‘‘(b) RESPONSIBILITIES.—In addition to the respon-
sibilities of the Chief Acquisition Officer under section 16 
of the Office of Federal Procurement Policy Act (41 
U.S.C. 414), the Chief Acquisition Officer shall carry out 
the following additional responsibilities: 
‘‘(1) Managing and monitoring the performance 
of Department acquisition activities. 
‘‘(2) Advising the Secretary on appropriate 
business strategies to meet the missions of the De-
partment. 
‘‘(3) Awarding and administering contracts and 
purchases. 
‘‘(4) Increasing the use of full and open com-
petition in the acquisitions processes of the Depart-
ment. 
‘‘(5) Increasing the appropriate use of perform-
ance-based contracting and performance specifica-
tions in such processes. 
‘‘(6) Ensuring that acquisitions decisions are 
consistent with applicable laws. 
‘‘(7) Managing the direction of acquisition pol-
icy for the Department. 
‘‘(8) Establishing clear lines of authority, ac-
countability, and responsibility for decision making 
within the Department with respect to acquisitions. 
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‘‘(9) Developing and maintaining an acquisition 
career management program. 
‘‘(c) QUALIFICATIONS.—The individual appointed as 
Chief Acquisition Officer shall have the following qualifica-
tions: 
‘‘(1) Executive experience in acquisition in the 
Federal Government— 
‘‘(A) managing large projects or having re-
sponsibility for managing a corporate-type sup-
ply chain function; 
‘‘(B) defining and achieving performance 
results; 
‘‘(C) developing, negotiating, delivering, 
and managing successful and complex business 
arrangements across large organizations with 
competing interests; 
‘‘(D) building and managing executive re-
lationships across organizational and functional 
boundaries; and 
‘‘(E) successfully using strategic resource 
management to achieve organizational goals. 
‘‘(2) Knowledge of the Federal Acquisition Reg-
ulation. 
‘‘(3) Knowledge of the Federal budget, appro-
priations, and legislative processes. 
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‘‘(d) ACQUISITION WORKFORCE.—All employees of 
the Department whose responsibilities relate to acquisition 
shall report directly to the Chief Acquisition Officer. Be-
ginning on the date of the enactment of this section, no 
new employee may be hired as a Head of Contracting Au-
thority or Chief Logistics Officer unless the Principal Dep-
uty Assistant Secretary for Acquisition, Construction, and 
Asset Management approves the hire. 
‘‘(e) PRINCIPAL DEPUTY ASSISTANT SECRETARY 
FOR ACQUISITION, CONSTRUCTION, AND ASSET MANAGE-
MENT.—(1) There is in the Department a Principal Dep-
uty Assistant Secretary for Acquisition, Construction, and 
Asset Management. The Principal Deputy Assistance Sec-
retary for Acquisition, Construction, and Asset Manage-
ment shall be the senior procurement executive for the De-
partment and shall report directly to the Chief Acquisition 
Officer. 
‘‘(2) The position of Principal Deputy Assistant Sec-
retary for Acquisition, Construction, and Asset Manage-
ment shall for all purposes be considered to be a career 
reserve position within the meaning of section 3132(a)(8) 
of title 5. 
‘‘(3) The Principal Deputy Assistant Secretary for 
Acquisition, Construction, and Asset Management shall 
have primary responsibility for the following: 
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‘‘(A) Acquisition policy and oversight. 
‘‘(B) Oversight of the Office of the Business 
Ombudsman, including the Competition Advocate 
and the Office of Business Oversight. 
‘‘(C) Training, management, and oversight of 
the acquisition workforce, including the Acquisition 
Academy of the Department. 
‘‘(D) Management and oversight of the Deputy 
Assistant Secretary responsible for awarding and ad-
ministering contracts and purchases. 
‘‘(f) DEPUTY ASSISTANT SECRETARIES FOR ACQUISI-
TION.—There are in the Department seven Deputy Assist-
ant Secretaries for Acquisition who shall report directly 
to the Principal Deputy Assistant for Acquisition, Con-
struction, and Asset Management. The Secretary or the 
Secretary’s designee shall assign to each Deputy Assistant 
Secretary one of the following functions: 
‘‘(1) Information technology acquisition. 
‘‘(2) Acquisition services for the Veterans Bene-
fits Administration, the National Cemetery Adminis-
tration and the Department headquarters. 
‘‘(3) Construction acquisition and leasing. 
‘‘(4) Veterans Health Administration acquisi-
tion. 
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‘‘(5) National contracts, including contracts for 
health care products and services awarded by the 
National Acquisition Center. 
‘‘(6) Policy. 
‘‘(7) Asset enterprise management and logis-
tics.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the item relating to section 310 the following new 
item: 
‘‘310A. Chief Acquisition Officer; other acquisition officers.’’. 
(c) DEADLINE FOR DESIGNATIONS.— 
(1) DEADLINE FOR PLAN.—Not later than 180 
days after the date of the enactment of this Act, the 
Secretary of Veterans Affairs shall submit to Con-
gress a plan for implementing section 310A of title 
38, United States Code, as added by subsection (a). 
(2) DEADLINE
FOR
IMPLEMENTATION.—Not 
later than 18 months after the date of the enact-
ment of this Act, the Secretary of Veterans Affairs 
shall fully implement the plan submitted under para-
graph (1). 
SEC. 4. ACQUISITION POLICY OF DEPARTMENT OF VET-
ERANS AFFAIRS. 
(a) DEPARTMENT-WIDE POLICY REQUIRED.— 
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(1) REQUIREMENT.—Subchapter II of chapter 
81 of title 38, United States Code, is amended by 
adding at the end the following new section: 
‘‘§ 8129. Department-wide acquisition policy 
‘‘(a) POLICY REQUIRED.—The Secretary shall estab-
lish and maintain a comprehensive Department-wide ac-
quisition program under which the Secretary shall develop, 
implement, and enforce a streamlined approach to enter-
ing into contracts and purchasing goods and services. 
Such program shall include the elements described in sub-
section (b). 
‘‘(b) ELEMENTS.—The Secretary shall ensure that 
the Department-wide acquisition program includes the fol-
lowing elements: 
‘‘(1) The centralization under the Chief Acqui-
sition Officer of all contracting activities of the De-
partment, including purchasing, and including all 
contracting activities carried out by each Adminis-
tration and staff office of the Department as of the 
date of the enactment of this section. 
‘‘(2) The establishment of acquisition goals to 
meet the mission needs of the Department. 
‘‘(3) The development of Department require-
ments with respect to acquisition. 
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‘‘(4) The establishment of an overall acquisition 
strategy for the Department. 
‘‘(5) Soliciting and awarding contracts. 
‘‘(6) The management of acquisition system 
and contract performance. 
‘‘(c) ACQUISITION REQUIREMENTS.—(1) Except as 
provided in paragraph (2), an acquisition of any health 
care item by the Department shall be made through the 
use of a Federal supply schedule 65 or 66 contract award-
ed by the Department or a national contract that is 
awarded by or approved by the Department. 
‘‘(2)(A) Paragraph (1) does not apply to an acquisi-
tion of a health care item in any of the following cases: 
‘‘(i) An acquisition necessary to meet a current 
or near-term medical emergency at a medical center. 
‘‘(ii) An acquisition for an item not listed in the 
Federal supply schedule or as part of a national con-
tract and for which there is a valid clinical need. 
‘‘(iii) An acquisition for a specialized health 
care item not listed in the Federal supply schedule 
or as part of a national contract for the special 
needs of an individual patient who has one of the 
special needs identified in section 1706(b) of this 
title and who has a valid clinical need for the item. 
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‘‘(iv) An acquisition that is part of an approved 
sharing agreement between the Department of De-
fense and the Department of Veterans Affairs with 
demonstrable cost-per-item savings for an item listed 
on the Federal supply schedule or a national con-
tract. 
‘‘(B) An acquisition referred to in any of clauses (i) 
through (v) of subparagraph (A) may be made only if the 
acquisition is specifically authorized in advance in writing 
by the Secretary. The authority of the Secretary under 
the preceding sentence with respect to contracts awarded 
by the Department may be delegated only to the Assistant 
Secretary for Acquisition, Construction, and Asset Man-
agement. 
‘‘(3) Before entering into either a new Federal supply 
schedule contract or a new national contract, the Chief 
Acquisition Officer may amend any clause of the Federal 
Acquisition Regulation otherwise required to be included 
in the contract in such manner as the Chief Acquisition 
Officer determines necessary to protect the interests of the 
Government. 
‘‘(4) In the case of an emergency acquisition of a 
health care item under paragraph (2)(B), the quantity of 
the item procured may not exceed the quantity of that 
item that meets the reasonably foreseeable need for the 
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item at the medical facility concerned until resupply can 
be achieved through an acquisition action other than an 
emergency acquisition. 
‘‘(d) PROCEDURES TO ASSURE COMPLIANCE.—(1) 
The Secretary shall establish procedures to assure compli-
ance by each Department medical facility with the provi-
sions of this section and with applicable Federal and De-
partment acquisition regulations. 
‘‘(2) The procedures established by the Secretary 
under paragraph (1) shall be designed to maximize the 
availability of health care items and the use of the Federal 
supply schedule by the Department. 
‘‘(3) The procedures established by the Secretary 
under paragraph (1) shall include procedures designed to 
standardize items at the local, regional, or national level 
to provide special patient populations (as identified in sec-
tion 1706(b) of this title) with the range and types of 
health care items required to meet their clinical and qual-
ity-of-life needs. 
‘‘(4) The Advisory Committee on Prosthetics and 
Special-Disabilities Programs established under section 
543 of this title shall review the procedures referred to 
in paragraph (3), including the implementation of those 
procedures. 
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‘‘(e) ANNUAL GOALS.—(1) The Secretary shall estab-
lish annual goals for Department medical facilities for the 
purchase of health care items from Federal supply sched-
ule contracts and national contracts meeting the require-
ments of subsection (d). Such goals shall be designed to 
maximize the percentage of such purchases that are made 
through such contracts. 
‘‘(2) Achievement of the goals established under this 
subsection shall be an element in the performance stand-
ards for employees of the Department who have the au-
thority and responsibility for achieving those goals. 
‘‘(f) RELATIONSHIP
TO
OTHER
PROVISIONS
OF 
LAW.—A provision of law that is inconsistent with any 
provision of this section shall not apply, to the extent of 
the inconsistency, to the acquisition of a health care item 
for the Department. 
‘‘(g) REPORT.—(1) Not later than December 31 each 
year, the Secretary shall submit to the Committees on Vet-
erans’ Affairs of the Senate and House of Representatives 
a report on the acquisition of health care items during 
the preceding fiscal year. Each such report shall include, 
for the year covered by the report, the following: 
‘‘(A) The total dollar amount of all items listed 
in Federal supply schedule 65 or 66 and the total 
dollar value of the exceptions to subsection (c)(1) 
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under each of clauses (i), (ii), (ii), (iv), and (v) of 
subsection (c)(2)(A), shown by medical facility. 
‘‘(B) A detailed explanation for such exceptions, 
including— 
‘‘(i) any uses of emergency acquisition au-
thority at Department medical facilities; 
‘‘(ii) any authorizations under subsection 
(c)(2)(A) for acquisition of items not listed on 
the Federal supply schedules or on national 
contracts; and 
‘‘(iii) any exceptions granted for special 
health care needs of veterans with disabilities 
described in section 1706(b) of this title. 
‘‘(C) An analysis of sharing agreements be-
tween the Department and the Department of De-
fense, including the basic sharing initiative and the 
division of financial responsibility between the two 
Departments. 
‘‘(D) The stated Department goal under each 
acquisition preference program, together with an as-
sessment of the performance of the Department to-
ward achievement of such goals, including any goals 
for contracting with businesses that are owned and 
controlled by veterans or veterans with service-con-
nected disabilities. 
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‘‘(2) The Advisory Committee on Prosthetics and 
Special-Disabilities Programs of the Department shall 
submit comments on each report under paragraph (1) be-
fore the report is submitted under that paragraph, and 
the Secretary shall include those comments in the report 
as submitted. 
‘‘(3) For the purposes of this subsection: 
‘‘(A) The term ‘health care item’ includes any 
item other than services listed in any Federal Supply 
Classification other than Federal supply schedule 65 
or 66 over which the Department has been delegated 
authority. 
‘‘(B) The term ‘national contract’ means a con-
tract for the acquisition of an item that is entered 
into by the National Acquisition Center of the De-
partment or another Department acquisition activ-
ity, as authorized by the Secretary, that is available 
for use by all Department medical facilities. 
‘‘(C) The term ‘valid clinical need’ means a 
clinical need that is valid in the professional judg-
ment of an appropriate clinician. Such term applies 
to health care items, prosthetic appliances, sensory 
or mobility aids and supplies that are prescribed by 
a physician for special patient populations such as 
veterans with spinal cord dysfunction, blindness, am-
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putations, and other veterans included in section 
1706(b) of this title. 
‘‘(D) The term ‘Federal supply schedule con-
tract’ means a contract that is awarded and admin-
istered by the National Acquisition Center of the 
Department, under a delegation of authority as of 
the date of the enactment of this section or a con-
tract that is awarded and administered by the De-
partment under regulations prescribed under section 
8130 of this title. 
‘‘(E) The term ‘emergency acquisition’ means 
an acquisition necessary to meet an emergency need 
affecting the health or safety of a person being fur-
nished health care services by the Department.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by inserting after the item relating to section 8128 
the following new item: 
‘‘8129. Department-wide acquisition policy.’’. 
(b) DEADLINE FOR IMPLEMENTATION.—The acquisi-
tion policy required by section 8129 of title 38, United 
States Code, as added by subsection (a), shall be fully im-
plemented by the date that is 18 months after the date 
of the enactment of this Act. 
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SEC. 5. AUTHORITY FOR SECRETARY OF VETERANS AF-
FAIRS TO ENTER INTO CERTAIN PERSONAL 
SERVICES CONTRACTS. 
(a) CONTRACTS FOR SCARCE MEDICAL SPECIALIST 
SERVICES.—Section 7409(a) of title 38, United States 
Code, is amended, in the first sentence, by inserting ‘‘, 
including personal services contracts,’’ after ‘‘contracts’’. 
(b) SHARING OF HEALTH CARE RESOURCES WITH 
DEPARTMENT OF DEFENSE.—Section 8111(a) of such 
title is amended by inserting ‘‘, including personal services 
contracts,’’ after ‘‘contracts’’. 
(c) SHARING OF HEALTH CARE RESOURCES.—Sec-
tion 8153(a) of such title is amended by inserting ‘‘, in-
cluding a personal services contract,’’ after ‘‘contract’’. 
(d) DEADLINE FOR REGULATIONS.—Not later than 
180 days after the date of the enactment of this Act, the 
Secretary of Veterans Affairs shall prescribe regulations 
to carry out the amendments made by this section. 
SEC. 6. AWARD AND ADMINISTRATION OF CERTAIN FED-
ERAL SUPPLY SCHEDULES BY SECRETARY OF 
VETERANS AFFAIRS. 
(a) EXPANSION OF DEFINITION OF COMPETITIVE 
PROCEDURES.—Section 309(b) of the Federal Property 
and Administrative Services Act of 1949 (41 U.S.C. 259) 
is amended— 
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(1) in paragraph (4), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (5), by striking the period and 
inserting ‘‘; and’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(6) the procedures established by the Sec-
retary of Veterans Affairs for the use of certain 
Federal supply schedules, pursuant to regulations 
prescribed under section 8130 of title 38, United 
States Code, if— 
‘‘(A) the procedures provide that the use of 
any such supply schedule has been open to all 
responsible sources; and 
‘‘(B) orders and contracts under such pro-
cedures result in the lowest cost alternative to 
meet the needs of the Government.’’. 
(b) AUTHORITY OF SECRETARY OF VETERANS AF-
FAIRS.— 
(1) IN GENERAL.—Subchapter II of chapter 81 
of title 38, United States Code, as amended by sec-
tion 3, is further amended by adding at the end the 
following new section: 
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‘‘§ 8130. Award and administration of certain Federal 
supply schedules 
‘‘(a) REGULATIONS.—The Secretary shall prescribe 
regulations to provide procedures for soliciting, negoti-
ating, awarding, and administering the Federal supply 
schedules described in subsection (c). 
‘‘(b) CONTRACT CLAUSE REQUIREMENTS.—The reg-
ulations prescribed under subsection (a) shall require that 
a contract entered into by the Secretary under a Federal 
supply schedule shall include pre- and post-award audit 
clauses, an economic price adjustment clause, a price re-
ductions clause, and a price adjustment for failure to pro-
vide accurate information clause. 
‘‘(c) APPLICABILITY.—This section shall apply with 
respect to any Federal supply schedule for which the au-
thority to administer such schedule is transferred from the 
Administrator of General Services to the Secretary of Vet-
erans Affairs, whether such authority is transferred be-
fore, on, or after the date of the enactment of this sec-
tion.’’. 
(2) 
GENERAL
SERVICES
ADMINISTRATION 
RULES AND REGULATIONS.—Until the Secretary of 
Veterans Affairs prescribes regulations under section 
8130(a) of title 38, United States Code (as added by 
paragraph (1)), the Secretary shall comply with the 
rules and regulations relating to the Federal supply 
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schedules prescribed by the Administrator of General 
Services that were in effect on the date of the enact-
ment of this Act. 
(3) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by inserting after the item relating to section 8130, 
as added by section 3, the following new item: 
‘‘8130. Administration of Federal supply schedule.’’. 
(4) DEADLINE FOR REGULATIONS.—Not later 
than 180 days after the date of the enactment of 
this Act, the Secretary of Veterans Affairs shall pre-
scribe the regulations required under section 8130 of 
title 38, United States Code, as added by paragraph 
(1). 
SEC. 7. IMPROVEMENT OF DEPARTMENT OF VETERANS AF-
FAIRS 
SMALL 
BUSINESS 
CONTRACTING 
GOALS. 
(a) ADDITIONAL REQUIREMENT.—Section 8127(c) of 
title 38, United States Code, is amended— 
(1) in paragraph (2), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (3), by striking the period and 
inserting the following: ‘‘; and’’; and 
(3) by adding at the end the following new 
paragraph: 
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‘‘(4) in the case of a contract for the purchase 
of a commercial item, the vendor of the item is a 
manufacturer or a regular dealer.’’. 
(b) COMPLAINT PROCESS FOR USE OF RESTRICTED 
COMPETITION.—Subsection (d) of such section is amend-
ed— 
(1) by striking ‘‘Except as provided’’ and in-
serting ‘‘(1) Except as provided’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) Any complaint regarding the noncompliance of 
a contracting officer with this subsection shall be sub-
mitted to the Secretary.’’. 
(c) ELIGIBILITY.—Subsection (e) of such section is 
amended— 
(1) by striking ‘‘only if the small business con-
cern and the veteran’’ and all that follows and in-
serting ‘‘only if—’’; and 
(2) by adding at the end the following new 
paragraphs: 
‘‘(1) the small business concern and the veteran 
owner of the small business concern are listed in the 
database of veteran-owned businesses maintained by 
the Secretary under subsection (f); 
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‘‘(2) 
the 
Secretary 
has 
performed 
the 
verification functions of the Secretary under para-
graph (4) of such subsection with respect to the 
small business concern; and 
‘‘(3) the contract is only for the procurement of 
a good or service with an North American Industry 
Classification System code specified by the Secretary 
under paragraph (9) of that subsection for the small 
business concern.’’. 
(d) DATABASE.—Subsection (f) of such section is 
amended by adding at the end the following new para-
graphs: 
‘‘(7) The Secretary may not include in the database 
a small business concern that is the vendor of a commer-
cial item unless the concern is the manufacturer or regular 
dealer of the item, unless the Secretary specifically pro-
vides for a waiver of such requirement for such concern. 
‘‘(8) The Secretary shall establish specific criteria to 
be used in carrying out the verification functions under 
paragraph (4), including criteria requiring specific docu-
mentation and certifications from each small business con-
cern proposed to be included in the database. 
‘‘(9) For each small business concern included in the 
database, the Secretary shall specify the North American 
Industry Classification System code or codes of the goods 
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and services that may be procured by the Department 
from such concern.’’. 
(e) DEFINITIONS.—Subsection (l) of such section is 
amended by adding at the end the following new items: 
‘‘(3) The term ‘commercial item’ has the mean-
ing given that term in section 4(12) of the Office of 
Federal 
Procurement 
Policy 
Act 
(41 
U.S.C. 
203(12)) as long as items and services directly relat-
ing to the sale of such a commercial item are offered 
to commercial customers. 
‘‘(4) The term ‘management and daily business 
operations’ includes— 
‘‘(A) with respect to a contract for the pro-
vision of services, the services to be performed 
by a contract awarded under this section; and 
‘‘(B) with respect to a contract for the pro-
vision of goods that are not manufactured by 
the small business concern in question, the pro-
vision of services relating directly to the sale of 
such goods. 
‘‘(5) The term ‘regular dealer’ with respect to 
any contract means a person who owns, operates, or 
maintains a store, warehouse, or other establishment 
in which the commodities or goods of the general 
character described by the specifications and re-
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quired under the contract are bought, kept in stock, 
and sold to the public in the usual course of busi-
ness.’’. 
(f) DEADLINE FOR ESTABLISHMENT OF CRITERIA.— 
Not later than 180 days after the date of the enactment 
of this Act, the Secretary of Veterans Affairs shall estab-
lish criteria for the use of sole source contracts for Depart-
ment of Veterans Affairs contracts above the simplified 
acquisition threshold. 
Æ 
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