ARCA Act of 2025
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1Short title; table of contents
This section would give the Act a short title, the Acquisition Reform and Cost Assessment Act of 2025 or the ARCA Act of 2025, and would set out the table of contents for the Act.
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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.
2Department of Veterans Affairs acquisition organization
This section would add a new subchapter to chapter 81 of title 38 covering acquisition organization, cost assessment, and program evaluation, and would define two terms used throughout that subchapter: a major acquisition program would mean a Department program to acquire property, systems or technology, assets, supplies, services, or a combination of these, with an estimated total life-cycle cost of $250,000,000 or more, as determined by the Secretary of Veterans Affairs; a non-major acquisition program would mean the same kind of program but with an estimated total life-cycle cost of less than $250,000,000. This section would also increase from seven to eight the number of Assistant Secretary positions listed in section 308(a)(1) of title 38, and would add acquisition and innovation as a new function area under section 308(b). This section would require the Secretary to designate one of those Assistant Secretaries as the Assistant Secretary of Veterans Affairs for Acquisition and Innovation, whose job would focus solely on administering the acquisition and innovation function, and would require the Secretary to designate that same person as the Department's Chief Acquisition Officer under section 1702(a) of title 41. This section would establish an Office of Acquisition and Innovation in the Department, headed by that Assistant Secretary, and would require the Secretary to make sure the Department's major program offices align under that office and report directly to the Assistant Secretary. The office's budget would have to be shown in the budget justification materials the Department submits to Congress along with the President's budget. This section would also require the Secretary to appoint, under section 308(d) of title 38, three Deputy Assistant Secretaries who would each report to the Assistant Secretary for Acquisition and Innovation: a Deputy Assistant Secretary for Logistics, responsible for the Department's logistics and supply chain operations; a Deputy Assistant Secretary for Innovation, responsible for all of the Department's research, development, testing, and innovation development organizations, including the Veterans Health Administration Innovation Ecosystem; and a Deputy Assistant Secretary for Procurement, responsible for all of the Department's procurement and contracting organizations.
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2. Department of Veterans Affairs acquisition organization. Sec.
3Department of Veterans Affairs major acquisition program managers
This section would add a new section to the subchapter created by section 2 requiring the Deputy Secretary, within 30 days after the Secretary approves a major acquisition program to start, to appoint a manager responsible for running that program. Each manager would report to the Assistant Secretary for Acquisition and Innovation and would be responsible, for that program, for developing (together with the Assistant Secretary and the teams responsible for the program's requirements) a program baseline plan that describes each acquisition phase, sets the requirements for moving to the next phase, and estimates the program's cost, schedule, and performance over its entire life cycle; for making sure the program follows those requirements; for securing the funding needed to meet them; for adopting standardized processes with milestones, exit criteria, and specific accomplishments; for, to the extent practicable, giving Department personnel who estimate the program's budget and cost a chance to raise concerns before the program baseline is set; for continuously assessing and managing cost and schedule risks to the program baseline; for making sure the program follows applicable cost accounting standards; for building a qualified and sufficient workforce for the program; and for making sure the program has adequate technology and production capacity before starting any manufacturing-related acquisition phase, where that applies. Within 90 days after a manager sets a program baseline, the manager would have to certify to the program decision authority that alternate requirements for cost, schedule, and performance in each acquisition phase were considered before the baseline was set. This section would make the Assistant Secretary for Acquisition and Innovation the program decision authority for overseeing major acquisition programs, and would require that program management offices for major acquisition programs be independent of the Veterans Benefits Administration, the Veterans Health Administration, the National Cemetery Administration, and Department staff offices, reporting directly to that Assistant Secretary instead. Within 30 days after a major acquisition program finishes an acquisition phase, its manager would have to notify the program decision authority, and the manager could not move the program to the next phase without that authority's approval.
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3. Department of Veterans Affairs major acquisition program managers. Sec.
4Department of Veterans Affairs acquisition and procurement reorganization matters
This section would require the Secretary to transfer all of the Department's contracting officers and acquisition centers into the Office of Acquisition and Innovation established by section 2, and would require the Secretary to take the actions necessary to consolidate all of the Department's logistics and supply chain operations under the Deputy Assistant Secretary for Logistics appointed under section 2.
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4. Department of Veterans Affairs acquisition and procurement reorganization matters. Sec.
5Independent verification and validation of major acquisition programs of Department of Veterans Affairs
This section would require the Secretary, within 120 days after enactment, to review the Department's existing independent verification and validation and testing contracts to make sure they comply with this Act, and to seek to award one or more contracts, using competitive procedures, to one or more entities to perform independent verification and validation functions. An entity could not be awarded such a contract unless the Chief Acquisition Officer determines, when evaluating offers, that the entity is currently performing or has performed, in the preceding three years, at least three prime contracts for independent verification and validation or systems engineering and technical advisory support of major acquisition programs or defense systems, or of the development or acquisition of such programs or systems, following Department of Defense guidance. The Secretary would have to make sure that an entity awarded such a contract, including its subsidiaries, joint ventures, subcontractors, teaming partners, investments, and corporate officers, does not perform independent verification and validation functions for a Department project, system, or organizational subdivision if that entity is performing or has performed, in the preceding three years, a covered contract for that same project or system or for that Department or subdivision. Department contracting officers would have to consider these restrictions when applying organizational conflict of interest mitigation procedures for future procurements in which an entity awarded a contract under this section is an offeror. The functions covered would include independent verification and validation of each major acquisition program or major information technology project when it starts (covering its design and the development of its requirements and acquisition), when it ends, and at other times the Chief Acquisition Officer chooses; independent verification and validation of other Department projects the Chief Acquisition Officer selects, at intervals the Chief Acquisition Officer chooses; and, for any project or system the Chief Acquisition Officer selects, evaluation of testing conducted by the Department or another testing entity, technical architecture or design including data management, development processes, stability and resiliency, integration or interoperability with other systems including data quality, adoption and use, management including governance, costs and schedules, and any other elements the Chief Acquisition Officer decides to evaluate. Within 30 days after an independent verification and validation of a major acquisition program or major information technology project is completed, the Secretary would have to send Congress a copy of it. Within 30 days after the Senate or House Committee on Veterans' Affairs requests a copy of an independent verification and validation of another selected project, an evaluation, or an organizational conflict of interest mitigation plan submitted by an offeror, the Secretary would have to send that committee a copy. The Department's Chief Financial Officer would have to make sure, to the extent practicable, that each organizational subdivision that enters into such a contract contributes its proportional share of the funding for it. This section would define covered contract to mean a prime contract or subcontract for information technology support or software or system design, development, sustainment, or maintenance services, professional or management consulting services, or advisory and assistance services; would define independent verification and validation to mean a comprehensive inspection, review, analysis, testing, or assessment performed by an entity awarded a contract under this section to verify that a project's or system's requirements are correctly defined, to validate that the project or system correctly implements the required functionality and security requirements, and to verify that it satisfies and conforms to the requirements, standards, and practices of each life cycle phase; and would use the meanings already given elsewhere in title 38 or in federal regulations for major acquisition program (as defined by section 2), major information technology project, and major system.
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5. Independent verification and validation of major acquisition programs of Department of Veterans Affairs. Sec.
6Department of Veterans Affairs cost assessment and program evaluation
This section would add a new section to the subchapter created by section 2 establishing a Director of Cost Assessment and Program Evaluation who would report directly to the Secretary. The Director would be the Secretary's principal advisor on matters assigned to the Director under this section or by the Secretary, and could communicate views on those matters directly to the Secretary and Deputy Secretary without needing any other Department official's approval. There would be two Deputy Directors, one for Cost Assessment and one for Program Evaluation. The Director would be the Department's principal official for cost estimation and cost analysis of acquisition programs; for analysis and advice on the planning and programming phases of the Planning, Programming, Budgeting, and Execution system and for preparing related materials, working with the Assistant Secretary for Management and the Chief Financial Officer as the Secretary directs; for analysis and advice on resource discussions involving requirements under consideration in the Veterans Health Administration, the Veterans Benefits Administration, the National Cemetery Administration, and Department staff offices; for setting study guidance for, and performing, analyses of alternatives for major acquisition programs as the Secretary directs; for reviewing, analyzing, and evaluating programs that carry out approved strategies and policies, making sure program information is presented accurately and completely, and assessing how Department spending affects the United States economy; for assessing alternative plans, programs, and policies for the Department's acquisition programs; and for leading the development of better analytical skills, tools, data, and methods within the cost assessment and program evaluation workforce. To keep the Department's cost estimation and cost analysis processes accurate and realistic, the Director would prescribe, under the Secretary's authority, policies and procedures for cost estimation and cost analysis of Department acquisition programs; consult with the Secretary, the Chief Acquisition Officer, the Assistant Secretary for Management, the Chief Financial Officer, and the Under Secretaries for Health, Benefits, and Memorial Affairs on cost estimation generally and on specific cost estimates for major acquisition programs; issue guidance on selecting confidence levels in cost estimates, including for major acquisition programs and major automated information system programs; issue guidance on fully considering life-cycle management and sustainability costs in those programs; review all cost estimates and analyses done for those programs; conduct independent cost estimates and analyses for major acquisition programs and major automated information system programs where the Chief Acquisition Officer is the Milestone Decision Authority, before any certification under title 38 or any decision to move to low-rate initial production, initial pilot implementation, or full-rate production or implementation, and at any other time the Director considers appropriate or the Chief Acquisition Officer requests; and periodically assess and update the Department's cost indexes to keep them sound and realistic. The Secretary would have to make sure the Director promptly receives the results of all cost estimates, cost analyses, and related studies done by the Veterans Benefits Administration, the Veterans Health Administration, the National Cemetery Administration, or staff offices for major acquisition programs and major automated information system programs, and has timely access to any Department records and data the Director considers necessary. The Director could take part in discussions of discrepancies between an independent cost estimate and the estimates of those Administrations or staff offices, comment on deficiencies in their cost estimate methodology or execution, concur in the choice of a cost estimate or its confidence level for certain events, and take part in considering whether to authorize a multi-year procurement contract for a major acquisition program. Each year, within 10 days after the President's budget is sent to Congress, the Director would have to submit to the Secretary, the Chief Acquisition Officer, the Assistant Secretary for Management, the Chief Financial Officer, and the Senate and House Committees on Veterans' Affairs an annual report on the Department's cost estimation and cost analysis activities from the previous year, including a summary of those activities and assessments of the Department's progress on estimate accuracy, how well each Administration and staff offices followed the Director's cost estimate policies and guidance, the overall quality of each Administration's cost estimates, and any consistent differences in methodology between the Administrations and the Director. The Director would have to keep proprietary or source-selection-sensitive information that could undermine the acquisition process out of the report, and the version sent to the committees would have to be posted on a public Department website; the Secretary could add comments to any report the Director sends to the committees. The Secretary would have to make sure the Director has enough professional staff to carry out these duties. Separately, within one year after enactment, the Director would have to review the Department's current systems and methods for tracking and assessing operating and support costs on major acquisition programs using cost-accounting standards and procedures as appropriate, and submit to the Secretary a report on the findings, including an assessment of whether it is feasible and advisable to set baselines for operating and support costs. Within 30 days after receiving that report, the Secretary would have to send it to the Senate and House Committees on Veterans' Affairs along with any comments the Secretary considers appropriate.
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6. Department of Veterans Affairs cost assessment and program evaluation. Sec.
7Department of Veterans Affairs other transaction authority and advance market commitments for technologies or services for provision of health care
This section would add two new sections to the subchapter created by section 2. The first would let the Secretary enter into transactions, other than contracts, cooperative agreements, or grants, with nontraditional contractors to carry out extramural basic or applied research or innovation development activities, and would let the Deputy Assistant Secretary for Innovation use this authority for activities tied to the Veterans Health Administration Innovation Ecosystem's mission. To use this authority for a research transaction, all of the following would have to be true: the research must not duplicate other research the Department is already doing through another program, contract, cooperative agreement, or grant; the senior procurement executive must have determined the transaction is appropriate; the transaction must not exceed $5,000,000 including all options, unless the senior procurement executive determines a higher amount is appropriate; and at least 33 percent of the research's total cost must be paid, or contributed in kind, by non-federal sources, unless the senior procurement executive determines that meeting this threshold is not possible and that proceeding without it is in the public interest. For transactions supporting innovation development activities, the Deputy Assistant Secretary for Innovation would have to certify that the activities align with improving veterans' health care delivery, operational efficiency, or technology adoption, and that they do not need Institutional Review Board approval unless they involve human subjects research as defined in federal regulations. Within 30 days after entering into such a transaction, the Secretary would have to notify the appropriate congressional committees and include a copy of each required determination, and would have to give those committees a copy of a transaction or related performance or financial information on request. The Secretary would have to make sure the Comptroller General can examine, on request, the records of any party to such a transaction or any entity that helped perform it, where those records were generated in or directly relate to the transaction's performance. The Secretary would have to issue regulations to carry out this authority, and the authority to enter into these transactions would end three years after this Act is enacted. This section would define the appropriate congressional committees as the Senate and House Committees on Veterans' Affairs and the Military Construction, Veterans Affairs, and Related Agencies appropriations subcommittees in each chamber; entity as a for-profit corporation, partnership, or sole proprietorship, a nonprofit organization, or a university organized with its main operations in the United States; nontraditional contractor as an entity that is not currently performing and has never performed any contract or subcontract for any federal department or agency; and senior procurement executive as the official designated under section 1702(c) of title 41, while extramural budget, research, and research and development would carry the meanings already given in the Small Business Act. The second new section would let the Secretary enter into an advance market commitment guaranteeing to buy, at a predetermined price, a technology or service from an entity that addresses an unmet need in veterans' health care. Each such commitment would have to include clearly defined and transparent rules, a clear definition of the technology or service that ensures safety, effectiveness, and feasible delivery, dispute settlement mechanisms, and the ability to modify the commitment's terms based on new information about how many veterans it would serve. Within 120 days after entering into an advance market commitment, the Secretary would have to submit to the Senate and House Committees on Veterans' Affairs a report on its status and how well it is working.
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7. Department of Veterans Affairs other transaction authority and advance market commitments for technologies or services for provision of health care. Sec.
8Development and expansion of an 1102 internship or development pipeline
This section would require the Secretary to monitor the training and experience gap of professionals and to establish or expand internship or development pipelines for 1102 series contracting officers of the Department.
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8. Development and expansion of an 1102 internship or development pipeline. Sec.
9Clerical amendment
This section would update the table of sections at the start of chapter 81 of title 38 to list the new subchapter created by this Act, covering the sections on definitions, acquisition reorganization, major acquisition program managers, cost assessment and program evaluation, other transaction authority, and advance market commitments for technologies or services for provision of health care.
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9. Clerical amendment. 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: VII Acquisition organization, cost assessment, and program evaluation 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: 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. . 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: 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). . 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). 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). 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: 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. 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: 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. 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. . 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. 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. .
Where it is
In the Senate.