[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 2422 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
1st Session
S. 2422
To amend title 38, United States Code, to establish the Acquisition
Review Board of the Department of Veterans Affairs and to establish the
Director of Cost Assessment and Program Evaluation in the Department,
and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 20, 2023
Mr. Tester (for himself and Mr. Moran) introduced the following bill;
which was read twice and referred to the Committee on Veterans' Affairs
_______________________________________________________________________
A BILL
To amend title 38, United States Code, to establish the Acquisition
Review Board of the Department of Veterans Affairs and to establish the
Director of Cost Assessment and Program Evaluation in the Department,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Acquisition Reform and Cost
Assessment Act of 2023'' or ``ARCA Act of 2023''.
SEC. 2. DEPARTMENT OF VETERANS AFFAIRS ACQUISITION REVIEW, COST
ASSESSMENT, AND PROGRAM EVALUATION.
(a) In General.--Chapter 81 of title 38, United States Code, is
amended by inserting after subchapter VI the following new subchapter:
``SUBCHAPTER VII--ACQUISITION REVIEW, COST ASSESSMENT, AND PROGRAM
EVALUATION
``Sec. 8181. Definitions
``In this subchapter:
``(1) The term `major acquisition program' means a program
of the Department to acquire property, assets, supplies,
services, or a combination thereof, with an estimated life-
cycle cost of $250,000,000 or more, as determined by the
Secretary.
``(2) The term `non-major acquisition program' means a
program of the Department to acquire property, assets,
supplies, services, or a combination thereof, with an estimated
life-cycle cost of less than $250,000,000, as determined by the
Secretary.
``Sec. 8182. Acquisition Review Board
``(a) In General.--There is established in the Department a board,
to be known as the `Acquisition Review Board', to support the Secretary
in managing acquisition programs under the laws administered by the
Secretary.
``(b) Composition.--(1) The Deputy Secretary of Veterans Affairs
shall serve as Chair of the Acquisition Review Board.
``(2) The Deputy Secretary may designate an employee of the
Department to oversee the operations of the Acquisition Review Board.
``(3) The Deputy Secretary shall ensure participation by other
relevant Department officials with responsibilities relating to
acquisitions as permanent members of the Acquisition Review Board,
including the following:
``(A) The Chief Acquisition Officer.
``(B) The Chief Financial Officer.
``(C) The Chief Veterans Experience Officer.
``(D) The Chief Information Officer.
``(E) The Assistant Secretary for Enterprise Integration.
``(F) Other relevant senior Department officials, as the
Deputy Secretary determines appropriate, including such
officials from the Veterans Health Administration, the Veterans
Benefits Administration, and the National Cemetery
Administration.
``(c) Meetings.--The Acquisition Review Board shall convene--
``(1) at the discretion of the Deputy Secretary; and
``(2) not later than 45 days after any date on which--
``(A) a major acquisition program--
``(i) is proposed to the Secretary;
``(ii) is approved by the Secretary to
commence;
``(iii) concludes an acquisition phase;
``(iv) is not in compliance with
requirements relating to cost, schedule, or
performance under the applicable program
baseline described in section 8183(b)(1) of
this title, as determined by the Deputy
Secretary; or
``(v) requires additional review, as
determined by the Deputy Secretary; and
``(B) a non-major acquisition program requires
review, as determined by the Deputy Secretary.
``(d) Responsibilities.--The Acquisition Review Board shall be
responsible for--
``(1) with respect to a major acquisition program proposed
to the Secretary, determining whether the business strategy,
budget, management, and organization of such program is
feasible and in accordance with the mission and strategic goals
of the Department;
``(2) with respect to a major acquisition program approved
by the Secretary to commence, determining the appropriate
acquisition category for such program;
``(3) with respect to a major acquisition program that has
concluded an acquisition phase--
``(A) authorizing the manager of such program
appointed pursuant to section 8183(a) of this title to
advance such program to a subsequent acquisition phase
if the relevant requirements in such applicable program
baseline have been satisfied; and
``(B) advising such manager on appropriate
corrective action if such requirements have not been
satisfied; and
``(4) reviewing, on a continuous basis, each major
acquisition program to ensure each such program is in
compliance with--
``(A) the relevant requirements in such applicable
program baseline; and
``(B) the certification requirement under
subsection (c) of such section.
``(e) Acquisition Decision Memorandum.--Not later than 30 days
after any date on which the Deputy Secretary convenes a meeting
pursuant to subsection (c), the Deputy Secretary shall submit to the
Secretary and the Committees on Veterans' Affairs of the Senate and the
Committee on Veterans' Affairs of the House of Representatives an
acquisition decision memorandum that includes--
``(1) a summary of--
``(A) the purpose of such meeting;
``(B) any matter discussed during such meeting;
``(C) any decision of the Acquisition Review Board
made during such meeting, including any such decision
to allow a major acquisition program to deviate from
the relevant requirements in such applicable program
baseline; and
``(D) any matters assigned for further discussion
during a subsequent meeting of the Acquisition Review
Board; and
``(2) a certification by the Deputy Secretary that the
contents of such memorandum are accurate.
``Sec. 8183. Major acquisition program managers
``(a) Appointments.--Not later than 30 days after any date on which
the Secretary approves a major acquisition program to commence, the
Deputy Secretary shall appoint a manager to be responsible for
administering such program.
``(b) Duties.--Each manager appointed pursuant to subsection (a)
shall be responsible for, with respect to the applicable major
acquisition program--
``(1) developing, in coordination with the Acquisition
Review Board, a plan to administer such program, to be known as
the `program baseline', that includes--
``(A) a description of each acquisition phase of
such program;
``(B) for each such acquisition phase, requirements
for advancing such program to a subsequent acquisition
phase; and
``(C) estimates of the cost, schedule, and
performance of such program that account for the entire
life cycle of such program;
``(2) ensuring such program is in compliance with such
requirements;
``(3) securing funding necessary to satisfy such
requirements;
``(4) adopting standardized processes with established
success to support the progress of such program, including--
``(A) milestones;
``(B) exit criteria; and
``(C) specific accomplishments;
``(5) to the extent practicable, ensuring that personnel of
the Department responsible for estimating the budget and cost
of such program are provided with an opportunity to raise
concerns relating to such budget and cost prior to the
establishment of the program baseline under paragraph (1);
``(6) on a continuous basis, assessing and managing risks
to satisfying the requirements of such program baseline
relating to cost and schedule;
``(7) establishing a workforce for such program that is
qualified and sufficient to perform the necessary functions of
such program; and
``(8) ensuring such program has adequate technology and
production capacity prior to commencing an acquisition phase of
such program related to manufacturing, if applicable.
``(c) Consideration of Alternate Requirements.--Not later than 90
days after any date on which a manager appointed pursuant to subsection
(a) establishes a program baseline described in subsection (b)(1), such
manager shall submit to the Chair of the Acquisition Review Board a
certification that such manager considered establishing alternate
requirements in such program baseline relating to the cost, schedule,
and performance of each acquisition phase of such program prior to
establishing such program baseline.
``(d) Acquisition Review Board Authorization Required.--(1) Not
later than 30 days after any date on which a major acquisition program
concludes an acquisition phase, the manager of such program appointed
pursuant to subsection (a) shall notify the Acquisition Review Board
under section 8182 of this title.
``(2) Such manager may not advance such program to a subsequent
acquisition phase without the authorization of such Acquisition Review
Board pursuant to subsection (d)(3) of such section.
``Sec. 8184. Cost assessment and program evaluation
``(a) Director of Cost Assessment and Program Evaluation.--There is
established a Director of Cost Assessment and Program Evaluation.
``(b)(1) Independent Advice to Secretary of Veterans Affairs.--The
Director of Cost Assessment and Program Evaluation is the principal
advisor to the Secretary and other senior officials of the Department,
and shall provide independent analysis and advice to such officials, on
the following matters:
``(A) Matters assigned to the Director pursuant to this
section.
``(B) Matters assigned to the Director by the Secretary
pursuant to this section and to section 303 of this title.
``(2) The Director may communicate views on matters within the
responsibility of the Director directly to the Secretary and the Deputy
Secretary of Veterans Affairs without obtaining the approval or
concurrence of any other official within the Department.
``(c) Deputy Directors.--There are two Deputy Directors within the
Office of the Director of Cost Assessment and Program Evaluation, as
follows:
``(1) The Deputy Director for Cost Assessment.
``(2) The Deputy Director for Program Evaluation.
``(d) Responsibilities.--The Director of Cost Assessment and
Program Evaluation shall serve as the principal official within the
senior management of the Department for the following:
``(1) Cost estimation and cost analysis for acquisition
programs of the Department.
``(2) Analysis and advice on matters relating to the
planning and programming phases of the Planning, Programming,
Budgeting, and Execution system, and the preparation of
materials and guidance for such system, as directed by the
Secretary, working in coordination with the Assistant Secretary
for Management and the Chief Financial Officer of the
Department.
``(3) Analysis and advice for resource discussions relating
to requirements under consideration in the Veterans Health
Administration, the Veterans Benefits Administration, or the
National Cemetery Administration.
``(4) Formulation of study guidance for analyses of
alternatives for major acquisition programs and performance of
such analyses, as directed by the Secretary.
``(5) Review, analysis, and evaluation of programs for
executing approved strategies and policies, ensuring that
information on programs is presented accurately and completely,
and assessing the effect of spending by the Department on the
United States economy.
``(6) Assessments of alternative plans, programs, and
policies with respect to the acquisition programs of the
Department.
``(7) Leading the development of improved analytical skills
and competencies within the cost assessment and program
evaluation workforce of the Department and improved tools,
data, and methods to promote performance, economy, and
efficiency in analyzing Department planning and the allocation
of Department resources.
``(e) Independent Cost Estimation and Cost Analysis.--The Director
of Cost Assessment and Program Evaluation shall ensure that the cost
estimation and cost analysis processes of the Department provide
accurate information and realistic estimates of cost for the
acquisition programs of the Department. In carrying out that
responsibility, the Director shall--
``(1) prescribe, by authority of the Secretary, policies
and procedures for the conduct of cost estimation and cost
analysis for the acquisition programs of the Department;
``(2) provide guidance to and consult with the Secretary,
the Chief Acquisition Officer, the Assistant Secretary for
Management, the Chief Financial Officer of the Department, the
Under Secretary for Health, the Under Secretary for Benefits,
and the Under Secretary for Memorial Affairs with respect to
cost estimation in the Department in general and with respect
to specific cost estimates and cost analyses to be conducted in
connection with a major acquisition program;
``(3) issue guidance relating to the proper selection of
confidence levels in cost estimates generally, and
specifically, for the proper selection of confidence levels in
cost estimates for major acquisition programs and major
automated information system programs;
``(4) issue guidance relating to full consideration of
life-cycle management and sustainability costs in major
acquisition programs and major automated information system
programs;
``(5) review all cost estimates and cost analyses conducted
in connection with major acquisition programs and major
automated information system programs;
``(6) conduct independent cost estimates and cost analyses
for major acquisition programs and major automated information
system programs for which the Chief Acquisition Officer is the
Milestone Decision Authority--
``(A) in advance of--
``(i) any certification under this title;
and
``(ii) any decision to enter into low-rate
initial production or full-rate production; and
``(B) at any other time considered appropriate by
the Director or upon the request of the Chief
Acquisition Officer; and
``(7) periodically assess and update the cost indexes used
by the Department to ensure that such indexes have a sound
basis and meet the Department's needs for realistic cost
estimation.
``(f) Review of Cost Estimates, Cost Analyses, and Records of the
Department.--The Secretary shall ensure that the Director--
``(1) promptly receives the results of all cost estimates
and cost analyses conducted by the Veterans Benefits
Administration, the Veterans Health Administration, or the
National Cemetery Administration and all studies conducted by
the Administration in connection with such cost estimates and
cost analyses for major acquisition programs and major
automated information system programs of the Administrations;
and
``(2) has timely access to any records and data in the
Department (including the records and data of each
Administration) that the Director considers necessary to review
in order to carry out any duties under this section.
``(g) Participation, Concurrence, and Approval in Cost
Estimation.--The Director may--
``(1) participate in the discussion of any discrepancies
between an independent cost estimate and the cost estimate
assessments of the Veterans Benefits Administration, the
Veterans Health Administration, and the National Cemetery
Administration for a major acquisition program or major
automated information system program of the Department;
``(2) comment on deficiencies in the methodology or
execution of any cost estimate or cost analysis developed by
the Veterans Benefits Administration, the Veterans Health
Administration, or the National Cemetery Administration for a
major acquisition program or major automated information system
program;
``(3) concur in the choice of a cost estimate within the
baseline description or any other cost estimate (including the
confidence level for any such cost estimate) for use at any
event specified in subsection (e)(6); and
``(4) participate in the consideration of any decision to
request authorization of a multi-year procurement contract for
a major acquisition program.
``(h) Annual Report on Cost Assessment Activities.--(1) Each year,
not later than 10 days after the transmittal to Congress of the budget
of the President for a fiscal year pursuant to section 1105 of title
31, the Director shall submit to the Secretary, the Chief Acquisition
Officer of the Department, the Assistant Secretary for Management, the
Chief Financial Officer of the Department, the Committee on Veterans'
Affairs of the Senate and the Committee on Veterans' Affairs of the
House of Representatives an annual report on the cost estimation and
cost analysis activities of the Department carried out during the
previous year.
``(2) Each report submitted pursuant to paragraph (1) shall
include, for the period covered by the report, the following:
``(A) A summary of the cost estimation and cost analysis
activities of the Department.
``(B) Assessments of the following:
``(i) The progress of the Department in improving
the accuracy of its cost estimates and analyses.
``(ii) The extent to which each of the Veterans
Benefits Administration, the Veterans Health
Administration, and the National Cemetery
Administration have complied with policies, procedures,
and guidance issued by the Director with regard to the
preparation of cost estimates for major acquisition
programs and major automated information systems.
``(iii) The overall quality of cost estimates
prepared by each of the Administrations for major
acquisition programs and major automated information
system programs.
``(iv) Any consistent differences in methodology or
approach among the cost estimates prepared by the
Administrations and the Director.
``(3)(A) The Director shall ensure that a report submitted to
paragraph (1) does not include any information, such as proprietary or
source selection sensitive information, that could undermine the
integrity of the acquisition process.
``(B) The report submitted pursuant to paragraph (1) to the
committees described in such paragraph shall be posted on an internet
website of the Department that is available to the public.
``(4) The Secretary may comment on any report of the Director
submitted to the committees described in paragraph (1) pursuant to such
paragraph.
``(i) Staff.--The Secretary shall ensure that the Director has
sufficient professional staff to enable the Director to carry out the
duties and responsibilities of the Director under this section.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following:
``subchapter vii--acquisition review, cost assessment, and program
evaluation
``Sec. 8181. Definitions.
``Sec. 8182. Acquisition Review Board.
``Sec. 8183. Major acquisition program managers.
``Sec. 8184. Cost assessment and program evaluation.''.
(c) Report on Monitoring of Operating and Support Costs for Major
Acquisition Programs.--
(1) Report to secretary of veterans affairs.--Not later
than one year after the date of the enactment of this Act, the
Director of Cost Assessment and Program Evaluation established
pursuant to section 8184 of title 38, United States Code, as
added by subsection (a), shall--
(A) review systems and methods of the Department of
Veterans Affairs currently in effect for tracking and
assessing operating and support costs on major
acquisition programs (as defined in section 8181 of
such title, as added by subsection (a)); and
(B) submit to the Secretary of Veterans Affairs a
report on such findings and recommendations as the
Director may have as a result of the review conducted
pursuant to subparagraph (A), including an assessment
by the Director of the feasibility and advisability of
establishing baselines for operating and support costs
under such title.
(2) Transmittal to congress.--Not later than 30 days after
receiving the report required by paragraph (1)(A), 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 received by the Secretary under
paragraph (1)(B), together with such comments on the report as
the Secretary considers appropriate.
SEC. 3. COMPTROLLER GENERAL OF THE UNITED STATES REPORTS ON COSTS AND
FINANCIAL INFORMATION REGARDING MAJOR DEPARTMENT OF
VETERANS AFFAIRS ACQUISITION PROGRAMS.
(a) Review of Operating and Support Costs of Major Acquisition
Systems.--
(1) In general.--Not later than one year after the date of
the enactment of this Act, the Comptroller General of the
United States 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 growth in operating
and support costs for major acquisition systems.
(2) Elements.--In preparing the report required by
paragraph (1), the Comptroller General shall, at a minimum--
(A) identify the original estimates for operating
and support costs for major acquisition systems
selected by the Comptroller General for purposes of the
report;
(B) assess the actual operating and support costs
for such major acquisition systems;
(C) analyze the rate of growth for operating and
support costs for such major acquisition systems;
(D) for such major acquisition systems that have
experienced the highest rate of growth in operating and
support costs, assess the factors contributing to such
growth;
(E) assess measures taken by the Department of
Veterans Affairs to reduce operating and support costs
for major acquisition systems; and
(F) develop such recommendations as the Comptroller
General considers appropriate.
(b) Review of Financial Information Relating to Major Veteran
Acquisition Programs.--
(1) Review.--The Comptroller General of the United States
shall perform a review of weaknesses in operations affecting
the reliability of financial information on the systems and
assets to be acquired under major acquisition programs.
(2) Elements.--The review required under paragraph (1)
shall--
(A) identify any weaknesses in operations under
major acquisition programs that hinder the capacity to
assemble reliable financial information on the systems
and assets to be acquired under such programs in
accordance with applicable accounting standards;
(B) identify any mechanisms developed by the
Department of Veterans Affairs to address weaknesses in
operations under major acquisition programs identified
pursuant to subparagraph (A); and
(C) assess the implementation of the mechanisms set
forth pursuant to subparagraph (B), including--
(i) the actions taken, or planned to be
taken, to implement such mechanisms;
(ii) the schedule for carrying out such
mechanisms; and
(iii) the metrics, if any, instituted to
assess progress in carrying out such
mechanisms.
(3) Consultation.--In performing the review required by
paragraph (1), the Comptroller General shall seek and consider
input from the Assistant Secretary of Veterans Affairs for
Management.
(4) Report.--Not later than one year after the date of the
enactment of this Act, the Comptroller General 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 findings of the Comptroller General with
respect to the review performed pursuant to paragraph (1).
(c) Definition of Major Acquisition Program.--In this section, the
term ``major acquisition program'' has the meaning given such term in
section 8181 of title 38, United States Code, as added by section 2(a).
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