ARCA Act of 2025

Bill Number: S. 1591
Origin Chamber: Senate
Congress: 119th Congress, Session 1
Policy Area: Armed Forces and National Security
Status: Passed Senate
Latest Action: 2025-12-15: Held at the desk.
Last Updated: 2026-07-08T16:39:38Z

AI-Generated Summary

Acquisition Reform and Cost Assessment Act of 2025 (S. 1591)

Purpose

This legislation aims to improve the efficiency, accountability, and oversight of how the Department of Veterans Affairs (VA) acquires goods, services, technology, and systems. It reorganizes the VA's acquisition structure to centralize management, introduces independent cost evaluations, and establishes processes to ensure major projects stay on budget and schedule, ultimately enhancing services for veterans.

Key Provisions

Definition of Major Acquisition Programs: Defines these as VA programs for acquiring services, supplies, technology, or systems with total life-cycle costs exceeding $1 billion (or $200 million annually), adjusted for inflation under federal guidelines.
Leadership and Organizational Structure:
Designates an Assistant Secretary for Acquisition as the VA's Chief Acquisition Officer, increasing the total number of Assistant Secretaries from seven to eight.
Creates the Office of Acquisition, headed by this Assistant Secretary, to oversee all major acquisition programs.
Establishes three Deputy Assistant Secretaries reporting to the Assistant Secretary: one for Logistics (managing supply chains), one for Procurement (handling contracts), and one for Acquisition, Program Management, and Performance (covering planning, budgeting, policy, and workforce development).
Requires at least four Program Executive Officers to manage major programs in areas like medical, information technology, professional services, and other categories; each must hold advanced project management certification.
Major Program Management:
Mandates appointment of certified managers for each major program within 30 days of approval, responsible for creating a "program baseline" (a detailed plan including phases, requirements, cost/schedule estimates, and risk management).
Centralizes decision-making authority with the Assistant Secretary, making program offices independent from other VA administrations (e.g., health or benefits).
Organizational Consolidation: Requires consolidating all VA acquisition, procurement, logistics, and supply chain activities under the Assistant Secretary within one year; no physical employee relocations are mandated. Includes submission of a detailed implementation plan to Congress within 90 days.
Independent Verification and Validation: Directs the VA to contract with qualified external entities (with proven experience in health care or defense acquisitions and no conflicts of interest) to independently review major programs at initiation, conclusion, and other key points. This involves checking if requirements are met and validating cost, schedule, and performance. Funding is shared proportionally across VA subdivisions.
Cost Assessment and Program Evaluation:
Establishes a Director of Cost Assessment and Program Evaluation reporting directly to the VA Secretary, responsible for independent cost estimates, policy development, effectiveness evaluations, and annual reports to Congress highlighting programs where costs exceed budgets by more than 5%.
Requires annual reports (through 2028) on tracking operating and support costs for major programs.
Workforce Improvements: Prioritizes hiring for entry-level acquisition roles through expanded internship programs, aiming to double to quadruple participants from fiscal year 2025 levels until workforce needs are met.
External Analysis and Process Standardization:
Requires a memorandum of understanding with a Department of Defense research center for an independent systems engineering analysis of the VA's acquisition process, with findings reported to Congress within two years.
Mandates a standardized process for developing requirements in major programs, incorporating data assessments, stakeholder input (including veterans' organizations), and iterative validations without creating new positions unless justified by cost-benefit analysis. A report on this process is due to Congress within 180 days.

Significant Changes to Existing Law

Amends title 38, United States Code (governing veterans' benefits), by adding a new Subchapter VII to Chapter 81 on acquisition organization, cost assessment, and program evaluation.
Replaces "procurement" terminology with "acquisition" throughout, reflecting a broader scope.
Eliminates or conforms prior sections (e.g., striking sections 8171 paragraphs and 8172) to integrate the new structure.
Centralizes previously decentralized acquisition functions across VA administrations (e.g., health, benefits, cemeteries) under a single office, enhancing uniformity but without altering core missions.

Potential Impacts

On Government Agencies: Streamlines VA operations, potentially reducing waste in multi-billion-dollar acquisitions, improving project delivery, and providing Congress with better oversight tools like annual reports. May increase short-term administrative costs for reorganization and contracts.
On Citizens (Veterans and Families): Could lead to faster, more reliable access to medical care, IT systems, and services by ensuring acquisitions meet needs efficiently, indirectly benefiting millions of veterans through better resource allocation.
On International Relations: No direct impacts; focuses solely on domestic VA operations.

Main Stakeholders Affected

Department of Veterans Affairs: Leadership, acquisition staff, and program managers will face new reporting structures, certifications, and processes; benefits from centralized expertise.
Veterans and Service Organizations: As primary beneficiaries and input providers, they gain from improved program outcomes and inclusion in requirements development.
Congressional Committees: Veterans' Affairs Committees in Senate and House receive plans, reports, and briefings for ongoing oversight.
Contractors and Vendors: External entities must meet strict eligibility for verification contracts; overall, a more predictable acquisition environment could expand opportunities.
VA Workforce: Entry-level hires benefit from expanded internships; existing employees may need training for new processes.

Notable Legal, Constitutional, or Political Implications

Legal: Strengthens federal acquisition laws (e.g., referencing title 41 guidelines) by mandating certifications and independencies to prevent conflicts, ensuring compliance without new regulatory burdens. The no-mitigation policy for conflicts of interest adds rigor to contracting.
Constitutional: Aligns with Congress's authority over federal spending and agency organization (Article I); no challenges to separation of powers, as it enhances executive accountability.
Political: Addresses historical criticisms of VA mismanagement in acquisitions (e.g., delays in health IT projects) by promoting transparency and efficiency, potentially reducing scandals and building bipartisan support for veteran services. Annual congressional reports could influence future funding debates.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Sen. Moran, Jerry [R-KS]

Cosponsors (5)

Sen. Banks, Jim [R-IN], Sen. Warner, Mark R. [D-VA], Sen. King, Angus S., Jr. [I-ME], Sen. Rounds, Mike [R-SD], Sen. Blumenthal, Richard [D-CT]

Recent Actions

2025-12-15: Held at the desk.
2025-12-15: Received in the House.
2025-12-15: Message on Senate action sent to the House.
2025-12-11: Passed Senate with an amendment by Unanimous Consent. (consideration: CR S8694-8696; text of amendment in the nature of a substitute: CR S8694-8696)
2025-12-11: Passed/agreed to in Senate: Passed Senate with an amendment by Unanimous Consent.
2025-12-02: Placed on Senate Legislative Calendar under General Orders. Calendar No. 277.
2025-12-02: Committee on Veterans' Affairs. Reported by Senator Moran with an amendment in the nature of a substitute. With written report No. 119-97.
2025-12-02: Committee on Veterans' Affairs. Reported by Senator Moran with an amendment in the nature of a substitute. With written report No. 119-97.
2025-07-30: Committee on Veterans' Affairs. Ordered to be reported with an amendment in the nature of a substitute favorably.
2025-05-21: Committee on Veterans' Affairs. Hearings held. Hearings printed: S.Hrg. 119-86.
2025-05-05: Read twice and referred to the Committee on Veterans' Affairs.
2025-05-05: Introduced in Senate

Bill Versions

Acquisition Reform and Cost Assessment Act of 2025 — issued 2025-12-11 — PDF (24 pages)
Acquisition Reform and Cost Assessment Act of 2025 — issued 2025-05-05 — PDF (34 pages)
Acquisition Reform and Cost Assessment Act of 2025 — issued 2025-12-02 — PDF (56 pages)