Department of Veterans Affairs Acquisition Reform Act of 2025

(1) The organization of the Department of Veterans Affairs relating to construction and leasing activities does not comply with the requirements of section 312A of title 38, United States Code.

(2) The Department lacks a consistent, cohesive, or effective approach to manage its portfolio of real estate assets and infrastructure and to carry out construction and leasing.

(3) The organization of the Department relating to procurement and acquisition, generally, is redundant and ineffective.

(4) The Department’s policies and operations relating to procurement and acquisition, generally, are hampered by the organization of the Department.

(1) in subsection (a)(4), by inserting, the Under Secretary for Health, and the Chief Acquisition Officer after Deputy Secretary; and

(2) by adding at the end the following new subsection:

(1) All employees of the Department engaged in the following activities shall report to the Director of Construction and Facilities Management:

(A) Planning, design, and construction of facilities and infrastructure of the Department, including major medical facility projects and minor medical facility projects.

(B) Developing and updating short-range and long-range strategic capital investment strategies and plans of the Department.

(C) Leasing of real property by the Department, including short-term, long-term, major medical facility leases, and minor medical facility leases.

(D) Repair, maintenance, and operation of facilities of the Department, including custodial services, building management and administration, and maintenance of roads, grounds, and infrastructure.

(E) Procurement and acquisition of major medical facility projects, minor medical facility projects, major medical facility leases, minor medical facility leases, operation, design, furnishing, and supplies and equipment.

(2) In this subsection:

(A) The term major medical facility lease has the meaning given such term in section 8104(a)(3) of this title.

(B) The term major medical facility project has the meaning given such term in section 8104(a)(3) of this title.

(C) The term minor medical facility project means a project for the construction, alteration, or acquisition of a medical facility that is not a major medical facility project.

(D) The term minor medical facility lease means a lease for space for uses as a new medical facility that is not a major medical facility lease.

(1) consolidate the functions of the Veterans Benefits Administration, the Veterans Health Administration, and the National Cemetery Administration described in subsection (c) of section 312A of title 38, United States Code, under the Director of Construction and Facilities Management;

(2) consolidate the employees of the Veterans Benefits Administration, the Veterans Health Administration, and the National Cemetery Administration described in subsection (d) of such section, as added by section 3, under the Director of Construction and Facilities Management; and

(3) as a component of the regional organizational structure described in section 5(b), establish a regional organizational structure for the employees described in paragraph (2) reporting to the Director of Construction and Facilities Management.

Not later than 1 year after the date of the enactment of this Act, the Secretary of Veterans Affairs shall organizationally consolidate under the Chief Acquisition Officer of the Department of Veterans Affairs (designated in accordance with section 1702 of title 41, United States Code) the functions of the Veterans Benefits Administration, the Veterans Health Administration, and the National Cemetery Administration relating to—

(1) acquisition;

(2) procurement and contracting;

(3) logistics; and

(4) the administration of chapter 81 of title 38, United States Code.

The Secretary shall establish a regional organizational structure for the employees performing the functions described in subsection (a) reporting to the Chief Acquisition Officer of the Department.

The regional organizational structure established pursuant to paragraph (1) shall—

(A) correspond in part or in whole to the boundaries of the Veterans Integrated Service Networks of the Veterans Health Administration;

(B) may include overarching or constituent organizational structures; and

(C) may include dedicated offices for the Veterans Benefits Administration or National Cemetery Administration.

The Secretary shall ensure that each region within the organizational structure established pursuant to paragraph (1) is headed by a regional director of acquisition, logistics, and construction reporting to the Chief Acquisition Officer of the Department responsible for supervising the functions described in (a).

Each regional director described in clause (i) shall be a career reserved position, as such term is defined in section 3132(a) of title 5, United States Code.

Regional directors described in clause (i) may be selected from among current employees of the Department performing functions described in subsection (a).

The Secretary shall ensure that each region within the organizational structure established pursuant to paragraph (1) includes a regional director of construction and leasing who—

(i) reports to the regional director of acquisition, logistics, and construction heading the region pursuant to subparagraph (A); and

(ii) is responsible for supervising the employees for the region described in section 4(2).

Subsection (a) shall not be construed to require the physical relocation of employees of the Department.

The Secretary of Veterans Affairs shall prioritize the use of acquisition internship programs to hire employees to entry-level positions relating to acquisition in the Department of Veterans Affairs.

Not later than September 30 of the first fiscal year beginning after the date of the enactment of this Act, the Secretary shall take such actions as may be necessary to ensure that the annual number of participants in acquisition internship programs of the Department is—

(A) not fewer than twice the number of participants in such programs during fiscal year 2025; and

(B) not more than 4 times the number of participants in such programs during such fiscal year.

The requirements of paragraph (1) shall terminate on the date on which the Secretary certifies to the appropriate committees of Congress that the projected number of graduates of acquisition internship programs is sufficient to satisfy the human capital needs of the Department with respect to acquisition, taking into account the rate of attrition and projected retirements of personnel.

In this subsection, the term appropriate committees of Congress means the Committee on Veterans’ Affairs of the Senate and the Committee on Veterans’ Affairs of the House of Representatives.

Not later than 90 days after the date of the enactment of this Act, the Secretary of Veterans Affairs shall submit to the appropriate committees of Congress a report detailing how the Secretary will use the authorities of section 706 of title 38, United States Code, to increase the size and performance of the acquisition workforce of the Department of Veterans Affairs.

Not later than 390 days after the date of the enactment of this Act, the Secretary shall submit to the appropriate committees of Congress a report detailing how sections 4 and 5 were implemented.

In this section:

The term acquisition workforce of the Department of Veterans Affairs means personnel of the Department of Veterans Affairs occupying positions within the 1102 occupational series as defined by the Director of the Office of Personnel Management.

The term appropriate committees of Congress means the Committee on Veterans’ Affairs of the Senate and the Committee on Veterans’ Affairs of the House of Representatives.