improvement in the furnishing of benefits and health care to veterans and their families;

“(B) develop plans that are informed by the risk assessments conducted under paragraph (1) to conduct internal audits of the covered administrations (or functions of such administrations), staff organizations, and staff offices identified under subparagraph (A); and

“(C) conduct internal audits in accordance with the plans developed pursuant to subparagraph (B).

“(2) The Secretary shall carry out under the program required by subsection (a) an audit of not fewer than five covered administrations (or functions of such administrations), staff organizations, or staff offices of the Department each year.

“(3) In identifying covered administrations (or functions of such administrations), staff organizations, and staff offices of the Department under paragraph (1)(A), the Secretary shall accord priority to the covered administrations and functions of such administrations.

“(4)

“(A) For purposes of this subsection, the covered administrations of the Department are the following:

“(i) The National Cemetery Administration.

“(ii) The Veterans Benefits Administration.

“(iii) The Veterans Health Administration.

“(B) For purposes of this subsection, the covered staff organizations of the Department are the following:

“(i) The Office of Acquisition, Logistics, and Construction.

“(ii) The Advisory Committee Management Office.

“(iii) The Board of Veterans' Appeals.

“(iv) The Center for Faith-Based and Neighborhood Partnerships.

“(v) The Center for Minority Veterans.

“(vi) The Center for Women Veterans.

“(vii) The Office of General Counsel.

“(viii) The Office of Regulation Policy and Management.

“(ix) The Office of Employment Discrimination Complaint Adjudication.

“(x) The Office of Interagency Care and Benefits Coordination.

“(xi) The Office of Small and Disadvantaged Business Utilization.

“(xii) The Office of Survivors Assistance.

“(xiii) The Veterans' Service Organizations Liaison.

“(xiv) The Office of Patient Advocacy.

“(xv) The Office of Accountability and Whistleblower Protection.

“(C) For purposes of this subsection, the covered staff offices of the Department are the following:

“(i) The office of the Assistant Secretary for Congressional and Legislative Affairs.

“(ii) The office of the Assistant Secretary for Human Resources and Administration.

“(iii) The office of the Assistant Secretary for Information and Technology.

“(iv) The Office of Management.

“(v) The office of the Assistant Secretary for Operations, Security, and Preparedness.

“(vi) The office of the Assistant Secretary for Policy and Planning.

“(vii) The office of the Assistant Secretary for Public and Intergovernmental Affairs.

“(c) Reports

“(1)

“(A) Not later than 90 days after completing an audit under the program required by subsection (a), the Secretary shall submit to the appropriate committees of Congress a report on the audit.

“(B) Each report submitted under subparagraph (A) with respect to an audit shall include the following:

“(i) A summary of the audit.

“(ii) The findings of the Secretary with respect to the audit.

“(iii) Such recommendations as the Secretary may have for legislative or administrative action to improve the furnishing of benefits and health care to veterans and their families.

“(iv) Plans to carry out the recommendations submitted under clause (iii), including timelines for completion of such plans.

“(2)

“(A) Not later than September 1 of each year, the Secretary shall submit to the appropriate committees of Congress a report on the administration of this section.

“(B) Each report submitted under subparagraph (A) shall include the following:

“(i) A detailed description of each matter for which a recommendation was submitted under clause (iii) of paragraph (1)(B) and with respect to which plans that were submitted under clause (iv) of such paragraph have not been completed.

“(ii) A plan for the conduct of audits under this section during the first fiscal year beginning after the fiscal year in which the report is submitted, which shall include the following:

“(I) A description of any risk assessments the Secretary plans to conduct in such fiscal year.

“(II) A summary of each audit the Secretary plans to conduct in such fiscal year, including a description of the subject matter of the audit and identification of the administration, office, or function to be audited.

“(3) In this subsection, the term appropriate committees of Congress includes—

“(A) the Committee on Veterans' Affairs, the Committee on Appropriations, and the Committee on Homeland Security and Governmental Affairs of the Senate; and

“(B) the Committee on Veterans' Affairs, the Committee on Appropriations, and the Committee on Oversight and Government Reform of the House of Representatives.”

(b)
First risk assessment— The Secretary of Veterans Affairs shall complete the first risk assessment required by section 527A(b)(1)(A) of such title, as added by subsection (a), by not later than 180 days after the date of the enactment of this Act.
(c)
Clerical amendment— The table of sections at the beginning of chapter 5 of such title is amended by inserting after the item relating to section 527 the following new item: