{"identifier":"/us/usc/t10/s4371","title":10,"num":"\u00a7\u202f4371.","heading":"Cost growth definitions; applicability of reporting requirements; constant base year dollars","text":"\u00a7\u202f4371.\nCost growth definitions; applicability of reporting requirements; constant base year dollars\n(a)\nDefinitions.\u2014\nIn this chapter:\n(1)\nProgram acquisition unit cost; procurement unit cost; major contract.\u2014\nExcept as provided in\nsection 4203(d) of this title\nsection 4351(a) of this title\n(2)\nSignificant cost growth threshold.\u2014\nThe term \u201csignificant cost growth threshold\u201d means the following:\n(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\u2014\n(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\n(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.\n(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\u2014\n(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\n(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.\n(3)\nCritical cost growth threshold.\u2014\nThe term \u201ccritical cost growth threshold\u201d means the following:\n(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\u2014\n(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\n(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.\n(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\u2014\n(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\n(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.\n(4)\nBaseline estimate.\u2014\nThe term \u201cBaseline Estimate\u201d, with respect to a unit cost report that is submitted under this chapter 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\nsection 4214 of this title\n(5)\nOriginal baseline estimate.\u2014\nThe term \u201coriginal Baseline Estimate\u201d has the same meaning as provided in\nsection 4214(d) of this title\n(6)\nProcurement program.\u2014\nThe term \u201cprocurement program\u201d means a program for which funds for procurement are authorized to be appropriated in a fiscal year.\n(b) Reporting under this chapter shall not apply if a program has received a limited reporting waiver under\nsection 4351(h) of this title\n(c) Any determination of a percentage increase under this chapter shall be stated in terms of constant base year dollars (as described in\nsection 4202 of this title","url":"https://projectusc.org/usc/t10/s4371.html","content":[{"t":"sec","id":"/us/usc/t10/s4371","children":[{"t":"num","text":"\u00a7\u202f4371."},{"t":"heading","text":"Cost growth definitions; applicability of reporting requirements; constant base year dollars"},{"t":"subsec","id":"/us/usc/t10/s4371/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Definitions.\u2014"},{"t":"chapeau","text":"In this chapter:"},{"t":"para","id":"/us/usc/t10/s4371/a/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Program acquisition unit cost; procurement unit cost; major contract.\u2014"},{"t":"content","text":"Except as provided in ","children":[{"t":"ref","text":"section 4203(d) of this title","href":"/us/usc/t10/s4203/d","tail":", the terms \u201cprogram acquisition unit cost\u201d, \u201cprocurement unit cost\u201d, and \u201cmajor contract\u201d have the same meanings as provided in "},{"t":"ref","text":"section 4351(a) of this title","href":"/us/usc/t10/s4351/a","tail":"."}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t10/s4371/a/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Significant cost growth threshold.\u2014"},{"t":"chapeau","text":"The term \u201csignificant cost growth threshold\u201d means the following:"},{"t":"subpara","id":"/us/usc/t10/s4371/a/2/A","children":[{"t":"num","text":"(A)"},{"t":"chapeau","text":" 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\u2014"},{"t":"clause","id":"/us/usc/t10/s4371/a/2/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" 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","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t10/s4371/a/2/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" 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.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t10/s4371/a/2/B","children":[{"t":"num","text":"(B)"},{"t":"chapeau","text":" 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\u2014"},{"t":"clause","id":"/us/usc/t10/s4371/a/2/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" 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","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t10/s4371/a/2/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" 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.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t10/s4371/a/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Critical cost growth threshold.\u2014"},{"t":"chapeau","text":"The term \u201ccritical cost growth threshold\u201d means the following:"},{"t":"subpara","id":"/us/usc/t10/s4371/a/3/A","children":[{"t":"num","text":"(A)"},{"t":"chapeau","text":" 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\u2014"},{"t":"clause","id":"/us/usc/t10/s4371/a/3/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" 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","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t10/s4371/a/3/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" 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.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t10/s4371/a/3/B","children":[{"t":"num","text":"(B)"},{"t":"chapeau","text":" 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\u2014"},{"t":"clause","id":"/us/usc/t10/s4371/a/3/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" 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","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t10/s4371/a/3/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" 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.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t10/s4371/a/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Baseline estimate.\u2014"},{"t":"content","text":"The term \u201cBaseline Estimate\u201d, with respect to a unit cost report that is submitted under this chapter 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 ","children":[{"t":"ref","text":"section 4214 of this title","href":"/us/usc/t10/s4214","tail":"."}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t10/s4371/a/5","children":[{"t":"num","text":"(5)"},{"t":"heading","text":"Original baseline estimate.\u2014"},{"t":"content","text":"The term \u201coriginal Baseline Estimate\u201d has the same meaning as provided in ","children":[{"t":"ref","text":"section 4214(d) of this title","href":"/us/usc/t10/s4214/d","tail":"."}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t10/s4371/a/6","children":[{"t":"num","text":"(6)"},{"t":"heading","text":"Procurement program.\u2014"},{"t":"content","text":"The term \u201cprocurement program\u201d means a program for which funds for procurement are authorized to be appropriated in a fiscal year.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t10/s4371/b","children":[{"t":"num","text":"(b)"},{"t":"content","text":" Reporting under this chapter shall not apply if a program has received a limited reporting waiver under ","children":[{"t":"ref","text":"section 4351(h) of this title","href":"/us/usc/t10/s4351/h","tail":"."}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t10/s4371/c","children":[{"t":"num","text":"(c)"},{"t":"content","text":" Any determination of a percentage increase under this chapter shall be stated in terms of constant base year dollars (as described in ","children":[{"t":"ref","text":"section 4202 of this title","href":"/us/usc/t10/s4202","tail":")."}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}