§2754 — Title 50 War and National Defense | U.S. Code

Summary

The Secretary of Energy must get an independent life-cycle cost estimate under Department of Energy Order 413.3B (or a replacement) for each qualifying project before it reaches critical decision 2 in the acquisition process. Covered asset: an atomic energy defense capital asset costing more than $100,000,000 and built for a limited-life, single-purpose mission. Independent estimate: done by a group not part of the project sponsor, using the same detailed technical and procurement information to check the sponsor’s cost estimate for accuracy and reasonableness.

Title 50, §2754

War and National Defense — Source: USLM XML via OLRC

(a)The Secretary of Energy shall ensure that an independent life-cycle cost estimate under Department of Energy Order 413.3B (relating to program management and project management for the acquisition of capital assets), or a successor order, of each capital asset described in subsection (b) is conducted before the asset achieves critical decision 2 in the acquisition process.

(b)A capital asset described in this subsection is an atomic energy defense capital asset—

(1)the total project cost of which exceeds $100,000,000; and

(2)the purpose of which is to perform a limited-life, single-purpose mission.

(c)For purposes of subsection (a), the term “independent”, with respect to a life-cycle cost estimate of a capital asset, means that the life-cycle cost estimate is prepared by an organization independent of the project sponsor, using the same detailed technical and procurement information as the sponsor, to determine if the life-cycle cost estimate of the sponsor is accurate and reasonable.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2019—Subsec. (a). Pub. L. 116–92 substituted “413.3B” for “413.3” and inserted “, or a successor order,” after “assets)”.

Statutory Notes and Related Subsidiaries

Use of Best Practices for Capital Asset Projects and Nuclear Weapon Life Extension Programs Pub. L. 114–92, div. C, title XXXI, § 3117, Nov. 25, 2015, 129 Stat. 1195, provided that: “(a) Analyses of Alternatives.—Not later than 30 days after the date of the enactment of this Act [Nov. 25, 2015], the Secretary of Energy, in coordination with the Administrator for Nuclear Security, shall ensure that analyses of alternatives are conducted (including through contractors, as appropriate) in accordance with best practices for capital asset projects and life extension programs of the National Nuclear Security Administration and capital asset projects relating to defense environmental management. “(b) Cost Estimates.—Not later than 30 days after the date of the enactment of this Act, the Secretary, in coordination with the Administrator, shall develop cost estimates in accordance with cost estimating best practices for capital asset projects and life extension programs of the National Nuclear Security Administration and capital asset projects relating to defense environmental management. “(c) Revisions to Departmental Project Management Order and Nuclear Weapon Life Extension Requirements.—As soon as practicable after the date of the enactment of this Act [Nov. 25, 2015], but not later than two years after such date of enactment, the Secretary shall revise—“(1) the capital asset project management order of the Department of Energy to require the use of best practices for preparing cost estimates and for conducting analyses of alternatives for National Nuclear Security Administration and defense environmental management capital asset projects; and “(2) the nuclear weapon life extension program procedures of the Department to require the use of use of [sic] best practices for preparing cost estimates and conducting analyses of alternatives for National Nuclear Security Administration life extension programs.”

§2754 Life-cycle Cost Estimates of Certain Atomic Energy Defense Capital Assets