PRIA Logo™
Take the PRIA Score
Title 10 — Armed ForcesRelease 119-73

§4374 Unit cost reports: determinations by service acquisition executive and secretary concerned of breach of significant cost growth threshold or critical cost growth threshold; reports to Congress

Title 10 › Subtitle Subtitle A— - General Military Law › Part PART V— - ACQUISITION › Subpart Subpart F— - Major Systems, Major Defense Acquisition Programs, and Weapon Systems Development › Chapter CHAPTER 325— - COST GROWTH—UNIT COST REPORTS (NUNN-MCCURDY) › § 4374

Last updated Apr 6, 2026|Official source

Summary

The service acquisition executive must check cost reports for any major defense acquisition program or its designated major subprogram. They must see if the program’s current acquisition unit cost rose by a percentage that meets or exceeds either the significant cost growth threshold or the critical cost growth threshold. If the program is a procurement program, the executive must also check whether the procurement unit cost rose by those same thresholds. If the Secretary concerned agrees that any of those costs hit or passed a threshold, the Secretary must send a written notice to Congress saying so and showing the increase. If the finding is based on a quarterly report under section 4372, the notice must go to Congress within 45 days after the quarter ends. If based on a report under section 4373, the notice must go within 45 days after that report’s date. The notice must include the date the Secretary made the determination.

Full Legal Text

Title 10, §4374

Armed Forces — Source: USLM XML via OLRC

(a)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 acquisition program or any designated major subprogram under the program, the service acquisition executive shall determine whether the current program acquisition unit cost for the program or subprogram has increased by a percentage equal to or greater than the significant cost growth threshold, or the critical cost growth threshold, for the program or subprogram.
(b)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 acquisition program or any designated major subprogram under the program that is a procurement program, the service acquisition executive, in addition to the determination under subsection (a), shall determine whether the procurement unit cost for the program or subprogram has increased by a percentage equal to or greater than the significant cost growth threshold, or the critical cost growth threshold, for the program or subprogram.
(c)(1)If, based upon the service acquisition executive’s determination, the Secretary concerned determines that the current program acquisition unit cost has increased by a percentage equal to or greater than the significant cost growth threshold or critical cost growth threshold or that the procurement unit cost has increased by a percentage 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 increase with respect to the program or subprogram concerned.
(2)In the case of a determination based on a quarterly report submitted in accordance 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 section 4373 of this title, the Secretary shall submit the notification to Congress within 45 days after the date of that report.
(3)The Secretary shall include in the notification the date on which the determination was made.

Legislative History

Notes & Related Subsidiaries

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 heading and substituted “under this chapter” for “under this section”. Subsec. (b). Pub. L. 116–283, § 1850(g)(3), inserted heading 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 directed 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. heading, 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 implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as an

Effective Date

of 2021 Amendment note preceding section 3001 of this title.

Reference

Citations & Metadata

Citation

10 U.S.C. § 4374

Title 10 — Armed Forces

Last Updated

Apr 6, 2026

Release point: 119-73