H.R. 6833 — ARCA Act of 2025

This section provides a short title for the Act—“Acquisition Reform and Cost Assessment Act of 2025” or “ARCA Act of 2025”—and sets forth the table of contents.

This section establishes a new subchapter VII in chapter 81 of title 38, United States Code, defining a "major acquisition program" of the Department of Veterans Affairs (VA) as one with an estimated total life cycle cost exceeding $1 billion (adjusted pursuant to 41 U.S.C. §1908) or $200 million annually (similarly adjusted); increases the number of authorized Assistant Secretaries of Veterans Affairs to eight (from seven) under 38 U.S.C. §308(a)(1); and renames their procurement functions as "acquisition functions" under §308(b)(10). The section further establishes an Office of Acquisition headed by a designated Assistant Secretary for Acquisition—who serves as VA's Chief Acquisition Officer under 41 U.S.C. §1702(a)—with (1) all major acquisition program offices aligned under and reporting directly to that office; (2) a Deputy Assistant Secretary for Logistics responsible for logistics and supply chain operations; (3) a Deputy Assistant Secretary for Procurement responsible for all procurement and contracting organizations; and (4) a Deputy Assistant Secretary for Acquisition, Program Management, and Performance responsible for lifecycle management, requirements planning, programming and budgeting, policy, performance standards, governance, and acquisition workforce enhancement. Additionally, the section requires the Assistant Secretary for Acquisition to appoint at least four Program Executive Officers—one each for medical, information technology, professional services, and other areas—who report directly to the Assistant Secretary, supervise managers of major acquisition programs, and hold level-three project management certification from VA, the Federal Acquisition Institute, the Department of Defense, or an equivalent private-sector organization. The budget for the Office of Acquisition, including major acquisition programs, must appear in VA's budget justification materials submitted to Congress.

This section establishes requirements for Department of Veterans Affairs (VA) major acquisition program managers, including their appointment by the applicable Program Executive Officer not later than 30 days after the Secretary approves a program to commence. Managers must hold level three project management certification from the VA, Federal Acquisition Institute, Department of Defense, or an equivalent private sector organization, as determined by the Secretary. Managers report to the Assistant Secretary for Acquisition through the Program Executive Officer and must (1) develop a program baseline plan specifying acquisition phases, advancement requirements, and life-cycle cost, schedule, and performance estimates; (2) ensure program compliance and provide documentation to officials and governance boards; (3) develop resource requests; and (4) continuously assess and manage cost and schedule risks. The Secretary must vest program decision authority in the Assistant Secretary for Acquisition and ensure program management offices report directly to that official, independent of the Veterans Benefits Administration, Veterans Health Administration, National Cemetery Administration, and staff offices. Managers must notify the program decision authority not later than 30 days after concluding an acquisition phase.

This section directs the Secretary of Veterans Affairs to organizationally consolidate, under the Assistant Secretary for Acquisition, all department activities related to acquisition, procurement and contracting, or logistics and supply chain—including those of the Veterans Benefits Administration (VBA), Veterans Health Administration (VHA), and National Cemetery Administration—not later than one year after enactment. Subsection (b) specifies that the consolidation does not require physical relocation of employees. Subsection (c) requires the Secretary, not later than 90 days after commencing the consolidation, to submit to the congressional veterans' affairs committees a plan—including a timeline, communication and training activities for personnel, and modifications to department policy and guidance—and to brief the committees on the plan.

This section requires the Secretary of Veterans Affairs, not later than 120 days after enactment, to enter into one or more competitively procured contracts with qualified entities to perform independent verification and validation (IV&V)—defined as comprehensive review, analysis, testing, and assessment to verify program requirements and validate cost, schedule, and performance baselines—for each major acquisition program at initiation, conclusion, and other intervals selected by the Chief Acquisition Officer (CAO), as well as for other programs or projects selected by the CAO. Qualified entities must have performed, at a satisfactory or better level during the preceding three years, at least three prime contracts for IV&V or systems engineering and technical assistance (SETA) support on major acquisitions for governmental or commercial health care organizations or Department of Defense systems, per the Contractor Performance Assessment Reporting System; must demonstrate no conflicts of interest with respect to covered contracts (i.e., prime or subcontracts with the department for IT support, software/system services, professional consulting, or advisory services); and may not submit conflict mitigation plans. The Chief Financial Officer must ensure proportional funding contributions from relevant departmental subdivisions.

This section establishes in the Department of Veterans Affairs (VA) a Director of Cost Assessment and Program Evaluation who reports directly to the Secretary and is responsible for (1) developing policies and procedures for cost estimation and analysis of major VA acquisition programs, (2) conducting independent cost estimates and analyses to support acquisition decisions, (3) providing an independent cost estimate to the Assistant Secretary for Acquisition before approving full-scale acquisition of major programs, (4) evaluating major program effectiveness in meeting VA objectives, and (5) submitting annual reports to the Secretary and congressional Veterans' Affairs Committees on these activities, including recommendations to improve acquisition efficiency and a list of acquisitions where the independent cost estimate exceeds the budget request by more than 5%. The VA Chief Financial Officer must provide necessary support and resources for the Director. Separately, this section requires the Director to submit to the Secretary, by one year after enactment and annually thereafter through December 31, 2028, reports on systems and methods for tracking operating and support costs of major acquisition programs (including recommendations for cost baselines), which the Secretary must transmit to the congressional Veterans' Affairs Committees within 30 days.

This section directs the Secretary of Veterans Affairs to prioritize acquisition internship programs for hiring into entry-level acquisition positions in the department. It further requires the Secretary, by September 30 of the first fiscal year after enactment, to ensure the annual number of participants in such programs is not fewer than twice and not more than four times the fiscal year 2025 number, a requirement that terminates upon certification to the congressional Committees on Veterans' Affairs that projected graduates suffice for the department's acquisition workforce needs, accounting for attrition and retirements.

This section directs the Secretary of Veterans Affairs, not later than one year after enactment, to enter into a memorandum of understanding with the Executive Director of the Department of Defense's Acquisition Research Center to conduct a systems engineering analysis of the Department of Veterans Affairs' acquisition process. Not later than one year after entering into the memorandum of understanding, the Secretary must submit a report on the analysis's findings to the Senate and House Committees on Veterans' Affairs.

This section establishes a standardized requirements development process for Department of Veterans Affairs (VA) major acquisition programs exceeding $200 million annually or $1 billion in lifecycle costs. The process, to be developed in coordination with the Assistant Secretary for Acquisition, requires defining and validating mission-driven requirements; incorporating data-driven needs assessments, stakeholder input from VA elements and veterans service organizations, and alignment with statutory mandates (e.g., section 8121 of title 38, U.S. Code); and ensuring iterative validation through independent verification and validation to confirm cost, schedule, and performance baselines. The section limits implementation to existing staff in the Office of Acquisition and other relevant offices without creating new positions unless justified by a cost-benefit analysis validated by the Director of Cost Assessment and Program Evaluation. Finally, the section requires the VA Secretary to submit a report to the congressional veterans' affairs committees within 180 days of enactment detailing the process and an implementation plan, including timelines for integration with major acquisition program baselines.

This section makes clerical amendments to the table of sections at the beginning of chapter 81 of title 38, U.S. Code, by (1) striking the item relating to section 8172; and (2) adding a new subchapter VII—Acquisition review, cost assessment, and program evaluation—with sections 8181 (definition of major acquisition program), 8182 (acquisition reorganization), 8183 (major acquisition program managers), 8184 (cost assessment and program evaluation), and 8185 (requirements development process).