ARCA Act of 2025

Overview

HR 6833, titled the Acquisition Reform and Cost Assessment Act of 2025 (ARCA Act of 2025), seeks to reorganize the Department of Veterans Affairs (VA) acquisition structure, expand the role of cost assessment and program evaluation, and implement new governance, hiring, and analysis requirements for major VA acquisitions. The bill would create a new subchapter within Title 38, reorganize major acquisition oversight under a centralized Office of Acquisition, and establish dedicated program executives and a Director of Cost Assessment and Program Evaluation.

Main purpose and intent

• Reorganize VA’s acquisition and procurement structure to centralize oversight and accountability for major acquisition programs.
• Strengthen cost estimation, independent verification and validation (IV&V), and program evaluation to improve cost, schedule, and performance outcomes.
• Improve hiring pipelines for acquisition personnel, including internships.
• Introduce independent analysis of VA’s acquisition processes and a formal requirements development process for major programs.
• Align VA’s major acquisition governance with formal decision authorities and governance boards, reducing fragmentation across VA administrations.

Key provisions and changes

• Definition of Major Acquisition Programs

  • Establishes thresholds for major acquisitions: total lifecycle cost over $1,000,000,000 or annual funding above $200,000,000 (adjusted for inflation per 41 U.S.C. §1908).

• Acquisition Organization (Subchapter VII)

  • Assistant Secretary for Acquisition designated as Chief Acquisition Officer (CAO) and sole program decision authority for major acquisition oversight.
  • Creation of an Office of Acquisition within VA.
  • Deputy Assistant Secretaries for Logistics, Procurement, and for Acquisition, Program Management, and Performance, reporting to the CAO.
  • Program Executive Officers (PEOs) appointed by the Acquisition Assistant Secretary; at least four, each overseeing a major acquisition focus area (Medical, Information Technology, Professional Services, and other).
  • PEOs and major acquisition program managers must be certified at Project Management Level 3 (by VA, FAA, DOD, or equivalent private sector cert).

• Major Acquisition Program Managers (NEW)

  • Appointed within 30 days after VA approves a major acquisition to commence.
  • Managers must be PM-certified or hold an equivalent private-sector certification.
  • Responsibilities include establishing a program baseline (cost, schedule, performance, and lifecycle considerations), maintaining documentation, managing resources, and assessing risks.
  • Program Decision Authority remains with the Acquisition leadership; independent program management offices report directly to the Acquisition CAO.

• Acquisition Consolidation and Relocation

  • Within one year, VA must consolidate under the Acquisition CAO all activities related to acquisition, procurement, contracting, logistics and supply chain across VA administrations (VBA, VHA, NCA) while not mandating physical relocation of personnel.
  • Requires a plan and briefing to Senate and House Veterans’ Affairs Committees within 90 days of initiating consolidation.

• Independent Verification and Validation (IV&V)

  • Secretary to seek competitive IV&V contracts within 120 days of enactment.
  • Eligibility criteria require prior IV&V or SETA-like experience with major acquisition programs (government or large health-care contractors) and strong past performance.
  • IV&V scope includes initial design/requirements validation, ongoing program validation of baselines, and confirming cost/schedule/performance baselines.

• Cost Assessment and Program Evaluation (New Director)

  • Establishes a Director of Cost Assessment and Program Evaluation who reports to the VA Secretary.
  • Responsibilities include policies/procedures for cost estimation, independent cost estimates for major programs, annual reporting to Congress, and evaluating program effectiveness.
  • Requires annual reporting on cost estimation and program evaluation activities, including highlighting programs where cost estimates exceeded the budget by more than 5%.

• Requirements Development Process

  • Establish a standardized requirements development process for major acquisitions (thresholds match those for major programs).
  • Integrates data-driven needs assessments, stakeholder input, and iterative IV&V to validate requirements and baselines.
  • Limits staffing increases unless a cost-benefit analysis justifies additional resources, validated by the Director of Cost Assessment and Program Evaluation.

• Hiring Improvements

  • Prioritize acquisition internship programs for entry-level acquisition hires.
  • Require the annual number of interns to be at least double the 2025 level, and no more than four times that level, with a sunset once Congress certifies sufficient graduates.

• Conforming/Clerical Amendments

  • Reclassifies and renames certain sections to reflect the new subchapter structure (Acquisition Review, Cost Assessment, and Program Evaluation).

Who is affected

• VA Secretary, Assistant Secretary for Acquisition, CAO, PEOs, and major acquisition program managers.
• VA staff across VBA, VHA, and NCA engaged in acquisition, procurement, contracting, and logistics.
• Independent IV&V contractors and the organizations eligible to bid for IV&V work.
• VA employees participating in acquisition internships and entry-level acquisition positions.
• Congress, particularly the Senate and House Veterans’ Affairs Committees, which would receive annual cost/efficiency reports.

Procedural and timeline considerations

• Enactment triggers organizational consolidation within one year.
• Initial IV&V contracts must be pursued within 120 days; ongoing IV&V at intervals during major programs.
• Requirements development process to be established within 180 days, with a plan for implementation and timelines for integration into baselines.
• Annual reporting requirements begin after enactment, with ongoing monitoring through December 31, 2028, for cost and operating/maintenance cost tracking.
• Plan and briefing to Congress due within 90 days of initiating consolidation.

Potential impacts

• Increased centralized control over VA acquisitions, potentially improving consistency, cost control, and program oversight.
• Greater emphasis on independent cost estimation and IV&V could improve accountability and reduce overruns.
• Expanded governance and certification requirements for acquisition staff may raise professional standards but could affect hiring timelines.
• Internship-driven hiring expansion aims to strengthen VA’s acquisition workforce pipeline.