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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

House Conference Report 109-360

SEC. 804. REPORTS ON SIGNIFICANT INCREASES IN PROGRAM ACQUISITION UNIT COSTS OR PROCUREMENT UNIT COSTS OF MAJOR DEFENSE ACQUISITION PROGRAMS.

(a) Initial Report Required- Not later than one year after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report on the acquisition status of each major defense acquisition program whose program acquisition unit cost or procurement unit cost, as of the date of the enactment of this Act, has exceeded by more than 50 percent the original baseline projection for such unit cost. The report shall include the information specified in subsection (b).

(b) Information- The information specified in this subsection with respect to a major defense acquisition program is the following:

(1) An assessment of the costs to be incurred to complete the program if the program is not modified.

(2) An explanation of why the costs of the program have increased.

(3) A justification for the continuation of the program notwithstanding the increase in costs.

(c) Major Defense Acquisition Program Defined- In this section, the term `major defense acquisition program' has the meaning given that term in section 2430 of title 10, United States Code.

The Senate amendment contained a provision (sec. 807) that would require the Secretary of Defense to report to the congressional defense committees on the acquisition status of major defense acquisition programs whose costs have exceeded by more than 50 percent the original baseline projection of such costs.

The House bill contained no similar provision.

The House recedes with an amendment that would extend the time for the report.