§ 2433a. Critical cost growth in major defense acquisition programs
(a)
Reassessment of Program.—
If the program acquisition unit cost or procurement unit cost of a major defense acquisition program or designated subprogram (as determined by the Secretary under section
2433
(d) of this title) 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—
(1)
determine the root cause or causes of the critical cost growth in accordance with applicable statutory requirements and Department of Defense policies, procedures, and guidance; and
(2)
in consultation with the Director of Cost Assessment and Program Evaluation, carry out an assessment of—
(B)
the projected cost of completing the program based on reasonable modification of such requirements;
(b)
Presumption of Termination.—
(1)
After conducting the reassessment required by subsection (a) with respect to a major defense acquisition program, the Secretary shall terminate the program unless the Secretary submits to Congress, before the end of the 60-day period beginning on the day the Selected Acquisition Report containing the information described in section
2433
(g) of this title is required to be submitted under section
2432
(f) of this title, a written certification in accordance with paragraph (2).
(2)
A certification described by this paragraph with respect to a major defense acquisition program is a written certification that—
(B)
there are no alternatives to the program which will provide acceptable capability to meet the joint military requirement (as defined in section
181
(g)(1) of this title) at less cost;
(C)
the new estimates of the program acquisition unit cost or procurement unit cost have been determined by the Director of Cost Assessment and Program Evaluation to be reasonable;
(3)
A written certification under paragraph (2) shall be accompanied by a report presenting the root cause analysis and assessment carried out pursuant to subsection (a) and the basis for each determination made in accordance with subparagraphs (A) through (E) of paragraph (2), together with supporting documentation.
(c)
Actions if Program Not Terminated.—
(1)
If the Secretary elects not to terminate a major defense acquisition program pursuant to subsection (b), the Secretary shall—
(A)
restructure the program in a manner that addresses the root cause or causes of the critical cost growth, as identified pursuant to subsection (a), and ensures that the program has an appropriate management structure as set forth in the certification submitted pursuant to subsection (b)(2)(E);
(B)
rescind the most recent Milestone approval, or Key Decision Point approval in the case of a space program, for the program and withdraw any associated certification under section
2366a or
2366b of this title;
(C)
require a new Milestone approval, or Key Decision Point approval in the case of a space program, for the program before taking any contract action to enter a new contract, exercise an option under an existing contract, or otherwise extend the scope of an existing contract under the program, except to the extent determined necessary by the Milestone Decision Authority, on a non-delegable basis, to ensure that the program can be restructured as intended by the Secretary without unnecessarily wasting resources;
(2)
For purposes of paragraph (1)(D), the report specified in this paragraph is the first Selected Acquisition Report for the program submitted pursuant to section
2432 of this title after the President submits a budget pursuant to section
1105 of title
31, in the calendar year following the year in which the program was restructured.
(d)
Actions if Program Terminated.—
If a major defense acquisition program is terminated pursuant to subsection (b), the Secretary shall submit to Congress a written report setting forth—