In the meantime, according to VA officials and the Omaha  donor group, they discussed a change in the scope of the project— from the original plan of a replacement medical center to a smaller- scope project for a new ambulatory care center—that could potentially  be constructed using the existing appropriation of $56 million plus a  donation from the Omaha donor group. Another factor was the Congress’s and VA’s broader interest in  testing innovative approaches to meeting VA’s infrastructure needs. The CHIP-IN Act authorized a total of five pilot projects but did not name  any specific project locations. VA may accept up to four more real property donations under the  pilot program, which is authorized through 2021. VA Has Not Yet Established a Framework for Effective Pilot Design for the CHIP-IN Pilot Program

In 2016, we identified five leading practices for designing a well- developed and documented pilot program: articulating an assessment methodology, developing an evaluation plan, assessing scalability, and ensuring stakeholder communication. 3.) While the various VA offices involved may have somewhat different  interests in the pilot program, developing a set of clear, measureable  objectives is an important part of a good pilot design. As part of this  effort, they said that they intend to develop foundational documents for  review by the CHIP-IN steering committee—such as a program plan  containing objectives—but they have not done so yet. Further, until VA has agreed- upon and documented objectives for the pilot program, it may be difficult  to determine what information is needed for an assessment methodology  and how the pilot will be evaluated. A senior VA official said scalability is seen as a  way to determine if the donation approach or other types of private sector  partnerships are a viable way to address VA’s infrastructure needs. VA has begun to implement this practice, with generally successful  communication with the Omaha donor group. CHIP-IN Pilot Suggests That Donation Partnerships Can Improve Project Implementation, but Challenges Include Identifying Donors and Establishing Responsibilities

		VA and Omaha Donor Group Agree That the CHIP-IN Donation Approach and Private Sector Practices Have Improved the Omaha Project’s Implementation

Based on the experience with the Omaha project, the CHIP-IN donation  approach can result in potential cost and time savings—through the  leveraging of private-sector funding, contracting, and construction  practices—according to VA officials and the Omaha donor group. Another challenge is that VA generally does not possess marketing and  philanthropic development experience. We have found that a key practice of organizational  transformation includes a dedicated implementation team to manage the  transformation process  and that leading practices for cross-functional  teams include clear roles and responsibilities, and committed members  with relevant expertise. Clear and documented roles and responsibilities. According to one VA official, staff had not been initially dedicated to the  pilot because the CHIP-IN Act did not provide resources to fund a  dedicated team for the pilot, so VA has needed to implement the pilot  within its existing resources. Team members with relevant knowledge and expertise. However, VA is not yet collecting the  information it needs to support decisions by VA or Congress about the  pilot. Defining and documenting roles and  responsibilities for this committee—and identifying the resources needed  to effectively implement the pilot—could assist VA in partnering with  additional donors and creating new opportunities to meet the urgent  needs of veterans. (Recommendation 1)
The Secretary of VA should ensure that internal stakeholders—such  as the CHIP-IN steering committee’s members—develop an  assessment methodology and an evaluation plan that are linked to  objectives for the CHIP-IN pilot and that help inform decisions about  whether and how to scale the program.
Why GAO Did This Study

VA has pressing infrastructure needs. The Communities Helping Invest through Property and Improvements Needed for Veterans Act of 2016 (CHIP-IN Act) authorized VA to accept donated real property—such as buildings or facility construction or improvements—through a pilot program. VA has initiated one project in Omaha, Nebraska, through a partnership with a donor group. VA can accept up to five donations through the pilot program, which is authorized through 2021.
The CHIP-IN Act includes a provision for GAO to report on donation agreements. This report (1) examines the extent to which the VA's pilot design aligns with leading practices and (2) discusses what VA has learned from the pilot to date. GAO reviewed VA documents, including plans for the pilot program, and visited the Omaha pilot project. GAO interviewed VA officials, the Omaha donor group, and three non-federal entities that responded to VA's request seeking donors. GAO compared implementation of VA's pilot to leading practices for pilot design, organizational transformation, and cross-functional teams.

What GAO Found

The Department of Veterans Affairs (VA) is conducting a pilot program, called CHIP-IN, that allows VA to partner with non-federal entities and accept real property donations from them as a way to help address VA's infrastructure needs. Although VA signed its first project agreement under the program in April 2017, VA has not yet established a framework for effective design of the pilot program. Specifically, VA's pilot program design is not aligned with four of five leading practices for designing a well-developed and documented pilot program. VA has begun to implement one leading practice by improving its efforts to communicate with relevant stakeholders, such as including external stakeholders in key meetings. However, the VA offices involved have not agreed upon and documented clear, measurable objectives for the pilot program, which is a leading practice. Further, VA has not developed an assessment methodology or an evaluation plan that would help inform decisions about whether or how the pilot approach could be expanded. While VA officials said they intend to develop these items as tasks for the newly formed CHIP-IN steering committee, they have no timeline for doing so. Without clear objectives and assessment and evaluation plans, VA and Congress may have difficulty determining whether the pilot approach is an effective way to help address VA's infrastructure needs.
To date, the CHIP-IN pilot suggests that donation partnerships could improve construction projects, but identifying donors and establishing a team for the pilot program have presented challenges. Officials from VA and the donor group for the first pilot project—an ambulatory care center in Omaha, Nebraska—said they are completing the project faster than if it had been a standard federal construction project, while achieving potential cost savings by using private sector practices. However, VA officials said it is challenging to find partners to make large donations with no financial return, and VA's lack of marketing and philanthropic development experience exacerbates that challenge. VA and the donor group agreed that a dedicated team of individuals with relevant expertise could facilitate the pilot's implementation. The new CHIP-IN steering committee could serve this purpose, but it lacks documented roles and responsibilities. Establishing a team with clear roles and responsibilities and identifying both available and needed staff resources could assist VA in partnering with additional donors and creating new opportunities to meet veterans' needs.

What GAO Recommends

GAO is recommending that VA: (1) establish pilot program objectives, (2) develop an assessment methodology and an evaluation plan, and (3) document roles and responsibilities and identify available and needed staff resources. VA concurred with GAO's recommendations.