The ARCA Act of 2025 and What It Means for VA Buying in 2026

In late 2025, leaders across the federal market began focusing on one major trend that will shape how the Department of Veterans Affairs buys products and services moving forward. That trend is acquisition reform.

One of the biggest items driving this conversation is a Senate proposal called the Acquisition Reform and Cost Assessment Act of 2025, also known as the ARCA Act of 2025. This proposal focuses on reorganizing how the VA manages purchasing, contracting, logistics, and oversight of major acquisition programs. It is designed to improve efficiency, increase accountability, and standardize how the VA plans and manages spending.

For companies doing business with the VA, this is an important shift to track. It will likely affect how opportunities are structured, where decisions are made, how requirements are written, and how vendors should position themselves in 2026.

This post breaks down what the ARCA Act is, why it matters, and what businesses should do now to stay competitive as VA buying becomes more centralized.

Why People Are Talking About the ARCA Act Right Now

If you work in federal contracting, you know the VA is one of the largest buyers in the government. It spends billions each year on health care services, facility support, technology, logistics, and large-scale modernization programs. Because of this, even small changes in VA acquisition policy can affect the entire market.

The ARCA Act of 2025 is designed to reshape VA acquisition in a way that brings more structure and more centralized oversight into how large programs and procurement organizations operate.

The proposal includes the creation of a more unified acquisition structure within the VA, including a new Office of Acquisition and Innovation, and a designated Assistant Secretary for Acquisition and Innovation who also serves as the VA’s Chief Acquisition Officer.

That matters because when a government agency creates a central acquisition authority, it usually means decisions move upward. It also means buying habits can become more consistent across regions. And it often means vendors will need to adjust how they pursue and win work.

What the ARCA Act of 2025 Is Trying to Do

At a high level, the ARCA Act of 2025 aims to reorganize the VA’s acquisition structure and strengthen cost and program oversight.

The proposal outlines plans to:

• Create an Office of Acquisition and Innovation within the VA
• Designate an Assistant Secretary for Acquisition and Innovation
• Align major program offices under that office, reporting directly to the Assistant Secretary
• Strengthen management requirements for major acquisition programs
• Expand independent verification and validation requirements
• Add cost assessment and program evaluation capabilities within the VA

This is not just a small adjustment. It is a redesign of how VA acquisition leadership is organized, how major programs are managed, and how accountability will be measured going forward.

The New Office of Acquisition and Innovation

One of the most important parts of this proposal is the creation of a new Office of Acquisition and Innovation.

This office would exist to bring major program offices into better alignment and to create a clearer chain of command. The proposal supports the idea that major program offices should align under this office and report directly to the Assistant Secretary for Acquisition and Innovation.

When you see language like that in a federal proposal, it signals a centralization goal.

For businesses that sell to the VA, a centralized acquisition structure usually means:

• More consistent requirements across regions
• More standardized evaluation criteria
• More reliance on national contract vehicles
• More emphasis on measurable performance and documented outcomes
• Fewer regional buying variations over time

This is one reason why federal market teams are calling this a major change. It has the potential to shape how the VA buys across the whole country.

What the Proposal Says About Procurement, Logistics, and Innovation Leadership

The ARCA Act also defines leadership roles tied to procurement, logistics, and innovation. It calls for Deputy Assistant Secretaries who would report to the Assistant Secretary for Acquisition and Innovation.

These roles include:

• Deputy Assistant Secretary for Logistics
• Deputy Assistant Secretary for Innovation
• Deputy Assistant Secretary for Procurement

This matters because procurement and logistics functions often control large portions of federal spending. When they are organized under a single acquisition authority, it strengthens national direction over purchasing and supply chain decisions.

For companies in the supply chain, facilities, logistics, and operational support spaces, this could change how requirements are built and how contracts are managed.

Major Acquisition Programs and Stronger Program Management Rules

Another major focus of the proposal is major acquisition programs and how they are managed.

The proposal defines a major acquisition program as a VA program with an estimated life cycle cost of 250 million dollars or more.

It then supports a structured approach to managing those programs, including:

Program managers must be appointed quickly after approval
Managers must create and maintain a program baseline that includes cost, schedule, and performance estimates
Managers must continuously assess and manage risk
Program oversight and authority is tied directly to the Assistant Secretary for Acquisition and Innovation

This tells us something important. The VA wants more discipline and accountability on high dollar programs. That usually leads to more documentation requirements and more structured contractor performance expectations.

In short, the VA wants better control over the biggest investments it makes.

Why This Matters to Federal Contractors in 2026

So what does all of this mean for the market?

It means the VA is signaling a move toward:

• Centralized acquisition control
• Stronger oversight and reporting
• More consistent procurement processes
• A bigger focus on cost controls and measurable results
• Better alignment across major program offices

For vendors, this often leads to a more competitive and standardized environment. Companies that can prove value, offer scalable solutions, and align with national-level procurement needs will have an advantage.

This is exactly why federal contractors should start planning now.

What Businesses Should Do Right Now

To stay competitive as VA procurement evolves, companies should focus on a few key actions.

Track the Legislation and the Implementation Trend

Even before a proposal becomes final law, it can shape planning decisions inside an agency. Stakeholders begin aligning with the direction early. The VA and congressional committees have been discussing acquisition reform for years, and ARCA is a strong signal of where things are going.

Align Solutions with National VA Needs

When buying becomes more centralized, the VA will prioritize solutions that are easier to deploy at scale across many locations. Vendors should begin framing offerings in terms of national impact, standardization, and measurable performance.

Strengthen Past Performance and Documentation

This proposal emphasizes program baselines, oversight, and risk management. That usually means government teams will expect stronger documentation from contractors.

Your proposals and contract deliverables should clearly show:

• Quality control processes
• Cost tracking capabilities
• Scheduling discipline
• Performance measurement
• Risk reduction plans

Prepare for More Structured Competitive Environments

Centralization tends to bring more consistent evaluation models, which also tends to increase competition. Winning becomes less about regional relationships and more about proven results.

Companies that invest in clear messaging, compliance readiness, and differentiation will be better positioned.

What This Could Mean for The DaVinci Company

For The DaVinci Company and other businesses supporting government acquisition and performance goals, this is a major opportunity.

Why?

Because agencies do not reorganize acquisition without needing support.

Reorganization requires:

• Process improvement
• Procurement planning support
• Data reporting
• Cost assessment support
• Program evaluation support
• Training and compliance readiness
• Vendor coordination and modernization planning

This proposal supports a major shift toward structured acquisition management, cost discipline, and centralized leadership. That creates a clear business need for strong partners who can help agencies execute these changes successfully.

If VA acquisition becomes more centralized and more program-focused, companies that understand federal buying behavior and can align with that structure will have a clear advantage.

What to Watch Next

In early 2026, government and industry teams should watch for:

• Updated VA acquisition leadership priorities
• New guidance tied to the Office of Acquisition and Innovation
• Changes in procurement and logistics workflows
• More national-level contract standardization
• More structured evaluation criteria in VA solicitations

Even if the ARCA Act changes in final form, the direction is clear. The VA wants more centralized control over procurement and acquisition program oversight.

Federal acquisition reform is not just a policy change. It is a market change.

The ARCA Act of 2025 is one of the strongest indicators that the VA is moving toward a new acquisition model built around centralized authority, stronger oversight, structured major program management, and improved cost assessment.

For contractors, the best path forward is preparation.

Companies that understand these changes early, align their offerings with national-level needs, and sharpen their ability to compete in a standardized environment will be the ones positioned to win more in 2026.