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Major system cost growth oversight

Division A · Title XVIII: Revitalization of the Defense Industrial Base · Subtitle F: Other Matters

Plain-language summaryAI

Reports on major defense system cost overruns must be submitted to Congress within 30 days of the cost report. When a major defense program includes multiple expensive end items, each item must be reported separately as a major subprogram. The law also requires including operations and support costs over the program's life cycle and sets rules for certifying and considering various options to terminate programs experiencing critical cost growth.

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Section Text · Sec. 1892.
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(a) Shorten Nunn-McCurdy breach report timeline

Section 4374 of title 10, United States Code, is amended—

(1)

in subsection (a), by striking When a unit cost report and inserting Not later than 30 days after a unit cost report ;

(2)

in subsection (b), by striking When a unit cost report and inserting Not later than 30 days after a unit cost report ; and

(3)

in subsection (c), by amending paragraph (2) to read as follows:

(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 or a report submitted in accordance with section 4373 of this title, the Secretary shall submit the notification to Congress within 30 days after the date on which the determination was made.

(b) End item major subprogram designation

Section 4203(a)(1) of title 10, United States Code, is amended by adding at the end the following new subparagraph:

(C)

If the Secretary of Defense determines that a major defense acquisition program requires the delivery of two or more end items that are each estimated to require an eventual total expenditure for research, development, test, evaluation, operation, and support of more than $500,000,000, the Secretary shall designate each such end item as a major subprogram for the purposes of acquisition reporting under this subpart.

(c) Operations and support cost inclusion

Section 4214(a)(2) of title 10, United States Code, is amended by inserting for the life cycle of such major defense acquisition program or designated major subprogram before the period at the end.

(d) Critical cost growth termination

Section 4376 of title 10, United States Code, is amended—

(1)

in subsection (b), by adding at the end the following new paragraphs:

(4) Delegation

The Secretary may not delegate the submission of a written certification under paragraph (1).

(2)

in subsection (c)—

(A)

in paragraph (2), by striking and at the end;

(B)

in paragraph (3), by striking the period at the end and inserting ; and ; and

(C)

by adding at the end the following new paragraph:

(4)

consideration of termination plans that maximize value, including—

(A)

immediate termination of the program with no further action;

(B)

termination of the program after completion of the end items in production and for which funds have been obligated or expended under the program as of the date that is the last day of the applicable 60-day period described in subsection (b)(1) for the program;

(C)

termination of the program after completion of the end items described in subparagraph (B) for which the resale value exceeds the cost of completing such end items; and

(D)

any other course of action to maximize the value to the Government of the funds that have been obligated or expended under the program as of the date that is the last day of the applicable 60-day period described in subsection (b)(1) for the program.