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10 U.S.C. § 4374 — Unit cost reports: determinations by service acquisition executive and secretary concerned of breach of significant cost growth threshold or critical cost growth threshold; reports to Congress
Federal law — U.S. Code and appendices · legal_authorities
**(a) Determination of Breach by Service Acquisition Executive.—** When a unit cost report is submitted to the service acquisition executive designated by the Secretary concerned under this chapter with respect to a major defense acquisition program or any designated major subprogram under the program, the service acquisition executive shall determine whether the current program acquisition unit cost for the program or subprogram has increased by a percentage equal to or greater than the significant cost growth threshold, or the critical cost growth threshold, for the program or subprogram.
**(b) Additional Determination by Service Acquisition Executive When Program or Subprogram Is a Procurement Program.—** When a unit cost report is submitted to the service acquisition executive designated by the Secretary concerned under this chapter with respect to a major defense acquisition program or any designated major subprogram under the program that is a procurement program, the service acquisition executive, in addition to the determination under subsection (a), shall determine whether the procurement unit cost for the program or subprogram has increased by a percentage equal to or greater than the significant cost growth threshold, or the critical cost growth threshold, for the program or subprogram.
**(c) Determination of Breach by Secretary Concerned; Notification to Congress.—**
(1) **In general.—** — If, based upon the service acquisition executive’s determination, the Secretary concerned determines that the current program acquisition unit cost has increased by a percentage equal to or greater than the significant cost growth threshold or critical cost growth threshold or that the procurement unit cost has increased by a percentage equal to or greater than the sign
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Source location: Title 10, Chapter 325, § 4374; chapter-325-cost-growth-unit-cost-reports-nunn-mccurdy.md
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**(a) Determination of Breach by Service Acquisition Executive.—** When a unit cost report is submitted to the service acquisition executive designated by the Secretary concerned under this chapter with respect to a major defense acquisition program or any designated major subprogram under the program, the service acquisition executive shall determine whether the current program acquisition unit cost for the program or subprogram has increased by a percentage equal to or greater than the significant cost growth threshold, or the critical cost growth threshold, for the program or subprogram.
**(b) Additional Determination by Service Acquisition Executive When Program or Subprogram Is a Procurement Program.—** When a unit cost report is submitted to the service acquisition executive designated by the Secretary concerned under this chapter with respect to a major defense acquisition program or any designated major subprogram under the program that is a procurement program, the service acquisition executive, in addition to the determination under subsection (a), shall determine whether the procurement unit cost for the program or subprogram has increased by a percentage equal to or greater than the significant cost growth threshold, or the critical cost growth threshold, for the program or subprogram.
**(c) Determination of Breach by Secretary Concerned; Notification to Congress.—**
(1) **In general.—** — If, based upon the service acquisition executive’s determination, the Secretary concerned determines that the current program acquisition unit cost has increased by a percentage equal to or greater than the significant cost growth threshold or critical cost growth threshold or that the procurement unit cost has increased by a percentage equal to or greater than the significant cost growth threshold or critical cost growth threshold, the Secretary shall notify Congress in writing of such determination and of the increase with respect to the program or subprogram concerned.
(2) **Time for submission of notification to congress.—** — In the case of a determination based on a quarterly report submitted in accordance with [section 4372 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4372&num=0&edition=prelim), the Secretary shall submit the notification to Congress within 45 days after the end of the quarter. In the case of a determination based on a report submitted in accordance with [section 4373 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4373&num=0&edition=prelim), the Secretary shall submit the notification to Congress within 45 days after the date of that report.
(3) **Inclusion of date of determination.—** — The Secretary shall include in the notification the date on which the determination was made.
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Federal law — U.S. Code and appendices · legal_authorities
### Statutory Notes
Section, added Pub. L. 97–252, title XI, § 1107(a)(1), Sept. 8, 1982, 96 Stat. 741, § 139b; amended Pub. L. 98–94, title XII, § 1268(1), Sept. 24, 1983, 97 Stat. 705; Pub. L. 98–525, title XII, § 1242(b), Oct. 19, 1984, 98 Stat. 2607; Pub. L. 99–145, title XIII, § 1303(a)(2), Nov. 8, 1985, 99 Stat. 738; renumbered § 2433 and amended Pub. L. 99–433, title I, §§ 101(a)(5), 110(d)(14), (g)(8), Oct. 1, 1986, 100 Stat. 995, 1003, 1004; Pub. L. 99–500, § 101(c) [title X, § 961(b)], Oct. 18, 1986, 100 Stat. 1783–82, 1783–176, and Pub. L. 99–591, § 101(c) [title X, § 961(b)], Oct. 30, 1986, 100 Stat. 3341–82, 3341–176; Pub. L. 99–661, div. A, title IX, formerly title IV, § 961(b), Nov. 14, 1986, 100 Stat. 3956, renumbered title IX, Pub. L. 100–26, § 3(5), Apr. 21, 1987, 101 Stat. 273; Pub. L. 100–26, § 7(b)(4), (k)(7), Apr. 21, 1987, 101 Stat. 279, 284; Pub. L. 100–180, div. A, title XIII, § 1314(a)(1), Dec. 4, 1987, 101 Stat. 1175; Pub. L. 101–189, div. A, title VIII, § 811(a), Nov. 29, 1989, 103 Stat. 1490; Pub. L. 101–510, div. A, title XIV, § 1484(k)(10), Nov. 5, 1990, 104 Stat. 1719; Pub. L. 102–484, div. A, title VIII, § 817(d), Oct. 23, 1992, 106 Stat. 2456; Pub. L. 103–35, title II, § 201(i)(2), May 31, 1993, 107 Stat. 100; Pub. L. 103–355, title III, §§ 3002(a)(2), 3003, Oct. 13, 1994, 108 Stat. 3328, 3329; Pub. L. 105–85, div. A, title VIII, § 833, Nov. 18, 1997, 111 Stat. 1842; Pub. L. 108–375, div. A, title VIII, § 801(a), (b)(1), Oct. 28, 2004, 118 Stat. 2004; Pub. L. 109–163, div. A, title VIII, § 802(a)–(c), (d)(2), Jan. 6, 2006, 119 Stat. 3367–3370; Pub. L. 109–364, div. A, title II, § 213(a), Oct. 17, 2006, 120 Stat. 2121; Pub. L. 110–181, div. A, title IX, § 942(e), Jan. 28, 2008, 122 Stat. 288; Pub. L. 110–417, [div. A], title VIII, § 811
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Required Reports.—**
(1) **Requirement.—** — The program manager for a major defense acquisition program (other than a program not required to be included in the Selected Acquisition Report for that quarter under [section 4351(b)(3) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4351/b/3&num=0&edition=prelim)) shall, on a quarterly basis, submit to the service acquisition executive designated by the Secretary concerned a written report on the unit costs of the program (or of each designated major subprogram under the program).
(2) **Time for submittal.—** — Each report shall be submitted not more than 30 calendar days after the end of that quarter.
**(b) Matter to Be Included in Unit Cost Reports.—** The program manager shall include in each such unit cost report the following information with respect to the program (as of the last day of the quarter for which the report is made):
(1) The program acquisition unit cost for the program (or for each designated major subprogram under the program).
(2) In the case of a procurement program, the procurement unit cost for the program (or for each designated major subprogram under the program).
(3) Any cost variance or schedule variance in a major contract under the program since the contract was entered into.
(4) Any changes from program schedule milestones or program performances reflected in the baseline description established under [section 4214 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4214&num=0&edition=prelim) that are known, expected, or anticipated by the program manager.
(5) Any significant changes in the total program cost for development and procurement of the software component of the program or subprogram, sc
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Defense Acquisition System.—** In this part, the term “defense acquisition system” means—
(1) the workforce engaged in carrying out the acquisition of property and services for the Department of Defense;
(2) the management structure responsible for directing and overseeing the acquisition of property and services for the Department of Defense; and
(3) the statutory, regulatory, and policy framework that guides the acquisition of property and services for the Department of Defense.
**(b) Element of the Defense Acquisition System.—** In this part, the term “element of the defense acquisition system” means an organization that—
(1) employs members of the acquisition workforce;
(2) carries out acquisition functions; and
(3) focuses primarily on acquisition.
**(c) Acquisition.—** In this part, the term “acquisition” has the meaning provided in [section 131 of title 41](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section131&num=0&edition=prelim).
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Federal law — U.S. Code and appendices · legal_authorities
If the program manager of a major defense acquisition program for which a unit cost report has previously been submitted under [section 4372 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4372&num=0&edition=prelim) determines at any time during a quarter that there is reasonable cause to believe that the program acquisition unit cost for the program (or for a designated major subprogram under the program) or the procurement unit cost for the program (or for such a subprogram), as applicable, has increased by a percentage equal to or greater than the significant cost growth threshold; and if a unit cost report indicating an increase of such percentage or more has not previously been submitted to the service acquisition executive designated by the Secretary concerned, then the program manager shall immediately submit to such service acquisition executive a unit cost report containing the information, determined as of the date of the report, required under [section 4372 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4372&num=0&edition=prelim).
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In General.—** To the extent that funds are otherwise available for obligation, the head of an agency may enter into multiyear contracts for the purchase of property whenever the head of that agency finds each of the following:
(1) That the use of such a contract will result in—
(A) savings of the total anticipated costs of carrying out the program through annual contracts; or
(B) necessary defense industrial base stability not otherwise achievable through annual contracts.
(2) That the minimum need for the property to be purchased is expected to remain substantially unchanged during the contemplated contract period in terms of production rate, procurement rate, and total quantities.
(3) That there is a reasonable expectation that throughout the contemplated contract period the head of the agency will request funding for the contract at the level required to avoid contract cancellation.
(4) That there is a stable design for the property to be acquired and that the technical risks associated with such property are not excessive.
(5) That the estimates of both the cost of the contract and the anticipated cost avoidance through the use of a multiyear contract are realistic.
(6) In the case of a purchase by the Department of Defense, that the use of such a contract will promote the national security of the United States.
(7) In the case of a contract in an amount equal to or greater than $500,000,000, that the conditions required by subparagraphs (C) through (F) of subsection (i)(3) will be met, in accordance with the Secretary’s certification and determination under such subsection, by such contract.
**(b) Regulations.—**
(1) Each official named in paragraph (2) shall prescribe acquisition regulations for the agency or agencies under the jurisdiction o
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 3501
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Program Required.—**
(1) The Secretary of Defense, acting through the Under Secretary of Defense for Research and Engineering, shall carry out a program to provide opportunities for the increased introduction of innovative and cost-saving technology in acquisition programs of the Department of Defense.
(2) The program, to be known as the Defense Acquisition Challenge Program (hereinafter in this section referred to as the “Challenge Program”), shall provide any person or activity within or outside the Department of Defense with the opportunity to propose alternatives, to be known as challenge proposals, at the component, subsystem, system, or system-of-systems level of an existing Department of Defense acquisition program, or to address any broader functional challenge to Department of Defense missions that may not fall within an acquisition program, that would result in improvements in performance, affordability, manufacturability, or operational capability of that acquisition program or function.
**(b) Panels.—** The Under Secretary shall establish one or more panels of highly qualified scientists and engineers (hereinafter in this section referred to as “Panels”) to provide preliminary evaluations of challenge proposals under subsection (c).
**(c) Preliminary Evaluation by Panels.—**
(1) Under procedures prescribed by the Under Secretary, a person or activity within or outside the Department of Defense may submit challenge proposals to a Panel, through the unsolicited proposal process or in response to a broad agency announcement.
(2) The Under Secretary shall establish procedures pursuant to which appropriate officials of the Department of Defense may identify proposals submitted through the unsolicited proposal process as challenge proposals. The proced
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 4062
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Baseline Description Requirement.—**
(1) The Secretary of a military department shall establish a baseline description for each major defense acquisition program and for each designated major subprogram under the program under the jurisdiction of such Secretary.
(2) The baseline shall include sufficient parameters to describe the cost estimate (referred to as the “Baseline Estimate” in sections 4371 through 4375 of this title), schedule, performance, supportability, and any other factor of such major defense acquisition program or designated major subprogram.
**(b) Funding Limit.—** No amount appropriated or otherwise made available to the Department of Defense for carrying out a major defense acquisition program or any designated major subprogram under the program may be obligated after the program or subprogram enters system development and demonstration without an approved baseline description unless such obligation is specifically approved by the Under Secretary of Defense for Acquisition and Sustainment.
**(c) Schedule.—** A baseline description for a major defense acquisition program or any designated major subprogram under the program shall be prepared under this section—
(1) before the program or subprogram enters system development and demonstration;
(2) before the program or subprogram enters production and deployment; and
(3) before the program or subprogram enters full rate production.
**(d) Original Baseline Estimate.—**
(1) In this subpart, the term “original Baseline Estimate”, with respect to a major defense acquisition program or any designated major subprogram under the program, means the baseline description established with respect to the program or subprogram under subsection (a) prepared before the program or subprogram enters system
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 4214
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Breach of significant cost growth threshold; submission of a selected acquisition report.—**
(1) **General rule.—** — Except as provided in paragraph (2), whenever the Secretary concerned determines under [section 4374 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4374&num=0&edition=prelim) that the program acquisition unit cost or the procurement unit cost of a major defense acquisition program or designated major subprogram has increased by a percentage equal to or greater than the significant cost growth threshold for the program or subprogram, a Selected Acquisition Report shall be submitted to Congress for the first fiscal-year quarter ending on or after the date of the determination or for the fiscal-year quarter which immediately precedes the first fiscal-year quarter ending on or after that date. The report shall include the information described in [section 4351(e) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4351/e&num=0&edition=prelim) and shall be submitted in accordance with [section 4351(f) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4351/f&num=0&edition=prelim).
(2) Whenever the Secretary makes a determination referred to in paragraph (1) in the case of a major defense acquisition program or designated major subprogram during the second quarter of a fiscal year and before the date on which the President transmits the budget for the following fiscal year to Congress pursuant to [section 1105 of title 31](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section1105&num=0&edition=prelim), the Secretary is not required to file a Selected Acquisition Report under paragraph (1) but shall include th
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 4375
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Reassessment of Program.—** If the program acquisition unit cost or procurement unit cost of a major defense acquisition program or designated subprogram (as determined by the Secretary under [section 4374 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4374&num=0&edition=prelim)) increases by a percentage equal to or greater than the critical cost growth threshold for the program or subprogram, the Secretary of Defense shall—
(1) determine the root cause or causes of the critical cost growth in accordance with applicable statutory requirements and Department of Defense policies, procedures, and guidance; and
(2) in consultation with the Director of Cost Assessment and Program Evaluation, carry out an assessment of—
(A) the projected cost of completing the program if current requirements are not modified;
(B) the projected cost of completing the program based on reasonable modification of such requirements;
(C) the rough order of magnitude of the costs of any reasonable alternative system or capability; and
(D) the need to reduce funding for other programs due to the growth in cost of the program.
**(b) Presumption of Termination.—**
(1) **Termination unless secretary submits certification and report.—** — After conducting the reassessment required by subsection (a) with respect to a major defense acquisition program, the Secretary shall terminate the program unless the Secretary submits to Congress, before the end of the 60-day period beginning on the day the Selected Acquisition Report containing the information described in section 4375(d) and (e) of this title is required to be submitted under [section 4351(f) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section43
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Federal law — U.S. Code and appendices · legal_authorities
Page 2751
TITLE 10—ARMED FORCES
§ 4374
13, 1994, 108 Stat. 3328, 3329; Pub. L. 105–85, div. A, title
VIII, § 833(a), (b), Nov. 18, 1997, 111 Stat. 1842, 1843; Pub.
L. 109–163, div. A, title VIII, § 802(b)(1), Jan. 6, 2006, 119
Stat. 3368; Pub. L. 110–417, [div. A], title VIII, § 811(c)(3),
Oct. 14, 2008, 122 Stat. 4522.
AMENDMENTS
2021—Pub. L. 116–283, § 1850(f), transferred subsec. (c)
of section 2433 of this title to this section, struck out
subsec. designation, and substituted ‘‘section 4372 of
this title’’ for ‘‘subsection (b)’’ in two places.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section and amendment by Pub. L. 116–283 effective
Jan. 1, 2022, with additional provisions for delayed im-
plementation and applicability of existing law, see sec-
tion 1801(d) of Pub. L. 116–283, set out as an Effective
Date of 2021 Amendment note preceding section 3001 of
this title.
§ 4374. Unit cost reports: determinations by serv-
ice acquisition executive and secretary con-
cerned of breach of significant cost growth
threshold or critical cost growth threshold;
reports to Congress
(a) DETERMINATION OF BREACH BY SERVICE AC-
QUISITION EXECUTIVE.—When a unit cost report
is submitted to the service acquisition executive
designated by the Secretary concerned under
this chapter with respect to a major defense ac-
quisition program or any designated major sub-
program under the program, the service acquisi-
tion executive shall determine whether the cur-
rent program acquisition unit cost for the pro-
gram or subprogram has increased by a percent-
age equal to or greater than the significant cost
growth threshold, or the critical cost growth
threshold, for the program or subprogram.
(b) ADDITIONAL DETERMINATION BY SERVICE AC-
QUISITION EXECUTIVE WH
Source: Supplied 2024 U.S. Code historical extraction · 10 U.S.C. § 4374
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