S. 2412 — Department of Veterans Affairs Acquisition Reform Act of 2025

This section states congressional findings that (1) the Department of Veterans Affairs (VA) organization relating to construction and leasing activities does not comply with the requirements of 38 U.S.C. 312A (which establishes a Director of Construction and Facilities Management responsible for overseeing VA facilities planning, design, construction, leasing, maintenance, and related procurement); (2) the VA lacks a consistent, cohesive, or effective approach to manage its real estate assets and infrastructure and to carry out construction and leasing; (3) the VA organization relating to procurement and acquisition, generally, is redundant and ineffective; and (4) the VA's policies and operations relating to procurement and acquisition, generally, are hampered by the VA's organization.

This section modifies the reporting structure for the Director of Construction and Facilities Management in the Department of Veterans Affairs (VA) by requiring the Director to report to the Deputy Secretary, the Under Secretary for Health, and the Chief Acquisition Officer (from the Deputy Secretary only); and adds a new subsection (d) requiring all VA employees engaged in facilities-related activities—including planning, design, and construction (including major and minor medical facility projects); strategic capital investment planning; leasing (including short-term, long-term, major, and minor medical facility leases); repair, maintenance, and operation; and related procurement and acquisition—to report directly to the Director. (Thus, the change centralizes supervisory authority over VA facilities management, which supports healthcare delivery to veterans.)

This section directs the Secretary of Veterans Affairs, not later than one year after the date of enactment, to (1) consolidate under the Director of Construction and Facilities Management the functions related to facilities planning, design, construction, leasing, maintenance, and procurement currently performed by the Veterans Benefits Administration, Veterans Health Administration, and National Cemetery Administration, as described in 38 U.S.C. 312A(c); (2) consolidate under the Director the employees of those administrations performing such functions, as described in new subsection (d); and (3) establish a regional organizational structure for those employees as a component of the structure described in section 5(b). (As background, the Director position oversees Department of Veterans Affairs facilities and infrastructure, including major and minor construction projects.)

This section directs the Secretary of Veterans Affairs (VA), not later than one year after enactment, to organizationally consolidate under the VA Chief Acquisition Officer (CAO)—designated under 41 U.S.C. §1702—the functions relating to acquisition; procurement and contracting; logistics; and administration of chapter 81 of title 38, U.S. Code (i.e., VA-specific acquisition authorities), currently performed by the Veterans Benefits Administration (VBA), Veterans Health Administration (VHA), and National Cemetery Administration (NCA). The section further requires the Secretary to establish a regional organizational structure for these consolidated functions, reporting to the CAO, that corresponds in part or whole to the boundaries of VHA's 18 Veterans Integrated Service Networks (VISNs); such structure may include overarching or constituent organizations and dedicated VBA or NCA offices. Within each region, the structure must include (1) a regional director of acquisition, logistics, and construction—a career reserved position (5 U.S.C. §3132(a)) reporting to the CAO, who may be selected from current VA employees performing the consolidated functions; and (2) a regional director of construction and leasing reporting to the regional director of acquisition, logistics, and construction and supervising regional employees described in section 4(2). This section clarifies that the consolidation does not require physical relocation of VA employees.

This section directs the Secretary of Veterans Affairs to prioritize acquisition internship programs for hiring into entry-level acquisition positions. The section further requires the Secretary to increase annual participants in such programs to between two times and four times the FY2025 number (from the FY2025 number), beginning not later than September 30 of the first fiscal year after enactment of this Act; this requirement terminates upon certification to the congressional Committees on Veterans' Affairs that projected program graduates suffice to meet the Department's acquisition workforce needs, accounting for attrition and projected retirements.

This section requires the Secretary of Veterans Affairs to submit two reports to the congressional Committees on Veterans' Affairs. (1) Not later than 90 days after enactment, a report detailing how the authorities under 38 U.S.C. §706—which authorize recruitment/relocation/retention bonuses, merit awards, critical skills incentives (up to 25% of basic pay), and student loan repayments without certain Title 5 certification or approval requirements—will be used to increase the size and performance of the Department's acquisition workforce (i.e., personnel in the GS-1102 occupational series). (2) Not later than 390 days after enactment, a report detailing implementation of sections 4 and 5.