[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 2422 Introduced in Senate (IS)]

<DOC>






118th CONGRESS
  1st Session
                                S. 2422

  To amend title 38, United States Code, to establish the Acquisition 
Review Board of the Department of Veterans Affairs and to establish the 
 Director of Cost Assessment and Program Evaluation in the Department, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 20, 2023

 Mr. Tester (for himself and Mr. Moran) introduced the following bill; 
which was read twice and referred to the Committee on Veterans' Affairs

_______________________________________________________________________

                                 A BILL


 
  To amend title 38, United States Code, to establish the Acquisition 
Review Board of the Department of Veterans Affairs and to establish the 
 Director of Cost Assessment and Program Evaluation in the Department, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Acquisition Reform and Cost 
Assessment Act of 2023'' or ``ARCA Act of 2023''.

SEC. 2. DEPARTMENT OF VETERANS AFFAIRS ACQUISITION REVIEW, COST 
              ASSESSMENT, AND PROGRAM EVALUATION.

    (a) In General.--Chapter 81 of title 38, United States Code, is 
amended by inserting after subchapter VI the following new subchapter:

  ``SUBCHAPTER VII--ACQUISITION REVIEW, COST ASSESSMENT, AND PROGRAM 
                               EVALUATION

``Sec. 8181. Definitions
    ``In this subchapter:
            ``(1) The term `major acquisition program' means a program 
        of the Department to acquire property, assets, supplies, 
        services, or a combination thereof, with an estimated life-
        cycle cost of $250,000,000 or more, as determined by the 
        Secretary.
            ``(2) The term `non-major acquisition program' means a 
        program of the Department to acquire property, assets, 
        supplies, services, or a combination thereof, with an estimated 
        life-cycle cost of less than $250,000,000, as determined by the 
        Secretary.
``Sec. 8182. Acquisition Review Board
    ``(a) In General.--There is established in the Department a board, 
to be known as the `Acquisition Review Board', to support the Secretary 
in managing acquisition programs under the laws administered by the 
Secretary.
    ``(b) Composition.--(1) The Deputy Secretary of Veterans Affairs 
shall serve as Chair of the Acquisition Review Board.
    ``(2) The Deputy Secretary may designate an employee of the 
Department to oversee the operations of the Acquisition Review Board.
    ``(3) The Deputy Secretary shall ensure participation by other 
relevant Department officials with responsibilities relating to 
acquisitions as permanent members of the Acquisition Review Board, 
including the following:
            ``(A) The Chief Acquisition Officer.
            ``(B) The Chief Financial Officer.
            ``(C) The Chief Veterans Experience Officer.
            ``(D) The Chief Information Officer.
            ``(E) The Assistant Secretary for Enterprise Integration.
            ``(F) Other relevant senior Department officials, as the 
        Deputy Secretary determines appropriate, including such 
        officials from the Veterans Health Administration, the Veterans 
        Benefits Administration, and the National Cemetery 
        Administration.
    ``(c) Meetings.--The Acquisition Review Board shall convene--
            ``(1) at the discretion of the Deputy Secretary; and
            ``(2) not later than 45 days after any date on which--
                    ``(A) a major acquisition program--
                            ``(i) is proposed to the Secretary;
                            ``(ii) is approved by the Secretary to 
                        commence;
                            ``(iii) concludes an acquisition phase;
                            ``(iv) is not in compliance with 
                        requirements relating to cost, schedule, or 
                        performance under the applicable program 
                        baseline described in section 8183(b)(1) of 
                        this title, as determined by the Deputy 
                        Secretary; or
                            ``(v) requires additional review, as 
                        determined by the Deputy Secretary; and
                    ``(B) a non-major acquisition program requires 
                review, as determined by the Deputy Secretary.
    ``(d) Responsibilities.--The Acquisition Review Board shall be 
responsible for--
            ``(1) with respect to a major acquisition program proposed 
        to the Secretary, determining whether the business strategy, 
        budget, management, and organization of such program is 
        feasible and in accordance with the mission and strategic goals 
        of the Department;
            ``(2) with respect to a major acquisition program approved 
        by the Secretary to commence, determining the appropriate 
        acquisition category for such program;
            ``(3) with respect to a major acquisition program that has 
        concluded an acquisition phase--
                    ``(A) authorizing the manager of such program 
                appointed pursuant to section 8183(a) of this title to 
                advance such program to a subsequent acquisition phase 
                if the relevant requirements in such applicable program 
                baseline have been satisfied; and
                    ``(B) advising such manager on appropriate 
                corrective action if such requirements have not been 
                satisfied; and
            ``(4) reviewing, on a continuous basis, each major 
        acquisition program to ensure each such program is in 
        compliance with--
                    ``(A) the relevant requirements in such applicable 
                program baseline; and
                    ``(B) the certification requirement under 
                subsection (c) of such section.
    ``(e) Acquisition Decision Memorandum.--Not later than 30 days 
after any date on which the Deputy Secretary convenes a meeting 
pursuant to subsection (c), the Deputy Secretary shall submit to the 
Secretary and the Committees on Veterans' Affairs of the Senate and the 
Committee on Veterans' Affairs of the House of Representatives an 
acquisition decision memorandum that includes--
            ``(1) a summary of--
                    ``(A) the purpose of such meeting;
                    ``(B) any matter discussed during such meeting;
                    ``(C) any decision of the Acquisition Review Board 
                made during such meeting, including any such decision 
                to allow a major acquisition program to deviate from 
                the relevant requirements in such applicable program 
                baseline; and
                    ``(D) any matters assigned for further discussion 
                during a subsequent meeting of the Acquisition Review 
                Board; and
            ``(2) a certification by the Deputy Secretary that the 
        contents of such memorandum are accurate.
``Sec. 8183. Major acquisition program managers
    ``(a) Appointments.--Not later than 30 days after any date on which 
the Secretary approves a major acquisition program to commence, the 
Deputy Secretary shall appoint a manager to be responsible for 
administering such program.
    ``(b) Duties.--Each manager appointed pursuant to subsection (a) 
shall be responsible for, with respect to the applicable major 
acquisition program--
            ``(1) developing, in coordination with the Acquisition 
        Review Board, a plan to administer such program, to be known as 
        the `program baseline', that includes--
                    ``(A) a description of each acquisition phase of 
                such program;
                    ``(B) for each such acquisition phase, requirements 
                for advancing such program to a subsequent acquisition 
                phase; and
                    ``(C) estimates of the cost, schedule, and 
                performance of such program that account for the entire 
                life cycle of such program;
            ``(2) ensuring such program is in compliance with such 
        requirements;
            ``(3) securing funding necessary to satisfy such 
        requirements;
            ``(4) adopting standardized processes with established 
        success to support the progress of such program, including--
                    ``(A) milestones;
                    ``(B) exit criteria; and
                    ``(C) specific accomplishments;
            ``(5) to the extent practicable, ensuring that personnel of 
        the Department responsible for estimating the budget and cost 
        of such program are provided with an opportunity to raise 
        concerns relating to such budget and cost prior to the 
        establishment of the program baseline under paragraph (1);
            ``(6) on a continuous basis, assessing and managing risks 
        to satisfying the requirements of such program baseline 
        relating to cost and schedule;
            ``(7) establishing a workforce for such program that is 
        qualified and sufficient to perform the necessary functions of 
        such program; and
            ``(8) ensuring such program has adequate technology and 
        production capacity prior to commencing an acquisition phase of 
        such program related to manufacturing, if applicable.
    ``(c) Consideration of Alternate Requirements.--Not later than 90 
days after any date on which a manager appointed pursuant to subsection 
(a) establishes a program baseline described in subsection (b)(1), such 
manager shall submit to the Chair of the Acquisition Review Board a 
certification that such manager considered establishing alternate 
requirements in such program baseline relating to the cost, schedule, 
and performance of each acquisition phase of such program prior to 
establishing such program baseline.
    ``(d) Acquisition Review Board Authorization Required.--(1) Not 
later than 30 days after any date on which a major acquisition program 
concludes an acquisition phase, the manager of such program appointed 
pursuant to subsection (a) shall notify the Acquisition Review Board 
under section 8182 of this title.
    ``(2) Such manager may not advance such program to a subsequent 
acquisition phase without the authorization of such Acquisition Review 
Board pursuant to subsection (d)(3) of such section.
``Sec. 8184. Cost assessment and program evaluation
    ``(a) Director of Cost Assessment and Program Evaluation.--There is 
established a Director of Cost Assessment and Program Evaluation.
    ``(b)(1) Independent Advice to Secretary of Veterans Affairs.--The 
Director of Cost Assessment and Program Evaluation is the principal 
advisor to the Secretary and other senior officials of the Department, 
and shall provide independent analysis and advice to such officials, on 
the following matters:
            ``(A) Matters assigned to the Director pursuant to this 
        section.
            ``(B) Matters assigned to the Director by the Secretary 
        pursuant to this section and to section 303 of this title.
    ``(2) The Director may communicate views on matters within the 
responsibility of the Director directly to the Secretary and the Deputy 
Secretary of Veterans Affairs without obtaining the approval or 
concurrence of any other official within the Department.
    ``(c) Deputy Directors.--There are two Deputy Directors within the 
Office of the Director of Cost Assessment and Program Evaluation, as 
follows:
            ``(1) The Deputy Director for Cost Assessment.
            ``(2) The Deputy Director for Program Evaluation.
    ``(d) Responsibilities.--The Director of Cost Assessment and 
Program Evaluation shall serve as the principal official within the 
senior management of the Department for the following:
            ``(1) Cost estimation and cost analysis for acquisition 
        programs of the Department.
            ``(2) Analysis and advice on matters relating to the 
        planning and programming phases of the Planning, Programming, 
        Budgeting, and Execution system, and the preparation of 
        materials and guidance for such system, as directed by the 
        Secretary, working in coordination with the Assistant Secretary 
        for Management and the Chief Financial Officer of the 
        Department.
            ``(3) Analysis and advice for resource discussions relating 
        to requirements under consideration in the Veterans Health 
        Administration, the Veterans Benefits Administration, or the 
        National Cemetery Administration.
            ``(4) Formulation of study guidance for analyses of 
        alternatives for major acquisition programs and performance of 
        such analyses, as directed by the Secretary.
            ``(5) Review, analysis, and evaluation of programs for 
        executing approved strategies and policies, ensuring that 
        information on programs is presented accurately and completely, 
        and assessing the effect of spending by the Department on the 
        United States economy.
            ``(6) Assessments of alternative plans, programs, and 
        policies with respect to the acquisition programs of the 
        Department.
            ``(7) Leading the development of improved analytical skills 
        and competencies within the cost assessment and program 
        evaluation workforce of the Department and improved tools, 
        data, and methods to promote performance, economy, and 
        efficiency in analyzing Department planning and the allocation 
        of Department resources.
    ``(e) Independent Cost Estimation and Cost Analysis.--The Director 
of Cost Assessment and Program Evaluation shall ensure that the cost 
estimation and cost analysis processes of the Department provide 
accurate information and realistic estimates of cost for the 
acquisition programs of the Department. In carrying out that 
responsibility, the Director shall--
            ``(1) prescribe, by authority of the Secretary, policies 
        and procedures for the conduct of cost estimation and cost 
        analysis for the acquisition programs of the Department;
            ``(2) provide guidance to and consult with the Secretary, 
        the Chief Acquisition Officer, the Assistant Secretary for 
        Management, the Chief Financial Officer of the Department, the 
        Under Secretary for Health, the Under Secretary for Benefits, 
        and the Under Secretary for Memorial Affairs with respect to 
        cost estimation in the Department in general and with respect 
        to specific cost estimates and cost analyses to be conducted in 
        connection with a major acquisition program;
            ``(3) issue guidance relating to the proper selection of 
        confidence levels in cost estimates generally, and 
        specifically, for the proper selection of confidence levels in 
        cost estimates for major acquisition programs and major 
        automated information system programs;
            ``(4) issue guidance relating to full consideration of 
        life-cycle management and sustainability costs in major 
        acquisition programs and major automated information system 
        programs;
            ``(5) review all cost estimates and cost analyses conducted 
        in connection with major acquisition programs and major 
        automated information system programs;
            ``(6) conduct independent cost estimates and cost analyses 
        for major acquisition programs and major automated information 
        system programs for which the Chief Acquisition Officer is the 
        Milestone Decision Authority--
                    ``(A) in advance of--
                            ``(i) any certification under this title; 
                        and
                            ``(ii) any decision to enter into low-rate 
                        initial production or full-rate production; and
                    ``(B) at any other time considered appropriate by 
                the Director or upon the request of the Chief 
                Acquisition Officer; and
            ``(7) periodically assess and update the cost indexes used 
        by the Department to ensure that such indexes have a sound 
        basis and meet the Department's needs for realistic cost 
        estimation.
    ``(f) Review of Cost Estimates, Cost Analyses, and Records of the 
Department.--The Secretary shall ensure that the Director--
            ``(1) promptly receives the results of all cost estimates 
        and cost analyses conducted by the Veterans Benefits 
        Administration, the Veterans Health Administration, or the 
        National Cemetery Administration and all studies conducted by 
        the Administration in connection with such cost estimates and 
        cost analyses for major acquisition programs and major 
        automated information system programs of the Administrations; 
        and
            ``(2) has timely access to any records and data in the 
        Department (including the records and data of each 
        Administration) that the Director considers necessary to review 
        in order to carry out any duties under this section.
    ``(g) Participation, Concurrence, and Approval in Cost 
Estimation.--The Director may--
            ``(1) participate in the discussion of any discrepancies 
        between an independent cost estimate and the cost estimate 
        assessments of the Veterans Benefits Administration, the 
        Veterans Health Administration, and the National Cemetery 
        Administration for a major acquisition program or major 
        automated information system program of the Department;
            ``(2) comment on deficiencies in the methodology or 
        execution of any cost estimate or cost analysis developed by 
        the Veterans Benefits Administration, the Veterans Health 
        Administration, or the National Cemetery Administration for a 
        major acquisition program or major automated information system 
        program;
            ``(3) concur in the choice of a cost estimate within the 
        baseline description or any other cost estimate (including the 
        confidence level for any such cost estimate) for use at any 
        event specified in subsection (e)(6); and
            ``(4) participate in the consideration of any decision to 
        request authorization of a multi-year procurement contract for 
        a major acquisition program.
    ``(h) Annual Report on Cost Assessment Activities.--(1) Each year, 
not later than 10 days after the transmittal to Congress of the budget 
of the President for a fiscal year pursuant to section 1105 of title 
31, the Director shall submit to the Secretary, the Chief Acquisition 
Officer of the Department, the Assistant Secretary for Management, the 
Chief Financial Officer of the Department, the Committee on Veterans' 
Affairs of the Senate and the Committee on Veterans' Affairs of the 
House of Representatives an annual report on the cost estimation and 
cost analysis activities of the Department carried out during the 
previous year.
    ``(2) Each report submitted pursuant to paragraph (1) shall 
include, for the period covered by the report, the following:
            ``(A) A summary of the cost estimation and cost analysis 
        activities of the Department.
            ``(B) Assessments of the following:
                    ``(i) The progress of the Department in improving 
                the accuracy of its cost estimates and analyses.
                    ``(ii) The extent to which each of the Veterans 
                Benefits Administration, the Veterans Health 
                Administration, and the National Cemetery 
                Administration have complied with policies, procedures, 
                and guidance issued by the Director with regard to the 
                preparation of cost estimates for major acquisition 
                programs and major automated information systems.
                    ``(iii) The overall quality of cost estimates 
                prepared by each of the Administrations for major 
                acquisition programs and major automated information 
                system programs.
                    ``(iv) Any consistent differences in methodology or 
                approach among the cost estimates prepared by the 
                Administrations and the Director.
    ``(3)(A) The Director shall ensure that a report submitted to 
paragraph (1) does not include any information, such as proprietary or 
source selection sensitive information, that could undermine the 
integrity of the acquisition process.
    ``(B) The report submitted pursuant to paragraph (1) to the 
committees described in such paragraph shall be posted on an internet 
website of the Department that is available to the public.
    ``(4) The Secretary may comment on any report of the Director 
submitted to the committees described in paragraph (1) pursuant to such 
paragraph.
    ``(i) Staff.--The Secretary shall ensure that the Director has 
sufficient professional staff to enable the Director to carry out the 
duties and responsibilities of the Director under this section.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following:

   ``subchapter vii--acquisition review, cost assessment, and program 
                               evaluation

``Sec. 8181. Definitions.
``Sec. 8182. Acquisition Review Board.
``Sec. 8183. Major acquisition program managers.
``Sec. 8184. Cost assessment and program evaluation.''.
    (c) Report on Monitoring of Operating and Support Costs for Major 
Acquisition Programs.--
            (1) Report to secretary of veterans affairs.--Not later 
        than one year after the date of the enactment of this Act, the 
        Director of Cost Assessment and Program Evaluation established 
        pursuant to section 8184 of title 38, United States Code, as 
        added by subsection (a), shall--
                    (A) review systems and methods of the Department of 
                Veterans Affairs currently in effect for tracking and 
                assessing operating and support costs on major 
                acquisition programs (as defined in section 8181 of 
                such title, as added by subsection (a)); and
                    (B) submit to the Secretary of Veterans Affairs a 
                report on such findings and recommendations as the 
                Director may have as a result of the review conducted 
                pursuant to subparagraph (A), including an assessment 
                by the Director of the feasibility and advisability of 
                establishing baselines for operating and support costs 
                under such title.
            (2) Transmittal to congress.--Not later than 30 days after 
        receiving the report required by paragraph (1)(A), the 
        Secretary shall submit to the Committee on Veterans' Affairs of 
        the Senate and the Committee on Veterans' Affairs of the House 
        of Representatives the report received by the Secretary under 
        paragraph (1)(B), together with such comments on the report as 
        the Secretary considers appropriate.

SEC. 3. COMPTROLLER GENERAL OF THE UNITED STATES REPORTS ON COSTS AND 
              FINANCIAL INFORMATION REGARDING MAJOR DEPARTMENT OF 
              VETERANS AFFAIRS ACQUISITION PROGRAMS.

    (a) Review of Operating and Support Costs of Major Acquisition 
Systems.--
            (1) In general.--Not later than one year after the date of 
        the enactment of this Act, the Comptroller General of the 
        United States shall submit to the Committee on Veterans' 
        Affairs of the Senate and the Committee on Veterans' Affairs of 
        the House of Representatives a report on growth in operating 
        and support costs for major acquisition systems.
            (2) Elements.--In preparing the report required by 
        paragraph (1), the Comptroller General shall, at a minimum--
                    (A) identify the original estimates for operating 
                and support costs for major acquisition systems 
                selected by the Comptroller General for purposes of the 
                report;
                    (B) assess the actual operating and support costs 
                for such major acquisition systems;
                    (C) analyze the rate of growth for operating and 
                support costs for such major acquisition systems;
                    (D) for such major acquisition systems that have 
                experienced the highest rate of growth in operating and 
                support costs, assess the factors contributing to such 
                growth;
                    (E) assess measures taken by the Department of 
                Veterans Affairs to reduce operating and support costs 
                for major acquisition systems; and
                    (F) develop such recommendations as the Comptroller 
                General considers appropriate.
    (b) Review of Financial Information Relating to Major Veteran 
Acquisition Programs.--
            (1) Review.--The Comptroller General of the United States 
        shall perform a review of weaknesses in operations affecting 
        the reliability of financial information on the systems and 
        assets to be acquired under major acquisition programs.
            (2) Elements.--The review required under paragraph (1) 
        shall--
                    (A) identify any weaknesses in operations under 
                major acquisition programs that hinder the capacity to 
                assemble reliable financial information on the systems 
                and assets to be acquired under such programs in 
                accordance with applicable accounting standards;
                    (B) identify any mechanisms developed by the 
                Department of Veterans Affairs to address weaknesses in 
                operations under major acquisition programs identified 
                pursuant to subparagraph (A); and
                    (C) assess the implementation of the mechanisms set 
                forth pursuant to subparagraph (B), including--
                            (i) the actions taken, or planned to be 
                        taken, to implement such mechanisms;
                            (ii) the schedule for carrying out such 
                        mechanisms; and
                            (iii) the metrics, if any, instituted to 
                        assess progress in carrying out such 
                        mechanisms.
            (3) Consultation.--In performing the review required by 
        paragraph (1), the Comptroller General shall seek and consider 
        input from the Assistant Secretary of Veterans Affairs for 
        Management.
            (4) Report.--Not later than one year after the date of the 
        enactment of this Act, the Comptroller General shall submit to 
        the Committee on Veterans' Affairs of the Senate and the 
        Committee on Veterans' Affairs of the House of Representatives 
        a report on the findings of the Comptroller General with 
        respect to the review performed pursuant to paragraph (1).
    (c) Definition of Major Acquisition Program.--In this section, the 
term ``major acquisition program'' has the meaning given such term in 
section 8181 of title 38, United States Code, as added by section 2(a).
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