§4376 Breach of critical cost growth threshold: reassessment of program; presumption of program termination

Summary

When the unit cost of a major defense program or a covered subprogram goes up by as much as the critical cost growth threshold, the Secretary of Defense must find the root cause and, with the Director of Cost Assessment and Program Evaluation, do a full reassessment. That reassessment must estimate the cost to finish the program with current requirements, the cost if requirements are reasonably changed, a rough cost of any reasonable alternative, and whether other programs would need less funding because of the cost growth. After that review, the Secretary must end the program unless, within 60 days after the day the required Selected Acquisition Report is due, the Secretary sends Congress a written certification meeting five tests (national security need, no cheaper acceptable alternative, Director’s approval of new cost estimates, priority over programs that would be cut, and adequate management) and a report showing the root-cause analysis and documentation. If the program is terminated, the Secretary must tell Congress why, what alternatives were considered, and how remaining needs will be met.