### §2753. Notification of cost overruns for certain Department of Energy projects

#### (a) Establishment of cost and schedule baselines

#### (1) Stockpile life extension projects

#### (A) In general

The Administrator shall establish a cost and schedule baseline for each nuclear stockpile life extension project of the Administration. In addition to the requirement under subparagraph (B), the cost and schedule baseline of a nuclear stockpile life extension project established under this subparagraph shall be the cost and schedule as described in the first Selected Acquisition Report submitted under section 2537(a) of this title for the project.

#### (B) Per unit cost

The cost baseline developed under subparagraph (A) shall include, with respect to each life extension project, an estimated cost for each warhead in the project.

#### (C) Notification to congressional defense committees

Not later than 30 days after establishing a cost and schedule baseline under subparagraph (A), the Administrator shall submit the cost and schedule baseline to the congressional defense committees.

#### (2) Major alteration projects

#### (A) In general

The Administrator shall establish a cost and schedule baseline for each major alteration project.

#### (B) Per unit cost

The cost baseline developed under subparagraph (A) shall include, with respect to each major alteration project, an estimated cost for each warhead in the project.

#### (C) Notification to congressional defense committees

Not later than 30 days after establishing a cost and schedule baseline under subparagraph (A), the Administrator shall submit the cost and schedule baseline to the congressional defense committees.

#### (D) Major alteration project defined

In this paragraph, the term "major alteration project" means a nuclear weapon system alteration project of the Administration the cost of which exceeds $800,000,000.

#### (3) Defense-funded construction projects

#### (A) In general

The Secretary of Energy shall establish a cost and schedule baseline under the project management protocols of the Department of Energy for each construction project that is—

(i) in excess of $65,000,000; and

(ii) carried out by the Department using funds authorized to be appropriated for a fiscal year pursuant to a DOE national security authorization.

#### (B) Notification to congressional defense committees

Not later than 30 days after establishing a cost and schedule baseline under subparagraph (A), the Secretary shall submit the cost and schedule baseline to the congressional defense committees.

#### (4) Defense environmental cleanup projects

#### (A) In general

The Secretary shall establish a cost and schedule baseline under the project management protocols of the Department of Energy for each defense environmental cleanup project that is—

(i) in excess of $65,000,000; and

(ii) carried out by the Department pursuant to such protocols.

#### (B) Notification to congressional defense committees

Not later than 30 days after establishing a cost and schedule baseline under subparagraph (A), the Secretary shall submit the cost and schedule baseline to the congressional defense committees.

#### (b) Notification of costs exceeding baseline

The Administrator or the Secretary, as applicable, shall notify the congressional defense committees not later than 30 days after determining that—

(1) the total cost for a project referred to in paragraph (1), (2), (3), or (4) of subsection (a) will exceed an amount that is equal to 125 percent of the cost baseline established under subsection (a) for that project; and

(2) in the case of a stockpile life extension project referred to in subsection (a)(1) or a major alteration project referred to in subsection (a)(2), the cost for any warhead in the project will exceed an amount that is equal to 150 percent of the cost baseline established under subsection (a)(1)(B) or (a)(2)(B), as applicable, for each warhead in that project.

#### (c) Notification of determination with respect to termination or continuation of projects and root cause analyses

Not later than 90 days after submitting a notification under subsection (b) with respect to a project, the Administrator or the Secretary, as applicable, shall—

(1) notify the congressional defense committees with respect to whether the project will be terminated or continued;

(2) if the project will be continued, certify to the congressional defense committees that—

(A) a revised cost and schedule baseline has been established for the project and, in the case of a stockpile life extension project referred to in subparagraph (A) or (B) of subsection (a)(1) or a major alteration project referred to in subsection (a)(2), a revised estimate of the cost for each warhead in the project has been made;

(B) the continuation of the project is necessary to the mission of the Department of Energy and there is no alternative to the project that would meet the requirements of that mission; and

(C) a management structure is in place adequate to manage and control the cost and schedule of the project; and

(3) submit to the congressional defense committees an assessment of the root cause or causes of the growth in the total cost of the project, including the contribution of any shortcomings in cost, schedule, or performance of the program, including the role, if any, of—

(A) unrealistic performance expectations;

(B) unrealistic baseline estimates for cost or schedule;

(C) immature technologies or excessive manufacturing or integration risk;

(D) unanticipated design, engineering, manufacturing, or technology integration issues arising during program performance;

(E) changes in procurement quantities;

(F) inadequate program funding or funding instability;

(G) poor performance by personnel of the Federal Government or contractor personnel responsible for program management; or

(H) any other matters.

#### (d) Applicability of requirements to revised cost and schedule baselines

A revised cost and schedule baseline established under subsection (c) shall—

(1) be submitted to the congressional defense committees with the certification submitted under subsection (c)(2); and

(2) be subject to the notification requirements of subsections (b) and (c) in the same manner and to the same extent as a cost and schedule baseline established under subsection (a).

(Pub. L. 107–314, div. D, title XLVII, §4713, as added Pub. L. 111–383, div. C, title XXXI, §3114(a), Jan. 7, 2011, 124 Stat. 4510; amended Pub. L. 112–239, div. C, title XXXI, §3131(t), Jan. 2, 2013, 126 Stat. 2184; Pub. L. 113–66, div. C, title XXXI, §3146(h)(4), Dec. 26, 2013, 127 Stat. 1081; Pub. L. 113–291, div. C, title XXXI, §3115, Dec. 19, 2014, 128 Stat. 3888; Pub. L. 114–92, div. C, title XXXI, §§3113(a), 3114, Nov. 25, 2015, 129 Stat. 1191, 1193; Pub. L. 117–263, div. C, title XXXI, §3118, Dec. 23, 2022, 136 Stat. 3055.)

#### **Editorial Notes**

#### Amendments

2022—Subsec. (a)(2)(D). Pub. L. 117–263, §3118(1), substituted "$800,000,000" for "$750,000,000".

Subsec. (a)(3)(A)(i), (4)(A)(i). Pub. L. 117–263, §3118(2), (3), substituted "$65,000,000" for "$50,000,000".

2015—Subsec. (a)(2) to (4). Pub. L. 114–92, §3113(a)(1), added par. (2) and redesignated former pars. (2) and (3) as (3) and (4), respectively.

Subsec. (b)(1). Pub. L. 114–92, §3113(a)(2)(A)(i), substituted "(3), or (4)" for "or (3)".

Subsec. (b)(2). Pub. L. 114–92, §3113(a)(2)(A)(ii)(II), which directed the insertion of "or (a)(2)(B), as applicable,", was executed by making the insertion after "subsection (a)(1)(B)" to reflect the probable intent of Congress.

Pub. L. 114–92, §3113(a)(2)(A)(ii)(I), inserted "or a major alteration project referred to in subsection (a)(2)" after "subsection (a)(1)".

Subsec. (c). Pub. L. 114–92, §3114(1), inserted "and root cause analyses" after "projects" in heading.

Subsec. (c)(2)(A). Pub. L. 114–92, §3113(a)(2)(B), inserted "or a major alteration project referred to in subsection (a)(2)" after "subsection (a)(1)".

Subsec. (c)(3). Pub. L. 114–92, §3114(2)–(4), added par. (3).

2014—Subsec. (a)(1)(A). Pub. L. 113–291, §3115(1), inserted at end "In addition to the requirement under subparagraph (B), the cost and schedule baseline of a nuclear stockpile life extension project established under this subparagraph shall be the cost and schedule as described in the first Selected Acquisition Report submitted under section 2537(a) of this title for the project."

Subsec. (b)(2). Pub. L. 113–291, §3115(2), substituted "150" for "200".

2013—Subsec. (a)(1)(A). Pub. L. 112–239 struck out "for Nuclear Security" after "Administrator" and struck out "National Nuclear Security" after "life extension project of the".

Subsec. (a)(3). Pub. L. 113–66, §3146(h)(4)(A), substituted "cleanup" for "management" in heading.

Subsec. (a)(3)(A). Pub. L. 113–66, §3146(h)(4)(B), substituted "environmental cleanup" for "environmental management" in introductory provisions.