US Code

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

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 .—

section 4203(d) of this titlesection 4351(a) of this titleExcept as provided in , the terms “program acquisition unit cost”, “procurement unit cost”, and “major contract” have the same meanings as provided in .
(2)

Significant cost growth threshold .—

The term “significant cost growth threshold” means the following:
(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—
(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
(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.
(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—
(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
(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.
(3)

Critical cost growth threshold .—

The term “critical cost growth threshold” means the following:
(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—
(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
(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.
(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—
(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
(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.
(4)

Baseline estimate .—

section 4214 of this titleThe term “Baseline Estimate”, 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 .
(5)

Original baseline estimate .—

section 4214(d) of this titleThe term “original Baseline Estimate” has the same meaning as provided in .
(6)

Procurement program .—

The term “procurement program” means a program for which funds for procurement are authorized to be appropriated in a fiscal year.
(b)
section 4351(h) of this title Reporting under this chapter shall not apply if a program has received a limited reporting waiver under .
(c)
section 4202 of this title Any determination of a percentage increase under this chapter shall be stated in terms of constant base year dollars (as described in ).

Pub. L. 116–283, div. A, title XVIII, § 1850(a)134 Stat. 4265Pub. L. 117–81, div. A, title XVII, § 1701o135 Stat. 2147(Added and amended –(d), , , 4266; ()(6)(E)(i), (ii), , , 2148.)

Editorial Notes

Codification

section 2433 of this titlePub. L. 116–283, § 1850(b)(1)Pub. L. 97–252, title XI, § 1107(a)(1)96 Stat. 741Pub. L. 98–525, title XII, § 1242(b)(1)98 Stat. 2607Pub. L. 99–433, title I100 Stat. 995Pub. L. 100–26, § 7(b)(4)101 Stat. 279Pub. L. 100–180, div. A, title XIII, § 1314(a)(1)101 Stat. 1175Pub. L. 101–189, div. A, title VIII, § 811(a)(1)103 Stat. 1490Pub. L. 102–484, div. A, title VIII, § 817(d)(1)106 Stat. 2456Pub. L. 103–355, title III, § 3003(a)(1)108 Stat. 3329Pub. L. 109–163, div. A, title VIII, § 802(a)119 Stat. 3367Pub. L. 110–417122 Stat. 4522Pub. L. 111–383, div. A, title X, § 1075(b)(34)124 Stat. 4371The text of subsec. (a) of , which was transferred to this section and amended by , was based on , , , § 139b; , , ; renumbered § 2433 and amended , §§ 101(a)(5), 110(g)(8)(A), , , 1004; , (k)(7), , , 284; , , ; , , ; , , ; , , ; , (d)(2), , , 3370; , [div. A], title VIII, § 811(c)(1), , ; , , .

section 2433 of this titlePub. L. 116–283, § 1850(d)Pub. L. 97–252, title XI, § 1107(a)(1)96 Stat. 741Pub. L. 99–433, title I, § 101(a)(5)100 Stat. 995Pub. L. 103–355, title III, § 3003(d)108 Stat. 3329The text of subsec. (f) of , which was transferred to this section, redesignated subsec. (c) and amended by , was based on , , , § 139b; renumbered § 2433, , , ; , , .

section 2433 of this titlePub. L. 116–283, § 1850(c)Pub. L. 99–500, § 101(c) [title X, § 961(b)(2)]100 Stat. 1783–82Pub. L. 99–591, § 101(c) [title X, § 961(b)(2)]100 Stat. 3341–82Pub. L. 99–661, div. A, title IX100 Stat. 3956Pub. L. 100–26, § 3(5)101 Stat. 273The text of subsec. (h) of , which was transferred to this section, redesignated subsec. (b) and amended by , was based on , , , 1783–176, and , , , 3341–176; , formerly title IV, § 961(b)(2), , , renumbered title IX, , , .

Amendments

Pub. L. 116–283, § 1850(b)(2)2021—Subsec. (a). , inserted subsec. heading and headings in pars. (1) to (6).

Pub. L. 116–283, § 1850(b)(1)section 2433 of this title, transferred subsec. (a) of to this section and substituted “this chapter” for “this section” in introductory provisions and par. (2).

Pub. L. 116–283, § 1850(b)(3)(A)Pub. L. 117–81, § 1701oSubsec. (a)(1). , as amended by ()(6)(E)(i), substituted “section 4203(d)” for “section 2430a(d)” and “section 4351(a)” for “section 2432(a)”.

Pub. L. 116–283, § 1850(b)(4)Subsec. (a)(2). , redesignated par. (4) as (2) and transferred it to appear in numerical order. Former par. (2) redesignated (4).

Pub. L. 116–283, § 1850(b)(3)(B), substituted “section 4214” for “section 2435”.

Pub. L. 116–283, § 1850(b)(4)Subsec. (a)(3) to (5). , redesignated pars. (5), (2), and (6) as (3) to (5), respectively, and transferred them to appear in numerical order. Former pars. (3) and (4) redesignated pars. (6) and (2), respectively.

Pub. L. 116–283, § 1850(b)(4)Subsec. (a)(6). , redesignated par. (3) as (6) and transferred it to appear in numerical order. Former par. (6) redesignated (5).

Pub. L. 116–283, § 1850(b)(3)(C), substituted “section 4214(d)” for “section 2435(d)”.

Pub. L. 116–283, § 1850(c)Pub. L. 117–81, § 1701osection 2433 of this titleSubsec. (b). , as amended by ()(6)(E)(ii), transferred subsec. (h) of to this section, redesignated it as subsec. (b), and substituted “under this chapter” for “under this section” and “section 4351(h)” for “section 2432(h)”.

Pub. L. 116–283, § 1850(d)section 2433 of this titleSubsec. (c). , transferred subsec. (f) of to this section, redesignated it as subsec. (c), and substituted “under this chapter” for “under this section” and “section 4202” for “section 2430”.

Statutory Notes and Related Subsidiaries

Effective Date of 2021 Amendment

Pub. L. 117–81Pub. L. 116–283section 1701(a)(2) of Pub. L. 117–81section 3001 of this titleAmendment by applicable as if included in the enactment of title XVIII of as enacted, see , set out in a note preceding and Effective Date note below.

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 .

Cost Growth Reports for Major Acquisition Programs That Are Highly Sensitive Classified Programs

Pub. L. 118–159, div. A, title VIII, § 809138 Stat. 1978

“(a)

Guidance Required .—

section 101 of title 10section 4371 of title 10Not later than 180 days after the date of the enactment of this Act [], the Under Secretary of Defense for Acquisition and Sustainment, in consultation [sic] each Secretary of a military department, shall establish guidance requiring that each service acquisition executive (as defined in , United States Code) submit to the congressional defense committees [Committees on Armed Services and Appropriations of the Senate and the House of Representatives] 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 , 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 .—

section 4371 of title 10With respect to a covered program for which the cost growth meets the threshold for a critical cost growth threshold (as defined in , 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)
section 4201 of title 10 that would be a major defense acquisition program under , 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)
section 4351 of title 10 the program acquisition unit cost (as defined in , United States Code); or
“(B)
the procurement unit cost (as defined in such section).”
, , , provided that: