S. 1591 — what changed

“VII Acquisition organization, cost assessment, and program evaluation

changed “8181. DefinitionsDefinition of major acquisition program

changed “In this subchapter:subchapter, the term major acquisition program means a program of the Department to acquire services, supplies, technology, systems, or a combination thereof, with an estimated total program cost, estimated by the Secretary, that exceeds—

changed “(1) The term major acquisition program means a program $1,000,000,000 (adjusted pursuant to section 1908 of title 41) for the Department to acquire property, systems or technology, assets, supplies, services, or a combination thereof, with an estimated total program life-cycle life cycle cost of $250,000,000 or more, as determined by the Secretary.program; or

changed “(2) The term non-major acquisition program means a program of the Department $200,000,000 (adjusted pursuant to acquire property, systems or technology, assets, supplies, services, or a combination thereof, with an estimated total program life-cycle cost section 1908 of less than $250,000,000, as determined by the Secretary.”title 41) annually.”

removed “(13) Acquisition and innovation.”

“8182. Acquisition organization

changed “(a) Assistant Secretary for Acquisition and Innovation; Acquisition; Chief Acquisition Officer

changed “(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, Acquisition, who shall focus solely on the administration of functions specified in subsection (b)(13) (b)(10) of such section.

changed “(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.

changed “(b) Office of Acquisition and InnovationAcquisition

changed “(1) There is in the Department an Office of Acquisition and Innovation.Acquisition.

changed “(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).

changed “(3) 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 Innovation and report directly to the Assistant Secretary of Veterans Affairs for Acquisition and Innovation.Acquisition.

changed “(4) The budget of the Office of Acquisition and Innovation Acquisition, including budgets for major acquisition programs, 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

changed “(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.Acquisition.

“(2) The Deputy Assistant Secretary of Veterans Affairs for Logistics shall be responsible for administration of logistics and supply chain operations of the Department.

changed “(d) Deputy Assistant Secretary for InnovationProcurement

changed “(1) Pursuant to section 308(d) of this title, the Secretary shall appoint a Deputy Assistant Secretary of Veterans Affairs for Innovation, Procurement, who shall report to the Assistant Secretary for Acquisition and Innovation.Acquisition.

changed “(2) The Deputy Assistant Secretary of Veterans Affairs for Innovation Procurement shall be responsible for all research, development, testing, procurement and innovation development contracting organizations of the Department, including the Veterans Health Administration Innovation Ecosystem.Department.

changed “(e) Deputy Assistant Secretary for ProcurementAcquisition, Program Management, and Performance

changed “(1) Pursuant to section 308(d) of this title, the Secretary shall appoint a Deputy Assistant Secretary of Veterans Affairs for Procurement, Acquisition, Program Management, and Performance, who shall report to the Assistant Secretary for Acquisition and Innovation.Acquisition.

changed “(2) The Deputy Assistant Secretary of Veterans Affairs for Procurement Acquisition, Program Management, and Performance shall be responsible for all procurement and contracting organizations of the Department.”following:

added “(A) Lifecycle management.

added “(B) Requirements planning.

added “(C) Programming and budgeting.

added “(D) Policy.

added “(E) Performance standards.

added “(F) Governance.

added “(G) Enhancing the capabilities of the acquisition workforce.

added “(f) Program Executive Officers

added “(1) The Assistant Secretary for Acquisition shall appoint no fewer than four Program Executive Officers, each responsible for overseeing major acquisition programs in one of the following areas:

added “(A) Medical.

added “(B) Information technology.

added “(C) Professional services.

added “(D) Other areas not included in subparagraphs (A) through (C).

added “(2) 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 area, as appointed under section 8183 of this title.

added “(3) Each Program Executive Officer shall be—

added “(A) certified in project management at level three by—

added “(i) the Department;

added “(ii) the Federal Acquisition Institute pursuant to section 1201 of title 41; or

added “(iii) the Department of Defense pursuant to section 1701a of title 10; or

added “(B) hold an equivalent certification by a private sector project management certification organization, as determined appropriate by the Secretary.”

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:

“8183. Major acquisition program managers

changed “(a) Appointments—Not later than 30 days after any date on which the Secretary approves a major acquisition program to commence, the Deputy Secretary applicable Program Executive Officer shall appoint a manager to be responsible for administering such program.

changed “(b) Duties—Each Qualifications—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—be—

changed “(1) developing, certified 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—project management at level three by—

changed “(A) a description of each acquisition phase of such program;the Department;

changed “(B) for each such acquisition phase, requirements for advancing such program the Federal Acquisition Institute pursuant to a subsequent acquisition phase; andsection 1201 of title 41; or

changed “(C) estimates of the cost, schedule, and performance Department of such program that account for the entire life cycle Defense pursuant to section 1701a of such program;title 10; or

changed “(2) ensuring such program is in compliance with such requirements;hold an equivalent certification by a private sector project management certification organization, as determined appropriate by the Secretary.

changed “(3) securing funding necessary “(c) Duties—Each manager appointed pursuant to satisfy such requirements;subsection (a) for a major acquisition program shall—

changed “(4) adopting standardized processes with established success “(1) report to support the progress of such program, including—Assistant Secretary for Acquisition through the Program Executive Officer responsible for the major acquisition program; and

changed “(A) milestones;“(2) shall be responsible for, with respect to the major acquisition program—

changed “(B) exit criteria; and“(A) developing, in coordination with the Program Executive Officer, a plan to administer major acquisition program, which shall be known as the “program baseline” for the major acquisition program, that includes—

changed “(C) specific accomplishments;“(i) a description of each acquisition phase of the major acquisition program;

changed “(5) to the extent practicable, ensuring that personnel of the Department responsible “(ii) for estimating the budget and cost of such program are provided with an opportunity to raise concerns relating to each such budget and cost prior to the establishment of acquisition phase, requirements for advancing the major acquisition program baseline under paragraph (1);to a subsequent acquisition phase; and

changed “(6) on a continuous basis, assessing and managing risks to satisfying “(iii) estimates of the requirements cost, schedule, and performance of such the major acquisition program baseline relating to cost and schedule;that account for the entire life cycle of the major acquisition program;

changed “(7) ensure such “(B) ensuring the major acquisition program complies is in compliance with cost accounting standards, as applicable;such requirements and providing all program documentation, including program baseline documentation, cost, schedule, performance and risk assessments, and other relevant materials, to designated officials and relevant governance boards;

changed “(8) establishing a workforce for such program that is qualified “(C) developing resource requests and sufficient to perform the justifications necessary functions of to satisfy such program; requirements; and

changed “(9) ensuring such program has adequate technology “(D) on a continuous basis, assessing and production capacity prior managing risks to commencing an acquisition phase satisfying the requirements of such program related baseline relating to manufacturing, if applicable.cost and schedule.

removed “(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—

added “(1) program decision authority for oversight of a major acquisition program is the Assistant Secretary for Acquisition; and

changed “(1) “(2) program decision authority management offices for oversight of a major acquisition program programs are independent of the Veterans Benefits Administration, the Veterans Health Administration, the National Cemetery Administration, and staff offices of the Department is by reporting directly to the Assistant Secretary for Acquisition and Innovation; andAcquisition.

changed “(2) program management offices for “(e) Program decision authority notification required—Not later than 30 days after any date on which a major acquisition programs are independent of the Veterans Benefits Administration, the Veterans Health Administration, program concludes an acquisition phase, the National Cemetery Administration and Department staff offices by reporting directly manager of such program appointed pursuant to subsection (a) shall notify the Assistant Secretary for Acquisition and Innovation.program decision authority under subsection (c).”

removed “(e) Program decision authority authorization required

removed “(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).

removed “(2) Such manager may not advance such program to a subsequent acquisition phase without the authorization of such program decision authority under subsection (d).”

“8184. Cost assessment and program evaluation

changed “(a) Director of cost assessment Cost Assessment and program evaluation—There Program Evaluation—There is established in the Department a Director of Cost Assessment and Program Evaluation, who shall report directly to the Secretary.

changed “(b)“(b) Responsibilities—The responsibilities of the Director are as follows:

changed “(1) Independent advice to Secretary of Veterans Affairs—The Director of Cost Assessment and Program Evaluation is the principal advisor to the Secretary To develop policies and other senior officials of the Department, procedures for cost estimation and shall provide independent analysis and advice to such officials, on of major acquisition programs of the following matters:Department.

changed “(A) Matters assigned “(2) To conduct independent cost estimates and analyses for major acquisition programs to support acquisition decisions, or any other acquisitions as directed by the Director pursuant to this section.Secretary,

changed “(B) Matters assigned “(3) To provide an independent cost estimate to the Director by the Assistant Secretary pursuant to this section and to section 303 for Acquisition in advance of this title.a decision to proceed with full-scale acquisition for a major acquisition program or any other program as directed by the Director.

changed “(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 “(4) To evaluate the approval or concurrence effectiveness of any other official within the Department.major acquisition programs in meeting Department objectives.

changed “(c) Deputy directors—There are two Deputy Directors within “(5) Not less frequently than once each year, to submit to the Office Secretary and the Committee on Veterans’ Affairs of the Director Senate and the Committee on Veterans’ Affairs of Cost Assessment the House of Representatives an annual report on cost estimation and Program Evaluation, as follows:program evaluation activities, including recommendations to improve acquisition efficiency. 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 5 percent.

changed “(1) The Deputy Director “(c) 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.Assessment and Program Evaluation.”

removed “(2) The Deputy Director for Program Evaluation.

removed “(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:

removed “(1) Cost estimation and cost analysis for acquisition programs of the Department.

removed “(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.

removed “(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.

removed “(4) Formulation of study guidance for analyses of alternatives for major acquisition programs and performance of such analyses, as directed by the Secretary.

removed “(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.

removed “(6) Assessments of alternative plans, programs, and policies with respect to the acquisition programs of the Department.

removed “(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.

removed “(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—

removed “(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;

removed “(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;

removed “(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;

removed “(4) issue guidance relating to full consideration of life-cycle management and sustainability costs in major acquisition programs and major automated information system programs;

removed “(5) review all cost estimates and cost analyses conducted in connection with major acquisition programs and major automated information system programs;

removed “(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—

removed “(A) in advance of—

removed “(i) any certification under this title; and

removed “(ii) any decision to enter into product or system low-rate initial production, initial pilot implementation, or full-rate production or implementation; and

removed “(B) at any other time considered appropriate by the Director or upon the request of the Chief Acquisition Officer; and

removed “(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.

removed “(f) Review of cost estimates, cost analyses, and records of the Department—The Secretary shall ensure that the Director—

removed “(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

removed “(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).

removed “(g) Participation, concurrence, and approval in cost estimation—The Director may—

removed “(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;

removed “(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;

removed “(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

removed “(4) participate in the consideration of any decision to request authorization of a multi-year procurement contract for a major acquisition program.

removed “(h) Annual report on cost assessment activities

removed “(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.

removed “(2) Each report submitted pursuant to paragraph (1) shall include, for the period covered by the report, the following:

removed “(A) A summary of the cost estimation and cost analysis activities of the Department.

removed “(B) Assessments of the following:

removed “(i) The progress of the Department in improving the accuracy of its cost estimates and analyses.

removed “(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.

removed “(iii) The overall quality of cost estimates prepared by each of the Administrations for major acquisition programs and major automated information system programs.

removed “(iv) Any consistent differences in methodology or approach among the cost estimates prepared by the Administrations and the Director.

removed “(3)

removed “(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.

removed “(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.

removed “(4) The Secretary may comment on any report of the Director submitted to the committees described in paragraph (1) pursuant to such paragraph.

removed “(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.”

removed 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:

removed “8185. Other transaction authority

removed “(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.

removed “(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:

removed “(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.

removed “(2) The senior procurement executive has determined that entering into the transaction to carry out the research is appropriate.

removed “(3) The transaction will not exceed $5,000,000 (including all options), unless the senior procurement executive determines that exceeding such amount is appropriate.

removed “(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—

removed “(A) meeting such threshold for non-Federal sources of funding or contributions is not possible; and

removed “(B) carrying out the research without meeting such threshold is in the public interest.

removed “(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.

removed “(c) Provision of information

removed “(1) Congress

removed “(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).

removed “(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.

removed “(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.

removed “(d) Regulations—The Secretary shall prescribe regulations to carry out this section.

removed “(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.

removed “(f) Definitions—In this section:

removed “(1) The term appropriate congressional committees means—

removed “(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

removed “(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.

removed “(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.

removed “(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).

removed “(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.

removed “(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.

removed “(6) The term senior procurement executive means the official of the Department designated under section 1702(c) of title 41.

removed “8186. Advance market commitments for technologies or services for provision of health care

removed “(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.

removed “(b) Requirements—An advance market commitment entered into under subsection (a) shall include the following:

removed “(1) Clearly defined and transparent rules.

removed “(2) A clear definition of the technology or service to be provided, to ensure safety, effectiveness, and feasible delivery.

removed “(3) Dispute settlement mechanisms.

removed “(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.

removed “(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.”

removed 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.

added “8185. Requirements development process

added “(a) Establishment of process

added “(1) The Secretary shall establish a standardized requirements development process for major acquisition programs.

added “(2) The process established pursuant to paragraph (1) shall—

added “(A) define and validate mission-driven requirements for major acquisition programs exceeding $200,000,000 annually or $1,000,000,000 in lifecycle costs, in coordination with the Assistant Secretary for Acquisition;

added “(B) incorporate data-driven needs assessments, stakeholder input from relevant administrations, staff offices, and other elements of the Department and veterans service organizations, and alignment with statutory mandates, such as section 8121 of this title; and

added “(C) ensure iterative validation of requirements through independent verification and validation, as described in section 8185 of this title, to confirm cost, schedule, and performance baselines.

added “(b) Limitation on personnel—The Secretary shall implement the process established pursuant to subsection (a) using staff within the Office of Acquisition and other relevant offices of the Department, as established under section 8182 of this title, without creating new positions, unless a subsequent cost-benefit analysis, validated by the Director of Cost Assessment and Program Evaluation, justifies additional resources.”

removed 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: