Sec. 809. COST GROWTH REPORTS FOR MAJOR ACQUISITION PROGRAMS THAT ARE HIGHLY SENSITIVE CLASSIFIED PROGRAMS

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## SEC. 809 COST GROWTH REPORTS FOR MAJOR ACQUISITION PROGRAMS THAT ARE HIGHLY SENSITIVE CLASSIFIED PROGRAMS ###

(a)Guidance Required Not later than 180 days after the date of the enactment of this Act, the Under Secretary of Defense for Acquisition and Sustainment, in consultation each Secretary of a military department, shall establish guidance requiring that each service acquisition executive (as defined in section 101 of title 10, United States Code) submit to the congressional defense committees a cost growth report for a covered program each time the estimated unit cost for such covered program has increased by a percentage equal to or greater than any of the significant cost growth thresholds or critical cost growth thresholds under section 4371 of title 10, United States Code. ###

(b)Elements of Report A cost growth report required under this section shall include, with respect to a covered program, the following: ####

(1)The name of the covered program. ####

(2)The date of the preparation of the report. ####

(3)The program phase of the covered program. ####

(4)The unit cost estimates for the covered program in constant base-year dollars and in current dollars. ####

(5)A statement of the reasons for cost increases that resulted in the submission of a report under this section. ####

(6)A list of major program milestones, including the dates for each program milestone according to the original baseline, current baseline, and current estimate. ####

(7)Annualized funding for the program by appropriation account from the date on which the program commenced to the current estimated year of completion. ####

(8)Any actions taken or proposed to be taken to control future cost growth of the covered program. ####

(9)Any changes made in the performance or milestones of the covered program and the extent to which such changes have contributed to the cost increase. ###

(c)Critical Breach With respect to a covered program for which the cost growth meets the threshold for a critical cost growth threshold (as defined in section 4371 of title 10, United States Code), the applicable service acquisition executive shall— ####

(1)treat such covered program as if the unit cost of such a covered program has increased by a percentage equal to or greater than any of the critical cost growth thresholds for the covered program; and ####

(2)follow applicable procedures in sections 4376 and 4377 of title 10, United States Code. ###

(d)Definitions In this section: ####

(1)The term “covered program” means a Department of Defense program— #####

(A)that is a highly sensitive classified program (as determined by the Secretary of Defense); #####

(B)that would be a major defense acquisition program under section 4201 of title 10, United States Code, except for the exclusion from the applicability of that section of such a highly sensitive classified program; and #####

(C)that has entered the engineering and manufacturing design phase, or equivalent phase. ####

(2)The term “unit cost” means, with respect to a covered program, as applicable— #####

(A)the program acquisition unit cost (as defined in section 4351 of title 10, United States Code); or #####

(B)the procurement unit cost (as defined in such section). ## Subtitle B Amendments to General Contracting Authorities, Procedures, and Limitations