33 U.S. Code § 878a - Contract for development of a major program; costs; Major Program Annual Report for satellite development program
For purposes of this section—
(2) the term “appropriate congressional committees” means—
(A) the Committee on Appropriations and the Committee on Commerce, Science, and Transportation of the Senate; and
(3) the term “satellite” means the satellites proposed to be acquired for the National Oceanic and Atmospheric Administration (NOAA);
(4) the term “development” means the phase of a program following the formulation phase and beginning with the approval to proceed to implementation, as defined in NOAA Administrative Order 216–108, Department of Commerce Administrative Order 208–3, and NASA’s Procedural Requirements 7120.5c, dated March 22, 2005;
(5) the term “development cost” means the total of all costs, including construction of facilities and civil servant costs, from the period beginning with the 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;
(6) the term “life-cycle cost” means the total of the direct, indirect, recurring, and nonrecurring costs, including the construction of facilities and civil servant costs, and other related expenses incurred or estimated to be incurred in the design, development, verification, production, operation, maintenance, support, and retirement of a program over its planned lifespan, without regard to funding source or management control;
(7) 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; and
(b) Contract requirements for major programs
(1) NOAA shall not enter into a contract for development of a major program, unless the Under Secretary determines that—
(A) the technical, cost, and schedule risks of the program are clearly identified and the program has developed a plan to manage those risks;
(B) the technologies required for the program have been demonstrated in a relevant laboratory or test environment;
(C) the program complies with all relevant policies, regulations, and directives of NOAA and the Department of Commerce;
(2) The Under Secretary shall transmit a report describing the basis for the determination required under paragraph (1) to the appropriate congressional committees at least 30 days before entering into a contract for development under a major program.
(1) Annually, at the same time as the President’s annual budget submission to the Congress, the Under Secretary shall transmit to the appropriate congressional committees a report that includes the information required by this section for the satellite development program for which NOAA proposes to expend funds in the subsequent fiscal year. The report under this paragraph shall be known as the Major Program Annual Report.
(2) The first Major Program Annual Report for NOAA’s satellite development program shall include a Baseline Report that shall, at a minimum, include—
(A) the purposes of the program and key technical characteristics necessary to fulfill those purposes;
(B) an estimate of the life-cycle cost for the program, with a detailed breakout of the development cost, program reserves, and an estimate of the annual costs until development is completed;
(D) the plan for mitigating technical, cost, and schedule risks identified in accordance with subsection (b)(1)(A); and
(d) Notification to Under Secretary of excess development costs
(1) The individual identified under subsection (c)(2)(E) shall immediately notify the Under Secretary any time that individual has reasonable cause to believe that, for the major program for which he or she is responsible, the development cost of the program has exceeded the estimate provided in the Baseline Report of the program by 20 percent or more.
(2) Not later than 30 days after the notification required under paragraph (1), the individual identified under subsection (c)(2)(E) shall transmit to the Under Secretary a written notification explaining the reasons for the change in the cost of the program for which notification was provided under paragraph (1).
(e) Determination by Under Secretary of excess development costs
Not later than 30 days after receiving a written notification under subsection (d)(2), the Under Secretary shall determine whether the development cost of the program has exceeded the estimate provided in the Baseline Report of the program by 20 percent or more. If the determination is affirmative, the Under Secretary shall—
(1) transmit to the appropriate congressional committees, not later than 15 days after making the determination, a report that includes—
(2) if the Under Secretary 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 completing 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 actions described under paragraph (1)(B); and
(f) Completion and transmittal of analysis
NOAA shall complete an analysis initiated under subsection (e)(2) not later than 6 months after the Under Secretary makes a determination under subsection (e). The Under Secretary shall transmit the analysis to the appropriate congressional committees not later than 30 days after its completion.
Source(Pub. L. 112–55, div. B, title I, § 105,Nov. 18, 2011, 125 Stat. 599; Pub. L. 113–6, div. B, title I, § 105(a),Mar. 26, 2013, 127 Stat. 242.)
Provisions similar to those in this section were contained in the following prior appropriation act:
2013—Subsec. (f). Pub. L. 113–6substituted “subsection (e)(2)” for “paragraph (2)” and “subsection (e)” for “this subsection”.
Requirements Adopted by Reference
Pub. L. 113–76, div. B, title I, § 104,Jan. 17, 2014, 128 Stat. 51, provided that: “The requirements set forth by section 105 of the Commerce, Justice, Science, and Related Agencies Appropriations Act, 2012 (Public Law 112–55) [33 U.S.C. 878a], as amended by section 105 of title I of division B of Public Law 113–6, are hereby adopted by reference and made applicable with respect to fiscal year 2014.”
Similar provisions were contained in the following prior appropriation act:
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