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S1591119th CongressWALLET

ARCA Act of 2025

Sponsored By: Senator Moran, Jerry [R-KS]

Passed Senate

Summary

This bill would create a centralized Office of Acquisition to reorganize how the Department of Veterans Affairs runs big procurement programs and to place program decision authority with a single Assistant Secretary. It would also set objective cost thresholds for what counts as a "major acquisition program" and add new certification, reporting, and independent verification rules.

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  • VA acquisition and program staff would report to a new Assistant Secretary for Acquisition. The law would require at least four Program Executive Officers and Major Acquisition Program Managers with Project Management Level 3 or equivalent certification, and it would require program managers to be appointed within 30 days of program approval.
  • Contractors performing independent verification and validation and systems engineering and technical advisory work would face strict eligibility rules. Eligible firms must have done at least three prime IV&V or related contracts in the prior three years and show satisfactory past performance. Conflicts of interest would bar eligibility and mitigation plans would not suffice.
  • The bill would fold all VA acquisition activities into the new office within one year and require Office of Acquisition budgets to appear in the VA budget justification submitted to Congress. PMOs for major programs would operate outside the Veterans Benefits, Health, and National Cemetery administrations.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 3 benefits, 0 costs, 1 mixed.

Single VA office over big purchases

If enacted, VA would create an Office of Acquisition led by an Assistant Secretary who also serves as Chief Acquisition Officer. Within one year, VA would consolidate all procurement and contracting activities under this office. Major programs would be those the Secretary estimates over $1 billion in life‑cycle cost or $200 million per year (both adjusted under 41 U.S.C. 1908). These program offices would report directly to that Office, not VHA, VBA, or NCA, and the Assistant Secretary would be the program decision authority. At least four certified Program Executive Officers would oversee portfolios, and a certified manager would be named within 30 days after a major program is approved; managers would set baselines, manage risk, and report phase completions within 30 days. VA would set a standard, data‑driven requirements process with stakeholder input and independent checks, and send an implementation plan to Congress within 180 days; the Office’s budget, including major programs, would appear in VA’s budget materials.

Stronger cost checks on VA programs

If enacted, VA would add a Director of Cost Assessment and Program Evaluation who reports to the Secretary. The Director would deliver independent cost estimates before green‑lighting major purchases and send yearly reports to Congress, including any project where the estimate is over the budget by more than 5%. The Director would also report each year until December 31, 2028, on how VA tracks operating and support costs; the Secretary would forward these within 30 days. Within one year, VA would seek an agreement with the federal acquisition research center to review VA’s acquisition process and report findings within a year after the agreement. The Chief Financial Officer would provide resources to stand up and run this office.

New VA testing contracts, tighter eligibility

If enacted, VA would seek competitive contracts within 120 days for independent verification and validation (testing) and technical support. Testing would occur at program start, program end, and other times set by the Chief Acquisition Officer, who could also pick other VA projects. To win these contracts, firms would need at least three prime IV&V/SETA or equivalent contracts for health care organizations in the past three years, with satisfactory or better CPARS ratings. Firms would need to show no conflict of interest; VA would not accept mitigation plans to fix conflicts. VA offices that use these contracts would share the costs.

More VA acquisition internship slots

If enacted, VA would prioritize hiring entry‑level acquisition staff from its internship programs. By September 30 of the first fiscal year after enactment, VA would raise annual intern participation to at least twice and no more than four times the FY 2025 level. This requirement would continue until the Secretary certifies projected graduates meet workforce needs, accounting for attrition and retirements. This would open more entry paths for students and job seekers into federal acquisition careers.

Sponsors & CoSponsors

Sponsor

Moran, Jerry [R-KS]

KS • R

Cosponsors

  • Sen. Banks, Jim [R-IN]

    IN • R

    Sponsored 7/30/2025

  • Sen. Warner, Mark R. [D-VA]

    VA • D

    Sponsored 9/2/2025

  • Sen. King, Angus S., Jr. [I-ME]

    ME • I

    Sponsored 10/20/2025

  • Sen. Rounds, Mike [R-SD]

    SD • R

    Sponsored 11/4/2025

  • Sen. Blumenthal, Richard [D-CT]

    CT • D

    Sponsored 12/10/2025

Roll Call Votes

No roll call votes available for this bill.

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