,,ii  #aahth ,,congress  #ast ,session  
,s4 #bdbb  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,july #bj1     
#bjbc ,mr4 ,tester 7for himself and ,mr4
 ,moran7 introduced the following bill2 
which was read twice and referred to the
 ,committee on ,veterans' ,affairs  ,a  
,,bill  ,to amend title #ch1 ,united    
,states ,code1 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 ,department1 and for other purposes4
  #a4 ,short title ,this ,act may be    
cited as the ,acquisition ,reform and   
,cost ,assessment ,act of #bjbc or      
,,arca ,act of #bjbc4  #b4 ,department  
of ,veterans ,affairs acquisition       
review1 cost assessment1 and program    
evaluation  7a7 ,in general ,chapter #ha
 of title #ch1 ,united ,states ,code1 is
 amended by inserting after subchapter  
,,vi the following new subchapter3      
,,vii ,acquisition review1 cost         

assessment1 and program evaluation      
#haha4 ,definitions ,in this subchapter3
 7#a7 ,the term major acquisition       
program means a program of the          
,department to acquire property1 assets1
 supplies1 services1 or a combination   
thereof1 with an estimated life-cycle   
cost of #bej1jjj1jjj or more1 as        
determined by the ,secretary4  7#b7 ,the
 term non-major acquisition program     
means a program of the ,department to   
acquire property1 assets1 supplies1     
services1 or a combination thereof1 with
 an estimated life-cycle cost of less   
than #bej1jjj1jjj1 as determined by the 
,secretary4  #hahb4 ,acquisition ,review
 ,board  7a7 ,in general ,there is      
established in the ,department a board1 
to be known as the ,acquisition ,review 
,board1 to support the ,secretary in    
managing acquisition programs under the 
laws administered by the ,secretary4    
7b7 ,composition  7#a7 ,the ,deputy     
,secretary of ,veterans ,affairs shall  
serve as ,chair of the ,acquisition     

,review ,board4  7#b7 ,the ,deputy      
,secretary may designate an employee of 
the ,department to oversee the          
operations of the ,acquisition ,review  
,board4  7#c7 ,the ,deputy ,secretary   
shall ensure participation by other     
relevant ,department officials with     
responsibilities relating to            
acquisitions as permanent members of the
 ,acquisition ,review ,board1 including 
the following3 7,a7 ,the ,chief         
,acquisition ,officer4  7,b7 ,the ,chief
 ,financial ,officer4  7,c7 ,the ,chief 
,veterans ,experience ,officer4  7,d7   
,the ,chief ,information ,officer4  7,e7
 ,the ,assistant ,secretary for         
,enterprise ,integration4  7,f7 ,other  
relevant senior ,department officials1  
as the ,deputy ,secretary determines    
appropriate1 including such officials   
from the ,veterans ,health              
,administration1 the ,veterans ,benefits
 ,administration1 and the ,national     
,cemetery ,administration4  7c7         
,meetings ,the ,acquisition ,review     

,board shall convene--  7#a7 at the     
discretion of the ,deputy ,secretary2   
and  7#b7 not later than #de days after 
any date on which--  7,a7 a major       
acquisition program-- 7i7 is proposed to
 the ,secretary2  7ii7 is approved by   
the ,secretary to commence2  7iii7      
concludes an acquisition phase2  7iv7 is
 not in compliance with requirements    
relating to cost1 schedule1 or          
performance under the applicable program
 baseline described in section          
#hahc7;b77#a7 of this title1 as         
determined by the ,deputy ,secretary2 or
  7v7 requires additional review1 as    
determined by the ,deputy ,secretary2   
and  7,b7 a non-major acquisition       
program requires review1 as determined  
by the ,deputy ,secretary4  7d7         
,responsibilities ,the ,acquisition     
,review ,board shall be responsible     
for--  7#a7 with respect to a major     
acquisition program proposed to the     
,secretary1 determining whether the     
business strategy1 budget1 management1  

and organization of such program is     
feasible and in accordance with the     
mission and strategic goals of the      
,department2  7#b7 with respect to a    
major acquisition program approved by   
the ,secretary to commence1 determining 
the appropriate acquisition category for
 such program2  7#c7 with respect to a  
major acquisition program that has      
concluded an acquisition phase-- 7,a7   
authorizing the manager of such program 
appointed pursuant to section #hahc7;a7 
of this title to advance such program to
 a subsequent acquisition phase if the  
relevant requirements in such applicable
 program baseline have been satisfied2  
and  7,b7 advising such manager on      
appropriate corrective action if such   
requirements have not been satisfied2   
and  7#d7 reviewing1 on a continuous    
basis1 each major acquisition program to
 ensure each such program is in         
compliance with--  7,a7 the relevant    
requirements in such applicable program 
baseline2 and  7,b7 the certification   

requirement under subsection 7c7 of such
 section4  7e7 ,acquisition decision    
memorandum ,not later than #cj days     
after any date on which the ,deputy     
,secretary convenes a meeting pursuant  
to subsection 7c71 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-- 7#a7 a summary of--  7,a7 the
 purpose of such meeting2  7,b7 any     
matter discussed during such meeting2   
7,c7 any decision of the ,acquisition   
,review ,board made during such meeting1
 including any such decision to allow a 
major acquisition program to deviate    
from the relevant requirements in such  
applicable program baseline2 and  7,d7  
any matters assigned for further        
discussion during a subsequent meeting  
of the ,acquisition ,review ,board2 and 
7#b7 a certification by the ,deputy     

,secretary that the contents of such    
memorandum are accurate4  #hahc4 ,major 
acquisition program managers  7a7       
,appointments ,not later than #cj days  
after any date on which the ,secretary  
approves a major acquisition program to 
commence1 the ,deputy ,secretary shall  
appoint a manager to be responsible for 
administering such program4  7b7 ,duties
 ,each manager appointed pursuant to    
subsection 7a7 shall be responsible for1
 with respect to the applicable major   
acquisition program-- 7#a7 developing1  
in coordination with the ,acquisition   
,review ,board1 a plan to administer    
such program1 to be known as the program
 baseline1 that includes--  7,a7 a      
description of each acquisition phase of
 such program2  7,b7 for each such      
acquisition phase1 requirements for     
advancing such program to a subsequent  
acquisition phase2 and  7,c7 estimates  
of the cost1 schedule1 and performance  
of such program that account for the    
entire life cycle of such program2  7#b7

 ensuring such program is in compliance 
with such requirements2  7#c7 securing  
funding necessary to satisfy such       
requirements2  7#d7 adopting            
standardized processes with established 
success to support the progress of such 
program1 including--  7,a7 milestones2  
7,b7 exit criteria2 and  7,c7 specific  
accomplishments2  7#e7 to the extent    
practicable1 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 7#a72  7#f7 on a        
continuous basis1 assessing and managing
 risks to satisfying the requirements of
 such program baseline relating to cost 
and schedule2  7#g7 establishing a      
workforce for such program that is      
qualified and sufficient to perform the 
necessary functions of such program2 and
  7#h7 ensuring such program has        

adequate technology and production      
capacity prior to commencing an         
acquisition phase of such program       
related to manufacturing1 if applicable4
  7c7 ,consideration of alternate       
requirements ,not later than #ij days   
after any date on which a manager       
appointed pursuant to subsection 7a7    
establishes a program baseline described
 in subsection 7b77#a71 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 cost1 schedule1 and     
performance of each acquisition phase of
 such program prior to establishing such
 program baseline4  7d7 ,acquisition    
,review ,board authorization required   
7#a7 ,not later than #cj days after any 
date on which a major acquisition       
program concludes an acquisition phase1 
the manager of such program appointed   
pursuant to subsection 7a7 shall notify 

the ,acquisition ,review ,board under   
section #hahb of this title4  7#b7 ,such
 manager may not advance such program to
 a subsequent acquisition phase without 
the authorization of such ,acquisition  
,review ,board pursuant to subsection   
7d77#c7 of such section4  #hahd4 ,cost  
assessment and program evaluation  7a7  
,director of cost assessment and program
 evaluation ,there is established a     
,director of ,cost ,assessment and      
,program ,evaluation4  7b7 7#a7         
,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 ,department1 and shall 
provide independent analysis and advice 
to such officials1 on the following     
matters3  7,a7 ,matters assigned to the 
,director pursuant to this section4     
7,b7 ,matters assigned to the ,director 
by the ,secretary pursuant to this      
section and to section #cjc of this     

title4  7#b7 ,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        
,department4  7c7 ,deputy directors     
,there are two ,deputy ,directors within
 the ,office of the ,director of ,cost  
,assessment and ,program ,evaluation1 as
 follows3  7#a7 ,the ,deputy ,director  
for ,cost ,assessment4  7#b7 ,the       
,deputy ,director for ,program          
,evaluation4  7d7 ,responsibilities ,the
 ,director of ,cost ,assessment and     
,program ,evaluation shall serve as the 
principal official within the senior    
management of the ,department for the   
following3 7#a7 ,cost estimation and    
cost analysis for acquisition programs  
of the ,department4  7#b7 ,analysis and 
advice on matters relating to the       
planning and programming phases of the  
,planning1 ,programming1 ,budgeting1 and

 ,execution system1 and the preparation 
of materials and guidance for such      
system1 as directed by the ,secretary1  
working in coordination with the        
,assistant ,secretary for ,management   
and the ,chief ,financial ,officer of   
the ,department4  7#c7 ,analysis and    
advice for resource discussions relating
 to requirements under consideration in 
the ,veterans ,health ,administration1  
the ,veterans ,benefits ,administration1
 or the ,national ,cemetery             
,administration4  7#d7 ,formulation of  
study guidance for analyses of          
alternatives for major acquisition      
programs and performance of such        
analyses1 as directed by the ,secretary4
  7#e7 ,review1 analysis1 and evaluation
 of programs for executing approved     
strategies and policies1 ensuring that  
information on programs is presented    
accurately and completely1 and assessing
 the effect of spending by the          
,department on the ,united ,states      
economy4  7#f7 ,assessments of          

alternative plans1 programs1 and        
policies with respect to the acquisition
 programs of the ,department4  7#g7     
,leading the development of improved    
analytical skills and competencies      
within the cost assessment and program  
evaluation workforce of the ,department 
and improved tools1 data1 and methods to
 promote performance1 economy1 and      
efficiency in analyzing ,department     
planning and the allocation of          
,department resources4  7e7 ,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 ,department4 ,in        
carrying out that responsibility1 the   
,director shall-- 7#a7 prescribe1 by    
authority of the ,secretary1 policies   
and procedures for the conduct of cost  
estimation and cost analysis for the    

acquisition programs of the ,department2
  7#b7 provide guidance to and consult  
with the ,secretary1 the ,chief         
,acquisition ,officer1 the ,assistant   
,secretary for ,management1 the ,chief  
,financial ,officer of the ,department1 
the ,under ,secretary for ,health1 the  
,under ,secretary for ,benefits1 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     
program2  7#c7 issue guidance relating  
to the proper selection of confidence   
levels in cost estimates generally1 and 
specifically1 for the proper selection  
of confidence levels in cost estimates  
for major acquisition programs and major
 automated information system programs2 
7#d7 issue guidance relating to full    
consideration of life-cycle management  
and sustainability costs in major       
acquisition programs and major automated

 information system programs2  7#e7     
review all cost estimates and cost      
analyses conducted in connection with   
major acquisition programs and major    
automated information system programs2  
7#f7 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-- 7,a7 in advance  
of--  7i7 any certification under this  
title2 and  7ii7 any decision to enter  
into low-rate initial production or     
full-rate production2 and  7,b7 at any  
other time considered appropriate by the
 ,director or upon the request of the   
,chief ,acquisition ,officer2 and  7#g7 
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 estimation4  7f7     
,review of cost estimates1 cost         
analyses1 and records of the ,department

 ,the ,secretary shall ensure that the  
,director-- 7#a7 promptly receives the  
results of all cost estimates and cost  
analyses conducted by the ,veterans     
,benefits ,administration1 the ,veterans
 ,health ,administration1 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 ,administrations2 and  7#b7 has    
timely access to any records and data in
 the ,department 7including the records 
and data of each ,administration7 that  
the ,director considers necessary to    
review in order to carry out any duties 
under this section4  7g7 ,participation1
 concurrence1 and approval in cost      
estimation ,the ,director may--  7#a7   
participate in the discussion of any    
discrepancies between an independent    
cost estimate and the cost estimate     
assessments of the ,veterans ,benefits  

,administration1 the ,veterans ,health  
,administration1 and the ,national      
,cemetery ,administration for a major   
acquisition program or major automated  
information system program of the       
,department2  7#b7 comment on           
deficiencies in the methodology or      
execution of any cost estimate or cost  
analysis developed by the ,veterans     
,benefits ,administration1 the ,veterans
 ,health ,administration1 or the        
,national ,cemetery ,administration for 
a major acquisition program or major    
automated information system program2   
7#c7 concur in the choice of a cost     
estimate within the baseline description
 or any other cost estimate 7including  
the confidence level for any such cost  
estimate7 for use at any event specified
 in subsection 7e77#f72 and  7#d7       
participate in the consideration of any 
decision to request authorization of a  
multi-year procurement contract for a   
major acquisition program4  7h7 ,annual 
report on cost assessment activities    

7#a7 ,each year1 not later than #aj days
 after the transmittal to ,congress of  
the budget of the ,president for a      
fiscal year pursuant to section #aaje of
 title #ca1 the ,director shall submit  
to the ,secretary1 the ,chief           
,acquisition ,officer of the            
,department1 the ,assistant ,secretary  
for ,management1 the ,chief ,financial  
,officer of the ,department1 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 year4  7#b7     
,each report submitted pursuant to      
paragraph 7#a7 shall include1 for the   
period covered by the report1 the       
following3  7,a7 ,a summary of the cost 
estimation and cost analysis activities 
of the ,department4  7,b7 ,assessments  
of the following3  7i7 ,the progress of 
the ,department in improving the        

accuracy of its cost estimates and      
analyses4  7ii7 ,the extent to which    
each of the ,veterans ,benefits         
,administration1 the ,veterans ,health  
,administration1 and the ,national      
,cemetery ,administration have complied 
with policies1 procedures1 and guidance 
issued by the ,director with regard to  
the preparation of cost estimates for   
major acquisition programs and major    
automated information systems4  7iii7   
,the overall quality of cost estimates  
prepared by each of the ,administrations
 for major acquisition programs and     
major automated information system      
programs4  7iv7 ,any consistent         
differences in methodology or approach  
among the cost estimates prepared by the
 ,administrations and the ,director4    
7#c7  7,a7 ,the ,director shall ensure  
that a report submitted to paragraph    
7#a7 does not include any information1  
such as proprietary or source selection 
sensitive information1 that could       
undermine the integrity of the          

acquisition process4  7,b7 ,the report  
submitted pursuant to paragraph 7#a7 to 
the committees described in such        
paragraph shall be posted on an internet
 website of the ,department that is     
available to the public4  7#d7 ,the     
,secretary may comment on any report of 
the ,director submitted to the          
committees described in paragraph 7#a7  
pursuant to such paragraph4  7i7 ,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 section4  4    
7b7 ,clerical amendment ,the table of   
sections at the beginning of such       
chapter is amended by adding at the end 
the following3  ,,subchapter            
,,vii--,acquisition review1 cost        
assessment1 and program evaluation ,sec4
 #haha4 ,definitions4 ,sec4 #hahb4      
,acquisition ,review ,board4 ,sec4      
#hahc4 ,major acquisition program       
managers4 ,sec4 #hahd4 ,cost assessment 

and program evaluation4  4  7c7 ,report 
on monitoring of operating and support  
costs for major acquisition programs    
7#a7 ,report to ,secretary of ,veterans 
,affairs ,not later than one year after 
the date of the enactment of this ,act1 
the ,director of ,cost ,assessment and  
,program ,evaluation established        
pursuant to section #hahd of title #ch1 
,united ,states ,code1 as added by      
subsection 7a71 shall--  7,a7 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 7as defined in     
section #haha of such title1 as added by
 subsection 7a772 and  7,b7 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 7,a71         
including an assessment by the ,director
 of the feasibility and advisability of 

establishing baselines for operating and
 support costs under such title4  7#b7  
,transmittal to ,congress ,not later    
than #cj days after receiving the report
 required by paragraph 7#a77;,a71 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          
7#a77;,b71 together with such comments  
on the report as the ,secretary         
considers appropriate4  #c4 ,comptroller
 ,general of the ,united ,states reports
 on costs and financial information     
regarding major ,department of ,veterans
 ,affairs acquisition programs  7a7     
,review of operating and support costs  
of major acquisition systems  7#a7 ,in  
general ,not later than one year after  
the date of the enactment of this ,act1 
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 systems4  7#b7 ,elements ,in
 preparing the report required by       
paragraph 7#a71 the ,comptroller        
,general shall1 at a minimum-- 7,a7     
identify the original estimates for     
operating and support costs for major   
acquisition systems selected by the     
,comptroller ,general for purposes of   
the report2  7,b7 assess the actual     
operating and support costs for such    
major acquisition systems2  7,c7 analyze
 the rate of growth for operating and   
support costs for such major acquisition
 systems2  7,d7 for such major          
acquisition systems that have           
experienced the highest rate of growth  
in operating and support costs1 assess  
the factors contributing to such growth2
  7,e7 assess measures taken by the     
,department of ,veterans ,affairs to    
reduce operating and support costs for  

major acquisition systems2 and  7,f7    
develop such recommendations as the     
,comptroller ,general considers         
appropriate4  7b7 ,review of financial  
information relating to major veteran   
acquisition programs  7#a7 ,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 programs4  7#b7 
,elements ,the review required under    
paragraph 7#a7 shall-- 7,a7 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   
standards2  7,b7 identify any mechanisms
 developed by the ,department of        
,veterans ,affairs to address weaknesses
 in operations under major acquisition  
programs identified pursuant to         

subparagraph 7,a72 and  7,c7 assess the 
implementation of the mechanisms set    
forth pursuant to subparagraph 7,b71    
including--  7i7 the actions taken1 or  
planned to be taken1 to implement such  
mechanisms2  7ii7 the schedule for      
carrying out such mechanisms2 and  7iii7
 the metrics1 if any1 instituted to     
assess progress in carrying out such    
mechanisms4  7#c7 ,consultation ,in     
performing the review required by       
paragraph 7#a71 the ,comptroller        
,general shall seek and consider input  
from the ,assistant ,secretary of       
,veterans ,affairs for ,management4     
7#d7 ,report ,not later than one year   
after the date of the enactment of this 
,act1 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 7#a74   

7c7 ,definition of major acquisition    
program ,in this section1 the term major
 acquisition program has the meaning    
given such term in section #haha of     
title #ch1 ,united ,states ,code1 as    
added by section #b7;a74