[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1591 Engrossed in Senate (ES)]
<DOC>
119th CONGRESS
1st Session
S. 1591
_______________________________________________________________________
AN ACT
To amend title 38, United States Code, to reorganize the acquisition
structure 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Acquisition Reform
and Cost Assessment Act of 2025'' or the ``ARCA Act of 2025''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Department of Veterans Affairs acquisition organization.
Sec. 3. Department of Veterans Affairs major acquisition program
managers.
Sec. 4. Department of Veterans Affairs acquisition and procurement
reorganization matters.
Sec. 5. Independent verification and validation of major acquisition
programs of Department of Veterans Affairs.
Sec. 6. Department of Veterans Affairs cost assessment and program
evaluation.
Sec. 7. Improvements to hiring of entry-level acquisition positions in
Department of Veterans Affairs.
Sec. 8. Independent analysis of acquisition process of Department of
Veterans Affairs.
Sec. 9. Requirements development process.
Sec. 10. Conforming amendments.
Sec. 11. Clerical amendments.
SEC. 2. DEPARTMENT OF VETERANS AFFAIRS ACQUISITION ORGANIZATION.
(a) Definitions.--Chapter 81 of title 38, United States Code, is
amended by inserting after subchapter VI the following new subchapter:
``Subchapter VII--Acquisition Organization, Cost Assessment, and
Program Evaluation
``SEC. 8181. DEFINITION OF MAJOR ACQUISITION PROGRAM.
``In this subchapter, the term `major acquisition program' means a
program of the Department to acquire services, supplies, technology,
systems, or a combination thereof, with an estimated total program
cost, estimated by the Secretary, that exceeds--
``(1) $1,000,000,000 (adjusted pursuant to section 1908 of
title 41) for the total life cycle cost of the program; or
``(2) $200,000,000 (adjusted pursuant to section 1908 of
title 41) annually.''.
(b) Assistant Secretary for Acquisition.--Section 308 of such title
is amended--
(1) in subsection (a)(1), by striking ``seven'' and
inserting ``eight''; and
(2) in subsection (b)(10), by striking ``Procurement
functions'' and inserting ``Acquisition functions''.
(c) Acquisition Organization.--Subchapter VI of chapter 81 of such
title, as added by subsection (a), is amended by adding at the end the
following new section:
``SEC. 8182. ACQUISITION ORGANIZATION.
``(a) Assistant Secretary for Acquisition; Chief Acquisition
Officer.--(1) The Secretary shall designate one of the Assistant
Secretaries specified in subsection (a)(1) of section 308 of this title
as the Assistant Secretary of Veterans Affairs for Acquisition, who
shall focus solely on the administration of functions specified in
subsection (b)(10) of such section.
``(2) Pursuant to section 1702(a) of title 41, the Secretary shall
designate the Assistant Secretary of Veterans Affairs for Acquisition
as the Chief Acquisition Officer of the Department.
``(b) Office of Acquisition.--(1) There is in the Department an
Office of Acquisition.
``(2) The head of the Office of Acquisition shall be the Assistant
Secretary of Veterans Affairs for Acquisition designated pursuant to
subsection (a).
``(3) The Secretary shall take such actions as may be necessary to
ensure that major acquisition program offices of the Department align
under the Office of Acquisition and report directly to the Assistant
Secretary of Veterans Affairs for Acquisition.
``(4) The budget of the Office of Acquisition, including budgets
for major acquisition programs, shall be established in the budget
justification materials submitted to Congress in support of the budget
of the Department (as submitted with the budget of the President under
section 1105(a) of title 31).
``(c) Deputy Assistant Secretary for Logistics.--(1) Pursuant to
section 308(d) of this title, the Secretary shall appoint a Deputy
Assistant Secretary of Veterans Affairs for Logistics, who shall report
to the Assistant Secretary for Acquisition.
``(2) The Deputy Assistant Secretary of Veterans Affairs for
Logistics shall be responsible for administration of logistics and
supply chain operations of the Department.
``(d) Deputy Assistant Secretary for Procurement.--(1) Pursuant to
section 308(d) of this title, the Secretary shall appoint a Deputy
Assistant Secretary of Veterans Affairs for Procurement, who shall
report to the Assistant Secretary for Acquisition.
``(2) The Deputy Assistant Secretary of Veterans Affairs for
Procurement shall be responsible for all procurement and contracting
organizations of the Department.
``(e) Deputy Assistant Secretary for Acquisition, Program
Management, and Performance.--(1) Pursuant to section 308(d) of this
title, the Secretary shall appoint a Deputy Assistant Secretary of
Veterans Affairs for Acquisition, Program Management, and Performance,
who shall report to the Assistant Secretary for Acquisition.
``(2) The Deputy Assistant Secretary for Acquisition, Program
Management, and Performance shall be responsible for the following:
``(A) Lifecycle management.
``(B) Requirements planning.
``(C) Programming and budgeting.
``(D) Policy.
``(E) Performance standards.
``(F) Governance.
``(G) Enhancing the capabilities of the acquisition
workforce.
``(f) Program Executive Officers.--(1) The Assistant Secretary for
Acquisition shall appoint no fewer than four Program Executive
Officers, each responsible for overseeing major acquisition programs in
one of the following areas:
``(A) Medical.
``(B) Information technology.
``(C) Professional services.
``(D) Other areas not included in subparagraphs (A) through
(C).
``(2) Each Program Executive Officer shall report directly to the
Assistant Secretary for Acquisition and shall supervise the managers of
major acquisition programs within their respective area, as appointed
under section 8183 of this title.
``(3) Each Program Executive Officer shall be--
``(A) certified in project management at level three by--
``(i) the Department;
``(ii) the Federal Acquisition Institute pursuant
to section 1201 of title 41; or
``(iii) the Department of Defense pursuant to
section 1701a of title 10; or
``(B) hold an equivalent certification by a private sector
project management certification organization, as determined
appropriate by the Secretary.''.
SEC. 3. DEPARTMENT OF VETERANS AFFAIRS MAJOR ACQUISITION PROGRAM
MANAGERS.
Subchapter VI of chapter 81 of title 38, United States Code, as
added by section 2, is amended by adding at the end the following new
section:
``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
applicable Program Executive Officer shall appoint a manager to be
responsible for administering such program.
``(b) Qualifications.--Each manager appointed pursuant to
subsection (a) shall be--
``(1) certified in project management at level three by--
``(A) the Department;
``(B) the Federal Acquisition Institute pursuant to
section 1201 of title 41; or
``(C) the Department of Defense pursuant to section
1701a of title 10; or
``(2) hold an equivalent certification by a private sector
project management certification organization, as determined
appropriate by the Secretary.
``(c) Duties.--Each manager appointed pursuant to subsection (a)
for a major acquisition program shall--
``(1) report to the Assistant Secretary for Acquisition
through the Program Executive Officer responsible for the major
acquisition program; and
``(2) shall be responsible for, with respect to the major
acquisition program--
``(A) developing, in coordination with the Program
Executive Officer, a plan to administer major
acquisition program, which shall be known as the
`program baseline' for the major acquisition program,
that includes--
``(i) a description of each acquisition
phase of the major acquisition program;
``(ii) for each such acquisition phase,
requirements for advancing the major
acquisition program to a subsequent acquisition
phase; and
``(iii) estimates of the cost, schedule,
and performance of the major acquisition
program that account for the entire life cycle
of the major acquisition program;
``(B) ensuring the major acquisition program is in
compliance with such requirements and providing all
program documentation, including program baseline
documentation, cost, schedule, performance and risk
assessments, and other relevant materials, to
designated officials and relevant governance boards;
``(C) developing resource requests and
justifications necessary to satisfy such requirements;
and
``(D) on a continuous basis, assessing and managing
risks to satisfying the requirements of such program
baseline relating to cost and schedule.
``(d) Program Decision Authority.--The Secretary shall ensure
that--
``(1) program decision authority for oversight of a major
acquisition program is the Assistant Secretary for Acquisition;
and
``(2) program management offices for major acquisition
programs are independent of the Veterans Benefits
Administration, the Veterans Health Administration, the
National Cemetery Administration, and staff offices of the
Department by reporting directly to the Assistant Secretary for
Acquisition.
``(e) Program Decision Authority Notification Required.--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 program decision authority
under subsection (c).''.
SEC. 4. DEPARTMENT OF VETERANS AFFAIRS ACQUISITION AND PROCUREMENT
REORGANIZATION MATTERS.
(a) Organizational Consolidation.--Not later than one year after
the date of the enactment of this Act, the Secretary of Veterans
Affairs shall organizationally consolidate under the Assistant
Secretary of Veterans Affairs for Acquisition every activity of the
Department of Veterans Affairs, including the Veterans Benefits
Administration, the Veterans Health Administration, and the National
Cemetery Administration, that relates to--
(1) acquisition;
(2) procurement and contracting; or
(3) logistics and supply chain.
(b) Relocation.--Subsection (a) shall not be construed to require
the physical relocation of employees of the Department.
(c) Plan and Briefing.--
(1) In general.--Not later than 90 days after commencing
organizational consolidation under subsection (a), the
Secretary shall--
(A) submit to the Committee on Veterans' Affairs of
the Senate and the Committee on Veterans' Affairs of
the House of Representatives a written plan to carry
out such organizational consolidation; and
(B) provide such committees a briefing on such
plan.
(2) Contents.--The plan submitted pursuant to paragraph
(1)(A) shall include the following:
(A) A timeline.
(B) A plan for communication and training
activities for relevant Department personnel.
(C) A plan for modification of relevant Department
policy and guidance.
(D) Such other matters as the Secretary considers
relevant and appropriate.
SEC. 5. INDEPENDENT VERIFICATION AND VALIDATION OF MAJOR ACQUISITION
PROGRAMS OF DEPARTMENT OF VETERANS AFFAIRS.
(a) Contracting Authority.--Not later than 120 days after the date
of the enactment of this Act, the Secretary of Veterans Affairs shall
seek to enter into one or more contracts using competitive procedures
with one or more entities to carry out the functions described in
subsection (c).
(b) Eligibility.--
(1) In general.--An entity is not eligible to be awarded a
contract under this section unless the Chief Acquisition
Officer of the Department of Veterans Affairs determines, at
the time of evaluation of offers submitted under subsection
(a), that the entity is currently performing or has performed,
during the preceding three-year period, not fewer than three
prime contracts from either governmental or commercial health
care organizations for--
(A) the independent verification and validation
services or equivalent services, including systems
engineering and technical advisory (SETA) support of
major acquisition programs; or
(B) the independent verification and validation or
systems engineering and technical advisory (SETA)
support of the development or acquisition of major
acquisition programs or defense systems, in accordance
with guidance of the Department of Defense relating to
such acquisition programs or such business systems.
(2) Past performance.--For any contract used to demonstrate
eligibility under paragraph (1), an entity must have performed
the work at a satisfactory or better level as indicated by the
past performance information in the Contractor Performance
Assessment Reporting System, or successor system.
(3) Demonstration of lack of conflict of interest.--The
Secretary shall revoke the eligibility of an entity under this
subsection if an entity does not demonstrate clear and
unmitigable evidence that the entity does not have a conflict
of interest with respect to the effective performance of
functions under subsection (c).
(4) No mitigation plans acceptable.--The Secretary may not
accept from an entity a plan to mitigate a conflict of interest
in order to ameliorate any limitation or prohibition under this
subsection.
(c) Functions.--The functions specified in this subsection are the
following:
(1) The independent verification and validation of each
major acquisition program project--
(A) when such major acquisition program is
initiated, with respect to its design and the
development of its requirements and acquisition;
(B) at the conclusion of such program; and
(C) at any other intervals during such program
selected by the Chief Acquisition Officer of the
Department.
(2) The independent verification and validation of other
programs or projects of the Department selected by the Chief
Acquisition Officer of the Department, at intervals selected by
the Chief Acquisition Officer.
(d) Funding.--The Chief Financial Officer of the Department shall
ensure that each organizational subdivision of the Department that
enters into a contract under subsection (a) proportionally contributes
amounts to fund each such contract.
(e) Independent Verification Validation Defined.--The term
``independent verification and validation'' means a comprehensive
inspection, a review, analysis, and testing, or an assessment of
systems, software, or hardware, as applicable, performed by an entity
awarded a contract under subsection (a)--
(1) to verify that the requirements of a program, project
or system, or a development phase of such a program or project,
are correctly defined; and
(2) to validate cost, schedule, and performance baselines
of current programs and measure program effectiveness.
SEC. 6. DEPARTMENT OF VETERANS AFFAIRS COST ASSESSMENT AND PROGRAM
EVALUATION.
(a) In General.--Subchapter VI of chapter 81 of title 38, United
States Code, as added by section 2 and amended by section 3, is further
amended by adding at the end the following new section:
``Sec. 8184. Cost assessment and program evaluation
``(a) Director of Cost Assessment and Program Evaluation.--There is
in the Department a Director of Cost Assessment and Program Evaluation,
who shall report directly to the Secretary.
``(b) Responsibilities.--The responsibilities of the Director are
as follows:
``(1) To develop policies and procedures for cost
estimation and analysis of major acquisition programs of the
Department.
``(2) To conduct independent cost estimates and analyses
for major acquisition programs to support acquisition
decisions, or any other acquisitions as directed by the
Secretary,
``(3) To provide an independent cost estimate to the
Assistant Secretary for Acquisition in advance of a decision to
proceed with full-scale acquisition for a major acquisition
program or any other program as directed by the Director.
``(4) To evaluate the effectiveness of major acquisition
programs in meeting Department objectives.
``(5) Not less frequently than once each year, to submit to
the Secretary and the Committee on Veterans' Affairs of the
Senate and the Committee on Veterans' Affairs of the House of
Representatives an annual report on cost estimation and program
evaluation activities, including recommendations to improve
acquisition efficiency. Such report shall include a list of all
acquisitions where the independent cost estimate for a major
acquisition program exceeded the budget request for the program
by more than 5 percent.
``(c) Support and Resources.--The Chief Financial Officer of the
Department shall provide to the Secretary such support and resources as
may be necessary for the Secretary to ensure the effective
establishment and functioning of the Director of Cost Assessment and
Program Evaluation.''.
(b) 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, and
not less frequently than once each year thereafter until
December 31, 2028, the Director of Cost Assessment and Program
Evaluation of the Department of Veterans Affairs shall submit
to the Secretary of Veterans Affairs a report on systems and
methods for tracking and assessing operating and support costs
of major acquisition programs (as defined in section 8181 of
title 38, United States Code, as added by section 2), including
recommendations for establishing cost baselines.
(2) Transmittal to congress.--Not later than 30 days after
receiving a report pursuant to paragraph (1), 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.
SEC. 7. IMPROVEMENTS TO HIRING OF ENTRY-LEVEL ACQUISITION POSITIONS IN
DEPARTMENT OF VETERANS AFFAIRS.
(a) Priority Use of Internship Programs for Hiring Into Entry-level
Positions in Acquisitions.--The Secretary of Veterans Affairs shall
prioritize the use of acquisition internship programs to hire employees
to entry-level positions relating to acquisition in the Department of
Veterans Affairs.
(b) Annual Number of Participants in Acquisition Internship
Programs.--
(1) In general.--Not later than September 30 of the first
fiscal year beginning after the date of the enactment of this
Act, the Secretary shall take such actions as may be necessary
to ensure that the annual number of participants in acquisition
internship programs of the Department is--
(A) not fewer than twice the number of participants
in such programs during fiscal year 2025; and
(B) not more than 4 times the number of
participants in such programs during such fiscal year.
(2) Termination.--The requirements of paragraph (1) shall
terminate on the date on which the Secretary certifies to the
appropriate committees of Congress that the projected number of
graduates of acquisition internship programs is sufficient to
satisfy the human capital needs of the Department with respect
to acquisition, taking into account the rate of attrition and
projected retirements of personnel.
(3) Appropriate committees of congress defined.--In this
subsection, the term ``appropriate committees of Congress''
means the Committee on Veterans' Affairs of the Senate and the
Committee on Veterans' Affairs of the House of Representatives.
SEC. 8. INDEPENDENT ANALYSIS OF ACQUISITION PROCESS OF DEPARTMENT OF
VETERANS AFFAIRS.
(a) Systems Engineering Analysis.--Not later than one year after
the date of the enactment of this Act, the Secretary of Veterans'
Affairs shall seek to enter into a memorandum of understanding with the
acquisition research center established under section 4142(a) of title
10, United States Code, to conduct a systems engineering analysis of
the acquisition process of the Department of Veterans Affairs.
(b) Report.--Not later than one year after the date in which the
Secretary enters into the memorandum of understanding required by
subsection (a), the Secretary shall submit to 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 acquisition
research center with respect to the analysis conducted under such
subsection.
SEC. 9. REQUIREMENTS DEVELOPMENT PROCESS.
(a) In General.--Subchapter VI of chapter 81 of title 38, United
States Code, as added by section 2 and amended by sections 3 and 6, is
further amended by adding at the end the following new section:
``SEC. 8185. REQUIREMENTS DEVELOPMENT PROCESS.
``(a) Establishment of Process.--(1) The Secretary shall establish
a standardized requirements development process for major acquisition
programs.
``(2) The process established pursuant to paragraph (1) shall--
``(A) define and validate mission-driven requirements for
major acquisition programs exceeding $200,000,000 annually or
$1,000,000,000 in lifecycle costs, in coordination with the
Assistant Secretary for Acquisition;
``(B) incorporate data-driven needs assessments,
stakeholder input from relevant administrations, staff offices,
and other elements of the Department and veterans service
organizations, and alignment with statutory mandates, such as
section 8121 of this title; and
``(C) ensure iterative validation of requirements through
independent verification and validation, as described in
section 8185 of this title, to confirm cost, schedule, and
performance baselines.
``(b) Limitation on Personnel.--The Secretary shall implement the
process established pursuant to subsection (a) using staff within the
Office of Acquisition and other relevant offices of the Department, as
established under section 8182 of this title, without creating new
positions, unless a subsequent cost-benefit analysis, validated by the
Director of Cost Assessment and Program Evaluation, justifies
additional resources.''.
(b) Report.--Not later than 180 days after the date of the
enactment of this Act, 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 detailing the process
established pursuant to section 8185 of such title, as added by
subsection (a), and a plan for implementation of such process,
including timelines for integration with major acquisition program
baselines.
SEC. 10. CONFORMING AMENDMENTS.
Subchapter VI of chapter 81 of title 38, United States Code, is
amended--
(1) in section 8171, by striking paragraphs (5) and (6);
and
(2) by striking section 8172.
SEC. 11. CLERICAL AMENDMENTS.
The table of sections at the beginning of chapter 81 of title 38,
United States Code, is amended--
(1) by striking the item relating to section 8172; and
(2) by adding at the end the following:
``subchapter vii--acquisition organization, cost assessment, and
program evaluation
``8181. Definition of major acquisition program.
``8182. Acquisition reorganization.
``8183. Major acquisition program managers.
``8184. Cost assessment and program evaluation.
``8185. Requirements development process.''.
Passed the Senate December 11, 2025.
Attest:
Secretary.
119th CONGRESS
1st Session
S. 1591
_______________________________________________________________________
AN ACT
To amend title 38, United States Code, to reorganize the acquisition
structure of the Department of Veterans Affairs and to establish the
Director of Cost Assessment and Program Evaluation in the Department,
and for other purposes.