10 U.S.C. § 2434 (ARMED FORCES)
§ 2434. Independent cost estimates
(a) Requirement for Approval.—
(1) The Secretary of Defense may not approve the system development and demonstration, or the production and deployment, of a major defense acquisition program unless an independent estimate of the full life-cycle cost of the program has been considered by the Secretary.
(2) The provisions of this section shall apply to any major subprogram of a major defense acquisition program (as designated under section 2430a(a)(1) of this title) in the same manner as those provisions apply to a major defense acquisition program, and any reference in this section to a program shall be treated as including such a subprogram.
(b) Regulations.—
The Secretary of Defense shall prescribe regulations governing the content and submission of the estimates required by subsection (a). The regulations shall require that the independent estimate of the full life-cycle cost of a program—
(1) be prepared or approved by the Director of Cost Assessment and Program Evaluation; and
(2) include all costs of development, procurement, military construction, operations and support, and trained manpower to operate, maintain, and support the program upon full operational deployment, without regard to funding source or management control.
(Added Pub. L. 98–94, title XII, § 1203(a)(1), Sept. 24, 1983, 97 Stat. 682, § 139c; renumbered § 2434 and amended Pub. L. 99–433, title I, §§ 101(a)(5), 110(d)(15), (g)(9), Oct. 1, 1986, 100 Stat. 995, 1003, 1004; Pub. L. 99–661, div. A, title XII, § 1208(a)–(c)(1), Nov. 14, 1986, 100 Stat. 3975; Pub. L. 100–26, § 7(b)(5), Apr. 21, 1987, 101 Stat. 279; Pub. L. 100–180, div. A, title XIII, § 1314(a)(1), Dec. 4, 1987, 101 Stat. 1175; Pub. L. 100–456, div. A, title V, § 525, Sept. 29, 1988, 102 Stat. 1975; Pub. L. 102–190, div. A, title VIII, § 801(a), (b)(1), Dec. 5, 1991, 105 Stat. 1412; Pub. L. 103–355, title III, § 3004, Oct. 13, 1994, 108 Stat. 3330; Pub. L. 104–106, div. A, title VIII, § 814, Feb. 10, 1996, 110 Stat. 395; Pub. L. 107–107, div. A, title VIII, § 821(a), Dec. 28, 2001, 115 Stat. 1181; Pub. L. 111–23, title I, § 101(d)(5), May 22, 2009, 123 Stat. 1710; Pub. L. 111–383, div. A, title VIII, § 814(e), Jan. 7, 2011, 124 Stat. 4267; Pub. L. 114–92, div. A, title VIII, § 831(a)–(c)(1), Nov. 25, 2015, 129 Stat. 912.)
heading: Amendments
text: 2015—Pub. L. 114–92, § 831(c)(1), substituted “Independent cost estimates” for “Independent cost estimates; operational manpower requirements” in section catchline.
Subsec. (a)(1). Pub. L. 114–92, § 831(a), substituted “has” for “and a manpower estimate for the program have”.
Subsec. (b). Pub. L. 114–92, § 831(b), substituted “shall require” for “shall require—”; struck out par. (1) designation before “that the independent”; redesignated subpars. (A) and (B) as pars. (1) and (2), respectively, and realigned margins; in par. (2), substituted “operations and support, and trained manpower to operate, maintain, and support the program upon full operational deployment,” for “and operations and support,” and period at end for “; and”; and struck out former par. (2) which read as follows: “that the manpower estimate include an estimate of the total number of personnel required—
“(A) to operate, maintain, and support the program upon full operational deployment; and
“(B) to train personnel to carry out the activities referred to in subparagraph (A).”
2011—Subsec. (a). Pub. L. 111–383 designated existing provisions as par. (1) and added par. (2).
2009—Subsec. (b)(1)(A). Pub. L. 111–23 amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “be prepared—
“(i) by an office or other entity that is not under the supervision, direction, or control of the military department, Defense Agency, or other component of the Department of Defense that is directly responsible for carrying out the development or acquisition of the program; or
“(ii) if the decision authority for the program has been delegated to an official of a military department, Defense Agency, or other component of the Department of Defense, by an office or other entity that is not directly responsible for carrying out the development or acquisition of the program; and”.
2001—Subsec. (a). Pub. L. 107–107 substituted “system development and demonstration” for “engineering and manufacturing development”.
1996—Subsec. (b)(1)(A). Pub. L. 104–106 amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “be prepared by an office or other entity that is not under the supervision, direction, or control of the military department, Defense Agency, or other component of the Department of Defense that is directly responsible for carrying out the development or acquisition of the program; and”.
1994—Subsec. (a). Pub. L. 103–355, § 3004(b), substituted “engineering and manufacturing development” for “full-scale engineering development” and “full life-cycle cost of the program and a manpower estimate for the program have” for “cost of the program, together with a manpower estimate, has”.
Subsec. (b). Pub. L. 103–355, § 3004(a), amended subsec. (b) generally. Prior to amendment, subsec. (b) defined “independent estimate”, “cost of the program”, and “manpower estimate”.
1991—Subsec. (a). Pub. L. 102–190, § 801(a), substituted “unless an independent estimate of the cost of the program, together with a manpower estimate, has been considered by the Secretary.” for “unless—
“(1) an independent estimate of the cost of the program is first submitted to (and considered by) the Secretary; and
“(2) the Secretary submits a manpower estimate of the program to the Committees on Armed Services of the Senate and the House of Representatives at least 30 days in advance of such approval.”
Subsecs. (b), (c). Pub. L. 102–190, § 801(b)(1), redesignated subsec. (c) as (b) and struck out former subsec. (b) which read as follows:
“(b) Exceptions.—(1) Subsection (a)(2) shall not apply during time of war or during a national emergency declared by Congress or the President.
“(2) The 30-day period specified in subsection (a)(2) shall be reduced to 10 days in the case of a major defense acquisition program if the manpower estimate submitted by the Secretary of Defense under subsection (a)(2) with respect to that program indicates that no increase in military or civilian personnel end strengths described in subsection (c)(3)(B) will be required.”
1988—Subsec. (a)(2). Pub. L. 100–456, § 525(1), substituted “30 days” for “90 days”.
Subsec. (b). Pub. L. 100–456, § 525(3), added subsec. (b). Former subsec. (b) redesignated (c).
Subsec. (c). Pub. L. 100–456, § 525(2), redesignated subsec. (b) as (c), and in par. (3)(A), substituted “in total personnel or in” for “both in total personnel and”.
1987—Pub. L. 100–180 made technical amendment to directory language of Pub. L. 99–433, § 101(a)(5). See 1986 Amendment note below.
Subsec. (b). Pub. L. 100–26 redesignated pars. (2) to (4) as (1) to (3), respectively, and struck out former par. (1) which defined “major defense acquisition program”.
1986—Pub. L. 99–433, § 101(a)(5), as amended by Pub. L. 100–180, § 1314(a)(1), renumbered section 139c of this title as this section.
Pub. L. 99–661, § 1208(c)(1), substituted “Independent cost estimates; operational manpower requirements” for “Independent cost estimates” in section catchline.
Pub. L. 99–433, § 110(d)(15), substituted “Independent cost estimates” for “Major defense acquisition programs: independent cost estimates” in section catchline.
Subsec. (a). Pub. L. 99–661, § 1208(a), inserted heading, designated existing provisions as par. (1), and added par. (2).
Subsec. (b). Pub. L. 99–661, § 1208(b)(1), inserted heading.
Subsec. (b)(1). Pub. L. 99–661, § 1208(b)(2), substituted “The term ‘Major” for “ ‘Major”.
Pub. L. 99–433, § 110(g)(9), substituted “section 2432(a)(1)” for “section 139a(a)(1)”.
Subsec. (b)(2). Pub. L. 99–661, § 1208(b)(3), substituted “The term ‘independent” for “ ‘Independent”.
Subsec. (b)(3). Pub. L. 99–661, § 1208(b)(4), substituted “The term ‘cost” for “ ‘Cost”.
Subsec. (b)(4). Pub. L. 99–661, § 1208(b)(5), added par. (4).
heading: Effective Date of 1987 Amendment
text: Amendment by Pub. L. 100–180 applicable as if included in enactment of the Goldwater-Nichols Department of Defense Reorganization Act of 1986, Pub. L. 99–433, see section 1314(e) of Pub. L. 100–180, set out as a note under section 743 of this title.
heading: Effective Date of 1986 Amendment
text: Pub. L. 99–661, div. A, title XII, § 1208(d), Nov. 14, 1986, 100 Stat. 3976, provided that: “The amendments made by this section [amending this section] shall apply to approvals of full-scale engineering development and to approvals of production and deployment of major defense acquisition programs made after December 31, 1986.”
heading: Effective Date
text: Pub. L. 98–94, title XII, § 1203(b), Sept. 24, 1983, 97 Stat. 683, provided that: “Section 139c [now 2434] of title 10, United States Code, as added by subsection (a), shall take effect on October 1, 1983.”
heading: Report to Congress on Use of Independent Cost Estimates in Planning, Programing, Budgeting, and Selection for Major Defense Acquisition Programs
text: Pub. L. 99–145, title IX, § 952, Nov. 8, 1985, 99 Stat. 701, directed Secretary of Defense, not later than Apr. 1, 1986, to submit to Congress a report on the continued use of independent cost estimates in the planning, programing, budgeting, and selection process for major defense acquisition programs of the Department.
Pub. L. 98–94, title XII, § 1203(c), Sept. 24, 1983, 97 Stat. 683, directed Secretary of Defense, not later than May 1, 1984, to submit a written report to Congress on use of independent cost estimates in planning, programing, budgeting, and selection process for major defense acquisition programs in Department, such report to include an overall assessment of extent to which such estimates were adopted by Department in making decisions on the FY 1985 budget and a general explanation of why such estimates might have been modified or rejected, and a discussion of current and future initiatives to make greater or more productive use of independent cost estimates in the Department.
heading: Allocation of Adequate Personnel and Financial Resources in Developing or Assessing Independent Estimates of Costs
text: Pub. L. 98–94, title XII, § 1203(d), Sept. 24, 1983, 97 Stat. 683, provided that: “It is the sense of the Congress that the Secretary of Defense should ensure that adequate personnel and financial resources are allocated at all levels of the Department of Defense to those organizations or offices charged with developing or assessing independent estimates of the costs of major defense acquisition programs.”