Sec. 1850. COST GROWTH—UNIT COST REPORTS (NUNN-MCCURDY)

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## SEC. 1850 COST GROWTH—UNIT COST REPORTS (NUNN-MCCURDY) ###

(a)Restatement of Sections 2433 and 2433a Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115-232), is amended by inserting after chapter 324, as added by the preceding section, the following new chapter: > > ## “CHAPTER 325 **COST GROWTH—UNIT COST REPORTS (NUNN-MCCURDY)** > > **[**[10 U.S.C. 4371](/us/usc/t10/s4371)**]** > > > ## “SEC. 4371 Cost growth definitions; applicability of reporting requirements; constant base year dollars > > **[**[10 U.S.C. 4371](/us/usc/t10/s4371)**]** > > > ## “SEC. 4372 Unit cost reports: quarterly report from program manager to service acquisition executive > > **[**[10 U.S.C. 4372](/us/usc/t10/s4372)**]** > > > ## “SEC. 4373 Unit cost reports: immediate report from program manager to service acquisition executive upon breach of significant cost growth threshold > > **[**[10 U.S.C. 4373](/us/usc/t10/s4373)**]** > > > ## “SEC. 4374 Unit cost reports: determinations by service acquisition executive and secretary concerned of breach of significant cost growth threshold or critical cost growth threshold; reports to Congress > > **[**[10 U.S.C. 4374](/us/usc/t10/s4374)**]** > > > ## “SEC. 4375 Breach of significant cost growth threshold or critical cost growth threshold: required action > > **[**[10 U.S.C. 4375](/us/usc/t10/s4375)**]** > > > ## “SEC. 4376 Breach of critical cost growth threshold: reassessment of program; presumption of program termination > > **[**[10 U.S.C. 4376](/us/usc/t10/s4376)**]** > > > ## “SEC. 4377 Breach of critical cost growth threshold: actions if program not terminated” > > **[**[10 U.S.C. 4377](/us/usc/t10/s4377)**]** > . ###

(b)Transfer of Subsection

(a)of Section 2433 ####

(1)Transfer Subsection

(a)of section 2433 of title 10, United States Code, is transferred to section 4371 of such title, as added by subsection (a), inserted after the section heading, and amended by striking “this section” in the matter preceding paragraph

(1)and in paragraph

(2)and inserting “this chapter”. ####

(2)Insertion of side headings Such subsection is further amended— #####

(A)in the matter preceding paragraph (1), by inserting “Definitions.—” after “(a)”; #####

(B)in paragraph (1), by inserting “Program acquisition unit cost; procurement unit cost; major contract.—” after “(1)”; #####

(C)in paragraph (2), by inserting “Baseline estimate.—” after “(2)”; #####

(D)in paragraph (3), by inserting “Procurement program.—” after “(3)”; #####

(E)in paragraph (4), by inserting “Significant cost growth threshold.—” after “(4)”; #####

(F)in paragraph (5), by inserting “Critical cost growth threshold.—” after “(5)”; and #####

(G)in paragraph (6), by inserting “Original baseline estimate.—” after “(6)”. ####

(3)Conforming cross-reference amendments Such subsection is further amended— #####

(A)in paragraph (1)— ######

(i)by striking “section 2430a(d)” and inserting “section 4203(d)”; and ######

(ii)by striking “section 2432(a)” and inserting “section 4351”; #####

(B)in paragraph (2), by striking “section 2435” and inserting “section 4214”; and #####

(C)in paragraph (6), by striking “section 2435(d)” and inserting “section 4214(d)”. ####

(4)Revision of order of paragraphs Such subsection is further amended— #####

(A)by redesignating paragraphs (2), (3), (4), (5), and

(6)as paragraphs (4), (6), (2), (3), and (5), respectively; and #####

(B)by revising the order of those paragraphs within that section so they appear in the numeric order of their respective paragraph designations, as redesignated by paragraph (A). ###

(c)Transfer of Subsection

(h)of Section 2433 Subsection

(h)of section 2433 of title 10, United States Code, is transferred to section 4371 of such title, as added by subsection (a), inserted after subsection (a), as transferred and redesignated by subsection (b)(1), redesignated as subsection (b), and amended— ####

(1)by striking “under this section” and inserting “under this chapter”; and ####

(2)by striking “section 2432(h)” and inserting “section 4358”. ###

(d)Transfer of Subsection

(f)of Section 2433 Subsection

(f)of section 2433 of title 10, United States Code, is transferred to section 4371 of such title, as added by subsection (a), inserted after subsection (b), as transferred and redesignated by subsection (c), redesignated as subsection (c), and amended— ####

(1)by striking “under this section” and inserting “under this chapter”; and ####

(2)by striking “section 2430” and inserting “section 4202”. ###

(e)Transfer of Subsection

(b)of Section 2433 ####

(1)Transfer Subsection

(b)of section 2433 of title 10, United States Code, is transferred to section 4372 of such title, as added by subsection (a), inserted after the section heading, and redesignated as subsection (a). ####

(2)Designation of new subsection

(b)Such section 4372, as transferred and redesignated by paragraph (1), is amended by designating the third sentence as subsection

(b)and inserting “Matter to Be Included in Unit Cost Reports.—” therein before “The program manager shall”. ####

(3)Designation of new paragraphs

(1)and

(2)Subsection

(a)of such section, as redesignated by paragraph (1), is amended— #####

(A)by striking “ The program manager for ” and inserting > “ Required Reports.— > > > #### “(1) Requirement > > The program manager for” > ; and #####

(B)by designating the second sentence as paragraph

(2)and inserting “Time for submittal.—” before “Each report”. ####

(4)Conforming cross-reference amendments Such section is further amended— #####

(A)in paragraph

(1)of subsection (a), as designated by paragraph (3)(A), by striking “section 2432(b)(3)” and inserting “section 4352(c)”; and #####

(B)in paragraph

(4)of subsection (b), as designated by paragraph (2), by striking “section 2435” and inserting “section 4214”. ###

(f)Transfer of Subsection

(c)of Section 2433 Subsection

(c)of section 2433 of title 10, United States Code, is transferred to section 4373 of such title, as added by subsection (a), inserted after the section heading, and amended— ####

(1)by striking the subsection designation; and ####

(2)by striking “subsection (b)” both places it appears and inserting “section 4372 of this title”. ###

(g)Transfer of Subsection

(d)of Section 2433 ####

(1)Transfer Subsection

(d)of section 2433 of title 10, United States Code, is transferred to section 4374 of such title, as added by subsection (a), inserted after the section heading, and amended— #####

(A)by striking the subsection designation; and #####

(B)by redesignating paragraphs (1), (2), and

(3)as subsections (a), (b), and (c), respectively. ####

(2)Revision to new 4374(a) Subsection

(a)of such section, as so redesignated, is amended— #####

(A)by inserting “Determination of Breach by Service Acquisition Executive.—” before “When a”; and #####

(B)by striking “under this section” and inserting “under this chapter”. ####

(3)Revision to new 4374(b) Subsection

(b)of such section, as so redesignated, is amended— #####

(A)by inserting “Additional Determination by Service Acquisition Executive When Program or Subprogram Is a Procurement Program.—” before “When a”; #####

(B)by striking “under this section” and inserting “under this chapter”; and #####

(C)by striking “paragraph (1)” and inserting “subsection (a)”. ####

(4)Revision to new 4374(c) Subsection

(c)of such section, as so redesignated, is amended— #####

(A)by striking “ If, based upon ” and inserting > “ Determination of Breach by Secretary Concerned; Notification to Congress.— > > > #### “(1) In general > > If, based upon” > ; #####

(B)by designating the second sentence as paragraph

(2)and the fourth sentence as paragraph (3); #####

(C)in paragraph (2), as so designated— ######

(i)by inserting “Time for submission of notification to congress.—” before “In the case of” the first place it appears; ######

(ii)by striking “subsection (b)” and inserting “section 4372 of this title”; and ######

(iii)by striking “subsection (c)” and inserting “section 4373 of this title”; and #####

(D)in paragraph (3), as so designated, by inserting “Inclusion of date of determination.—” before “The Secretary shall”. ###

(h)Transfer of Subsection

(e)of Section 2433 ####

(1)Transfer Subsection

(e)of section 2433 of title 10, United States Code, is transferred to section 4375 of such title, as added by subsection (a), inserted after the section heading, and amended— #####

(A)by striking the subsection designation; and #####

(B)by redesignating paragraphs (1), (2), and

(3)as subsections (a), (b), and (c), respectively. ####

(2)Revision to new 4375(a) Subsection

(a)of such section, as so redesignated, is amended— #####

(A)by striking “

(A)Except as provided in subparagraph (B), ” and inserting > “ Breach of significant cost growth threshold; submission of a selected acquisition report.— > > > #### “(1) General rule > > Except as provided in paragraph (2),” > ; #####

(B)by redesignating subparagraph

(B)as paragraph (2); #####

(C)in paragraph (1), as so designated— ######

(i)by striking “under subsection (d)” and inserting “under section 4374 of this title”; and ######

(ii)by striking “section 2432(e)” and “section 2432(f)” and inserting “section 4355” and “section 4356”, respectively; and #####

(D)in paragraph (2), as so designated— ######

(i)by striking “subparagraph (A)” both places it appears and inserting “paragraph (1)”; and ######

(ii)by striking “subsection (g)” and inserting “subsection (d)”. ####

(3)Revision to new 4375(b) Subsection

(b)of such section, as so redesignated, is amended— #####

(A)by inserting “Breach of Critical Cost Growth Threshold.—” before “If the program”; #####

(B)by striking “subsection (d)” and inserting “section 4374 of this title”; and #####

(C)by striking “section 2433a” and inserting “sections 4376 and 4377”. ####

(4)Revision to new 4375(c) Subsection

(c)of such section, as so redesignated, is amended— #####

(A)by striking “ If a determination ” and inserting > “ Prohibition on Obligation of Funds for Certain Purposes When Required Action Not Taken.— > > > #### “(1) Prohibition > > If a determination” > ; #####

(B)by designating the second sentence as paragraph (2); #####

(C)in paragraph (1), as so designated— ######

(i)by striking “subsection (d)” both places it appears and inserting “section 4374 of this title”; ######

(ii)by striking “subsection (g)” and inserting “subsection (d)”. ######

(iii)by striking “paragraph (1)” and inserting “subsection (a)”; and ######

(iv)by striking “paragraph (2)” and inserting “subsection (b)”; and #####

(D)in paragraph (2), as so designated— ######

(i)by striking “The prohibition” and inserting “Termination of prohibition.—The prohibition under paragraph (1)”; ######

(ii)in subparagraph (A)— ######

(I)by striking “paragraph

(1)or (2)(B)” and inserting “subsection

(a)or (b)(2)”; and ######

(II)by striking “subsection (d)” and inserting “section 4374 of this title”; and ######

(iii)in subparagraph (B)— ######

(I)by striking “paragraph

(1)or (2)(B)” and inserting “subsection

(a)or (b)(2)”; ######

(II)by striking “paragraph (2)(A)” and inserting “subsection (b)(1)”; and ######

(III)by striking “subsection (d)” and inserting “section 4374 of this title”. ###

(i)Transfer of Subsection

(g)of Section 2433 ####

(1)Transfer Subsection

(g)of section 2433 of title 10, United States Code, is transferred to section 4375 of such title, as added by subsection (a), inserted after subsection (c), as transferred and amended by subsection (h), and amended— #####

(A)by striking the subsection designation; and #####

(B)by redesignating paragraphs

(1)and

(2)as subsections

(d)and (e), respectively. ####

(2)Revision to new 4375(d) Subsection

(d)of such section 4375, as so redesignated, is amended— #####

(A)by striking “Except as provided in paragraph (2), each report under subsection (e)” and inserting “Matter to Be Included in Reports.—Except as provided in subsection (e), each report under this section”; #####

(B)by redesignating subparagraphs

(A)through

(Q)as paragraphs

(1)through (17), respectively; #####

(C)in paragraph (9), as so redesignated, by striking “section 2435” and inserting “section 4214”; and #####

(D)in paragraph (16), as so redesignated, by redesignating clauses

(i)through

(vi)as subparagraphs

(A)through (F), respectively. ####

(3)Revision to new 4375(e) Subsection

(e)of such section 4375, as so redesignated, is amended— #####

(A)by striking “ If a program acquisition unit cost ” and inserting > “ Breach Due to Termination or Cancellation of Program or Subprogram.— > > > #### “(1) Limited reporting > > If a program acquisition unit cost” > ; #####

(B)by striking “clauses

(A)through

(F)of paragraph (1)” and inserting “paragraphs

(1)through

(6)of subsection (d)”; #####

(C)by designating the second sentence as paragraph (2); and #####

(D)in paragraph (2), as so designated— ######

(i)by inserting “Certification not required.—” before “The certification”; and ######

(ii)by striking “subsection (e)” and inserting “subsection (b)”. ###

(j)Transfer of Subsection (a), (b), and

(d)of Section 2433a ####

(1)Transfer of subsections

(a)and

(b)Subsection

(a)and

(b)of section 2433a of title 10, United States Code, are transferred to section 4376 of such title, as added by subsection (a), and inserted after the section heading. ####

(2)Transfer and redesignation of subsection

(d)Subsection

(d)of section 2433a of such title is transferred to such section 4376, inserted after subsection (b), as transferred by paragraph (1), and redesignated as subsection (c). ####

(3)Conforming cross-reference amendments Such section 4376 is amended— #####

(A)in subsection (a), by striking “section 2433(d)” and inserting “section 4374”; and #####

(B)in subsection (b)(1)— ######

(i)by striking “section 2433(g)” and inserting “section 4375(d) and (e)”; and ######

(ii)by striking “section 2432(f)” and inserting “section 4356(a)”. ####

(4)Headings and format in subsection

(b)Subsection

(b)of such section 4376 is amended— #####

(A)by striking “ Termination.—(1) After conducting ” and inserting > “ Termination.— > > > #### “(1) Termination unless secretary submits certification and report > > After conducting” > ; #####

(B)by realigning paragraphs

(2)and

(3)2 ems from the left margin; #####

(C)in paragraph (2), by inserting “Certification.—” after “(2)”; and #####

(D)in paragraph (3), by inserting “Report.—” after “(3)”. ###

(k)Transfer of Subsection

(c)of Section 2433a ####

(1)Transfer Subsection

(c)of section 2433a of title 10, United States Code, is transferred to section 4377 of such title, as added by subsection (a), inserted after the section heading, and redesignated as subsection (a). ####

(2)Redesignations Paragraphs

(2)and

(3)of such section 4377 are redesignated as subsections

(b)and (c), respectively. ####

(3)Revision to new section 4377(a) Subsection

(a)of such section, as redesignated by paragraph (1), is amended— #####

(A)by striking “(1)” before “If the Secretary”; #####

(B)by inserting “of section 4376 of this title” after “subsection (b)”; #####

(C)by redesignating subparagraphs (A), (B), (C), (D), and

(E)as paragraphs (1), (2), (3), (4), and (5), respectively; #####

(D)in paragraph (1), as so redesignated, by inserting “of that section” after “subsection (a)” and after “subsection (b)(2)(E)”; #####

(E)in paragraph (2), as so redesignated, by striking “section 2366a or 2366b” and inserting “section 4251 or 4252”; and #####

(F)in paragraph (4), as so redesignated, by striking “paragraph (2)” and inserting “subsection (b)”. ####

(4)Revision to new section 4377(b) Subsection

(b)of such section, as redesignated by paragraph (2), is amended— #####

(A)by inserting “Identification of Report for Description of Funding Changes.—” before “For purposes of”; #####

(B)by striking “paragraph (1)(D)” and inserting “subsection (a)(4)”; #####

(C)by striking “in this paragraph” and inserting “in this subsection”; and #####

(D)by striking “section 2432” and inserting “section 4352”. ####

(5)Redesignations and headings in new section 4377(c) Subsection

(c)of such section, as redesignated by paragraph (2), is amended— #####

(A)by striking “

(A)The requirements of subparagraphs (B), (C), and

(E)of paragraph

(1)” and inserting > “ Inapplicability of Certain Subsection

(a)Requirements.— > > > #### “(1) Conditions for inapplicability > > The requirements of paragraphs (2), (3), and

(5)of subsection (a)” > ; and #####

(B)by redesignating subparagraph

(B)as paragraph

(2)and inserting “Cost growth thresholds.—” therein before “The cost growth thresholds”. ####

(6)Revisions to new 4377(c)(1) Paragraph

(1)of such section 4377(c), as so designated, is amended— #####

(A)by redesignating clauses (i), (ii), and

(iii)as subparagraphs (A), (B), and (C), respectively; #####

(B)by redesignating subclauses

(I)and

(II)of each of subparagraphs

(A)and

(C)as clauses

(i)and (ii), respectively; #####

(C)in subparagraph (A), as so redesignated— ######

(i)in the matter preceding clause (i), as so redesignated, by striking “pursuant to subsection (a)” and inserting “pursuant to section 4376(a) of this title”; ######

(ii)in clause (i), as so redesignated, by striking “subparagraph (B)” and inserting “paragraph (2)”; and ######

(iii)in clause (ii), as so redesignated, by striking “subclause (I)” and inserting “clause (i)”; and #####

(D)in subparagraph (C), as so redesignated— ######

(i)in the matter preceding clause (i), as so redesignated— ######

(I)by striking “section 2433(g)” and inserting “subsections

(d)and

(e)of section 4375”; and ######

(II)by striking “section 2432(f)” and inserting “section 4356”; ######

(ii)in clause (i), as so redesignated, by striking “clause (i)” and inserting “subparagraph (A)”; and ######

(iii)in clause (ii), as so redesignated, by striking “clause (ii)” and inserting “subparagraph (B)”. ####

(7)Revisions to new 4377(c)(2) Paragraph

(2)of such section 4377(c), as so designated, is amended— #####

(A)in the matter preceding clause (i), by striking “this subparagraph” and inserting “this paragraph”; #####

(B)by redesignating clauses

(i)and

(ii)as subparagraphs

(A)and (B), respectively; and #####

(C)by redesignating subclauses

(I)and

(II)of each of subparagraphs

(A)and

(B)as clauses

(i)and (ii), respectively. ###

(l)Conforming Repeals Sections 2433 and 2433a of title 10, United States Code, are repealed. ###

(m)Cross Reference Section 181(b)(6) of title 10, United States Code, is amended by striking “2433(e)(2)” and inserting “4375(b)”.

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John S. McCain National Defense Authorization Act for Fiscal Year 2019
Public Law 115-232

U.S. Code

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Sec. 1850

COST GROWTH—UNIT COST REPORTS (NUNN-MCCURDY)

Pub. L.Public Law 115-232

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