PRIA, Government Policy, Made Personal

Summary

The Secretary of Defense may break a large defense program into major subprograms when the program needs to deliver two or more types of items that are very different, or when it will deliver separate increments or blocks. The Secretary must tell the congressional defense committees in writing at least 30 days before any such designation starts. If subprograms are designated, official reports must show cost, schedule, and performance data for the whole program and for each subprogram, and unit costs must follow special rules. All parts of the program must be put into one or more subprograms so the entire program is covered. Key terms (one line each): Program acquisition unit cost — total development, procurement, and specific military construction costs allocated to a subprogram divided by the number of fully configured end items to be produced. Procurement unit cost — total procurement funds for a subprogram divided by the number of fully configured end items to be bought. Major contract — the six largest prime, associate, or government‑furnished equipment contracts in the subprogram over $40,000,000 that are not firm‑fixed‑price. Life cycle cost — all costs for development, procurement, military construction, and operations and support for the subprogram.

Title 10, §4203

Armed Forces, Source: USLM XML via OLRC

(a)Authority To Designate Major Subprograms as Subject to Acquisition Reporting Requirements.—

(1)(A)If the Secretary of Defense determines that a major defense acquisition program requires the delivery of two or more categories of end items which differ significantly from each other in form and function, the Secretary may designate each such category of end items as a major subprogram for the purposes of acquisition reporting under this subpart.

(B)If the Secretary of Defense determines that a major defense acquisition program requires the delivery of two or more increments or blocks, the Secretary may designate each such increment or block as a major subprogram for the purposes of acquisition reporting under this subpart.

(2)The Secretary shall notify the congressional defense committees in writing of any proposed designation pursuant to paragraph (1) not less than 30 days before the date such designation takes effect.

(b)Reporting Requirements.—

(1)If the Secretary designates a major subprogram of a major defense acquisition program in accordance with subsection (a), Selected Acquisition Reports, unit cost reports, and program baselines under this subpart shall reflect cost, schedule, and performance information—

(A)for the major defense acquisition program as a whole (other than as provided in paragraph (2)); and

(B)for each major subprogram of the major defense acquisition program so designated.

(2)For a major defense acquisition program for which a designation of a major subprogram has been made under subsection (a), unit costs under this subpart shall be submitted in accordance with the definitions in subsection (d).

(c)Requirement to Cover Entire Major Defense Acquisition Program.—

If a subprogram of a major defense acquisition program is designated as a major subprogram under subsection (a), all other elements of the major defense acquisition program shall be appropriately organized into one or more subprograms under the major defense acquisition program, each of which subprograms, as so organized, shall be treated as a major subprogram under subsection (a).

(d)Definitions.—

Notwithstanding paragraphs (1) and (2) of section 4351(a) of this title, in the case of a major defense acquisition program for which the Secretary has designated one or more major subprograms under this section for the purposes of this subpart—

(1)the term “program acquisition unit cost” applies at the level of the subprogram and means the total cost for the development and procurement of, and specific military construction for, the major defense acquisition program that is reasonably allocable to each such major subprogram, divided by the relevant number of fully-configured end items to be produced under such major subprogram;

(2)the term “procurement unit cost” applies at the level of the subprogram and means the total of all funds programmed to be available for obligation for procurement for each such major subprogram, divided by the number of fully-configured end items to be procured under such major subprogram;

(3)the term “major contract”, with respect to a designated major subprogram, means each of the six largest prime, associate, or Government furnished equipment contracts under the subprogram that is in excess of $40,000,000 and that is not a firm-fixed price contract; and

(4)the term “life cycle cost”, with respect to a designated major subprogram, means all costs of development, procurement, military construction, and operations and support, without regard to funding source or management control.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2021—Pub. L. 116–283, § 1846(g)(2), substituted “this subpart” for “this chapter” wherever appearing. Pub. L. 116–283, § 1846(g), renumbered section 2430a of this title as this section. Subsec. (d). Pub. L. 116–283, § 1846(g)(1), as amended by Pub. L. 117–81, § 1701(o)(6)(B)(ii), substituted “section 4351(a)” for “section 2432(a)” in introductory provisions. 2016—Subsec. (a)(1)(B). Pub. L. 114–328, which directed substitution of “major defense acquisition program requires the delivery of two or more increments or blocks” for “major defense acquisition program to purchase satellites requires the delivery of satellites in two or more increments or blocks” in par. (1)(B), was executed by making the substitution in par. (1)(B) of subsec. (a), to reflect the probable intent of Congress. 2011—Subsec. (a)(1). Pub. L. 112–81 designated existing provisions as subpar. (A) and added subpar. (B). Subsec. (b). Pub. L. 111–383 designated existing provisions as par. (1), redesignated former pars. (1) and (2) as subpars. (A) and (B), respectively, of par. (1), inserted “(other than as provided in paragraph (2))” before semicolon in subpar. (A), and added par. (2).

Statutory Notes and Related Subsidiaries

Effective Date

of 2021 AmendmentAmendment by Pub. L. 117–81 applicable as if included in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and note below. 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 a note preceding section 3001 of this title.

§4203 Major Subprograms