#aaith ,,congress  #ast ,session  ,s4   
#aeia  ,,an ,,act  ,to amend title #ch1 
,united ,states ,code1 to reorganize the
 acquisition structure 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 title2 table of contents   
7a7 ,short title ,this ,act may be cited
 as the ,acquisition ,reform and ,cost  
,assessment ,act of #bjbe or the ,,arca 
,act of #bjbe4  7b7 ,table of contents  
,the table of contents for this ,act is 
as follows3 ,sec4 #a4 ,short title2     
table of contents4,sec4 #b4 ,department 
of ,veterans ,affairs acquisition       
organization4,sec4 #c4 ,department of   
,veterans ,affairs major acquisition    
program managers4,sec4 #d4 ,department  
of ,veterans ,affairs acquisition and   
procurement reorganization matters4,sec4
 #e4 ,independent verification and      
validation of major acquisition programs
 of ,department of ,veterans            

,affairs4,sec4 #f4 ,department of       
,veterans ,affairs cost assessment and  
program evaluation4,sec4 #g4            
,improvements to hiring of entry-level  
acquisition positions in ,department of 
,veterans ,affairs4,sec4 #h4            
,independent analysis of acquisition    
process of ,department of ,veterans     
,affairs4,sec4 #i4 ,requirements        
development process4,sec4 #aj4          
,conforming amendments4,sec4 #aa4       
,clerical amendments4  #b4 ,department  
of ,veterans ,affairs acquisition       
organization  7a7 ,definitions ,chapter 
#ha of title #ch1 ,united ,states ,code1
 is amended by inserting after          
subchapter ,,vi the following new       
subchapter3  ,,vii ,acquisition         
organization1 cost assessment1 and      
program evaluation  #haha4 ,definition  
of major acquisition program ,in this   
subchapter1 the term major acquisition  
program means a program of the          
,department to acquire services1        
supplies1 technology1 systems1 or a     

combination thereof1 with an estimated  
total program cost1 estimated by the    
,secretary1 that exceeds-- 7#a7         
#a1jjj1jjj1jjj 7adjusted pursuant to    
section #aijh of title #da7 for the     
total life cycle cost of the program2 or
  7#b7 #bjj1jjj1jjj 7adjusted pursuant  
to section #aijh of title #da7 annually4
  4  7b7 ,assistant ,secretary for      
,acquisition ,section #cjh of such title
 is amended-- 7#a7 in subsection        
7a77#a71 by striking seven and inserting
 eight2 and  7#b7 in subsection         
7b77#aj71 by striking ,procurement      
functions and inserting ,acquisition    
functions4  7c7 ,acquisition            
organization ,subchapter ,,vi of chapter
 #ha of such title1 as added by         
subsection 7a71 is amended by adding at 
the end the following new section3      
#hahb4 ,acquisition organization  7a7   
,assistant ,secretary for ,acquisition2 
,chief ,acquisition ,officer  7#a7 ,the 
,secretary shall designate one of the   
,assistant ,secretaries specified in    

subsection 7a77#a7 of section #cjh of   
this title as the ,assistant ,secretary 
of ,veterans ,affairs for ,acquisition1 
who shall focus solely on the           
administration of functions specified in
 subsection 7b77#aj7 of such section4   
7#b7 ,pursuant to section #agjb7;a7 of  
title #da1 the ,secretary shall         
designate the ,assistant ,secretary of  
,veterans ,affairs for ,acquisition as  
the ,chief ,acquisition ,officer of the 
,department4  7b7 ,office of            
,acquisition  7#a7 ,there is in the     
,department an ,office of ,acquisition4 
7#b7 ,the head of the ,office of        
,acquisition shall be the ,assistant    
,secretary of ,veterans ,affairs for    
,acquisition designated pursuant to     
subsection 7a74  7#c7 ,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 ,acquisition4  7#d7 ,the   
budget of the ,office of ,acquisition1  
including budgets for major acquisition 
programs1 shall be established in the   
budget justification materials submitted
 to ,congress in support of the budget  
of the ,department 7as submitted with   
the budget of the ,president under      
section #aaje7;a7 of title #ca74  7c7   
,deputy ,assistant ,secretary for       
,logistics  7#a7 ,pursuant to section   
#cjh7;d7 of this title1 the ,secretary  
shall appoint a ,deputy ,assistant      
,secretary of ,veterans ,affairs for    
,logistics1 who shall report to the     
,assistant ,secretary for ,acquisition4 
7#b7 ,the ,deputy ,assistant ,secretary 
of ,veterans ,affairs for ,logistics    
shall be responsible for administration 
of logistics and supply chain operations
 of the ,department4  7d7 ,deputy       
,assistant ,secretary for ,procurement  
7#a7 ,pursuant to section #cjh7;d7 of   
this title1 the ,secretary shall appoint
 a ,deputy ,assistant ,secretary of     

,veterans ,affairs for ,procurement1 who
 shall report to the ,assistant         
,secretary for ,acquisition4  7#b7 ,the 
,deputy ,assistant ,secretary of        
,veterans ,affairs for ,procurement     
shall be responsible for all procurement
 and contracting organizations of the   
,department4  7e7 ,deputy ,assistant    
,secretary for ,acquisition1 ,program   
,management1 and ,performance  7#a7     
,pursuant to section #cjh7;d7 of this   
title1 the ,secretary shall appoint a   
,deputy ,assistant ,secretary of        
,veterans ,affairs for ,acquisition1    
,program ,management1 and ,performance1 
who shall report to the ,assistant      
,secretary for ,acquisition4  7#b7 ,the 
,deputy ,assistant ,secretary for       
,acquisition1 ,program ,management1 and 
,performance shall be responsible for   
the following3 7,a7 ,lifecycle          
management4  7,b7 ,requirements         
planning4  7,c7 ,programming and        
budgeting4  7,d7 ,policy4  7,e7         
,performance standards4  7,f7           

,governance4  7,g7 ,enhancing the       
capabilities of the acquisition         
workforce4  7f7 ,program ,executive     
,officers  7#a7 ,the ,assistant         
,secretary for ,acquisition shall       
appoint no fewer than four ,program     
,executive ,officers1 each responsible  
for overseeing major acquisition        
programs in one of the following areas3 
7,a7 ,medical4  7,b7 ,information       
technology4  7,c7 ,professional         
services4  7,d7 ,other areas not        
included in subparagraphs 7,a7 through  
7,c74  7#b7 ,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 area1 as appointed under     
section #hahc of this title4  7#c7 ,each
 ,program ,executive ,officer shall be--
 7,a7 certified in project management at
 level three by-- 7i7 the ,department2  
7ii7 the ,federal ,acquisition          
,institute pursuant to section #abja of 

title #da2 or  7iii7 the ,department of 
,defense pursuant to section #agja;a of 
title #aj2 or  7,b7 hold an equivalent  
certification by a private sector       
project management certification        
organization1 as determined appropriate 
by the ,secretary4  4  #c4 ,department  
of ,veterans ,affairs major acquisition 
program managers ,subchapter ,,vi of    
chapter #ha of title #ch1 ,united       
,states ,code1 as added by section #b1  
is amended by adding at the end the     
following new section3  #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 applicable ,program       
,executive ,officer shall appoint a     
manager to be responsible for           
administering such program4  7b7        
,qualifications ,each manager appointed 
pursuant to subsection 7a7 shall be--   
7#a7 certified in project management at 
level three by-- 7,a7 the ,department2  

7,b7 the ,federal ,acquisition          
,institute pursuant to section #abja of 
title #da2 or  7,c7 the ,department of  
,defense pursuant to section #agja;a of 
title #aj2 or  7#b7 hold an equivalent  
certification by a private sector       
project management certification        
organization1 as determined appropriate 
by the ,secretary4  7c7 ,duties ,each   
manager appointed pursuant to subsection
 7a7 for a major acquisition program    
shall-- 7#a7 report to the ,assistant   
,secretary for ,acquisition through the 
,program ,executive ,officer responsible
 for the major acquisition program2 and 
7#b7 shall be responsible for1 with     
respect to the major acquisition        
program-- 7,a7 developing1 in           
coordination with the ,program          
,executive ,officer1 a plan to          
administer major acquisition program1   
which shall be known as the program     
baseline for the major acquisition      
program1 that includes-- 7i7 a          
description of each acquisition phase of

 the major acquisition program2  7ii7   
for each such acquisition phase1        
requirements for advancing the major    
acquisition program to a subsequent     
acquisition phase2 and  7iii7 estimates 
of the cost1 schedule1 and performance  
of the major acquisition program that   
account for the entire life cycle of the
 major acquisition program2  7,b7       
ensuring the major acquisition program  
is in compliance with such requirements 
and providing all program documentation1
 including program baseline             
documentation1 cost1 schedule1          
performance and risk assessments1 and   
other relevant materials1 to designated 
officials and relevant governance       
boards2  7,c7 developing resource       
requests and justifications necessary to
 satisfy such requirements2 and  7,d7 on
 a continuous basis1 assessing and      
managing risks to satisfying the        
requirements of such program baseline   
relating to cost and schedule4  7d7     
,program decision authority ,the        

,secretary shall ensure that-- 7#a7     
program decision authority for oversight
 of a major acquisition program is the  
,assistant ,secretary for ,acquisition2 
and  7#b7 program management offices for
 major acquisition programs are         
independent of the ,veterans ,benefits  
,administration1 the ,veterans ,health  
,administration1 the ,national ,cemetery
 ,administration1 and staff offices of  
the ,department by reporting directly to
 the ,assistant ,secretary for          
,acquisition4  7e7 ,program decision    
authority notification required ,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 program decision authority under    
subsection 7c74  4  #d4 ,department of  
,veterans ,affairs acquisition and      
procurement reorganization matters  7a7 
,organizational consolidation ,not later
 than one year after the date of the    

enactment of this ,act1 the ,secretary  
of ,veterans ,affairs shall             
organizationally consolidate under the  
,assistant ,secretary of ,veterans      
,affairs for ,acquisition every activity
 of the ,department of ,veterans        
,affairs1 including the ,veterans       
,benefits ,administration1 the ,veterans
 ,health ,administration1 and the       
,national ,cemetery ,administration1    
that relates to-- 7#a7 acquisition2     
7#b7 procurement and contracting2 or    
7#c7 logistics and supply chain4  7b7   
,relocation ,subsection 7a7 shall not be
 construed to require the physical      
relocation of employees of the          
,department4  7c7 ,plan and briefing    
7#a7 ,in general ,not later than #ij    
days after commencing organizational    
consolidation under subsection 7a71 the 
,secretary shall-- 7,a7 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 consolidation2 
and  7,b7 provide such committees a     
briefing on such plan4  7#b7 ,contents  
,the plan submitted pursuant to         
paragraph 7#a77;,a7 shall include the   
following3 7,a7 ,a timeline4  7,b7 ,a   
plan for communication and training     
activities for relevant ,department     
personnel4  7,c7 ,a plan for            
modification of relevant ,department    
policy and guidance4  7,d7 ,such other  
matters as the ,secretary considers     
relevant and appropriate4  #e4          
,independent verification and validation
 of major acquisition programs of       
,department of ,veterans ,affairs  7a7  
,contracting authority ,not later than  
#abj days after the date of the         
enactment of this ,act1 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 7c74  7b7       
,eligibility  7#a7 ,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       
determines1 at the time of evaluation of
 offers submitted under subsection 7a71 
that the entity is currently performing 
or has performed1 during the preceding  
three-year period1 not fewer than three 
prime contracts from either governmental
 or commercial health care organizations
 for-- 7,a7 the independent verification
 and validation services or equivalent  
services1 including systems engineering 
and technical advisory 7,,seta7 support 
of major acquisition programs2 or  7,b7 
the independent verification and        
validation or systems engineering and   
technical advisory 7,,seta7 support of  
the development or acquisition of major 
acquisition programs or defense systems1
 in accordance with guidance of the     
,department of ,defense relating to such
 acquisition programs or such business  
systems4  7#b7 ,past performance ,for   

any contract used to demonstrate        
eligibility under paragraph 7#a71 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     
,system1 or successor system4  7#c7     
,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 7c74  7#d7 ,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    
subsection4  7c7 ,functions ,the        
functions specified in this subsection  
are the following3 7#a7 ,the independent

 verification and validation of each    
major acquisition program project-- 7,a7
 when such major acquisition program is 
initiated1 with respect to its design   
and the development of its requirements 
and acquisition2  7,b7 at the conclusion
 of such program2 and  7,c7 at any other
 intervals during such program selected 
by the ,chief ,acquisition ,officer of  
the ,department4  7#b7 ,the independent 
verification and validation of other    
programs or projects of the ,department 
selected by the ,chief ,acquisition     
,officer of the ,department1 at         
intervals selected by the ,chief        
,acquisition ,officer4  7d7 ,funding    
,the ,chief ,financial ,officer of the  
,department shall ensure that each      
organizational subdivision of the       
,department that enters into a contract 
under subsection 7a7 proportionally     
contributes amounts to fund each such   
contract4  7e7 ,independent verification
 validation defined ,the term           
independent verification and validation 

means a comprehensive inspection1 a     
review1 analysis1 and testing1 or an    
assessment of systems1 software1 or     
hardware1 as applicable1 performed by an
 entity awarded a contract under        
subsection 7a7-- 7#a7 to verify that the
 requirements of a program1 project or  
system1 or a development phase of such a
 program or project1 are correctly      
defined2 and  7#b7 to validate cost1    
schedule1 and performance baselines of  
current programs and measure program    
effectiveness4  #f4 ,department of      
,veterans ,affairs cost assessment and  
program evaluation  7a7 ,in general     
,subchapter ,,vi of chapter #ha of title
 #ch1 ,united ,states ,code1 as added by
 section #b and amended by section #c1  
is further amended by adding at the end 
the following new section3  #hahd4 ,cost
 assessment and program evaluation  7a7 
,director of ,cost ,assessment and      
,program ,evaluation ,there is in the   
,department a ,director of ,cost        
,assessment and ,program ,evaluation1   

who shall report directly to the        
,secretary4  7b7 ,responsibilities ,the 
responsibilities of the ,director are as
 follows3 7#a7 ,to develop policies and 
procedures for cost estimation and      
analysis of major acquisition programs  
of the ,department4  7#b7 ,to conduct   
independent cost estimates and analyses 
for major acquisition programs to       
support acquisition decisions1 or any   
other acquisitions as directed by the   
,secretary1  7#c7 ,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 ,director4  7#d7 ,to
 evaluate the effectiveness of major    
acquisition programs in meeting         
,department objectives4  7#e7 ,not less 
frequently than once each year1 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  
activities1 including recommendations to
 improve acquisition efficiency4 ,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 #e percent4  7c7   
,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 ,evaluation4  4
  7b7 ,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 and not less frequently than 
once each year thereafter until         

,december #ca1 #bjbh1 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 7as defined in section #haha of
 title #ch1 ,united ,states ,code1 as   
added by section #b71 including         
recommendations for establishing cost   
baselines4  7#b7 ,transmittal to        
,congress ,not later than #cj days after
 receiving a report pursuant to         
paragraph 7#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 ,secretary4  #g4        
,improvements to hiring of entry-level  
acquisition positions in ,department of 
,veterans ,affairs  7a7 ,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 ,affairs4  7b7 ,annual number 
of participants in acquisition          
internship programs  7#a7 ,in general   
,not later than ,september #cj of the   
first fiscal year beginning after the   
date of the enactment of this ,act1 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-- 7,a7 not fewer than    
twice the number of participants in such
 programs during fiscal year #bjbe2 and 
7,b7 not more than #d times the number  
of participants in such programs during 
such fiscal year4  7#b7 ,termination    
,the requirements of paragraph 7#a7     
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
 acquisition1 taking into account the   
rate of attrition and projected         
retirements of personnel4  7#c7         
,appropriate committees of ,congress    
defined ,in this subsection1 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 ,representatives4  #h4       
,independent analysis of acquisition    
process of ,department of ,veterans     
,affairs  7a7 ,systems engineering      
analysis ,not later than one year after 
the date of the enactment of this ,act1 
the ,secretary of ,veterans' ,affairs   
shall seek to enter into a memorandum of
 understanding with the acquisition     
research center established under       
section #dadb7;a7 of title #aj1 ,united 

,states ,code1 to conduct a systems     
engineering analysis of the acquisition 
process of the ,department of ,veterans 
,affairs4  7b7 ,report ,not later than  
one year after the date in which the    
,secretary enters into the memorandum of
 understanding required by subsection   
7a71 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 acquisition research    
center with respect to the analysis     
conducted under such subsection4  #i4   
,requirements development process  7a7  
,in general ,subchapter ,,vi of chapter 
#ha of title #ch1 ,united ,states ,code1
 as added by section #b and amended by  
sections #c and #f1 is further amended  
by adding at the end the following new  
section3  #hahe4 ,requirements          
development process  7a7 ,establishment 
of process  7#a7 ,the ,secretary shall  
establish a standardized requirements   

development process for major           
acquisition programs4  7#b7 ,the process
 established pursuant to paragraph 7#a7 
shall-- 7,a7 define and validate        
mission-driven requirements for major   
acquisition programs exceeding          
#bjj1jjj1jjj annually or #a1jjj1jjj1jjj 
in lifecycle costs1 in coordination with
 the ,assistant ,secretary for          
,acquisition2  7,b7 incorporate         
data-driven needs assessments1          
stakeholder input from relevant         
administrations1 staff offices1 and     
other elements of the ,department and   
veterans service organizations1 and     
alignment with statutory mandates1 such 
as section #haba of this title2 and     
7,c7 ensure iterative validation of     
requirements through independent        
verification and validation1 as         
described in section #hahe of this      
title1 to confirm cost1 schedule1 and   
performance baselines4  7b7 ,limitation 
on personnel ,the ,secretary shall      
implement the process established       

pursuant to subsection 7a7 using staff  
within the ,office of ,acquisition and  
other relevant offices of the           
,department1 as established under       
section #hahb of this title1 without    
creating new positions1 unless a        
subsequent cost-benefit analysis1       
validated by the ,director of ,cost     
,assessment and ,program ,evaluation1   
justifies additional resources4  4  7b7 
,report ,not later than #ahj days after 
the date of the enactment of this ,act1 
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 
process established pursuant to section 
#hahe of such title1 as added by        
subsection 7a71 and a plan for          
implementation of such process1         
including timelines for integration with
 major acquisition program baselines4   
#aj4 ,conforming amendments ,subchapter 
,,vi of chapter #ha of title #ch1       

,united ,states ,code1 is amended-- 7#a7
 in section #haga1 by striking          
paragraphs 7#e7 and 7#f72 and  7#b7 by  
striking section #hagb4  #aa4 ,clerical 
amendments ,the table of sections at the
 beginning of chapter #ha of title #ch1 
,united ,states ,code1 is amended-- 7#a7
 by striking the item relating to       
section #hagb2 and  7#b7 by adding at   
the end the following3  ,,subchapter    
,,vii--,acquisition organization1 cost  
assessment1 and program evaluation      
#haha4 ,definition of major acquisition 
program4 #hahb4 ,acquisition            
reorganization4 #hahc4 ,major           
acquisition program managers4 #hahd4    
,cost assessment and program            
evaluation4#hahe4 ,requirements         
development process4  4  ,passed the    
,senate ,december #aa1 #bjbe4,secretary