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Congress·Passed Senate·3 months ago

Senate Passes ARCA Act to Overhaul VA Purchasing With New Acquisition Office

Also known as: ARCA Act of 2025

Legislative Progress

✓ Filed
✓ Review
✓ Senate
House
President

Impacts

Mixed Impacts(2)
Military Veteran
Neutral
Federal Employee
Neutral

Key Points

  • Creates a new VA Office of Acquisition led by an Assistant Secretary who also serves as VA’s chief buyer.
  • Moves VA buying, contracting, and supply-chain work under this one acquisition office within 1 year, without forcing staff to relocate.
  • Sets up senior overseers and managers for big VA purchases (like medical, technology, and services) and requires clear cost and timeline plans.
  • Requires outside contractors to independently check major VA purchase programs and look for cost, schedule, and performance problems.
  • Creates a Director of Cost Assessment and Program Evaluation to produce independent cost estimates, report to Congress yearly, and flag big budget gaps. It also expands hiring through acquisition internships.
VeteransHealthcareInfrastructure

Milestones

7 milestones12 actions
Dec 15, 2025House

Held at the desk.

Dec 15, 2025House

Received in the House.

Dec 15, 2025Senate

Message on Senate action sent to the House.

Dec 11, 2025Senate

Passed Senate with an amendment by Unanimous Consent. (consideration: CR S8694-8696; text of amendment in the nature of a substitute: CR S8694-8696)

Dec 11, 2025

Passed/agreed to in Senate: Passed Senate with an amendment by Unanimous Consent.

What Happens Next

Projected impacts based on AI analysis

Soon after the bill is enacted

VA starts reorganizing acquisition/procurement/logistics under one acquisition leader

Staff who buy goods/services for VA may see reporting lines and approval steps change, but the bill says employees do not have to physically relocate.

No later than 1 year after enactment

VA must complete the organizational consolidation

Buying, contracting, and supply-chain work across VA (including health and benefits offices) becomes centralized, which can change how quickly local sites can purchase items or start projects.

Within 90 days after consolidation work begins

VA submits Congress a written consolidation plan and gives a briefing

The plan should spell out timelines, staff training, and how VA will update its rules, giving the public and veterans groups clearer expectations.

Within 120 days after enactment

VA seeks competitive contracts for independent checks of major acquisition programs

Outside reviewers will test and review major projects to catch cost/schedule problems earlier; some current vendors may be excluded due to conflict rules.

Report due within 180 days after enactment

VA sets up a standardized requirements process for major programs and reports it to Congress

Before VA commits to huge purchases, requirements should be clearer and repeatedly validated, reducing the chances of buying the wrong system or changing plans midstream.

By Sept. 30 of the first fiscal year after enactment

VA increases acquisition internship participation above the 2025 level

More entry-level hiring pipelines may open, which can improve staffing and speed up purchasing work over time.

No later than 1 year after enactment

VA seeks an agreement for an outside systems-engineering review of VA’s acquisition process

VA’s overall buying process gets an outside ‘health check,’ which could lead to further changes in how VA plans and runs projects.

Starting after the Director is established; then at least yearly

Director of Cost Assessment and Program Evaluation begins annual public-facing reporting

Congress and the public may get clearer signals when VA project cost estimates exceed budget requests by more than 5%, which can pressure fixes earlier.

2028-12-31

Operating-and-support cost tracking reports continue through the end of 2028

VA keeps focusing on long-term costs (like maintenance and support), not just purchase price, which can reduce surprise costs later.

Related News

1 article
Ripon Advance·3 months ago

Moran, Rounds applaud Senate passage of ARCA Act to reform VA processes

The U.S. Senate unanimously passed the bipartisan ARCA Act of 2025, which creates a centralized Office of Acquisition at the VA to define major programs, streamline contracting, and enhance accountability through independent evaluations to address long-standing deficiencies in the supply chain.

CR+

Source Information

Document Type

Congressional Bill

Official Title

ARCA Act of 2025

Bill NumberS 1591
Congress119th Congress
ChamberSenate
Latest ActionPassed Senate with an amendment by Unanimous Consent.

Sponsor

Cosponsors

(5)
D: 2R: 2I: 1

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.