Department of Veterans Affairs cost assessment and program evaluation

(a) In general Subchapter VI of chapter 81 of title 38, United States Code, as added by section 2 and amended by section 3, is further amended by adding at the end the following new section: 8184. Cost assessment and program evaluation (a) Director of cost assessment and program evaluation There is established a Director of Cost Assessment and Program Evaluation, who shall report directly to the Secretary. (b) (1) Independent advice to Secretary of Veterans Affairs The Director of Cost Assessment and Program Evaluation is the principal advisor to the Secretary and other senior officials of the Department, and shall provide independent analysis and advice to such officials, on the following matters: (A) Matters assigned to the Director pursuant to this section. (B) Matters assigned to the Director by the Secretary pursuant to this section and to section 303 of this title. (2) The Director may communicate views on matters within the responsibility of the Director directly to the Secretary and the Deputy Secretary of Veterans Affairs without obtaining the approval or concurrence of any other official within the Department. (c) Deputy directors There are two Deputy Directors within the Office of the Director of Cost Assessment and Program Evaluation, as follows: (1) The Deputy Director for Cost Assessment. (2) The Deputy Director for Program Evaluation. (d) Responsibilities The Director of Cost Assessment and Program Evaluation shall serve as the principal official within the senior management of the Department for the following: (1) Cost estimation and cost analysis for acquisition programs of the Department. (2) Analysis and advice on matters relating to the planning and programming phases of the Planning, Programming, Budgeting, and Execution system, and the preparation of materials and guidance for such system, as directed by the Secretary, working in coordination with the Assistant Secretary for Management and the Chief Financial Officer of the Department. (3) Analysis and advice for resource discussions relating to requirements under consideration in the Veterans Health Administration, the Veterans Benefits Administration, the National Cemetery Administration, and all staff offices. (4) Formulation of study guidance for analyses of alternatives for major acquisition programs and performance of such analyses, as directed by the Secretary. (5) Review, analysis, and evaluation of programs for executing approved strategies and policies, ensuring that information on programs is presented accurately and completely, and assessing the effect of spending by the Department on the United States economy. (6) Assessments of alternative plans, programs, and policies with respect to the acquisition programs of the Department. (7) Leading the development of improved analytical skills and competencies within the cost assessment and program evaluation workforce of the Department and improved tools, data, and methods to promote performance, economy, and efficiency in analyzing Department planning and the allocation of Department resources. (e) Independent cost estimation and cost analysis The Director of Cost Assessment and Program Evaluation shall ensure that the cost estimation and cost analysis processes of the Department provide accurate information and realistic estimates of cost for the acquisition programs of the Department. In carrying out that responsibility, the Director shall— (1) prescribe, by authority of the Secretary, policies and procedures for the conduct of cost estimation and cost analysis for the acquisition programs of the Department; (2) provide guidance to and consult with the Secretary, the Chief Acquisition Officer, the Assistant Secretary for Management, the Chief Financial Officer of the Department, the Under Secretary for Health, the Under Secretary for Benefits, and the Under Secretary for Memorial Affairs with respect to cost estimation in the Department in general and with respect to specific cost estimates and cost analyses to be conducted in connection with a major acquisition program; (3) issue guidance relating to the proper selection of confidence levels in cost estimates generally, and specifically, for the proper selection of confidence levels in cost estimates for major acquisition programs and major automated information system programs; (4) issue guidance relating to full consideration of life-cycle management and sustainability costs in major acquisition programs and major automated information system programs; (5) review all cost estimates and cost analyses conducted in connection with major acquisition programs and major automated information system programs; (6) conduct independent cost estimates and cost analyses for major acquisition programs and major automated information system programs for which the Chief Acquisition Officer is the Milestone Decision Authority— (A) in advance of— (i) any certification under this title; and (ii) any decision to enter into product or system low-rate initial production, initial pilot implementation, or full-rate production or implementation; and (B) at any other time considered appropriate by the Director or upon the request of the Chief Acquisition Officer; and (7) periodically assess and update the cost indexes used by the Department to ensure that such indexes have a sound basis and meet the Department’s needs for realistic cost estimation. (f) Review of cost estimates, cost analyses, and records of the Department The Secretary shall ensure that the Director— (1) promptly receives the results of all cost estimates and cost analyses conducted by the Veterans Benefits Administration, the Veterans Health Administration, the National Cemetery Administration, or staff offices and all studies conducted by the Administration, in connection with such cost estimates and cost analyses for major acquisition programs and major automated information system programs of the Administrations; and (2) has timely access to any records and data in the Department (including the records and data of each Administration that the Director considers necessary to review in order to carry out any duties under this section). (g) Participation, concurrence, and approval in cost estimation The Director may— (1) participate in the discussion of any discrepancies between an independent cost estimate and the cost estimate assessments of the Veterans Benefits Administration, the Veterans Health Administration, the National Cemetery Administration, and staff offices for a major acquisition program or major automated information system program of the Department; (2) comment on deficiencies in the methodology or execution of any cost estimate or cost analysis developed by the Veterans Benefits Administration, the Veterans Health Administration, the National Cemetery Administration, or staff offices for a major acquisition program or major automated information system program; (3) concur in the choice of a cost estimate within the baseline description or any other cost estimate (including the confidence level for any such cost estimate) for use at any event specified in subsection (e)(6); and (4) participate in the consideration of any decision to request authorization of a multi-year procurement contract for a major acquisition program. (h) Annual report on cost assessment activities (1) Each year, not later than 10 days after the transmittal to Congress of the budget of the President for a fiscal year pursuant to section 1105 of title 31, the Director shall submit to the Secretary, the Chief Acquisition Officer of the Department, the Assistant Secretary for Management, the Chief Financial Officer of the Department, the Committee on Veterans' Affairs of the Senate and the Committee on Veterans' Affairs of the House of Representatives an annual report on the cost estimation and cost analysis activities of the Department carried out during the previous year. (2) Each report submitted pursuant to paragraph (1) shall include, for the period covered by the report, the following: (A) A summary of the cost estimation and cost analysis activities of the Department. (B) Assessments of the following: (i) The progress of the Department in improving the accuracy of its cost estimates and analyses. (ii) The extent to which each of the Veterans Benefits Administration, the Veterans Health Administration, the National Cemetery Administration, and staff offices have complied with policies, procedures, and guidance issued by the Director with regard to the preparation of cost estimates for major acquisition programs and major automated information systems. (iii) The overall quality of cost estimates prepared by each of the Administrations for major acquisition programs and major automated information system programs. (iv) Any consistent differences in methodology or approach among the cost estimates prepared by the Administrations and the Director. (3) (A) The Director shall ensure that a report submitted to paragraph (1) does not include any information, such as proprietary or source selection sensitive information, that could undermine the integrity of the acquisition process. (B) The report submitted pursuant to paragraph (1) to the committees described in such paragraph shall be posted on an internet website of the Department that is available to the public. (4) The Secretary may comment on any report of the Director submitted to the committees described in paragraph (1) pursuant to such paragraph. (i) Staff The Secretary shall ensure that the Director has sufficient professional staff to enable the Director to carry out the duties and responsibilities of the Director under this section.. (b) Report on monitoring of operating and support costs for major acquisition programs (1) Report to Secretary of Veterans Affairs Not later than one year after the date of the enactment of this Act, the Director of Cost Assessment and Program Evaluation established pursuant to section 8184 of title 38, United States Code, as added by subsection (a), shall— (A) review systems and methods of the Department of Veterans Affairs currently in effect for tracking and assessing operating and support costs using cost-accounting standards and procedures, as appropriate, on major acquisition programs (as defined in section 8181 of such title, as added by subsection (a)); and (B) submit to the Secretary of Veterans Affairs a report on such findings and recommendations as the Director may have as a result of the review conducted pursuant to subparagraph (A), including an assessment by the Director of the feasibility and advisability of establishing baselines for operating and support costs under such title. (2) Transmittal to Congress Not later than 30 days after receiving the report required by paragraph (1)(A), the Secretary shall submit to the Committee on Veterans' Affairs of the Senate and the Committee on Veterans’ Affairs of the House of Representatives the report received by the Secretary under paragraph (1)(B), together with such comments on the report as the Secretary considers appropriate.

(a) In general Subchapter VI of chapter 81 of title 38, United States Code, as added by section 2 and amended by section 3, is further amended by adding at the end the following new section: 8184. Cost assessment and program evaluation (a) Director of cost assessment and program evaluation There is established a Director of Cost Assessment and Program Evaluation, who shall report directly to the Secretary. (b) (1) Independent advice to Secretary of Veterans Affairs The Director of Cost Assessment and Program Evaluation is the principal advisor to the Secretary and other senior officials of the Department, and shall provide independent analysis and advice to such officials, on the following matters: (A) Matters assigned to the Director pursuant to this section. (B) Matters assigned to the Director by the Secretary pursuant to this section and to section 303 of this title. (2) The Director may communicate views on matters within the responsibility of the Director directly to the Secretary and the Deputy Secretary of Veterans Affairs without obtaining the approval or concurrence of any other official within the Department. (c) Deputy directors There are two Deputy Directors within the Office of the Director of Cost Assessment and Program Evaluation, as follows: (1) The Deputy Director for Cost Assessment. (2) The Deputy Director for Program Evaluation. (d) Responsibilities The Director of Cost Assessment and Program Evaluation shall serve as the principal official within the senior management of the Department for the following: (1) Cost estimation and cost analysis for acquisition programs of the Department. (2) Analysis and advice on matters relating to the planning and programming phases of the Planning, Programming, Budgeting, and Execution system, and the preparation of materials and guidance for such system, as directed by the Secretary, working in coordination with the Assistant Secretary for Management and the Chief Financial Officer of the Department. (3) Analysis and advice for resource discussions relating to requirements under consideration in the Veterans Health Administration, the Veterans Benefits Administration, the National Cemetery Administration, and all staff offices. (4) Formulation of study guidance for analyses of alternatives for major acquisition programs and performance of such analyses, as directed by the Secretary. (5) Review, analysis, and evaluation of programs for executing approved strategies and policies, ensuring that information on programs is presented accurately and completely, and assessing the effect of spending by the Department on the United States economy. (6) Assessments of alternative plans, programs, and policies with respect to the acquisition programs of the Department. (7) Leading the development of improved analytical skills and competencies within the cost assessment and program evaluation workforce of the Department and improved tools, data, and methods to promote performance, economy, and efficiency in analyzing Department planning and the allocation of Department resources. (e) Independent cost estimation and cost analysis The Director of Cost Assessment and Program Evaluation shall ensure that the cost estimation and cost analysis processes of the Department provide accurate information and realistic estimates of cost for the acquisition programs of the Department. In carrying out that responsibility, the Director shall— (1) prescribe, by authority of the Secretary, policies and procedures for the conduct of cost estimation and cost analysis for the acquisition programs of the Department; (2) provide guidance to and consult with the Secretary, the Chief Acquisition Officer, the Assistant Secretary for Management, the Chief Financial Officer of the Department, the Under Secretary for Health, the Under Secretary for Benefits, and the Under Secretary for Memorial Affairs with respect to cost estimation in the Department in general and with respect to specific cost estimates and cost analyses to be conducted in connection with a major acquisition program; (3) issue guidance relating to the proper selection of confidence levels in cost estimates generally, and specifically, for the proper selection of confidence levels in cost estimates for major acquisition programs and major automated information system programs; (4) issue guidance relating to full consideration of life-cycle management and sustainability costs in major acquisition programs and major automated information system programs; (5) review all cost estimates and cost analyses conducted in connection with major acquisition programs and major automated information system programs; (6) conduct independent cost estimates and cost analyses for major acquisition programs and major automated information system programs for which the Chief Acquisition Officer is the Milestone Decision Authority— (A) in advance of— (i) any certification under this title; and (ii) any decision to enter into product or system low-rate initial production, initial pilot implementation, or full-rate production or implementation; and (B) at any other time considered appropriate by the Director or upon the request of the Chief Acquisition Officer; and (7) periodically assess and update the cost indexes used by the Department to ensure that such indexes have a sound basis and meet the Department’s needs for realistic cost estimation. (f) Review of cost estimates, cost analyses, and records of the Department The Secretary shall ensure that the Director— (1) promptly receives the results of all cost estimates and cost analyses conducted by the Veterans Benefits Administration, the Veterans Health Administration, the National Cemetery Administration, or staff offices and all studies conducted by the Administration, in connection with such cost estimates and cost analyses for major acquisition programs and major automated information system programs of the Administrations; and (2) has timely access to any records and data in the Department (including the records and data of each Administration that the Director considers necessary to review in order to carry out any duties under this section). (g) Participation, concurrence, and approval in cost estimation The Director may— (1) participate in the discussion of any discrepancies between an independent cost estimate and the cost estimate assessments of the Veterans Benefits Administration, the Veterans Health Administration, the National Cemetery Administration, and staff offices for a major acquisition program or major automated information system program of the Department; (2) comment on deficiencies in the methodology or execution of any cost estimate or cost analysis developed by the Veterans Benefits Administration, the Veterans Health Administration, the National Cemetery Administration, or staff offices for a major acquisition program or major automated information system program; (3) concur in the choice of a cost estimate within the baseline description or any other cost estimate (including the confidence level for any such cost estimate) for use at any event specified in subsection (e)(6); and (4) participate in the consideration of any decision to request authorization of a multi-year procurement contract for a major acquisition program. (h) Annual report on cost assessment activities (1) Each year, not later than 10 days after the transmittal to Congress of the budget of the President for a fiscal year pursuant to section 1105 of title 31, the Director shall submit to the Secretary, the Chief Acquisition Officer of the Department, the Assistant Secretary for Management, the Chief Financial Officer of the Department, the Committee on Veterans' Affairs of the Senate and the Committee on Veterans' Affairs of the House of Representatives an annual report on the cost estimation and cost analysis activities of the Department carried out during the previous year. (2) Each report submitted pursuant to paragraph (1) shall include, for the period covered by the report, the following: (A) A summary of the cost estimation and cost analysis activities of the Department. (B) Assessments of the following: (i) The progress of the Department in improving the accuracy of its cost estimates and analyses. (ii) The extent to which each of the Veterans Benefits Administration, the Veterans Health Administration, the National Cemetery Administration, and staff offices have complied with policies, procedures, and guidance issued by the Director with regard to the preparation of cost estimates for major acquisition programs and major automated information systems. (iii) The overall quality of cost estimates prepared by each of the Administrations for major acquisition programs and major automated information system programs. (iv) Any consistent differences in methodology or approach among the cost estimates prepared by the Administrations and the Director. (3) (A) The Director shall ensure that a report submitted to paragraph (1) does not include any information, such as proprietary or source selection sensitive information, that could undermine the integrity of the acquisition process. (B) The report submitted pursuant to paragraph (1) to the committees described in such paragraph shall be posted on an internet website of the Department that is available to the public. (4) The Secretary may comment on any report of the Director submitted to the committees described in paragraph (1) pursuant to such paragraph. (i) Staff The Secretary shall ensure that the Director has sufficient professional staff to enable the Director to carry out the duties and responsibilities of the Director under this section.. (b) Report on monitoring of operating and support costs for major acquisition programs (1) Report to Secretary of Veterans Affairs Not later than one year after the date of the enactment of this Act, the Director of Cost Assessment and Program Evaluation established pursuant to section 8184 of title 38, United States Code, as added by subsection (a), shall— (A) review systems and methods of the Department of Veterans Affairs currently in effect for tracking and assessing operating and support costs using cost-accounting standards and procedures, as appropriate, on major acquisition programs (as defined in section 8181 of such title, as added by subsection (a)); and (B) submit to the Secretary of Veterans Affairs a report on such findings and recommendations as the Director may have as a result of the review conducted pursuant to subparagraph (A), including an assessment by the Director of the feasibility and advisability of establishing baselines for operating and support costs under such title. (2) Transmittal to Congress Not later than 30 days after receiving the report required by paragraph (1)(A), the Secretary shall submit to the Committee on Veterans' Affairs of the Senate and the Committee on Veterans’ Affairs of the House of Representatives the report received by the Secretary under paragraph (1)(B), together with such comments on the report as the Secretary considers appropriate.