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

Except as provided in section 4203(d) of this title , 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 . 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 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. 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 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. 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 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. 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 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. 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 . The term “original Baseline Estimate” has the same meaning as provided in section 4214(d) of this title . The term “procurement program” means a program for which funds for procurement are authorized to be appropriated in a fiscal year. Reporting under this chapter shall not apply if a program has received a limited reporting waiver under section 4351(h) of this title . 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 ). 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 requiring that each service acquisition executive (as defined in section 101 of title 10 , United States Code) submit to the congressional defense committees [Committees on Armed Services and Appropriations of the Senate and the House of Representatives] a cost growth report 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 significant cost growth thresholds or critical cost growth thresholds under section 4371 of title 10 , United States Code. The name of the covered program. The date of the preparation of the report. The program phase of the covered program. The unit cost estimates for the covered program in constant base-year dollars and in current dollars. A statement of the reasons for cost increases that resulted in the submission of a report under this section. A list of major program milestones, including the dates for each program milestone according to the original baseline, current baseline, and current estimate. Annualized funding for the program by appropriation account from the date on which the program commenced to the current estimated year of completion. Any actions taken or proposed to be taken to control future cost growth of the covered program. Any changes made in the performance or milestones of the covered program and the extent to which such changes have contributed to the cost increase. treat such covered program as if the unit cost of such a covered program has increased by a percentage equal to or greater than any of the critical cost growth thresholds for the covered program; and follow applicable procedures in sections 4376 and 4377 of title 10, United States Code. that is a highly sensitive classified program (as determined by the Secretary of Defense); that would be a major defense acquisition program under section 4201 of title 10 , United States Code, except for the exclusion from the applicability of that section of such a highly sensitive classified program; and that has entered the engineering and manufacturing design phase, or equivalent phase. the program acquisition unit cost (as defined in section 4351 of title 10 , United States Code); or the procurement unit cost (as defined in such section).”