10 U.S.C. § 4372 — Unit cost reports: quarterly report from

Page 2749 TITLE 10—ARMED FORCES § 4372 99–433, title I, § 101(a)(5), Oct. 1, 1986, 100 Stat. 995; Pub. L. 103–355, title III, § 3003(d), Oct. 13, 1994, 108 Stat. 3329. The text of subsec. (h) of section 2433 of this title, which was transferred to this section, redesignated sub- sec. (b) and amended by Pub. L. 116–283, § 1850(c), was based on Pub. L. 99–500, § 101(c) [title X, § 961(b)(2)], Oct. 18, 1986, 100 Stat. 1783–82, 1783–176, and Pub. L. 99–591, § 101(c) [title X, § 961(b)(2)], Oct. 30, 1986, 100 Stat. 3341–82, 3341–176; Pub. L. 99–661, div. A, title IX, for- merly title IV, § 961(b)(2), Nov. 14, 1986, 100 Stat. 3956, re- numbered title IX, Pub. L. 100–26, § 3(5), Apr. 21, 1987, 101 Stat. 273. AMENDMENTS 2021—Subsec. (a). Pub. L. 116–283, § 1850(b)(2), inserted subsec. heading and headings in pars. (1) to (6). Pub. L. 116–283, § 1850(b)(1), transferred subsec. (a) of section 2433 of this title to this section and substituted ‘‘this chapter’’ for ‘‘this section’’ in introductory provi- sions and par. (2). Subsec. (a)(1). Pub. L. 116–283, § 1850(b)(3)(A), as amended by Pub. L. 117–81, § 1701(o)(6)(E)(i), substituted ‘‘section 4203(d)’’ for ‘‘section 2430a(d)’’ and ‘‘section 4351(a)’’ for ‘‘section 2432(a)’’. Subsec. (a)(2). Pub. L. 116–283, § 1850(b)(4), redesig- nated par. (4) as (2) and transferred it to appear in nu- merical order. Former par. (2) redesignated (4). Pub. L. 116–283, § 1850(b)(3)(B), substituted ‘‘section 4214’’ for ‘‘section 2435’’. Subsec. (a)(3) to (5). Pub. L. 116–283, § 1850(b)(4), redes- ignated pars. (5), (2), and (6) as (3) to (5), respectively, and transferred them to appear in numerical order. Former pars. (3) and (4) redesignated pars. (6) and (2), respectively. Subsec. (a)(6). Pub. L. 116–283, § 1850(b)(4), redesig- nated par. (3) as (6) and transferred it to appear in nu- merical order. Former par. (6) redesignated (5). Pub. L. 116–283, § 1850(b)(3)(C), substituted ‘‘section 4214(d)’’ for ‘‘section 2435(d)’’. Subsec. (b). Pub. L. 116–283, § 1850(c), as amended by Pub. L. 117–81, § 1701(o)(6)(E)(ii), transferred subsec. (h) of section 2433 of this title to this section, redesignated it as subsec. (b), and substituted ‘‘under this chapter’’ for ‘‘under this section’’ and ‘‘section 4351(h)’’ for ‘‘sec- tion 2432(h)’’. Subsec. (c). Pub. L. 116–283, § 1850(d), transferred sub- sec. (f) of section 2433 of this title to this section, redes- ignated it as subsec. (c), and substituted ‘‘under this chapter’’ for ‘‘under this section’’ and ‘‘section 4202’’ for ‘‘section 2430’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2021 AMENDMENT Amendment by Pub. L. 117–81 applicable as if in- cluded in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and Ef- fective Date note below. 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. COST GROWTH REPORTS FOR MAJOR ACQUISITION PRO- GRAMS THAT ARE HIGHLY SENSITIVE CLASSIFIED PRO- GRAMS Pub. L. 118–159, div. A, title VIII, § 809, Dec. 23, 2024, 138 Stat. 1978, provided that: ‘‘(a) GUIDANCE REQUIRED.—Not later than 180 days after the date of the enactment of this Act [Dec. 23, 2024], the Under Secretary of Defense for Acquisition and Sustainment, in consultation [sic] each Secretary of a military department, shall establish guidance re- quiring that each service acquisition executive (as de- fined in section 101 of title 10, United States Code) sub- mit to the congressional defense committees [Commit- tees on Armed Services and Appropriations of the Sen- ate and the House of Representatives] a cost growth re- port for a covered program each time the estimated unit cost for such covered program has increased by a percentage equal to or greater than any of the signifi- cant cost growth thresholds or critical cost growth thresholds under section 4371 of title 10, United States Code. ‘‘(b) ELEMENTS OF REPORT.—A cost growth report re- quired under this section shall include, with respect to a covered program, the following: ‘‘(1) The name of the covered program. ‘‘(2) The date of the preparation of the report. ‘‘(3) The program phase of the covered program. ‘‘(4) The unit cost estimates for the covered pro- gram in constant base-year dollars and in current dollars. ‘‘(5) A statement of the reasons for cost increases that resulted in the submission of a report under this section. ‘‘(6) A list of major program milestones, including the dates for each program milestone according to the original baseline, current baseline, and current estimate. ‘‘(7) Annualized funding for the program by appro- priation account from the date on which the program commenced to the current estimated year of comple- tion. ‘‘(8) Any actions taken or proposed to be taken to control future cost growth of the covered program. ‘‘(9) Any changes made in the performance or mile- stones of the covered program and the extent to which such changes have contributed to the cost in- crease. ‘‘(c) CRITICAL BREACH.—With respect to a covered pro- gram for which the cost growth meets the threshold for a critical cost growth threshold (as defined in section 4371 of title 10, United States Code), the applicable serv- ice acquisition executive shall— ‘‘(1) treat such covered program as if the unit cost of such a covered program has increased by a percent- age equal to or greater than any of the critical cost growth thresholds for the covered program; and ‘‘(2) follow applicable procedures in sections 4376 and 4377 of title 10, United States Code. ‘‘(d) DEFINITIONS.—In this section: ‘‘(1) The term ‘covered program’ means a Depart- ment of Defense program— ‘‘(A) that is a highly sensitive classified program (as determined by the Secretary of Defense); ‘‘(B) that would be a major defense acquisition program under section 4201 of title 10, United States Code, except for the exclusion from the ap- plicability of that section of such a highly sensitive classified program; and ‘‘(C) that has entered the engineering and manu- facturing design phase, or equivalent phase. ‘‘(2) The term ‘unit cost’ means, with respect to a covered program, as applicable— ‘‘(A) the program acquisition unit cost (as defined in section 4351 of title 10, United States Code); or ‘‘(B) the procurement unit cost (as defined in such section).’’ § 4372. Unit cost reports: quarterly report from program manager to service acquisition ex- ecutive (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 quar- ter under section 4351(b)(3) of this title) shall, on a quarterly basis, submit to the service ac- quisition executive designated by the Sec- retary concerned a written report on the unit Page 2750 TITLE 10—ARMED FORCES § 4373 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 RE- PORTS.—The program manager shall include in each such unit cost report the following infor- mation 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 subpro- gram 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 that are known, ex- pected, or anticipated by the program man- ager. (5) Any significant changes in the total pro- gram cost for development and procurement of the software component of the program or subprogram, schedule milestones for the soft- ware component of the program or subpro- gram, or expected performance for the soft- ware component of the program or subpro- gram that are known, expected, or anticipated by the program manager. (Added and amended Pub. L. 116–283, div. A, title XVIII, § 1850(a), (e), Jan. 1, 2021, 134 Stat. 4265, 4266; Pub. L. 117–81, div. A, title XVII, § 1701(b)(18), (o)(6)(E)(iii), Dec. 27, 2021, 135 Stat. 2135, 2148.) Editorial Notes CODIFICATION The text of subsec. (b) of section 2433 of this title, which was transferred to this section and redesignated as subsec. (a) by Pub. L. 116–283, § 1850(e)(1), was based on Pub. L. 97–252, title XI, § 1107(a)(1), Sept. 8, 1982, 96 Stat. 741, § 139b; Pub. L. 98–525, title XII, § 1242(b)(2), Oct. 19, 1984, 98 Stat. 2607; renumbered § 2433 and amend- ed Pub. L. 99–433, title I, §§ 101(a)(5), 110(g)(8)(B), Oct. 1, 1986, 100 Stat. 995, 1004; Pub. L. 99–500, § 101(c) [title X, § 961(b)(1)], Oct. 18, 1986, 100 Stat. 1783–82, 1783–176, and Pub. L. 99–591, § 101(c) [title X, § 961(b)(1)], Oct. 30, 1986, 100 Stat. 3341–82, 3341–176; Pub. L. 99–661, div. A, title IX, formerly title IV, § 961(b)(1), Nov. 14, 1986, 100 Stat. 3956, renumbered title IX, Pub. L. 100–26, § 3(5), Apr. 21, 1987, 101 Stat. 273; 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)(2), Nov. 29, 1989, 103 Stat. 1490; Pub. L. 102–484, div. A, title VIII, § 817(d)(2), Oct. 23, 1992, 106 Stat. 2456; Pub. L. 103–355, title III, § 3003(b), Oct. 13, 1994, 108 Stat. 3329; Pub. L. 108–375, div. A, title VIII, § 801(a), Oct. 28, 2004, 118 Stat. 2004; Pub. L. 110–417, [div. A], title VIII, § 811(c)(2), Oct. 14, 2008, 122 Stat. 4522. AMENDMENTS 2021—Subsec. (a). Pub. L. 116–283, § 1850(e)(3), des- ignated first and second sentences as pars. (1) and (2), respectively, and inserted subsec. and par. headings. Pub. L. 116–283, § 1850(e)(2), as amended by Pub. L. 117–81, § 1701(b)(18), designated third sentence of subsec. (a) as (b). Pub. L. 116–283, § 1850(e)(1), transferred subsec. (b) of section 2433 of this title to this section and redesig- nated it as subsec. (a). Subsec. (a)(1). Pub. L. 116–283, § 1850(e)(4)(A), as amended by Pub. L. 117–81, § 1701(o)(6)(E)(iii), sub- stituted ‘‘section 4351(b)(3)’’ for ‘‘section 2432(b)(3)’’. Subsec. (b). Pub. L. 116–283, § 1850(e)(2), as amended by Pub. L. 117–81, § 1701(b)(18), designated third sentence of subsec. (a) as (b) and inserted heading. Subsec. (b)(4). Pub. L. 116–283, § 1850(e)(4)(B), sub- stituted ‘‘section 4214’’ for ‘‘section 2435’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2021 AMENDMENT Amendment by Pub. L. 117–81 applicable as if in- cluded in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and Ef- fective Date note below. 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. § 4373. Unit cost reports: immediate report from program manager to service acquisition ex- ecutive upon breach of significant cost growth threshold If the program manager of a major defense ac- quisition program for which a unit cost report has previously been submitted under section 4372 of this title determines at any time during a quarter that there is reasonable cause to be- lieve that the program acquisition unit cost for the program (or for a designated major subpro- gram under the program) or the procurement unit cost for the program (or for such a subpro- gram), as applicable, has increased by a percent- age equal to or greater than the significant cost growth threshold; and if a unit cost report indi- cating an increase of such percentage or more has not previously been submitted to the service acquisition executive designated by the Sec- retary concerned, then the program manager shall immediately submit to such service acqui- sition executive a unit cost report containing the information, determined as of the date of the report, required under section 4372 of this title. (Added and amended Pub. L. 116–283, div. A, title XVIII, § 1850(a), (f), Jan. 1, 2021, 134 Stat. 4265, 4266.) Editorial Notes CODIFICATION The text of subsec. (c) of section 2433 of this title, which was transferred to this section and amended by Pub. L. 116–283, § 1850(f), was based on Pub. L. 97–252, title XI, § 1107(a)(1), Sept. 8, 1982, 96 Stat. 741, § 139b; Pub. L. 98–525, title XII, § 1242(b)(3), Oct. 19, 1984, 98 Stat. 2608; renumbered § 2433, Pub. L. 99–433, title I, § 101(a)(5), Oct. 1, 1986, 100 Stat. 995; 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)(3), 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)(3), Oct. 23, 1992, 106 Stat. 2457; Pub. L. 103–355, title III, §§ 3002(a)(2)(A), 3003(a)(2)(A), (c), Oct.