TITLE 10 - US CODE - CHAPTER 144 - MAJOR DEFENSE ACQUISITION PROGRAMS

10 USC 2430 - Major defense acquisition program defined

(a) In this chapter, the term major defense acquisition program means a Department of Defense acquisition program that is not a highly sensitive classified program (as determined by the Secretary of Defense) and
(1) that is designated by the Secretary of Defense as a major defense acquisition program; or
(2) that is estimated by the Secretary of Defense to require an eventual total expenditure for research, development, test, and evaluation of more than $300,000,000 (based on fiscal year 1990 constant dollars) or an eventual total expenditure for procurement of more than $1,800,000,000 (based on fiscal year 1990 constant dollars).
(b) The Secretary of Defense may adjust the amounts (and the base fiscal year) provided in subsection (a)(2) on the basis of Department of Defense escalation rates. An adjustment under this subsection shall be effective after the Secretary transmits a written notification of the adjustment to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives.

10 USC 2430a - Major subprograms

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

(1) 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 chapter.
(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.— 
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 chapter shall reflect cost, schedule, and performance information
(1) for the major defense acquisition program as a whole; and
(2) for each major subprogram of the major defense acquisition program so designated.
(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 2432 (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 chapter
(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.

10 USC 2431 - Weapons development and procurement schedules

(a) The Secretary of Defense shall submit to Congress each calendar year, not later than 45 days after the President submits the budget to Congress under section 1105 of title 31, budget justification documents regarding development and procurement schedules for each weapon system for which fund authorization is required by section 114 (a) of this title, and for which any funds for procurement are requested in that budget. The documents shall include data on operational testing and evaluation for each weapon system for which funds for procurement are requested (other than funds requested only for the procurement of units for operational testing and evaluation, or long lead-time items, or both). A weapon system shall also be included in the annual documents required under this subsection in each year thereafter until procurement of that system has been completed or terminated, or the Secretary of Defense certifies, in writing, that such inclusion would not serve any useful purpose and gives his reasons therefor.
(b) Any documents required to be submitted under subsection (a) shall include detailed and summarized information with respect to each weapon system covered and shall specifically include each of the following:
(1) The development schedule, including estimated annual costs until development is completed.
(2) The planned procurement schedule, including the best estimate of the Secretary of Defense of the annual costs and units to be procured until procurement is completed.
(3) To the extent required by the second sentence of subsection (a), the result of all operational testing and evaluation up to the time of the submission of the documents, or, if operational testing and evaluation has not been conducted, a statement of the reasons therefor and the results of such other testing and evaluation as has been conducted.
(4) 
(A) The most efficient production rate, the most efficient acquisition rate, and the minimum sustaining rate, consistent with the program priority established for such weapon system by the Secretary concerned.
(B) In this paragraph:
(i) The term most efficient production rate means the maximum rate for each budget year at which the weapon system can be produced with existing or planned plant capacity and tooling, with one shift a day running for eight hours a day and five days a week.
(ii) The term minimum sustaining rate means the production rate for each budget year that is necessary to keep production lines open while maintaining a base of responsive vendors and suppliers.
(c) In the case of any weapon system for which procurement funds have not been previously requested and for which funds are first requested by the President in any fiscal year after the Budget for that fiscal year has been submitted to Congress, the same documentation requirements shall be applicable to that system in the same manner and to the same extent as if funds had been requested for that system in that budget.

10 USC 2432 - Selected Acquisition Reports

(a) In this section:
(1) The term program acquisition unit cost, with respect to a major defense acquisition program, means the amount equal to
(A)  the total cost for development and procurement of, and system-specific military construction for, the acquisition program, divided by
(B)  the number of fully-configured end items to be produced for the acquisition program.
(2) The term procurement unit cost, with respect to a major defense acquisition program, means the amount equal to
(A)  the total of all funds programmed to be available for obligation for procurement for the program, divided by
(B)  the number of fully-configured end items to be procured.
(3) The term major contract, with respect to a major defense acquisition program, means each of the six largest prime, associate, or Government-furnished equipment contracts under the program that is in excess of $40,000,000 and that is not a firm, fixed price contract.
(4) The term full life-cycle cost, with respect to a major defense acquisition program, means all costs of development, procurement, military construction, and operations and support, without regard to funding source or management control.
(b) 
(1) The Secretary of Defense shall submit to Congress at the end of each fiscal-year quarter a report on current major defense acquisition programs. Except as provided in paragraphs (2) and (3), each such report shall include a status report on each defense acquisition program that at the end of such quarter is a major defense acquisition program. Reports under this section shall be known as Selected Acquisition Reports.
(2) A status report on a major defense acquisition program need not be included in the Selected Acquisition Report for the second, third, or fourth quarter of a fiscal year if such a report was included in a previous Selected Acquisition Report for that fiscal year and during the period since that report there has been
(A) less than a 15 percent increase in program acquisition unit cost and current procurement unit cost for the program (or for each designated subprogram under the program); and
(B) less than a six-month delay in any program schedule milestone shown in the Selected Acquisition Report.
(3) 
(A) The Secretary of Defense may waive the requirement for submission of Selected Acquisition Reports for a program for a fiscal year if
(i) the program has not entered system development and demonstration;
(ii) a reasonable cost estimate has not been established for such program; and
(iii) the system configuration for such program is not well defined.
(B) The Secretary shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a written notification of each waiver under subparagraph (A) for a program for a fiscal year not later than 60 days before the President submits the budget to Congress pursuant to section 1105 of title 31 in that fiscal year.
(c) 
(1) Each Selected Acquisition Report for the first quarter for a fiscal year shall include
(A) the same information, in detailed and summarized form, as is provided in reports submitted under section 2431 of this title;
(B) the current program acquisition unit cost for each major defense acquisition program or designated major subprogram included in the report and the history of that cost from the date the program or subprogram was first included in a Selected Acquisition Report to the end of the quarter for which the current report is submitted;
(C) the current procurement unit cost for each major defense acquisition program or designated major subprogram included in the report and the history of that cost from the date the program or subprogram was first included in a Selected Acquisition Report to the end of the quarter for which the current report is submitted; and
(D) such other information as the Secretary of Defense considers appropriate.
(2) Each Selected Acquisition Report for the first quarter of a fiscal year shall be designed to provide to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives the information such Committees need to perform their oversight functions. Whenever the Secretary of Defense proposes to make changes in the content of a Selected Acquisition Report, the Secretary shall submit a notice of the proposed changes to such committees. The changes shall be considered approved by the Secretary, and may be incorporated into the report, only after the end of the 60-day period beginning on the date on which the notice is received by those committees.
(3) In addition to the material required by paragraphs (1) and (2), each Selected Acquisition Report for the first quarter of a fiscal year shall include the following:
(A) A full life-cycle cost analysis for each major defense acquisition program and each designated major subprogram included in the report that is in the system development and demonstration stage or has completed that stage. The Secretary of Defense shall ensure that this subparagraph is implemented in a uniform manner, to the extent practicable, throughout the Department of Defense.
(B) If the system that is included in that major defense acquisition program has an antecedent system, a full life-cycle cost analysis for that system.
(4) Selected Acquisition Reports for the first quarter of a fiscal year shall be known as comprehensive annual Selected Acquisition Reports.
(d) 
(1) Each Selected Acquisition Report for the second, third, and fourth quarters of a fiscal year shall include
(A) with respect to each major defense acquisition program that was included in the most recent comprehensive annual Selected Acquisition Report, the information described in subsection (e); and
(B) with respect to each major defense acquisition program that was not included in the most recent comprehensive annual Selected Acquisition Report, the information described in subsection (c).
(2) Selected Acquisition Reports for the second, third, and fourth quarters of a fiscal year shall be known as Quarterly Selected Acquisition Reports.
(e) Information to be included under this subsection in a Quarterly Selected Acquisition Report with respect to a major defense acquisition program is as follows:
(1) The quantity of items to be purchased under the program.
(2) The program acquisition cost.
(3) The program acquisition unit cost for the program (or for each designated major subprogram under the program).
(4) The current procurement cost for the program.
(5) The current procurement unit cost for the program (or for each designated major subprogram under the program).
(6) The reasons for any change in program acquisition cost, program acquisition unit cost, procurement cost, or procurement unit cost or in program schedule from the previous Selected Acquisition Report.
(7) The reasons for any significant changes (from the previous Selected Acquisition Report) in the total program cost for development and procurement of the software component of the program or subprogram, schedule milestones for the software component of the program or subprogram, or expected performance for the software component of the program or subprogram that are known, expected, or anticipated by the program manager.
(8) The major contracts under the program and designated major subprograms under the program and the reasons for any cost or schedule variances under those contracts since the last Selected Acquisition Report.
(9) Program highlights since the last Selected Acquisition Report.
(f) Each comprehensive annual Selected Acquisition Report shall be submitted within 60 days after the date on which the President transmits the Budget to Congress for the following fiscal year, and each Quarterly Selected Acquisition Report shall be submitted within 45 days after the end of the fiscal-year quarter.
(g) The requirements of this section with respect to a major defense acquisition program or designated major subprogram shall cease to apply after 90 percent of the items to be delivered to the United States under the program or subprogram (shown as the total quantity of items to be purchased under the program or subprogram in the most recent Selected Acquisition Report) have been delivered or 90 percent of planned expenditures under the program or subprogram have been made.
(h) 
(1) Total program reporting under this section shall apply to a major defense acquisition program when funds have been appropriated for such program and the Secretary of Defense has decided to proceed to system development and demonstration of such program. Reporting may be limited to the development program as provided in paragraph (2) before a decision is made by the Secretary of Defense to proceed to system development and demonstration if the Secretary notifies the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives of the intention to submit a limited report under this subsection not less than 15 days before a report is due under this section.
(2) A limited report under this subsection shall include the following:
(A) The same information, in detail and summarized form, as is provided in reports submitted under subsections (b)(1) and (b)(3) of section 2431 of this title.
(B) Reasons for any change in the development cost and schedule.
(C) The major contracts under the development program and designated major subprograms under the program and the reasons for any cost or schedule variances under those contracts since the last Selected Acquisition Report.
(D) Program highlights since the last Selected Acquisition Report.
(E) Other information as the Secretary of Defense considers appropriate.
(3) The submission requirements for a limited report under this subsection shall be the same as for quarterly Selected Acquisition Reports for total program reporting.

10 USC 2433 - Unit cost reports

(a) In this section:
(1) Except as provided in section 2430a (c)1 of this title, the terms program acquisition unit cost, procurement unit cost, and major contract have the same meanings as provided in section 2432 (a) of this title.
(2) The term Baseline Estimate, with respect to a unit cost report that is submitted under this section to the service acquisition executive designated by the Secretary concerned on a major defense acquisition program or designated major subprogram, means the cost estimate included in the baseline description for the program or subprogram under section 2435 of this title.
(3) The term procurement program means a program for which funds for procurement are authorized to be appropriated in a fiscal year.
(4) The term significant cost growth threshold means the following:
(A) In the case of a major defense acquisition program or designated major defense subprogram, a percentage increase in the program acquisition unit cost for the program or subprogram of
(i) at least 15 percent over the program acquisition unit cost for the program or subprogram as shown in the current Baseline Estimate for the program or subprogram; or
(ii) at least 30 percent over the program acquisition unit cost for the program or subprogram as shown in the original Baseline Estimate for the program or subprogram.
(B) In the case of a major defense acquisition program or designated major defense subprogram that is a procurement program, a percentage increase in the procurement unit cost for the program or subprogram of
(i) at least 15 percent over the procurement unit cost for the program or subprogram as shown in the current Baseline Estimate for the program or subprogram; or
(ii) at least 30 percent over the procurement unit cost for the program or subprogram as shown in the original Baseline Estimate for the program or subprogram.
(5) The term critical cost growth threshold means the following:
(A) In the case of a major defense acquisition program or designated major defense subprogram, a percentage increase in the program acquisition unit cost for the program or subprogram of
(i) at least 25 percent over the program acquisition unit cost for the program or subprogram as shown in the current Baseline Estimate for the program or subprogram; or
(ii) at least 50 percent over the program acquisition unit cost for the program or subprogram as shown in the original Baseline Estimate for the program or subprogram.
(B) In the case of a major defense acquisition program or designated major defense subprogram that is a procurement program, a percentage increase in the procurement unit cost for the program or subprogram of
(i) at least 25 percent over the procurement unit cost for the program or subprogram as shown in the current Baseline Estimate for the program or subprogram; or
(ii) at least 50 percent over the procurement unit cost for the program or subprogram as shown in the original Baseline Estimate for the program or subprogram.
(6) The term original Baseline Estimate has the same meaning as provided in section 2435 (d) of this title.
(b) The program manager for a major defense acquisition program (other than a program not required to be included in the Selected Acquisition Report for that quarter under section 2432 (b)(3) of this title) shall, on a quarterly basis, submit to the service acquisition executive designated by the Secretary concerned a written report on the unit costs of the program (or of each designated major subprogram under the program). Each report shall be submitted not more than 30 calendar days after the end of that quarter. The program manager shall include in each such unit cost report the following information with respect to the program (as of the last day of the quarter for which the report is made):
(1) The program acquisition unit cost for the program (or for each designated major subprogram under the program).
(2) In the case of a procurement program, the procurement unit cost for the program (or for each designated major subprogram under the program).
(3) Any cost variance or schedule variance in a major contract under the program since the contract was entered into.
(4) Any changes from program schedule milestones or program performances reflected in the baseline description established under section 2435 of this title that are known, expected, or anticipated by the program manager.
(5) Any significant changes in the total program cost for development and procurement of the software component of the program or subprogram, schedule milestones for the software component of the program or subprogram, or expected performance for the software component of the program or subprogram that are known, expected, or anticipated by the program manager.
(c) If the program manager of a major defense acquisition program for which a unit cost report has previously been submitted under subsection (b) determines at any time during a quarter that there is reasonable cause to believe that the program acquisition unit cost for the program (or for a designated major subprogram under the program) or the procurement unit cost for the program (or for such a subprogram), as applicable, has increased by a percentage equal to or greater than the significant cost growth threshold; and if a unit cost report indicating an increase of such percentage or more has not previously been submitted to the service acquisition executive designated by the Secretary concerned, then the program manager shall immediately submit to such service acquisition executive a unit cost report containing the information, determined as of the date of the report, required under subsection (b).
(d) 
(1) When a unit cost report is submitted to the service acquisition executive designated by the Secretary concerned under this section 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.
(2) When a unit cost report is submitted to the service acquisition executive designated by the Secretary concerned under this section 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 paragraph (1), 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.
(3) If, based upon the service acquisition executives 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. In the case of a determination based on a quarterly report submitted in accordance with subsection (b), 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 subsection (c), the Secretary shall submit the notification to Congress within 45 days after the date of that report. The Secretary shall include in the notification the date on which the determination was made.
(e) 
(1) 
(A) Except as provided in subparagraph (B), whenever the Secretary concerned determines under subsection (d) that the program acquisition unit cost or the procurement unit cost of a major defense acquisition program or designated major subprogram has increased by a percentage equal to or greater than the significant cost growth threshold for the program or subprogram, a Selected Acquisition Report shall be submitted to Congress for the first fiscal-year quarter ending on or after the date of the determination or for the fiscal-year quarter which immediately precedes the first fiscal-year quarter ending on or after that date. The report shall include the information described in section 2432 (e) of this title and shall be submitted in accordance with section 2432 (f) of this title.
(B) Whenever the Secretary makes a determination referred to in subparagraph (A) in the case of a major defense acquisition program or designated major subprogram during the second quarter of a fiscal year and before the date on which the President transmits the budget for the following fiscal year to Congress pursuant to section 1105 of title 31, the Secretary is not required to file a Selected Acquisition Report under subparagraph (A) but shall include the information described in subsection (g) regarding that program or subprogram in the comprehensive annual Selected Acquisition Report submitted in that quarter.
(2) If the program acquisition unit cost or procurement unit cost of a major defense acquisition program or designated major subprogram (as determined by the Secretary under subsection (d)) increases by a percentage equal to or greater than the critical cost growth threshold for the program or subprogram, the Secretary of Defense, after consultation with the Joint Requirements Oversight Council regarding program requirements, shall
(A) carry out an assessment of
(i) any design, engineering, manufacturing, or technology integration issues that contributed significantly to the cost growth of the program;
(ii) the projected cost of completing the program if current requirements are not modified;
(iii) the projected cost of completing the program based on reasonable modification of such requirements; and
(iv) the rough order of magnitude of the costs of any reasonable alternative system or capability;
(B) submit to Congress, before the end of the 60-day period beginning on the day the Selected Acquisition Report containing the information described in subsection (g) is required to be submitted under section 2432 (f) of this title, a written certification (with a supporting explanation) stating that
(i) such acquisition program is essential to the national security;
(ii) there are no alternatives to such acquisition program which will provide equal or greater military capability at less cost;
(iii) the new estimates of the program acquisition unit cost or procurement unit cost are reasonable; and
(iv) the management structure for the acquisition program is adequate to manage and control program acquisition unit cost or procurement unit cost; and
(C) if a report under paragraph (1) has been previously submitted to Congress with respect to such program for the current fiscal year but was based upon a different unit cost report from the program manager to the service acquisition executive designated by the Secretary concerned, a further report containing the information described in subsection (g), determined from the time of the previous report to the time of the current report.
(3) If a determination of an increase by a percentage equal to or greater than the significant cost growth threshold is made by the Secretary under subsection (d) and a Selected Acquisition Report containing the information described in subsection (g) is not submitted to Congress under paragraph (1), or if a determination of an increase by a percentage equal to or greater than the critical cost growth threshold is made by the Secretary under subsection (d) and the certification of the Secretary of Defense is not submitted to Congress under paragraph (2), funds appropriated for military construction, for research, development, test, and evaluation, and for procurement may not be obligated for a major contract under the program. The prohibition on the obligation of funds for a major defense acquisition program shall cease to apply at the end of a period of 30 days of continuous session of Congress (as determined under section 7307 (b)(2) of this title) beginning on the date
(A) on which Congress receives the Selected Acquisition Report under paragraph (1) or (2)(B) with respect to that program, in the case of a determination of an increase by a percentage equal to or greater than the significant cost growth threshold (as determined in subsection (d)); or
(B) on which Congress has received both the Selected Acquisition Report under paragraph (1) or (2)(B) and the certification of the Secretary of Defense under paragraph (2)(A) with respect to that program, in the case of an increase by a percentage equal to or greater than the critical cost growth threshold (as determined under subsection (d)).
(f) Any determination of a percentage increase under this section shall be stated in terms of constant base year dollars (as described in section 2430 of this title).
(g) 
(1) Except as provided in paragraph (2), each report under subsection (e) with respect to a major defense acquisition program shall include the following:
(A) The name of the major defense acquisition program.
(B) The date of the preparation of the report.
(C) The program phase as of the date of the preparation of the report.
(D) The estimate of the program acquisition cost for the program (and for each designated major subprogram under the program) as shown in the Selected Acquisition Report in which the program or subprogram was first included, expressed in constant base-year dollars and in current dollars.
(E) The current program acquisition cost for the program (and for each designated major subprogram under the program) in constant base-year dollars and in current dollars.
(F) A statement of the reasons for any increase in program acquisition unit cost or procurement unit cost for the program (or for any designated major subprogram under the program).
(G) The completion status of the program and each designated major subprogram under the program
(i)  expressed as the percentage that the number of years for which funds have been appropriated for the program or subprogram is of the number of years for which it is planned that funds will be appropriated for the program or subprogram, and
(ii)  expressed as the percentage that the amount of funds that have been appropriated for the program or subprogram is of the total amount of funds which it is planned will be appropriated for the program or subprogram.
(H) The fiscal year in which information on the program and each designated major subprogram under the program was first included in a Selected Acquisition Report (referred to in this paragraph as the base year) and the date of that Selected Acquisition Report in which information on the program or subprogram was first included.
(I) The type of the Baseline Estimate that was included in the baseline description under section 2435 of this title and the date of the Baseline Estimate.
(J) The current change and the total change, in dollars and expressed as a percentage, in the program acquisition unit cost for the program (or for each designated major subprogram under the program), stated both in constant base-year dollars and in current dollars.
(K) The current change and the total change, in dollars and expressed as a percentage, in the procurement unit cost for the program (or for each designated major subprogram under the program), stated both in constant base-year dollars and in current dollars and the procurement unit cost for the program (or for each designated major subprogram under the program) for the succeeding fiscal year expressed in constant base-year dollars and in current year dollars.
(L) The quantity of end items to be acquired under the program and the current change and total change, if any, in that quantity.
(M) The identities of the military and civilian officers responsible for program management and cost control of the program.
(N) The action taken and proposed to be taken to control future cost growth of the program.
(O) Any changes made in the performance or schedule milestones of the program and the extent to which such changes have contributed to the increase in program acquisition unit cost or procurement unit cost for the program (or for any designated major subprogram under the program).
(P) The following contract performance assessment information with respect to each major contract under the program or subprogram:
(i) The name of the contractor.
(ii) The phase that the contract is in at the time of the preparation of the report.
(iii) The percentage of work under the contract that has been completed.
(iv) Any current change and the total change, in dollars and expressed as a percentage, in the contract cost.
(v) The percentage by which the contract is currently ahead of or behind schedule.
(vi) A narrative providing a summary explanation of the most significant occurrences, including cost and schedule variances under major contracts of the program and any designated major subprogram under the program, contributing to the changes identified and a discussion of the effect these occurrences will have on future program costs and the program schedule.
(Q) In any case in which one or more problems with the software component of the program or any designated major subprogram under the program significantly contributed to the increase in program unit costs, the action taken and proposed to be taken to solve such problems.
(2) If a program acquisition unit cost increase or a procurement unit cost increase for a major defense acquisition program or designated major subprogram that results in a report under this subsection is due to termination or cancellation of the entire program or subprogram, only the information specified in clauses (A) through (F) of paragraph (1) and the percentage change in program acquisition unit cost or procurement unit cost that resulted in the report need be included in the report. The certification of the Secretary of Defense under subsection (e) is not required to be submitted for termination or cancellation of a program or subprogram.
(h) Reporting under this section shall not apply if a program has received a limited reporting waiver under section 2432 (h) of this title.
[1] So in original. Probably should be “2430a(d)”.

10 USC 2434 - Independent cost estimates; operational manpower requirements

(a) Requirement for Approval.— 
The Secretary of Defense may not approve the system development and demonstration, or the production and deployment, of a major defense acquisition program unless an independent estimate of the full life-cycle cost of the program and a manpower estimate for the program have been considered by the Secretary.
(b) Regulations.— 
The Secretary of Defense shall prescribe regulations governing the content and submission of the estimates required by subsection (a). The regulations shall require
(1) that the independent estimate of the full life-cycle cost of a program
(A) be prepared
(i) by an office or other entity that is not under the supervision, direction, or control of the military department, Defense Agency, or other component of the Department of Defense that is directly responsible for carrying out the development or acquisition of the program; or
(ii) if the decision authority for the program has been delegated to an official of a military department, Defense Agency, or other component of the Department of Defense, by an office or other entity that is not directly responsible for carrying out the development or acquisition of the program; and
(B) include all costs of development, procurement, military construction, and operations and support, without regard to funding source or management control; and
(2) that the manpower estimate include an estimate of the total number of personnel required
(A) to operate, maintain, and support the program upon full operational deployment; and
(B) to train personnel to carry out the activities referred to in subparagraph (A).

10 USC 2435 - Baseline description

(a) Baseline Description Requirement.— 

(1) The Secretary of a military department shall establish a baseline description for each major defense acquisition program and for each designated major subprogram under the program under the jurisdiction of such Secretary.
(2) The baseline shall include sufficient parameters to describe the cost estimate (referred to as the Baseline Estimate in section 2433 of this title), schedule, performance, supportability, and any other factor of such major defense acquisition program or designated major subprogram.
(b) Funding Limit.— 
No amount appropriated or otherwise made available to the Department of Defense for carrying out a major defense acquisition program or any designated major subprogram under the program may be obligated after the program or subprogram enters system development and demonstration without an approved baseline description unless such obligation is specifically approved by the Under Secretary of Defense for Acquisition, Technology, and Logistics.
(c) Schedule.— 
A baseline description for a major defense acquisition program or any designated major subprogram under the program shall be prepared under this section
(1) before the program or subprogram enters system development and demonstration;
(2) before the program or subprogram enters production and deployment; and
(3) before the program or subprogram enters full rate production.
(d) Original Baseline Estimate.— 

(1) In this chapter, the term original Baseline Estimate, with respect to a major defense acquisition program or any designated major subprogram under the program, means the baseline description established with respect to the program or subprogram under subsection (a) prepared before the program or subprogram enters system development and demonstration, or at program or subprogram initiation, whichever occurs later, without adjustment or revision (except as provided in paragraph (2)).
(2) An adjustment or revision of the original baseline description of a major defense acquisition program or any designated major subprogram under the program may be treated as the original Baseline Estimate for the program or subprogram for purposes of this chapter only if the percentage increase in the program acquisition unit cost or procurement unit cost under such adjustment or revision exceeds the critical cost growth threshold for the program or subprogram under section 2433 of this title, as determined by the Secretary of the military department concerned under subsection (d) of such section.
(3) In the event of an adjustment or revision of the original baseline description of a major defense acquisition program or any designated major subprogram under the program, the Secretary of Defense shall include in the next Selected Acquisition Report to be submitted under section 2432 of this title after such adjustment or revision a notification to the congressional defense committees of such adjustment or revision, together with the reasons for such adjustment or revision.
(e) Regulations.— 
The Secretary of Defense shall prescribe regulations governing the following:
(1) The content of baseline descriptions under this section.
(2) The submission to the Secretary of the military department concerned and the Under Secretary of Defense for Acquisition, Technology, and Logistics by the program manager for a program for which there is an approved baseline description (or in the case of a major defense acquisition program with one or more designated major subprograms, approved baseline descriptions for such subprograms) under this section of reports of deviations from any such baseline description of the cost, schedule, performance, supportability, or any other factor of the program or subprogram.
(3) Procedures for review of such deviation reports within the Department of Defense.
(4) Procedures for submission to, and approval by, the Secretary of Defense of revised baseline descriptions.

10 USC 2436 - Major defense acquisition programs: incentive program for contractors to purchase capital assets manufactured in United States

(a) Establishment of Incentive Program.— 
The Secretary of Defense shall plan and establish an incentive program in accordance with this section for contractors to purchase capital assets manufactured in the United States in part with funds available to the Department of Defense.
(b) Defense Industrial Capabilities Fund May Be Used.— 
The Secretary of Defense may use the Defense Industrial Capabilities Fund, established under section 814 of the National Defense Authorization Act for Fiscal Year 2004, for incentive payments under the program established under this section.
(c) Applicability to Major Defense Acquisition Program Contracts.— 
The incentive program shall apply to contracts for the procurement of a major defense acquisition program.
(d) Consideration.— 
The Secretary of Defense shall provide consideration in source selection in any request for proposals for a major defense acquisition program for offerors with eligible capital assets.

10 USC 2437 - Development of major defense acquisition programs: sustainment of system to be replaced

(a) Requirement for Sustaining Existing Forces.— 

(1) The Secretary of Defense shall require that, whenever a new major defense acquisition program begins development, the defense acquisition authority responsible for that program shall develop a plan (to be known as a sustainment plan) for the existing system that the system under development is intended to replace. Any such sustainment plan shall provide for an appropriate level of budgeting for sustaining the existing system until the replacement system to be developed under the major defense acquisition program is fielded and assumes the majority of responsibility for the mission of the existing system. This section does not apply to a major defense acquisition that reaches initial operational capability before October 1, 2008.
(2) In this section, the term defense acquisition authority means the Secretary of a military department or the commander of the United States Special Operations Command.
(b) Sustainment Plan.— 
The Secretary of Defense shall require that each sustainment plan under this section include, at a minimum, the following:
(1) The milestone schedule for the development of the major defense acquisition program, including the scheduled dates for low-rate initial production, initial operational capability, full-rate production, and full operational capability and the date as of when the replacement system is scheduled to assume the majority of responsibility for the mission of the existing system.
(2) An analysis of the existing system to assess the following:
(A) Anticipated funding levels necessary to
(i) ensure acceptable reliability and availability rates for the existing system; and
(ii) maintain mission capability of the existing system against the relevant threats.
(B) The extent to which it is necessary and appropriate to
(i) transfer mature technologies from the new system or other systems to enhance the mission capability of the existing system against relevant threats; and
(ii) provide interoperability with the new system during the period from initial fielding until the new system assumes the majority of responsibility for the mission of the existing system.
(c) Exceptions.— 
Subsection (a) shall not apply to a major defense acquisition program if the Secretary of Defense determines that
(1) the existing system is no longer relevant to the mission;
(2) the mission has been eliminated;
(3) the mission has been consolidated with another mission in such a manner that another existing system can adequately meet the mission requirements; or
(4) the duration of time until the new system assumes the majority of responsibility for the existing systems mission is sufficiently short so that mission availability, capability, interoperability, and force protection requirements are maintained.
(d) Waiver.— 
The Secretary of Defense may waive the applicability of subsection (a) to a major defense acquisition program if the Secretary determines that, but for such a waiver, the Department would be unable to meet national security objectives. Whenever the Secretary makes such a determination and authorizes such a waiver, the Secretary shall submit notice of such waiver and of the Secretarys determination and the reasons therefor in writing to the congressional defense committees.

2438, 2439. Repealed. Pub. L. 103355, title III, 3006(a), 3007(a), Oct. 13, 1994, 108 Stat. 3331]

Section 2438, added Pub. L. 102–484, div. A, title VIII, 821(a)(1)(B), Oct. 23, 1992, 106 Stat. 2459; amended Pub. L. 103–160, div. A, title IX, 904(d)(1), Nov. 30, 1993, 107 Stat. 1728, required competitive prototyping of major weapon systems and subsystems prior to development under major defense acquisition program. Provisions similar to those in section 2438 were contained in section 2365 of this title, prior to repeal by Pub. L. 102–484, § 821(c)(1). A prior section 2438 was renumbered section 2439 of this title. Section 2439, added Pub. L. 99–145, title IX, § 912(a)(1), Nov. 8, 1985, 99 Stat. 685, 2305a; amended Pub. L. 99–433, title I, § 110(g)(3), Oct. 1, 1986, 100 Stat. 1004; renumbered 2438 and amended Pub. L. 100–26, § 7(b)(9)(A), (k)(2), Apr. 21, 1987, 101 Stat. 280, 284; Pub. L. 101–510, div. A, title VIII, 805, Nov. 5, 1990, 104 Stat. 1591; renumbered 2439, Pub. L. 102–484, div. A, title VIII, 821(a)(1)(A), Oct. 23, 1992, 106 Stat. 2459, directed Secretary of Defense, before full-scale development under major program began, to prepare acquisition strategy which ensured that contracts for each major program, including each major subsystem under program, were awarded in accordance with acquisition strategy, and granted Secretary option of using competitive alternative sources for major programs and major subsystems throughout period.

10 USC 2440 - Technology and industrial base plans

The Secretary of Defense shall prescribe regulations requiring consideration of the national technology and industrial base in the development and implementation of acquisition plans for each major defense acquisition program.