§3101 Reports on the Acquisition of Major Systems

Summary

Program managers must file quarterly cost reports with the Director of National Intelligence about each major system. These reports must arrive within 30 days after the end of the quarter. They must say the total acquisition cost (the full cost to develop, buy, and build the system), any contract cost or schedule changes, known or expected schedule or performance changes, and big software cost or schedule changes. Key terms (one line each): "cost estimate" — an assessment of all costs and risks when the Director sets the 2010 adjusted cost or restructures a system; "critical cost growth threshold" — a cost rise of at least 25%; "current Baseline Estimate" — the approved projected total acquisition cost at Milestone B, at a restructure, or the 2010 adjusted cost; "Director" — the Director of National Intelligence; "independent cost estimate" — as defined in law; "major contract" — each of the 6 largest prime, associate, or Government-furnished equipment contracts over $40,000,000 that are not firm, fixed price; "major system" — as defined in law; "Milestone B" — the decision to start major system development and demonstration; "program manager" — the official responsible for budget, cost, schedule, and performance; "significant cost growth threshold" — a cost rise of at least 15%; "total acquisition cost" — the total cost for development, procurement, and system-specific construction. If a program manager learns during a quarter that costs rose by at least 15% or 25% and has not already reported it, they must immediately send a report. The Director must check reports and, when costs meet either threshold, send a Major System Congressional Report. For a 15% or greater increase, that Congressional Report must go to Congress within 45 days after the Director gets the report. For a 25% or greater increase, the Director must also follow additional restructuring rules. The Congressional Report must include key facts like name, date, program phase, cost numbers in base-year and current dollars, reasons for the increase, percent complete, funding history, cost and quantity changes, who is responsible, actions to control future costs, contract performance details, and software problem fixes. If a program is canceled, the report is shorter. If required reports or certifications are missing after a threshold is met, funds for construction, R&D, test, evaluation, and procurement may not be obligated until either Congress has the report (or the report plus certification for 25%) and 45 days have passed. The Director had 180 days after October 7, 2010 to review past cost increases, set 2010-adjusted baselines, and report to Congress. All percent increases must be stated in constant base-year dollars. Reports may be classified.