Table 4 – Statutory Program Breach and Change Definitions

Table 4 is located in Enclosure 1 Section 4 APBs and Baseline Breaches.

 

Table 4. Statutory Program Breach and Change Definitions

Significant Nunn-McCurdy Unit Cost Breaches
(10 U.S.C. 2433 and 2433a (Reference (h)))

Applicable to MDAPs only

• The cost growth threshold, as it relates to the current APB, is defined to be an increase of at least
   15 percent over the program acquisition unit cost (PAUC) or average procurement unit cost (APUC)
   for the current program as shown in the current Baseline Estimate.
• The cost growth threshold, as it relates to the original APB, is defined to be an increase of at least
   30 percent over the PAUC or APUC for the original program as shown in the original Baseline
   Estimate.
• Only the current APB will be revised.

Critical Nunn-McCurdy Unit Cost Breaches
(10 U.S.C. 2433 (Reference (h)))

Applicable to MDAPs only

• The cost growth threshold, as it relates to the current APB, is defined to be an increase of at least
   25 percent over the PAUC or APUC for the program or subprogram as shown in the current
   Baseline Estimate/APB.
• The cost growth threshold, as it relates to the original APB, is defined to be an increase of at least
   50 percent over the PAUC or APUC for the program or subprogram as shown in the original
   Baseline Estimate/APB for the program or subprogram.
• If the program or subprogram is certified rather than terminated, the most recent major milestone
   must be rescinded and a new milestone is required after certification. The program establishes a
   revised original Baseline Estimate/APB that reflects MDA certification and approval.

Significant Change
(10 U.S.C. 2445c (Reference (h)))

Applicable to MAIS programs only

As it relates to the original estimate (see definition in Table 3, this enclosure):
• A schedule change that will cause a delay of more than 6 months but less than 1 year;
• An increase in the estimated development cost or full life-cycle cost for the program by at least 15
  percent, but less than 25 percent; or
• A significant, adverse change in the expected performance of the MAIS to be acquired.

Critical Change
(10 U.S.C. 2445c (Reference (h)))

Applicable to MAIS programs and other major IT investment programs only

As it relates to the original estimate (see definition in Table 3, this enclosure):
• A schedule change will cause a delay of 1 year or more;
• The estimated development cost or full life-cycle cost for the program has increased 25 percent or
   more; or
• A change in expected performance will undermine the ability of the system to perform the
   functions anticipated (i.e., the expected failure to meet a threshold KPP).
• If a MAIS program is already baselined and the MAR shows a Milestone C event, and a Milestone C is not conducted, a critical change will occur.

Cost or Schedule Growth Notification for 2366b Certified Programs
(10 U.S.C. 2366b (Reference h)))

Applicable to MDAPs only

• The Program Manager for an MDAP that has received Milestone B certification will immediately
   notify the MDA of any changes to the program or a designated major subprogram of such program
   that alter the substantive basis for the certification of the milestone decision.
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