10 U.S.C. § 4371 — Cost growth definitions; applicability of reporting requirements; constant base year dollars

(a) Definitions. In this chapter—

(1) Program acquisition^* unit cost; procurement unit cost; major contract. Except as provided in 10 U.S.C. § 4203(d), “program acquisition unit cost,” “procurement unit cost,” and “major contract” have the meanings given in 10 U.S.C. § 4351(a). This section does not define those terms.

(2) Significant cost growth threshold. This means—

(A) for a major defense acquisition program^* or designated major defense subprogram, either—

(i) at least a 15-percent increase in the program acquisition unit cost over the program or subprogram’s current Baseline Estimate; or

(ii) at least a 30-percent increase over the program or subprogram’s original Baseline Estimate; and

(B) for a major defense acquisition program or designated major defense subprogram that is a procurement program, either—

(i) at least a 15-percent increase in the procurement unit cost over the program or subprogram’s current Baseline Estimate; or

(ii) at least a 30-percent increase over the program or subprogram’s original Baseline Estimate.

(3) Critical cost growth threshold. This means—

(A) for a major defense acquisition program or designated major defense subprogram, either—

(i) at least a 25-percent increase in the program acquisition unit cost over the program or subprogram’s current Baseline Estimate; or

(ii) at least a 50-percent increase over the program or subprogram’s original Baseline Estimate; and

(B) for a major defense acquisition program or designated major defense subprogram that is a procurement program, either—

(i) at least a 25-percent increase in the procurement unit cost over the program or subprogram’s current Baseline Estimate; or

(ii) at least a 50-percent increase over the program or subprogram’s original Baseline Estimate.

(4) Baseline Estimate. For a unit cost report submitted under this chapter to the service acquisition executive^* designated by the Secretary concerned^* for a major defense acquisition program or designated major defense subprogram, “Baseline Estimate” means the cost estimate included in the baseline description for the program or subprogram under 10 U.S.C. § 4214. This section does not define “baseline description.”

(5) Original Baseline Estimate. This has the meaning given in 10 U.S.C. § 4214(d). This section does not define that term.

(6) Procurement program. This means a program for which funds for procurement are authorized to be appropriated in a fiscal year.

(b) Reporting waiver. Reporting under this chapter does not apply if a program has received a limited reporting waiver under 10 U.S.C. § 4351(h).

(c) Constant dollars. Any percentage increase under this chapter must be stated in constant base-year dollars, as described in 10 U.S.C. § 4202.