Heat oil in a soup pot over medium-high heat. Add beef and cook until lightly browned. Add onion, celery and garlic; cook an additional 2-3 minutes until vegetables begin to soften. Stir in water, barley, bouillon, basil, pepper and bay leaf. Bring to a boil; reduce heat. Cover and simmer 1 hour.
Stir in frozen vegetables, potatoes and undrained tomatoes. Return to boiling; reduce heat. Cover and simmer about 15 minutes more or till meat and vegetables are tender.