119-s1591

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1591 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 1591

 To amend title 38, United States Code, to reorganize the acquisition 
 structure 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

 May 5, 2025

 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 reorganize the acquisition 
 structure 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; 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. 2. Department of Veterans Affairs acquisition organization.

Sec. 3. Department of Veterans Affairs major acquisition program 
 managers.

Sec. 4. Department of Veterans Affairs acquisition and procurement 
 reorganization matters.

Sec. 5. Independent verification and validation of major acquisition 
 programs of Department of Veterans Affairs.

Sec. 6. Department of Veterans Affairs cost assessment and program 
 evaluation.

Sec. 7. Department of Veterans Affairs other transaction authority and 
 advance market commitments for technologies 
 or services for provision of health care.

Sec. 8. Development and expansion of an 1102 internship or development 
 pipeline.

Sec. 9. Clerical amendment.

SEC. 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:

 ``SUBCHAPTER VII--ACQUISITION ORGANIZATION, 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, 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:
``

Sec. 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.''.

SEC. 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:
``

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 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) .''.

SEC. 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) .

SEC. 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).

SEC. 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:
``

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, 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.

SEC. 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:
``

Sec. 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.
``

Sec. 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.''.

SEC. 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.

SEC. 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.''.
 <all>