ARCA Act of 2025

This bill reorganizes the acquisition structure of the Department of Veterans Affairs (VA) and establishes a Director of Cost Assessment and Program Evaluation. It creates a new subchapter in title 38, United States Code, defining major acquisition programs, setting up an acquisition organization under an Assistant Secretary for Acquisition, requiring program managers, mandating independent verification and validation, and establishing a requirements development process.

Sec. 2, VA acquisition organization: Defines a major acquisition program as one with total life-cycle cost over $1 billion or annual cost over $200 million. Creates an Office of Acquisition headed by an Assistant Secretary for Acquisition (also the Chief Acquisition Officer). Requires major acquisition program offices to report to that Assistant Secretary. Establishes Deputy Assistant Secretaries for Logistics, Procurement, and Acquisition/Program Management/Performance. Requires at least four Program Executive Officers overseeing medical, IT, professional services, and other areas.

Sec. 3, Major acquisition program managers: Requires appointment of a manager for each major acquisition program within 30 days of approval. Managers must have level-three project management certification. They develop a program baseline with cost, schedule, and performance estimates, ensure compliance, and manage risks. Program decision authority rests with the Assistant Secretary for Acquisition.

Sec. 4, Acquisition and procurement reorganization: Within one year, the Secretary must consolidate all acquisition, procurement, and logistics activities under the Assistant Secretary for Acquisition. Does not require physical relocation. Requires a plan and briefing to Congress within 90 days.

Sec. 5, Independent verification and validation: Within 120 days, the Secretary must contract for independent verification and validation of major acquisition programs. Contractors must have performed at least three similar prime contracts for government or commercial healthcare organizations and show no conflict of interest.

Sec. 6, Cost assessment and program evaluation: Establishes a Director of Cost Assessment and Program Evaluation reporting directly to the Secretary. Responsibilities include developing cost estimation policies, conducting independent cost estimates, evaluating program effectiveness, and submitting an annual report to Congress listing acquisitions where independent cost estimates exceeded budget requests by more than 5%.

Sec. 7, Hiring improvements: Requires the Secretary to prioritize acquisition internship programs for entry-level hiring. Annual internship participants must be at least double but no more than four times the fiscal year 2025 number, until the Secretary certifies sufficient graduates.

Sec. 8, Independent analysis: Within one year, the Secretary must seek a memorandum of understanding with a defense acquisition research center to analyze the VA acquisition process, with a report to Congress due one year later.

Sec. 9, Requirements development process: Requires a standardized requirements development process for major acquisition programs, defining mission-driven requirements, incorporating data and stakeholder input, and ensuring iterative validation. Implementation uses existing staff unless a cost-benefit analysis justifies new positions. A report to Congress is due within 180 days.

Sec. 10, Conforming amendments: Strikes certain existing sections (8171 paragraphs (5) and (6), and section 8172) from title 38.

Sec. 11, Clerical amendments: Updates the table of sections for chapter 81 to reflect the new subchapter and sections.