US Code

Public Law 119-73 (01/23/2026)

10 U.S.C. § 3226

Estimates for program baseline and analyses and targets for contract negotiation purposes

(a)

Cost Estimates Developed for Specified Purposes Not to Be Used for Contract Negotiations or Obligation of Funds .—

section 3221 of this titleThe policies, procedures, and guidance issued by the Director of Cost Assessment and Program Evaluation in accordance with the requirements of shall provide that cost estimates developed for baseline descriptions and other program purposes conducted pursuant to subsection (b)(6) of such section are not to be used for the purpose of contract negotiations or the obligation of funds.
(b)

Cost Estimates Developed for Specified Purposes Not to Be Used for Contract Negotiations or Obligation of Funds .—

The Under Secretary of Defense for Acquisition and Sustainment shall, in consultation with the Director of Cost Assessment and Program Evaluation, develop policies, procedures, and guidance to ensure that cost analyses and targets developed for the purpose of contract negotiations and the obligation of funds are based on the Government’s reasonable expectation of successful contractor performance in accordance with the contractor’s proposal and previous experience.
(c)

Program Manager and Contracting Officer .—

The program manager and contracting officer for each major defense acquisition program and major subprogram shall ensure that cost analyses and targets developed for the purpose of contract negotiations and the obligation of funds are carried out in accordance with the requirements of subsection (a) and the policies, procedures, and guidance issued by the Under Secretary of Defense for Acquisition and Sustainment under subsection (b).
(d)

Availability of Excess Funds.—

(1)
section 3221(b)(6) of this title Funds that are made available for a major defense acquisition program or major subprogram in accordance with a cost estimate conducted pursuant to , but are excess to a cost analysis or target developed pursuant to subsection (b), shall remain available for obligation in accordance with the terms of applicable authorization and appropriations Acts.
(2)
Funds described in paragraph (1) may be used—
(A)
to cover any increased program costs identified by a revised cost analysis or target developed pursuant to subsection (b);
(B)
section 3069 of this title to acquire additional end items in accordance with ; or
(C)
to cover the cost of risk reduction and process improvements.

Pub. L. 116–283, div. A, title XVIII, § 1812(a)134 Stat. 4174Pub. L. 119–60, div. A, title VIII, § 812(a)(5)139 Stat. 951(Added and amended , (g), , , 4176; , , .)

Editorial Notes

Codification

section 2334 of this titlePub. L. 116–283, § 1812(g)Pub. L. 111–383, div. A, title VIII, § 811(3)124 Stat. 4263Pub. L. 112–81, div. A, title VIII, § 833125 Stat. 1506Pub. L. 114–328, div. A, title VIII, § 842(a)(3)130 Stat. 2288–2290Pub. L. 116–92, div. A, title IX, § 902(53)133 Stat. 1549The text of subsec. (f) of , which was transferred to this section and amended by , was based on , , ; , , ; , (b)(3), (6), , ; , , .

Amendments

Pub. L. 119–602025—Subsec. (d)(2). amended par. (2) generally. Prior to amendment, par. (2) read as follows: “Funds described in paragraph (1)—

“(A) may be used—

“(i) to cover any increased program costs identified by a revised cost analysis or target developed pursuant to subsection (b);

section 3069 of this title“(ii) to acquire additional end items in accordance with the requirements of ; or

“(iii) to cover the cost of risk reduction and process improvements; and

“(B) may be reprogrammed, in accordance with established procedures, only if determined to be excess to program needs on the basis of a cost estimate developed with the concurrence of the Director of Cost Assessment and Program Evaluation.”

Pub. L. 116–283, § 1812(g)(1)section 2334 of this titlesection 3221 of this title2021—Subsec. (a). , (2)(A), (B), redesignated subsec. (f) of as subsec. (a) of this section, substituted “Cost Estimates Developed for Specified Purposes Not to Be Used for Contract Negotiations or Obligation of Funds” for “Estimates for Program Baseline and Analyses and Targets for Contract Negotiation Purposes” in heading, struck out par. (1) designation before “The policies,”, and substituted “” for “subsection (a)” and “subsection (b)(6) of such section” for “subsection (a)(6)”. Pars. (2), (3), (4), and (5) of subsec. (a) redesignated subsecs. (b), (c), (d)(1), and (d)(2), respectively.

Pub. L. 116–283, § 1812(g)(2)(C)Subsec. (b). , redesignated subsec. (a)(2) as (b) and inserted heading.

Pub. L. 116–283, § 1812(g)(2)(D)Subsec. (c). , redesignated subsec. (a)(3) as (c), inserted heading, and substituted “The program manager” for “The Program Manager”, “subsection (a)” for “paragraph (1)”, and “subsection (b)” for “paragraph (2)”.

Pub. L. 116–283, § 1812(g)(2)(E)(i)Subsec. (d). , (iii), redesignated subsec. (a)(4) and (5) as (d)(1) and (2), respectively, inserted subsec. heading, and realigned margin of par. (2).

Pub. L. 116–283, § 1812(g)(2)(E)(ii)section 3221(b)(6) of this titleSubsec. (d)(1). , substituted “” for “subsection (a)(6)” and “subsection (b)” for “paragraph (2)”.

Pub. L. 116–283, § 1812(g)(2)(E)(iv)Subsec. (d)(2). , substituted “paragraph (1)” for “paragraph (4)” in introductory provisions, “subsection (b)” for “paragraph (2)” in subpar. (A)(i), and “section 3069” for “section 2308” in subpar. (A)(ii).

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 116–283section 1801(d) of Pub. L. 116–283section 3001 of this titleSection and amendment by effective , with additional provisions for delayed implementation and applicability of existing law, see , set out as an Effective Date of 2021 Amendment note preceding .