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(3) INFORMATION
UPDATES.—For major pro-
grams for which a Baseline Report has been sub-
mitted, each subsequent Major Program Annual Re-
port shall describe any changes to the information 
that had been provided in the Baseline Report, and 
the reasons for those changes. 
(c) NOTIFICATION.— 
(1) REQUIREMENT.—The individual identified 
under subsection (b)(2)(E) shall immediately notify 
the Administrator any time that individual has rea-
sonable cause to believe that, for the major program 
for which he or she is responsible— 
(A) the development cost of the program is 
likely to exceed the estimate provided in the 
Baseline Report of the program by 15 percent or 
more; or 
(B) a milestone of the program is likely to 
be delayed by 6 months or more from the date 
provided for it in the Baseline Report of the pro-
gram. 
(2) REASONS.—Not later than 30 days after the 
notification required under paragraph (1), the indi-
vidual identified under subsection (b)(2)(E) shall 
transmit to the Administrator a written notification 
explaining the reasons for the change in the cost or 
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milestone of the program for which notification was 
provided under paragraph (1). 
(3) NOTIFICATION
OF
CONGRESS.—Not later 
than 15 days after the Administrator receives a writ-
ten notification under paragraph (2), the Adminis-
trator shall transmit the notification to the Com-
mittee on Science of the House of Representatives and 
the Committee on Commerce, Science, and Transpor-
tation of the Senate. 
(d) FIFTEEN PERCENT THRESHOLD.—Not later than 
30 days after receiving a written notification under sub-
section (c)(2), the Administrator shall determine whether 
the development cost of the program is likely to exceed the 
estimate provided in the Baseline Report of the program 
by 15 percent or more, or whether a milestone is likely to 
be delayed by 6 months or more. If the determination is 
affirmative, the Administrator shall— 
(1) transmit to the Committee on Science of the 
House of Representatives and the Committee on Com-
merce, Science, and Transportation of the Senate, not 
later than 15 days after making the determination, a 
report that includes— 
(A) a description of the increase in cost or 
delay in schedule and a detailed explanation for 
the increase or delay; 
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(B) a description of actions taken or pro-
posed to be taken in response to the cost increase 
or delay; and 
(C) a description of any impacts the cost 
increase or schedule delay, or the actions de-
scribed under subparagraph (B), will have on 
any other program within the Administration; 
and 
(2) if the Administrator intends to continue with 
the program, promptly initiate an analysis of the 
program, which shall include, at a minimum— 
(A) the projected cost and schedule for com-
pleting the program if current requirements of 
the program are not modified; 
(B) the projected cost and the schedule for 
completing the program after instituting the ac-
tions described under paragraph (1)(B); and 
(C) a description of, and the projected cost 
and schedule for, a broad range of alternatives to 
the program. 
The Administration shall complete an analysis initiated 
under paragraph (2) not later than 6 months after the Ad-
ministrator makes a determination under this subsection. 
The Administrator shall transmit the analysis to the Com-
mittee on Science of the House of Representatives and Com-
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mittee on Commerce, Science, and Transportation of the 
Senate not later than 30 days after its completion. 
(e) THIRTY PERCENT THRESHOLD.—If the Adminis-
trator determines under subsection (d) that the development 
cost of a program will exceed the estimate provided in the 
Baseline Report of the program by more than 30 percent, 
then, beginning 18 months after the date the Administrator 
transmits a report under subsection (d)(1), the Adminis-
trator shall not expend any additional funds on the pro-
gram, other than termination costs, unless the Congress has 
subsequently authorized continuation of the program by 
law. An appropriation for the specific program enacted sub-
sequent to a report being transmitted shall be considered 
an authorization for purposes of this subsection. If the pro-
gram is continued, the Administrator shall submit a new 
Baseline Report for the program no later than 90 days after 
the date of enactment of the Act under which Congress has 
authorized continuation of the program. 
(f) DEFINITIONS.—For the purposes of this section— 
(1) the term ‘‘development’’ means the phase of 
a program following the formulation phase and begin-
ning with the approval to proceed to implementation. 
(2) the term ‘‘development cost’’ means the total 
of all costs, including construction of facilities and 
civil servant costs, from the period beginning with the 
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approval to proceed to implementation through the 
achievement of operational readiness, without regard 
to funding source or management control, for the life 
of the program; 
(3) the term ‘‘life-cycle cost’’ means the total of 
the direct, indirect, recurring, and nonrecurring costs, 
including the construction of facilities and civil serv-
ant costs, and other related expenses incurred or esti-
mated to be incurred in the design, development, 
verification, production, operation, maintenance, sup-
port, and retirement of a program over its planned 
lifespan, without regard to funding source or manage-
ment control; and 
(4) the term ‘‘major program’’ means an activity 
approved to proceed to implementation that has an 
estimated life-cycle cost of more than $250,000,000. 
SEC. 17. LIMITATIONS ON OFF-SHORE PERFORMANCE OF 
CONTRACTS FOR THE PROCUREMENT OF 
GOODS AND SERVICES. 
(a) CONVERSIONS TO CONTRACTOR PERFORMANCE OF 
ADMINISTRATION ACTIVITIES.—Except as provided in sub-
section (c), an activity or function of the Administration 
that is converted to contractor performance under Office of 
Management and Budget Circular A-76 may not be per-
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formed by the contractor or any subcontractor at a location 
outside the United States. 
(b) CONTRACTS FOR THE PROCUREMENT OF SERV-
ICES.—(1) Except as provided in subsection (c), a contract 
for the procurement of goods or services that is entered into 
by the Administrator may not be performed outside the 
United States unless it is to meet a requirement of the Ad-
ministration for goods or services specifically at a location 
outside the United States. 
(2) The President may waive the prohibition in para-
graph (1) in the case of any contract for which the Presi-
dent determines in writing that it is necessary in the na-
tional security interests of the United States for goods or 
services under the contract to be performed outside the 
United States. 
(3) The Administrator may waive the prohibition in 
paragraph (1) in the case of any contract for which the 
Administrator determines in writing that essential goods 
or services under the contract are only available from a 
source outside the United States. 
(c) EXCEPTION.—Subsections (a) and (b)(1) shall not 
apply to the extent that the activity or function under the 
contract was previously performed by Federal Government 
employees outside the United States. 
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