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10 U.S.C. § 4371 — Cost growth definitions; applicability of reporting requirements; constant base year dollars

Federal law — U.S. Code and appendices · legal_authorities

10 U.S.C. § 4371 — Cost growth definitions; applicability of reporting requirements; constant base year dollars

**(a) Definitions.—** In this chapter: (1) **Program acquisition unit cost; procurement unit cost; major contract.—** — Except as provided in [section 4203(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4203/d&num=0&edition=prelim), the terms “program acquisition unit cost”, “procurement unit cost”, and “major contract” have the same meanings as provided in [section 4351(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4351/a&num=0&edition=prelim). (2) **Significant cost growth threshold.—** — The term “significant cost growth threshold” means the following: (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) at least 15 percent over the program acquisition unit cost for the program or subprogram as shown in the current Baseline Estimate for the program or subprogram; or (ii) at least 30 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) at least 15 percent over the procurement unit cost for the program or subprogram as shown in the current Baseline Estimate for the program or subprogram; or (ii) at least 30 percent over the procurement unit cost for the program or subprogram as shown in the original Baseline Estimate for the program or subprogram. (3) **Critical cost growth threshold.—** — The term “criti

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Source location: Title 10, Chapter 325, § 4371; chapter-325-cost-growth-unit-cost-reports-nunn-mccurdy.md

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**(a) Definitions.—** In this chapter: (1) **Program acquisition unit cost; procurement unit cost; major contract.—** — Except as provided in [section 4203(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4203/d&num=0&edition=prelim), the terms “program acquisition unit cost”, “procurement unit cost”, and “major contract” have the same meanings as provided in [section 4351(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4351/a&num=0&edition=prelim). (2) **Significant cost growth threshold.—** — The term “significant cost growth threshold” means the following: (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) at least 15 percent over the program acquisition unit cost for the program or subprogram as shown in the current Baseline Estimate for the program or subprogram; or (ii) at least 30 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) at least 15 percent over the procurement unit cost for the program or subprogram as shown in the current Baseline Estimate for the program or subprogram; or (ii) at least 30 percent over the procurement unit cost for the program or subprogram as shown in the original Baseline Estimate for the program or subprogram. (3) **Critical cost growth threshold.—** — The term “critical cost growth threshold” means the following: (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) at least 25 percent over the program acquisition unit cost for the program or subprogram as shown in the current Baseline Estimate for the program or subprogram; or (ii) at least 50 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) at least 25 percent over the procurement unit cost for the program or subprogram as shown in the current Baseline Estimate for the program or subprogram; or (ii) at least 50 percent over the procurement unit cost for the program or subprogram as shown in the original Baseline Estimate for the program or subprogram. (4) **Baseline estimate.—** — The term “Baseline Estimate”, with respect to a unit cost report that is submitted under this chapter to the service acquisition executive designated by the Secretary concerned on a major defense acquisition program or designated major subprogram, means the cost estimate included in the baseline description for the program or subprogram under [section 4214 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4214&num=0&edition=prelim). (5) **Original baseline estimate.—** — The term “original Baseline Estimate” has the same meaning as provided in [section 4214(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4214/d&num=0&edition=prelim). (6) **Procurement program.—** — The term “procurement program” means a program for which funds for procurement are authorized to be appropriated in a fiscal year. **(b)** Reporting under this chapter shall not apply if a program has received a limited reporting waiver under [section 4351(h) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4351/h&num=0&edition=prelim). **(c)** Any determination of a percentage increase under this chapter shall be stated in terms of constant base year dollars (as described in [section 4202 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4202&num=0&edition=prelim)).

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Federal law — U.S. Code and appendices · legal_authorities

10 U.S.C. § 4201 — Major defense acquisition programs: definition; exceptions

**(a) Definition.—** Except as provided under subsection (b), in this part, the term “major defense acquisition program” means a Department of Defense acquisition program that is not a highly sensitive classified program (as determined by the Secretary of Defense) and— (1) that is designated by the Secretary of Defense as a major defense acquisition program; or (2) in the case of a program that is not a program for the acquisition of an automated information system (either a product or a service), that is estimated by the Secretary of Defense to require— (A) an eventual total expenditure for research, development, test, and evaluation of more than $1,000,000,000 (based on fiscal year 2024 constant dollars); or (B) an eventual total expenditure for procurement, including all planned increments or spirals, of more than $4,500,000,000 (based on fiscal year 2024 constant dollars). **(b) Exceptions.—** In this part, the term “major defense acquisition program” does not include the following: (1) An acquisition program or project that is carried out using the rapid fielding or rapid prototyping acquisition pathway under [section 3602 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section3602&num=0&edition=prelim). (2) An acquisition program for a defense business system (as defined in [section 2222(i)(1) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section2222/i/1&num=0&edition=prelim)) carried out using the acquisition guidance issued pursuant to section 883(e) of the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114–92; [10 U.S.C. 2223a](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section2223a&num=0&edition=prelim) note).11 See References in

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Federal law — U.S. Code and appendices · legal_authorities

10 U.S.C. § 2433 — Repealed. Pub. L. 116–283, div. A, title XVIII, § 1850(l), Jan. 1, 2021, 134 Stat. 4271]

### 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

10 U.S.C. § 3001 — Defense acquisition system; element of the defense acquisition system

**(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

10 U.S.C. § 4351 — Selected Acquisition Reports

**(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

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Federal law — U.S. Code and appendices · legal_authorities

10 U.S.C. § 4214 — Baseline description

**(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

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Federal law — U.S. Code and appendices · legal_authorities

10 U.S.C. § 4202 — Authority to increase definitional threshold amounts: major defense acquisition programs; major systems

**(a) Adjustments to Thresholds for Major Defense Acquisition Programs.—** (1) **Authority.—** — The Secretary of Defense may adjust the amounts (and the base fiscal year) provided in [section 4201(a)(2) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4201/a/2&num=0&edition=prelim) on the basis of Department of Defense escalation rates. (2) **Matters to be considered.—** — For purposes of [section 4201(a)(2) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4201/a/2&num=0&edition=prelim), the Secretary shall consider, as applicable, the following: (A) The estimated level of resources required to fulfill the relevant joint military requirement, as determined by the Joint Requirements Oversight Council pursuant to [section 181 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section181&num=0&edition=prelim). (B) The cost estimate referred to in [section 4251(a)(6) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4251/a/6&num=0&edition=prelim). (C) The cost estimate referred to in [section 4252(a)(1)(C) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4252/a/1/C&num=0&edition=prelim). (D) The cost estimate within a baseline description as required by [section 4214 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4214&num=0&edition=prelim). **(b) Adjustment Authority for Major Systems.—** (1) **Authority.—** — The Secretary of Defense may adjust the amounts and the base fiscal year provided in [section 3041(c)(1) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section3041/c/1&num=0&

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Federal law — U.S. Code and appendices · legal_authorities

10 U.S.C. § 101 — Definitions

**(a) In General.—** The following definitions apply in this title: (1) The term “United States”, in a geographic sense, means the States and the District of Columbia. (2) Repealed. Pub. L. 109–163, div. A, title X, § 1057(a)(1), Jan. 6, 2006, 119 Stat. 3440.] (3) The term “possessions” includes the Virgin Islands, Guam, American Samoa, and the Guano Islands, so long as they remain possessions, but does not include any Commonwealth. (4) The term “armed forces” means the Army, Navy, Air Force, Marine Corps, Space Force, and Coast Guard. (5) The term “uniformed services” means— (A) the armed forces; (B) the commissioned corps of the National Oceanic and Atmospheric Administration; and (C) the commissioned corps of the Public Health Service. (6) The term “department”, when used with respect to a military department, means the executive part of the department and all field headquarters, forces, reserve components, installations, activities, and functions under the control or supervision of the Secretary of the department. When used with respect to the Department of Defense, such term means the executive part of the department, including the executive parts of the military departments, and all field headquarters, forces, reserve components, installations, activities, and functions under the control or supervision of the Secretary of Defense, including those of the military departments. (7) The term “executive part of the department” means the executive part of the Department of Defense, Department of the Army, Department of the Navy, or Department of the Air Force, as the case may be, at the seat of government. (8) The term “military departments” means the Department of the Army, the Department of the Navy, and the Department of the Air Force. (9) The term

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Federal law — U.S. Code and appendices · legal_authorities

10 U.S.C. § 4371 — Cost growth definitions; applicability of

Page 2748 TITLE 10—ARMED FORCES § 4371 Sec. 4376. Breach of critical cost growth threshold: reas- sessment of program; presumption of pro- gram termination. 4377. Breach of critical cost growth threshold: ac- tions if program not terminated. Editorial Notes PRIOR PROVISIONS A prior chapter 325 ‘‘DEPARTMENT OF DEFENSE LABORATORIES’’, consisting of reserved section 4351, was repealed by Pub. L. 116–283, div. A, title XVIII, § 1841(a)(1)(A), Jan. 1, 2021, 134 Stat. 4242. § 4371. Cost growth definitions; applicability of reporting requirements; constant base year dollars (a) DEFINITIONS.—In this chapter: (1) PROGRAM ACQUISITION UNIT COST; PROCURE- MENT UNIT COST; MAJOR CONTRACT.—Except as provided in section 4203(d) of this title, the terms ‘‘program acquisition unit cost’’, ‘‘pro- curement unit cost’’, and ‘‘major contract’’ have the same meanings as provided in section 4351(a) of this title. (2) SIGNIFICANT COST GROWTH THRESHOLD.— The term ‘‘significant cost growth threshold’’ means the following: (A) In the case of a major defense acquisi- tion program or designated major defense subprogram, a percentage increase in the program acquisition unit cost for the pro- gram or subprogram of— (i) at least 15 percent over the program acquisition unit cost for the program or subprogram as shown in the current Base- line Estimate for the program or subpro- gram; or (ii) at least 30 percent over the program acquisition unit cost for the program or subprogram as shown in the original Base- line Estimate for the program or subpro- gram. (B) In the case of a major defense acquisi- tion 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) at le

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