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10 U.S.C. § 4377 — Breach of critical cost growth threshold: actions if program not terminated
Federal law — U.S. Code and appendices · legal_authorities
**(a) Actions if Program Not Terminated.—** If the Secretary elects not to terminate a major defense acquisition program pursuant to subsection (b) of [section 4376 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4376&num=0&edition=prelim), the Secretary shall—
(1) restructure the program in a manner that addresses the root cause or causes of the critical cost growth, as identified pursuant to subsection (a) of that section, and ensures that the program has an appropriate management structure as set forth in the certification submitted pursuant to subsection (b)(2)(E) of that section;
(2) rescind the most recent Milestone approval for the program and withdraw any associated certification under section 4251 or 4252 of this title;
(3) require a new Milestone approval for the program before taking any contract action to enter a new contract, exercise an option under an existing contract, or otherwise extend the scope of an existing contract under the program, except to the extent determined necessary by the Milestone Decision Authority, on a non-delegable basis, to ensure that the program can be restructured as intended by the Secretary without unnecessarily wasting resources;
(4) include in the report specified in subsection (b) a description of all funding changes made as a result of the growth in cost of the program, including reductions made in funding for other programs to accommodate such cost growth; and
(5) conduct regular reviews of the program in accordance with the requirements of section 205 of the Weapon Systems Acquisition Reform Act of 2009.
**(b) Identification of Report for Description of Funding Changes.—** For purposes of subsection (a)(4), the report specified in this subsection is the first Selected Acqu
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Source file: Laws/federal/codes/united-states-code/title-10/section-4377-breach-of-critical-cost-growth-threshold-actions-if-program-not-terminat--d280bae4bf.md
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Source location: Title 10, Chapter 325, § 4377; chapter-325-cost-growth-unit-cost-reports-nunn-mccurdy.md
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**(a) Actions if Program Not Terminated.—** If the Secretary elects not to terminate a major defense acquisition program pursuant to subsection (b) of [section 4376 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4376&num=0&edition=prelim), the Secretary shall—
(1) restructure the program in a manner that addresses the root cause or causes of the critical cost growth, as identified pursuant to subsection (a) of that section, and ensures that the program has an appropriate management structure as set forth in the certification submitted pursuant to subsection (b)(2)(E) of that section;
(2) rescind the most recent Milestone approval for the program and withdraw any associated certification under section 4251 or 4252 of this title;
(3) require a new Milestone approval for the program before taking any contract action to enter a new contract, exercise an option under an existing contract, or otherwise extend the scope of an existing contract under the program, except to the extent determined necessary by the Milestone Decision Authority, on a non-delegable basis, to ensure that the program can be restructured as intended by the Secretary without unnecessarily wasting resources;
(4) include in the report specified in subsection (b) a description of all funding changes made as a result of the growth in cost of the program, including reductions made in funding for other programs to accommodate such cost growth; and
(5) conduct regular reviews of the program in accordance with the requirements of section 205 of the Weapon Systems Acquisition Reform Act of 2009.
**(b) Identification of Report for Description of Funding Changes.—** For purposes of subsection (a)(4), the report specified in this subsection is the first Selected Acquisition Report for the program submitted pursuant to [section 4351 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4351&num=0&edition=prelim) after the President submits a budget pursuant to [section 1105 of title 31](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section1105&num=0&edition=prelim), in the calendar year following the year in which the program was restructured.
**(c) Inapplicability of Certain Subsection (a) Requirements.—**
(1) **Conditions for inapplicability.—** — The requirements of paragraphs (2), (3), and (5) of subsection (a) shall not apply to a program or subprogram if—
(A) the Milestone Decision Authority determines in writing, on the basis of a cost assessment and root cause analysis conducted pursuant to [section 4376(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4376/a&num=0&edition=prelim), that—
(i) but for a change in the quantity of items to be purchased under the program or subprogram, the program acquisition unit cost or procurement unit cost for the program or subprogram would not have increased by a percentage equal to or greater than the cost growth thresholds for the program or subprogram set forth in paragraph (2); and
(ii) the change in quantity of items described in clause (i) was not made as a result of an increase in program cost, a delay in the program, or a problem meeting program requirements;
(B) the Secretary determines in writing that the cost to the Department of Defense of complying with such requirements is likely to exceed the benefits to the Department of complying with such requirements; and
(C) 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 subsections (d) and (e) of [section 4375 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4375&num=0&edition=prelim) is required to be submitted under [section 4351(f) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4351/f&num=0&edition=prelim)—
(i) a copy of the written determination under subparagraph (A) and an explanation of the basis for the determination; and
(ii) a copy of the written determination under subparagraph (B) and an explanation of the basis for the determination.
(2) **Cost growth thresholds.—** — The cost growth thresholds specified in this paragraph are as follows:
(A) In the case of a major defense acquisition program or designated major defense subprogram, a percentage increase in the program acquisition unit cost for the program or subprogram of—
(i) 5 percent over the program acquisition unit cost for the program or subprogram as shown in the current Baseline Estimate for the program or subprogram; and
(ii) 10 percent over the program acquisition unit cost for the program or subprogram as shown in the original Baseline Estimate for the program or subprogram.
(B) In the case of a major defense acquisition program or designated major defense subprogram that is a procurement program, a percentage increase in the procurement unit cost for the program or subprogram of—
(i) 5 percent over the procurement unit cost for the program or subprogram as shown in the current Baseline Estimate for the program or subprogram; and
(ii) 10 percent over the procurement unit cost for the program or subprogram as shown in the original Baseline Estimate for the program or subprogram.
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Federal law — U.S. Code and appendices · legal_authorities
### Statutory Notes
#### Prior Provisions
A prior section 2366b was renumbered [section 2366a of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section2366a&num=0&edition=prelim) and subsequently was renumbered [section 4251 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4251&num=0&edition=prelim).
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 2366b
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Designation of Senior Official Responsibility for Performance Assessments and Root Cause Analyses.—**
(1) **In general.—** — The Secretary of Defense shall designate a senior official in the Office of the Secretary of Defense as the principal official of the Department of Defense responsible for conducting and overseeing performance assessments and root cause analyses for major defense acquisition programs.
(2) **No program execution responsibility.—** — The Secretary shall ensure that the senior official designated under paragraph (1) is not responsible for program execution.
(3) **Staff and resources.—** — The Secretary shall assign to the senior official designated under paragraph (1) appropriate staff and resources necessary to carry out the senior official’s function under this section.
**(b) Responsibilities.—** The senior official designated under subsection (a) shall be responsible for the following:
(1) Carrying out performance assessments of major defense acquisition programs in accordance with the requirements of subsection (c) periodically or when requested by the Secretary of Defense, the Under Secretary of Defense for Acquisition and Sustainment, the Secretary of a military department, or the head of a Defense Agency.
(2) Conducting root cause analyses for major defense acquisition programs in accordance with the requirements of subsection (d) when required by [section 4376(a)(1) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4376/a/1&num=0&edition=prelim), or when requested by the Secretary of Defense, the Under Secretary of Defense for Acquisition and Sustainment, the Secretary of a military department, or the head of a Defense Agency.
(3) Issuing policies, procedures, and guidance governing the co
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 4273
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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
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 4376
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Requirement for Sustaining Existing Forces.—**
(1) The Secretary of Defense shall require that, whenever a new major defense acquisition program begins development, the defense acquisition authority responsible for that program shall develop a plan (to be known as a “sustainment plan”) for the existing system that the system under development is intended to replace. Any such sustainment plan shall provide for an appropriate level of budgeting for sustaining the existing system until the replacement system to be developed under the major defense acquisition program is fielded and assumes the majority of responsibility for the mission of the existing system. This section does not apply to a major defense acquisition that reaches initial operational capability before October 1, 2008.
(2) In this section, the term “defense acquisition authority” means the Secretary of a military department or the commander of the United States Special Operations Command.
**(b) Sustainment Plan.—** The Secretary of Defense shall require that each sustainment plan under this section include, at a minimum, the following:
(1) The milestone schedule for the development of the major defense acquisition program, including the scheduled dates for low-rate initial production, initial operational capability, full-rate production, and full operational capability and the date as of when the replacement system is scheduled to assume the majority of responsibility for the mission of the existing system.
(2) An analysis of the existing system to assess the following:
(A) Anticipated funding levels necessary to—
(i) ensure acceptable reliability and availability rates for the existing system; and
(ii) maintain mission capability of the existing system against the relevant threats.
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 4321
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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).
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 3001
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Federal law — U.S. Code and appendices · legal_authorities
### Statutory Notes
Section, added Pub. L. 100–26, § 7(b)(2)(A), Apr. 21, 1987, 101 Stat. 279; amended Pub. L. 102–484, div. A, title VIII, § 817(b), Oct. 23, 1992, 106 Stat. 2455; Pub. L. 104–106, div. A, title XV, § 1502(a)(1), Feb. 10, 1996, 110 Stat. 502; Pub. L. 106–65, div. A, title X, § 1067(1), Oct. 5, 1999, 113 Stat. 774; Pub. L. 111–23, title II, § 206(b), May 22, 2009, 123 Stat. 1728; Pub. L. 113–291, div. A, title X, § 1071(f)(18), Dec. 19, 2014, 128 Stat. 3511; Pub. L. 114–92, div. A, title VIII, § 825(a), Nov. 25, 2015, 129 Stat. 907; Pub. L. 114–328, div. A, title VIII, §§ 807(b), 847(a), Dec. 23, 2016, 130 Stat. 2261, 2292; Pub. L. 115–91, div. A, title VIII, § 831, title X, § 1081(a)(38), Dec. 12, 2017, 131 Stat. 1467, 1596; Pub. L. 116–283, div. A, title XVIII, § 1846(c)(1), (d)(1), (f)(1), Jan. 1, 2021, 134 Stat. 4248–4250, defined major defense acquisition program. See sections 4201, 4202(a), and 4204 of this title.
#### Effective Date of Repeal
Repeal effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding [section 3001 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section3001&num=0&edition=prelim).
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 2430
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Federal law — U.S. Code and appendices · legal_authorities
### Statutory Notes
Section, added Pub. L. 111–23, title II, § 206(a)(1), May 22, 2009, 123 Stat. 1726; amended Pub. L. 111–383, div. A, title X, § 1075(b)(35), Jan. 7, 2011, 124 Stat. 4371; Pub. L. 112–81, div. A, title VIII, §§ 801(e)(4), 831, Dec. 31, 2011, 125 Stat. 1484, 1503; Pub. L. 112–239, div. A, title VIII, § 813, Jan. 2, 2013, 126 Stat. 1829; Pub. L. 116–283, div. A, title XVIII, § 1850(j)(1), (2), (k)(1), Jan. 1, 2021, 134 Stat. 4269, 4270, related to critical cost growth in major defense acquisition programs. See sections 4376 and 4377 of this title.
#### Effective Date of Repeal
Repeal effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding [section 3001 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section3001&num=0&edition=prelim).
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 2433a
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** In this section:
(1) The term “program acquisition unit cost”, with respect to a major defense acquisition program, means the amount equal to (A) the total cost for development and procurement of, and system-specific military construction for, the acquisition program, divided by (B) the number of fully-configured end items to be produced for the acquisition program.
(2) The term “procurement unit cost”, with respect to a major defense acquisition program, means the amount equal to (A) the total of all funds programmed to be available for obligation for procurement for the program, divided by (B) the number of fully-configured end items to be procured.
(3) The term “major contract”, with respect to a major defense acquisition program, means each of the six largest prime, associate, or Government-furnished equipment contracts under the program that is in excess of $40,000,000 and that is not a firm, fixed price contract.
(4) The term “full life-cycle cost”, with respect to a major defense acquisition program, means all costs of development, procurement, military construction, and operations and support, without regard to funding source or management control.
**(b)**
(1) The Secretary of Defense shall submit to Congress at the end of each fiscal-year quarter a report on current major defense acquisition programs and any program that is estimated by the Secretary of Defense to require an eventual total expenditure for research, development, test, and evaluation of more than $300,000,000 (based on fiscal year 1990 constant dollars) or an eventual total expenditure for procurement, including all planned increments or spirals, of more than $1,800,000,000 (based on fiscal year 1990 constant dollars). Except as provided in paragraphs (2) and (3), each such report s
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 4351
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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)** On or after the first Monday in January but not later than the first Monday in February of each year, the President shall submit a budget of the United States Government for the following fiscal year. Each budget shall include a budget message and summary and supporting information. The President shall include in each budget the following:
(1) information on activities and functions of the Government.
(2) when practicable, information on costs and achievements of Government programs.
(3) other desirable classifications of information.
(4) a reconciliation of the summary information on expenditures with proposed appropriations.
(5) except as provided in subsection (b) of this section, estimated expenditures and proposed appropriations the President decides are necessary to support the Government in the fiscal year for which the budget is submitted and the 4 fiscal years after that year.
(6) estimated receipts of the Government in the fiscal year for which the budget is submitted and the 4 fiscal years after that year under—
(A) laws in effect when the budget is submitted; and
(B) proposals in the budget to increase revenues.
(7) appropriations, expenditures, and receipts of the Government in the prior fiscal year.
(8) estimated expenditures and receipts, and appropriations and proposed appropriations, of the Government for the current fiscal year.
(9) balanced statements of the—
(A) condition of the Treasury at the end of the prior fiscal year;
(B) estimated condition of the Treasury at the end of the current fiscal year; and
(C) estimated condition of the Treasury at the end of the fiscal year for which the budget is submitted if financial proposals in the budget are adopted.
(10) essential information about the debt of the Government.
Source: Supplied U.S. Code snapshot — release unconfirmed · 31 U.S.C. § 1105
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