10 U.S.C. § 4374 — Unit cost reports: determinations by serv-

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 WHEN PROGRAM OR SUBPRO- GRAM IS A PROCUREMENT PROGRAM.—When a unit cost report is submitted to the service acquisi- tion executive designated by the Secretary con- cerned under this chapter with respect to a major defense acquisition program or any des- ignated major subprogram under the program that is a procurement program, the service ac- quisition executive, in addition to the deter- mination under subsection (a), shall determine whether the procurement 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. (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 cur- rent program acquisition unit cost has in- creased by a percentage equal to or greater than the significant cost growth threshold or critical cost growth threshold or that the pro- curement unit cost has increased by a percent- age 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 in- crease with respect to the program or subpro- gram concerned. (2) TIME FOR SUBMISSION OF NOTIFICATION TO CONGRESS.—In the case of a determination based on a quarterly report submitted in ac- cordance with section 4372 of this title, 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 sec- tion 4373 of this title, the Secretary shall sub- mit 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. (Added and amended Pub. L. 116–283, div. A, title XVIII, § 1850(a), (g), Jan. 1, 2021, 134 Stat. 4265, 4267.) Editorial Notes CODIFICATION The text of subsec. (d) of section 2433 of this title, which was transferred to this section and amended by Pub. L. 116–283, § 1850(g)(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)(4), Oct. 19, 1984, 98 Stat. 2608; Pub. L. 99–145, title XIII, § 1303(a)(2), Nov. 8, 1985, 99 Stat. 738; 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)(4), Nov. 29, 1989, 103 Stat. 1491; Pub. L. 102–484, div. A, title VIII, § 817(d)(4), Oct. 23, 1992, 106 Stat. 2457; Pub. L. 103–355, title III, §§ 3002(a)(2)(B), 3003(a)(2)(B), Oct. 13, 1994, 108 Stat. 3328, 3329; Pub. L. 105–85, div. A, title VIII, § 833(c), Nov. 18, 1997, 111 Stat. 1843; Pub. L. 109–163, div. A, title VIII, § 802(b)(2), Jan. 6, 2006, 119 Stat. 3368; Pub. L. 110–417, [div. A], title VIII, § 811(c)(4), Oct. 14, 2008, 122 Stat. 4523. AMENDMENTS 2021—Pub. L. 116–283, § 1850(g)(1), transferred subsec. (d) of section 2433 of this title to this section, struck out subsec. designation, and redesignated pars. (1) to (3) as subsecs. (a) to (c), respectively. Subsec. (a). Pub. L. 116–283, § 1850(g)(2), inserted head- ing and substituted ‘‘under this chapter’’ for ‘‘under this section’’. Subsec. (b). Pub. L. 116–283, § 1850(g)(3), inserted head- ing and substituted ‘‘under this chapter’’ for ‘‘under this section’’ and ‘‘subsection (a)’’ for ‘‘paragraph (1)’’. Subsec. (c). Pub. L. 116–283, § 1850(g)(4)(B), which di- rected amendment of subsec. (c) by designating second sentence as par. (2) and fourth sentence as par. (3), was executed by designating second and third sentences as par. (2) and fourth sentence as par. (3) to reflect the probable intent of Congress. Pub. L. 116–283, § 1850(g)(4)(A), inserted subsec. head- ing, designated first sentence as par. (1) and inserted par. heading. Subsec. (c)(2). Pub. L. 116–283, § 1850(g)(4)(C), inserted heading and substituted ‘‘section 4372 of this title’’ for ‘‘subsection (b)’’ and ‘‘section 4373 of this title’’ for ‘‘subsection (c)’’. Subsec. (c)(3). Pub. L. 116–283, § 1850(g)(4)(D), inserted heading. 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. Page 2752 TITLE 10—ARMED FORCES § 4375 § 4375. Breach of significant cost growth thresh- old or critical cost growth threshold: re- quired action (a) BREACH OF SIGNIFICANT COST GROWTH THRESHOLD; SUBMISSION OF A SELECTED ACQUISI- TION REPORT.— (1) GENERAL RULE.—Except as provided in paragraph (2), whenever the Secretary con- cerned determines under section 4374 of this title that the program acquisition unit cost or the procurement unit cost of a major defense acquisition program or designated major sub- program 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 sub- mitted to Congress for the first fiscal-year quarter ending on or after the date of the de- termination 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 and shall be sub- mitted in accordance with section 4351(f) of this title. (2) Whenever the Secretary makes a deter- mination referred to in paragraph (1) in the case of a major defense acquisition program or designated major subprogram during the sec- ond quarter of a fiscal year and before the date on which the President transmits the budget for the following fiscal year to Congress pursu- ant to section 1105 of title 31, the Secretary is not required to file a Selected Acquisition Re- port under paragraph (1) but shall include the information described in subsection (d) regard- ing that program or subprogram in the com- prehensive annual Selected Acquisition Report submitted in that quarter. (b) BREACH OF CRITICAL COST GROWTH THRESH- OLD.—If the program acquisition unit cost or procurement unit cost of a major defense acqui- sition program or designated major subprogram (as determined by the Secretary under section 4374 of this title) increases by a percentage equal to or greater than the critical cost growth threshold for the program or subprogram, the Secretary of Defense shall take actions con- sistent with the requirements of sections 4376 and 4377 of this title. (c) PROHIBITION ON OBLIGATION OF FUNDS FOR CERTAIN PURPOSES WHEN REQUIRED ACTION NOT TAKEN.— (1) PROHIBITION.—If a determination of an in- crease by a percentage equal to or greater than the significant cost growth threshold is made by the Secretary under section 4374 of this title and a Selected Acquisition Report containing the information described in sub- section (d) is not submitted to Congress under subsection (a), or if a determination of an in- crease by a percentage equal to or greater than the critical cost growth threshold is made by the Secretary under section 4374 of this title and the certification of the Sec- retary of Defense is not submitted to Congress under subsection (b), funds appropriated for military construction, for research, develop- ment, test, and evaluation, and for procure- ment may not be obligated for a major con- tract under the program. (2) TERMINATION OF PROHIBITION.—The prohi- bition under paragraph (1) on the obligation of funds for a major defense acquisition program shall cease to apply at the end of a period of 30 days of continuous session of Congress (as determined under section 8677(b)(2) of this title) beginning on the date— (A) on which Congress receives the Se- lected Acquisition Report under subsection (a) with respect to that program, in the case of a determination of an increase by a per- centage equal to or greater than the signifi- cant cost growth threshold (as determined in section 4374 of this title); or (B) on which Congress has received both the Selected Acquisition Report under sub- section (a) and the certification of the Sec- retary of Defense under section 4376 with re- spect to that program, in the case of an in- crease by a percentage equal to or greater than the critical cost growth threshold (as determined under section 4374 of this title). (d) MATTER TO BE INCLUDED IN REPORTS.—Ex- cept as provided in subsection (e), each report under this section with respect to a major de- fense acquisition program shall include the fol- lowing: (1) The name of the major defense acquisi- tion program. (2) The date of the preparation of the report. (3) The program phase as of the date of the preparation of the report. (4) The estimate of the program acquisition cost for the program (and for each designated major subprogram under the program) as shown in the Selected Acquisition Report in which the program or subprogram was first in- cluded, expressed in constant base-year dollars and in current dollars. (5) The current program acquisition cost for the program (and for each designated major subprogram under the program) in constant base-year dollars and in current dollars. (6) A statement of the reasons for any in- crease in program acquisition unit cost or pro- curement unit cost for the program (or for any designated major subprogram under the pro- gram). (7) The completion status of the program and each designated major subprogram under the program— (A) expressed as the percentage that the number of years for which funds have been appropriated for the program or subprogram is of the number of years for which it is planned that funds will be appropriated for the program or subprogram; and (B) expressed as the percentage that the amount of funds that have been appropriated for the program or subprogram is of the total amount of funds which it is planned will be appropriated for the program or sub- program. (8) The fiscal year in which information on the program and each designated major sub- program under the program was first included in a Selected Acquisition Report (referred to in this paragraph as the ‘‘base year’’) and the date of that Selected Acquisition Report in which information on the program or subpro- gram was first included.