[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1591 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 1591
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.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 5, 2025
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 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. Department of Veterans Affairs other transaction authority and
advance market commitments for technologies
or services for provision of health care.
Sec. 8. Development and expansion of an 1102 internship or development
pipeline.
Sec. 9. Clerical amendment.
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. Definitions
``In this subchapter:
``(1) The term `major acquisition program' means a program
of the Department to acquire property, systems or technology,
assets, supplies, services, or a combination thereof, with an
estimated total program 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, systems or
technology, assets, supplies, services, or a combination
thereof, with an estimated total program life-cycle cost of
less than $250,000,000, as determined by the Secretary.''.
(b) Assistant Secretary for Acquisition and Innovation.--Section
308 of such title is amended--
(1) in subsection (a)(1), by striking ``seven'' and
inserting ``eight''; and
(2) in subsection (b), by adding at the end the following
new paragraph:
``(13) Acquisition and innovation.''.
(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 and Innovation; 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 and Innovation, who shall focus solely on the
administration of functions specified in subsection (b)(13) of such
section.
``(2) Pursuant to section 1702(a) of title 41, the Secretary shall
designate the Assistant Secretary of Veterans Affairs for Acquisition
and Innovations as the Chief Acquisition Officer of the Department.
``(b) Office of Acquisition and Innovation.--(1) There is in the
Department an Office of Acquisition and Innovation.
``(2) The head of the Office of Acquisition and Innovation shall be
the Assistant Secretary of Veterans Affairs for Acquisition and
Innovation designated pursuant to subsection (a).
``(3) The Secretary shall take such actions as may be necessary to
ensure that major program offices of the Department align under the
Office of Acquisition and Innovation and report directly to the
Assistant Secretary of Veterans Affairs for Acquisition and Innovation.
``(4) The budget of the Office of Acquisition and Innovation 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 and Innovation.
``(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 Innovation.--(1) Pursuant to
section 308(d) of this title, the Secretary shall appoint a Deputy
Assistant Secretary of Veterans Affairs for Innovation, who shall
report to the Assistant Secretary for Acquisition and Innovation.
``(2) The Deputy Assistant Secretary of Veterans Affairs for
Innovation shall be responsible for all research, development, testing,
and innovation development organizations of the Department, including
the Veterans Health Administration Innovation Ecosystem.
``(e) 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 and Innovation.
``(2) The Deputy Assistant Secretary of Veterans Affairs for
Procurement shall be responsible for all procurement and contracting
organizations of the Department.''.
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
Deputy Secretary shall appoint a manager to be responsible for
administering such program.
``(b) Duties.--Each manager appointed pursuant to subsection (a)
shall report to the Assistant Secretary for Acquisition and Innovation
and shall be responsible for, with respect to the applicable major
acquisition program--
``(1) developing, in coordination with the Assistant
Secretary, and functional teams responsible for the program
requirements, 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) ensure such program complies with cost accounting
standards, as applicable;
``(8) establishing a workforce for such program that is
qualified and sufficient to perform the necessary functions of
such program; and
``(9) 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 program decision authority under subsection
(d) 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) Program Decision Authority.--The Secretary shall ensure
that--
``(1) program decision authority for oversight of a major
acquisition program of the Department is the Assistant
Secretary for Acquisition and Innovation; 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 Department staff offices
by reporting directly to the Assistant Secretary for
Acquisition and Innovation.
``(e) Program Decision Authority 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 program decision authority
under subsection (d).
``(2) Such manager may not advance such program to a subsequent
acquisition phase without the authorization of such program decision
authority under subsection (d).''.
SEC. 4. DEPARTMENT OF VETERANS AFFAIRS ACQUISITION AND PROCUREMENT
REORGANIZATION MATTERS.
(a) Contracting Officers.--The Secretary of Veterans Affairs shall
transfer all contracting officers and acquisition centers in the
Department of Veterans Affairs to the Office of Acquisition and
Innovation established by section 8182(b) of title 38, United States
Code, as added by section 2(c).
(b) Consolidation of Logistics and Supply Chain Operations.--The
Secretary shall take such actions as may be necessary to consolidate
all activities relating to the administration of logistics and supply
chain operations of the Department under the Deputy Assistant Secretary
of Veterans Affairs for Logistics appointed pursuant to section 8182(e)
of such title, as added by section 2(c).
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--
(1) review and take action to ensure that all independent
verification and validation, as well as testing contracts in
effect in the Department, comply with the provisions of this
Act and the amendments made by this Act; and
(2) 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 for--
(A) the independent verification and validation or
systems engineering and technical advisory (SETA)
support 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; 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) Limitation.--The Secretary shall ensure that an entity,
including its subsidiaries, joint ventures, subcontractors,
teaming partners, investments, and corporate officers, awarded
a contract under this section does not perform the functions
specified in subsection (c) with respect to a project or system
of the Department or organizational subdivision of the
Department if such entity is performing or has performed,
during the three-year period preceding the date of such award,
a covered contract--
(A) for such project or system; or
(B) for the Department or such organizational
subdivision of the Department.
(3) Consideration regarding future procurements.--A
contracting officer of the Department shall consider the
requirements of this subsection when implementing the
organizational conflict of interest mitigation procedures under
subpart of title 48, Code of Federal Regulations, or successor
regulations, with respect to future procurements in which an
entity awarded under subsection (a) is an offeror.
(c) Functions.--The functions specified in this subsection are the
following:
(1) The independent verification and validation of each
major acquisition program or major information technology
project--
(A) when such major program is initiated, with
respect to its design and the development of its
requirements and acquisition;
(B) at the conclusion of such project; and
(C) at any other intervals during such project
selected by the Chief Acquisition Officer of the
Department.
(2) The independent verification and validation of other
projects of the Department selected by the Chief Acquisition
Officer of the Department, at intervals selected by the Chief
Acquisition Officer.
(3) With respect to any project or system of the Department
selected by the Chief Acquisition Officer of the Department the
evaluation of--
(A) testing conducted by the Department or other
testing entity;
(B) technical architecture or design, including
data management;
(C) development processes;
(D) stability and resiliency;
(E) integration or interoperability with other
systems, including an assessment of data quality;
(F) adoption and use;
(G) management, including governance, costs, and
schedules; and
(H) any other elements or processes as determined
by the Chief Acquisition Officer.
(d) Transmittal to Congress.--
(1) In general.--Not later than 30 days after the date on
which an independent verification and validation is performed
pursuant to subsection (c)(1), the Secretary shall transmit to
Congress a copy of such independent verification and
validation.
(2) Verification and validation and evaluations.--Not later
than 30 days after the date on which the Committee on Veterans'
Affairs of the Senate or the Committee on Veterans' Affairs of
the House of Representatives requests a copy of any independent
verification and validation under paragraph (2) of subsection
(c) or evaluation under paragraph (3) of such subsection, the
Secretary shall transmit to such committee a copy of such
verification and validation or evaluation.
(3) Organizational conflict of interest; mitigation
plans.--Not later than 30 days after the date on which the
Committee on Veterans' Affairs of the Senate or the Committee
on Veterans' Affairs of the House of Representatives requests a
copy of any organizational conflict of interest mitigation plan
submitted by an offeror pursuant to subsection (b)(3), the
Secretary shall transmit to such committee a copy of such plan.
(e) Funding.--The Chief Financial Officer of the Department shall
ensure, to the extent practicable, that each organizational subdivision
of the Department that enters into a contract under subsection (a)
proportionally contributes amounts to fund each such contract.
(f) Definitions.--In this section:
(1) Covered contract.--The term ``covered contract'' means
a prime contract or subcontract for--
(A) information technology support or software or
system design, development, sustainment, or maintenance
services;
(B) professional or management consulting services;
or
(C) advisory and assistance services.
(2) Independent verification validation.--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)--
(A) to verify that the requirements of a project or
system, or a development phase of such a project, are
correctly defined;
(B) to validate that the project or system, or a
product of a development phase of such a project,
correctly implements the required functionality and
applicable security requirements; and
(C) verify that a project or system, or a product
of a development phase of such a project, satisfies and
conforms to the requirements, standards, and practices
of each life cycle phase and successfully completes
each life cycle activity.
(3) Major acquisition program.--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).
(4) Major information technology project.--The term ``major
information technology project'' has the meaning given such
term in section 8171 of title 38, United States Code.
(5) Major system.--The term ``major system'' has the
meaning given such term in section 2.101 of title 48, Code of
Federal Regulations (or a successor regulation).
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
established a Director of Cost Assessment and Program Evaluation, who
shall report directly to the Secretary.
``(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, the
National Cemetery Administration, and all staff offices.
``(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 product
or system low-rate initial production, initial
pilot implementation, or full-rate production
or implementation; 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, the
National Cemetery Administration, or staff offices 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, the National Cemetery
Administration, and staff offices 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, the National Cemetery Administration, or staff
offices 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, the National Cemetery Administration,
and staff offices 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) 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 using cost-
accounting standards and procedures, as appropriate, 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. 7. DEPARTMENT OF VETERANS AFFAIRS OTHER TRANSACTION AUTHORITY AND
ADVANCE MARKET COMMITMENTS FOR TECHNOLOGIES OR SERVICES
FOR PROVISION OF HEALTH CARE.
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. Other transaction authority
``(a) Authority.--The Secretary may enter into transactions (other
than contracts, cooperative agreements, and grants) with nontraditional
contractors to carry out extramural basic or applied research, or
innovation development activities. Such authority may be exercised by
the Deputy Assistant Secretary for Innovation for activities aligned
with the mission of the Veterans Health Administration Innovation
Ecosystem.
``(b) Requirements.--The Secretary may enter into a transaction
under subsection (a) to carry out extramural basic or applied research
if each of the following criteria are met:
``(1) The research is not duplicative of other research
being conducted by the Department under another program or
through a contract, cooperative agreement, or grant.
``(2) The senior procurement executive has determined that
entering into the transaction to carry out the research is
appropriate.
``(3) The transaction will not exceed $5,000,000 (including
all options), unless the senior procurement executive
determines that exceeding such amount is appropriate.
``(4) Not less than 33 percent of the total cost of the
research (regardless of the percentage of such total cost for
which the transaction is funding) is paid for, or provided
through nonmonetary contributions, by sources other than the
Federal Government, unless the senior procurement executive
determines that--
``(A) meeting such threshold for non-Federal
sources of funding or contributions is not possible;
and
``(B) carrying out the research without meeting
such threshold is in the public interest.
``(5) In the case of transactions supporting innovation
development activities described in subsection (a), the Deputy
Assistant Secretary for Innovation certifies that such
activities align with the goals of improving the delivery of
health care for veterans, operational efficiency, or technology
adoption, and do not require approval of the Institutional
Review Board unless involving human subjects research as
defined in part 16 of title 38, Code of Federal Regulations, or
successor regulations.
``(c) Provision of Information.--
``(1) Congress.--
``(A) Notification.--Not later than 30 days after
the date on which the Secretary enters into a
transaction under this section, the Secretary shall
notify the appropriate congressional committees of such
transaction, including a copy of each determination
made under subsection (b).
``(B) By request.--Upon the request of an
appropriate congressional committee, the Secretary
shall submit to the appropriate congressional
committees a copy of a transaction under this section
or performance or financial information relating to
such transaction.
``(2) Comptroller general of the united states.--With
respect to transactions entered into under this section, the
Secretary shall ensure that, upon request, the Comptroller
General of the United States may examine records of any party
to the transaction or any entity that participates in the
performance of the transaction if such records are generated in
the performance of the transaction or are directly related to
the transaction.
``(d) Regulations.--The Secretary shall prescribe regulations to
carry out this section.
``(e) Termination.--The authority to enter into transactions under
this section shall terminate on the date that is three years after the
date of the enactment of the Acquisition Reform and Cost Assessment Act
of 2025.
``(f) Definitions.--In this section:
``(1) The term `appropriate congressional committees'
means--
``(A) the Committee on Veterans' Affairs and the
Subcommittees on Military Construction, Veterans'
Affairs, and Related Agencies of the Committees on
Appropriations of the Senate; and
``(B) the Committee on Veterans' Affairs and the
Subcommittees on Military Construction, Veterans'
Affairs, and Related Agencies of the Committees on
Appropriations of the House of Representatives.
``(2) The term `entity' means a for-profit corporation,
partnership, or single proprietorship, nonprofit organization,
or university organized and having principal operations in the
United States.
``(3) The terms `extramural budget', `research', and
`research and development' have the meaning given those terms
in subsection (e) of section 9 of the Small Business Act (15
U.S.C. 638).
``(4) The term `innovation development activities' means
efforts to design, test, or implement new technologies,
processes, or systems to improve health care delivery,
operational efficiency, or veteran outcomes, including
prototyping, pilot programs, and technology adoption
initiatives, whether or not such efforts meet the definition of
`research' under part 16 of title 38, Code of Federal
Regulations, or successor regulations.
``(5) The term `nontraditional contractor' means an entity
that is not currently performing and has never performed any
contract or subcontract for any department or agency of the
Federal Government.
``(6) The term `senior procurement executive' means the
official of the Department designated under section 1702(c) of
title 41.
``Sec. 8186. Advance market commitments for technologies or services
for provision of health care
``(a) Authority.--The Secretary may enter into an advance market
commitment under which the Secretary shall guarantee to purchase, for a
predetermined price, a technology or service provided by an entity that
addresses an unmet need in the provision of health care to veterans.
``(b) Requirements.--An advance market commitment entered into
under subsection (a) shall include the following:
``(1) Clearly defined and transparent rules.
``(2) A clear definition of the technology or service to be
provided, to ensure safety, effectiveness, and feasible
delivery.
``(3) Dispute settlement mechanisms.
``(4) The ability to modify the terms of the commitment on
the basis of new information regarding the number of veterans
to be served with such technology or service.
``(c) Report.--Not later than 120 days after executing an advance
market commitment under subsection (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 a report on the
status and efficacy of such commitment.''.
SEC. 8. DEVELOPMENT AND EXPANSION OF AN 1102 INTERNSHIP OR DEVELOPMENT
PIPELINE.
The Secretary of Veterans Affairs shall monitor the training and
experience gap of professionals and establish or expand any existing
internship or development pipelines for 1102 contracting officers of
the Department.
SEC. 9. CLERICAL AMENDMENT.
The table of sections at the beginning of chapter 81 of title 38,
United States Code, is amended by adding at the end the following:
``subchapter vii--acquisition review, cost assessment, and program
evaluation
``8181. Definitions.
``8182. Acquisition reorganization.
``8183. Major acquisition program managers.
``8184. Cost assessment and program evaluation.
``8185. Other transaction authority.
``8186. Advance market commitments for technologies or services for
provision of health care.''.
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