[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1591 Reported in Senate (RS)]
<DOC>
Calendar No. 277
119th CONGRESS
1st Session
S. 1591
[Report No. 119-97]
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 (for himself, Mr. Banks, Mr. Warner, Mr. King, and Mr.
Rounds) introduced the following bill; which was read twice and
referred to the Committee on Veterans' Affairs
December 2, 2025
Reported by Mr. Moran, with an amendment
[Strike out all after the enacting clause and insert the part printed
in italic]
_______________________________________________________________________
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,
<DELETED>SECTION 1. SHORT TITLE; TABLE OF CONTENTS.</DELETED>
<DELETED> (a) Short Title.--This Act may be cited as the
``Acquisition Reform and Cost Assessment Act of 2025'' or the ``ARCA
Act of 2025''.</DELETED>
<DELETED> (b) Table of Contents.--The table of contents for this Act
is as follows:</DELETED>
<DELETED>Sec. 1. Short title; table of contents.
<DELETED>Sec. 2. Department of Veterans Affairs acquisition
organization.
<DELETED>Sec. 3. Department of Veterans Affairs major acquisition
program managers.
<DELETED>Sec. 4. Department of Veterans Affairs acquisition and
procurement reorganization matters.
<DELETED>Sec. 5. Independent verification and validation of major
acquisition programs of Department of
Veterans Affairs.
<DELETED>Sec. 6. Department of Veterans Affairs cost assessment and
program evaluation.
<DELETED>Sec. 7. Department of Veterans Affairs other transaction
authority and advance market commitments
for technologies or services for provision
of health care.
<DELETED>Sec. 8. Development and expansion of an 1102 internship or
development pipeline.
<DELETED>Sec. 9. Clerical amendment.
<DELETED>SEC. 2. DEPARTMENT OF VETERANS AFFAIRS ACQUISITION
ORGANIZATION.</DELETED>
<DELETED> (a) Definitions.--Chapter 81 of title 38, United States
Code, is amended by inserting after subchapter VI the following new
subchapter:</DELETED>
<DELETED>``SUBCHAPTER VII--ACQUISITION ORGANIZATION, COST ASSESSMENT,
AND PROGRAM EVALUATION</DELETED>
<DELETED>``Sec. 8181. Definitions</DELETED>
<DELETED> ``In this subchapter:</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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.''.</DELETED>
<DELETED> (b) Assistant Secretary for Acquisition and Innovation.--
Section 308 of such title is amended--</DELETED>
<DELETED> (1) in subsection (a)(1), by striking ``seven''
and inserting ``eight''; and</DELETED>
<DELETED> (2) in subsection (b), by adding at the end the
following new paragraph:</DELETED>
<DELETED> ``(13) Acquisition and innovation.''.</DELETED>
<DELETED> (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:</DELETED>
<DELETED>``Sec. 8182. Acquisition organization</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(b) Office of Acquisition and Innovation.--(1) There is
in the Department an Office of Acquisition and Innovation.</DELETED>
<DELETED> ``(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).</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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).</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(2) The Deputy Assistant Secretary of Veterans Affairs
for Logistics shall be responsible for administration of logistics and
supply chain operations of the Department.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(2) The Deputy Assistant Secretary of Veterans Affairs
for Procurement shall be responsible for all procurement and
contracting organizations of the Department.''.</DELETED>
<DELETED>SEC. 3. DEPARTMENT OF VETERANS AFFAIRS MAJOR ACQUISITION
PROGRAM MANAGERS.</DELETED>
<DELETED> 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:</DELETED>
<DELETED>``Sec. 8183. Major acquisition program managers</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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--</DELETED>
<DELETED> ``(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--</DELETED>
<DELETED> ``(A) a description of each acquisition
phase of such program;</DELETED>
<DELETED> ``(B) for each such acquisition phase,
requirements for advancing such program to a subsequent
acquisition phase; and</DELETED>
<DELETED> ``(C) estimates of the cost, schedule, and
performance of such program that account for the entire
life cycle of such program;</DELETED>
<DELETED> ``(2) ensuring such program is in compliance with
such requirements;</DELETED>
<DELETED> ``(3) securing funding necessary to satisfy such
requirements;</DELETED>
<DELETED> ``(4) adopting standardized processes with
established success to support the progress of such program,
including--</DELETED>
<DELETED> ``(A) milestones;</DELETED>
<DELETED> ``(B) exit criteria; and</DELETED>
<DELETED> ``(C) specific accomplishments;</DELETED>
<DELETED> ``(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);</DELETED>
<DELETED> ``(6) on a continuous basis, assessing and
managing risks to satisfying the requirements of such program
baseline relating to cost and schedule;</DELETED>
<DELETED> ``(7) ensure such program complies with cost
accounting standards, as applicable;</DELETED>
<DELETED> ``(8) establishing a workforce for such program
that is qualified and sufficient to perform the necessary
functions of such program; and</DELETED>
<DELETED> ``(9) ensuring such program has adequate
technology and production capacity prior to commencing an
acquisition phase of such program related to manufacturing, if
applicable.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(d) Program Decision Authority.--The Secretary shall
ensure that--</DELETED>
<DELETED> ``(1) program decision authority for oversight of
a major acquisition program of the Department is the Assistant
Secretary for Acquisition and Innovation; and</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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).</DELETED>
<DELETED> ``(2) Such manager may not advance such program to a
subsequent acquisition phase without the authorization of such program
decision authority under subsection (d).''.</DELETED>
<DELETED>SEC. 4. DEPARTMENT OF VETERANS AFFAIRS ACQUISITION AND
PROCUREMENT REORGANIZATION MATTERS.</DELETED>
<DELETED> (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).</DELETED>
<DELETED> (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).</DELETED>
<DELETED>SEC. 5. INDEPENDENT VERIFICATION AND VALIDATION OF MAJOR
ACQUISITION PROGRAMS OF DEPARTMENT OF VETERANS
AFFAIRS.</DELETED>
<DELETED> (a) Contracting Authority.--Not later than 120 days after
the date of the enactment of this Act, the Secretary of Veterans
Affairs shall--</DELETED>
<DELETED> (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</DELETED>
<DELETED> (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).</DELETED>
<DELETED> (b) Eligibility.--</DELETED>
<DELETED> (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--</DELETED>
<DELETED> (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</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (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--</DELETED>
<DELETED> (A) for such project or system;
or</DELETED>
<DELETED> (B) for the Department or such
organizational subdivision of the Department.</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (c) Functions.--The functions specified in this subsection
are the following:</DELETED>
<DELETED> (1) The independent verification and validation of
each major acquisition program or major information technology
project--</DELETED>
<DELETED> (A) when such major program is initiated,
with respect to its design and the development of its
requirements and acquisition;</DELETED>
<DELETED> (B) at the conclusion of such project;
and</DELETED>
<DELETED> (C) at any other intervals during such
project selected by the Chief Acquisition Officer of
the Department.</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (3) With respect to any project or system of the
Department selected by the Chief Acquisition Officer of the
Department the evaluation of--</DELETED>
<DELETED> (A) testing conducted by the Department or
other testing entity;</DELETED>
<DELETED> (B) technical architecture or design,
including data management;</DELETED>
<DELETED> (C) development processes;</DELETED>
<DELETED> (D) stability and resiliency;</DELETED>
<DELETED> (E) integration or interoperability with
other systems, including an assessment of data
quality;</DELETED>
<DELETED> (F) adoption and use;</DELETED>
<DELETED> (G) management, including governance,
costs, and schedules; and</DELETED>
<DELETED> (H) any other elements or processes as
determined by the Chief Acquisition Officer.</DELETED>
<DELETED> (d) Transmittal to Congress.--</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (f) Definitions.--In this section:</DELETED>
<DELETED> (1) Covered contract.--The term ``covered
contract'' means a prime contract or subcontract for--
</DELETED>
<DELETED> (A) information technology support or
software or system design, development, sustainment, or
maintenance services;</DELETED>
<DELETED> (B) professional or management consulting
services; or</DELETED>
<DELETED> (C) advisory and assistance
services.</DELETED>
<DELETED> (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)--</DELETED>
<DELETED> (A) to verify that the requirements of a
project or system, or a development phase of such a
project, are correctly defined;</DELETED>
<DELETED> (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</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (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).</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (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).</DELETED>
<DELETED>SEC. 6. DEPARTMENT OF VETERANS AFFAIRS COST ASSESSMENT AND
PROGRAM EVALUATION.</DELETED>
<DELETED> (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:</DELETED>
<DELETED>``Sec. 8184. Cost assessment and program evaluation</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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:</DELETED>
<DELETED> ``(A) Matters assigned to the Director pursuant to
this section.</DELETED>
<DELETED> ``(B) Matters assigned to the Director by the
Secretary pursuant to this section and to section 303 of this
title.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(c) Deputy Directors.--There are two Deputy Directors
within the Office of the Director of Cost Assessment and Program
Evaluation, as follows:</DELETED>
<DELETED> ``(1) The Deputy Director for Cost
Assessment.</DELETED>
<DELETED> ``(2) The Deputy Director for Program
Evaluation.</DELETED>
<DELETED> ``(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:</DELETED>
<DELETED> ``(1) Cost estimation and cost analysis for
acquisition programs of the Department.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(4) Formulation of study guidance for analyses
of alternatives for major acquisition programs and performance
of such analyses, as directed by the Secretary.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(6) Assessments of alternative plans, programs,
and policies with respect to the acquisition programs of the
Department.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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--</DELETED>
<DELETED> ``(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;</DELETED>
<DELETED> ``(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;</DELETED>
<DELETED> ``(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;</DELETED>
<DELETED> ``(4) issue guidance relating to full
consideration of life-cycle management and sustainability costs
in major acquisition programs and major automated information
system programs;</DELETED>
<DELETED> ``(5) review all cost estimates and cost analyses
conducted in connection with major acquisition programs and
major automated information system programs;</DELETED>
<DELETED> ``(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--</DELETED>
<DELETED> ``(A) in advance of--</DELETED>
<DELETED> ``(i) any certification under this
title; and</DELETED>
<DELETED> ``(ii) any decision to enter into
product or system low-rate initial production,
initial pilot implementation, or full-rate
production or implementation; and</DELETED>
<DELETED> ``(B) at any other time considered
appropriate by the Director or upon the request of the
Chief Acquisition Officer; and</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(f) Review of Cost Estimates, Cost Analyses, and Records
of the Department.--The Secretary shall ensure that the Director--
</DELETED>
<DELETED> ``(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</DELETED>
<DELETED> ``(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).</DELETED>
<DELETED> ``(g) Participation, Concurrence, and Approval in Cost
Estimation.--The Director may--</DELETED>
<DELETED> ``(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;</DELETED>
<DELETED> ``(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;</DELETED>
<DELETED> ``(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</DELETED>
<DELETED> ``(4) participate in the consideration of any
decision to request authorization of a multi-year procurement
contract for a major acquisition program.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(2) Each report submitted pursuant to paragraph (1)
shall include, for the period covered by the report, the
following:</DELETED>
<DELETED> ``(A) A summary of the cost estimation and cost
analysis activities of the Department.</DELETED>
<DELETED> ``(B) Assessments of the following:</DELETED>
<DELETED> ``(i) The progress of the Department in
improving the accuracy of its cost estimates and
analyses.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(iii) The overall quality of cost
estimates prepared by each of the Administrations for
major acquisition programs and major automated
information system programs.</DELETED>
<DELETED> ``(iv) Any consistent differences in
methodology or approach among the cost estimates
prepared by the Administrations and the
Director.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(4) The Secretary may comment on any report of the
Director submitted to the committees described in paragraph (1)
pursuant to such paragraph.</DELETED>
<DELETED> ``(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.''.</DELETED>
<DELETED> (b) Report on Monitoring of Operating and Support Costs
for Major Acquisition Programs.--</DELETED>
<DELETED> (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--</DELETED>
<DELETED> (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</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (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.</DELETED>
<DELETED>SEC. 7. DEPARTMENT OF VETERANS AFFAIRS OTHER TRANSACTION
AUTHORITY AND ADVANCE MARKET COMMITMENTS FOR TECHNOLOGIES
OR SERVICES FOR PROVISION OF HEALTH CARE.</DELETED>
<DELETED> 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:</DELETED>
<DELETED>``Sec. 8185. Other transaction authority</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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:</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(2) The senior procurement executive has
determined that entering into the transaction to carry out the
research is appropriate.</DELETED>
<DELETED> ``(3) The transaction will not exceed $5,000,000
(including all options), unless the senior procurement
executive determines that exceeding such amount is
appropriate.</DELETED>
<DELETED> ``(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--</DELETED>
<DELETED> ``(A) meeting such threshold for non-
Federal sources of funding or contributions is not
possible; and</DELETED>
<DELETED> ``(B) carrying out the research without
meeting such threshold is in the public
interest.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(c) Provision of Information.--</DELETED>
<DELETED> ``(1) Congress.--</DELETED>
<DELETED> ``(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).</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(d) Regulations.--The Secretary shall prescribe
regulations to carry out this section.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(f) Definitions.--In this section:</DELETED>
<DELETED> ``(1) The term `appropriate congressional
committees' means--</DELETED>
<DELETED> ``(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</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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).</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(6) The term `senior procurement executive'
means the official of the Department designated under section
1702(c) of title 41.</DELETED>
<DELETED>``Sec. 8186. Advance market commitments for technologies or
services for provision of health care</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(b) Requirements.--An advance market commitment entered
into under subsection (a) shall include the following:</DELETED>
<DELETED> ``(1) Clearly defined and transparent
rules.</DELETED>
<DELETED> ``(2) A clear definition of the technology or
service to be provided, to ensure safety, effectiveness, and
feasible delivery.</DELETED>
<DELETED> ``(3) Dispute settlement mechanisms.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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.''.</DELETED>
<DELETED>SEC. 8. DEVELOPMENT AND EXPANSION OF AN 1102 INTERNSHIP OR
DEVELOPMENT PIPELINE.</DELETED>
<DELETED> 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.</DELETED>
<DELETED>SEC. 9. CLERICAL AMENDMENT.</DELETED>
<DELETED> 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:</DELETED>
<DELETED>``subchapter vii--acquisition review, cost assessment, and
program evaluation
<DELETED>``8181. Definitions.
<DELETED>``8182. Acquisition reorganization.
<DELETED>``8183. Major acquisition program managers.
<DELETED>``8184. Cost assessment and program evaluation.
<DELETED>``8185. Other transaction authority.
<DELETED>``8186. Advance market commitments for technologies or
services for provision of health care.''.
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.''.
Calendar No. 277
119th CONGRESS
1st Session
S. 1591
[Report No. 119-97]
_______________________________________________________________________
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.
_______________________________________________________________________
December 2, 2025
Reported with an amendment