[Congressional Record Volume 171, Number 132 (Thursday, July 31, 2025)]
[Senate]
[Pages S5087-S5089]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 3286. Mr. MORAN (for himself and Mr. King) submitted an amendment
intended to be proposed by him to the bill S. 2296, to authorize
appropriations for fiscal year 2026 for military activities of the
Department of Defense, for military construction, and for defense
activities of the Department of Energy, to prescribe military personnel
strengths for such fiscal year, and for other purposes; which was
ordered to lie on the table; as follows:
At the appropriate place, insert the following:
TITLE __--DEPARTMENT OF VETERANS AFFAIRS ACQUISITION REFORM AND COST
ASSESSMENT
SEC. ___01. SHORT TITLE.
(a) Short Title.--This title may be cited as the
``Acquisition Reform and Cost Assessment Act of 2025'' or the
``ARCA Act of 2025''.
SEC. ___02. 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. __03. 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--
[[Page S5088]]
``(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. __04. 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. __05. 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) Definitions.--In this section:
(1) Covered contract.--The term ``covered contract'' means
any prime or subcontract with the Department, including--
(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 program, project
or system, or a development phase of such a program or
project, are correctly defined; and
(B) to validate cost, schedule, and performance baselines
of current programs and measure program effectiveness.
SEC. __06. 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
[[Page S5089]]
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. __07. 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. __08. 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 enter into a memorandum of
understanding with the Executive Director of the Acquisition
Research Center of the Department of Defense 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 Executive
Director with respect to the analysis conducted under such
subsection.
SEC. __09. 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 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 requirements process established pursuant to
section 8187 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 review, 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.''.
______