---
kind: "section"
citation: "10 U.S.C. § 4376"
title: "10"
title_heading: "Armed Forces"
number: "4376"
heading: "Breach of critical cost growth threshold: reassessment of program; presumption of program termination"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/10/4376"
units:
  - "Subtitle A — General Military Law"
  - "Part V — Acquisition"
  - "Subpart F — Major Systems, Major Defense Acquisition Programs, and Weapon Systems Development"
  - "Chapter 325 — Cost Growth—unit Cost Reports (nunn-Mccurdy)"
---

# §4376. Breach of critical cost growth threshold: reassessment of program; presumption of program termination

- (a) **Reassessment of Program.—** If the [program acquisition unit cost](/usc/10/4371.md?p=a-1) or [procurement unit cost](/usc/10/4371.md?p=a-1) of a [major defense acquisition program](/usc/10/4201.md?p=a) or designated subprogram (as determined by the [Secretary](/usc/10/4951.md?p=3) under [section 4374 of this title](/usc/10/4374.md)) increases by a percentage equal to or greater than the [critical cost growth threshold](/usc/10/4371.md?p=a-3) for the [program](/usc/10/2101.md?p=1) or subprogram, the [Secretary](/usc/10/4951.md?p=3) of Defense shall—
  - (1) determine the root cause or causes of the critical cost growth in accordance with applicable statutory requirements and [Department](/usc/10/101.md?p=a-6) of Defense policies, procedures, and guidance; and
  - (2) in consultation with the Director of Cost Assessment and [Program](/usc/10/2101.md?p=1) Evaluation, carry out an assessment of—
    - (A) the projected cost of completing the [program](/usc/10/2101.md?p=1) if current requirements are not modified;
    - (B) the projected cost of completing the [program](/usc/10/2101.md?p=1) based on reasonable modification of such requirements;
    - (C) the rough order of magnitude of the costs of any reasonable alternative system or capability; and
    - (D) the need to reduce funding for other [programs](/usc/10/2101.md?p=1) due to the growth in cost of the [program](/usc/10/2101.md?p=1).
- (b) **Presumption of Termination.—**
  - (1) **Termination unless secretary submits certification and report.—** After conducting the reassessment required by [subsection (a)](#a) with respect to a [major defense acquisition program](/usc/10/4201.md?p=a), the [Secretary](/usc/10/4951.md?p=3) shall terminate the [program](/usc/10/2101.md?p=1) unless the [Secretary](/usc/10/4951.md?p=3) submits to Congress, before the end of the 60-day period beginning on the day the Selected Acquisition Report containing the information described in [section 4375(d)](/usc/10/4375.md?p=d) and (e) of this title is required to be submitted under [section 4351(f) of this title](/usc/10/4351.md?p=f), a written certification in accordance with [paragraph (2)](#b-2).
  - (2) **Certification.—** A certification described by this paragraph with respect to a [major defense acquisition program](/usc/10/4201.md?p=a) is a written certification that—
    - (A) the continuation of the [program](/usc/10/2101.md?p=1) is essential to the [national security](/usc/10/801.md?p=16);
    - (B) there are no alternatives to the [program](/usc/10/2101.md?p=1) which will provide acceptable capability at less cost;
    - (C) the new estimates of the [program acquisition unit cost](/usc/10/4371.md?p=a-1) or [procurement unit cost](/usc/10/4371.md?p=a-1) have been determined by the Director of Cost Assessment and [Program](/usc/10/2101.md?p=1) Evaluation to be reasonable;
    - (D) the [program](/usc/10/2101.md?p=1) is a higher priority than [programs](/usc/10/2101.md?p=1) whose funding must be reduced to accommodate the growth in cost of the [program](/usc/10/2101.md?p=1); and
    - (E) the management structure for the [program](/usc/10/2101.md?p=1) is adequate to manage and control [program acquisition unit cost](/usc/10/4371.md?p=a-1) or [procurement unit cost](/usc/10/4371.md?p=a-1).
  - (3) **Report.—** A written certification under [paragraph (2)](#b-2) shall be accompanied by a report presenting the root cause analysis and assessment carried out pursuant to [subsection (a)](#a) and the basis for each determination made in accordance with subparagraphs [(A)](#b-2-A) through [(E)](#b-2-E) of paragraph (2), together with supporting documentation.
- (c) **Actions if Program Terminated.—** If a [major defense acquisition program](/usc/10/4201.md?p=a) is terminated pursuant to [subsection (b)](#b), the [Secretary](/usc/10/4951.md?p=3) shall submit to Congress a written report setting forth—
  - (1) an explanation of the reasons for terminating the [program](/usc/10/2101.md?p=1);
  - (2) the alternatives considered to address any problems in the [program](/usc/10/2101.md?p=1); and
  - (3) the course the [Department](/usc/10/101.md?p=a-6) plans to pursue to meet any continuing [military](/usc/10/801.md?p=8) requirements otherwise intended to be met by the [program](/usc/10/2101.md?p=1).

## Source credit

(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1850(a), (j), Jan. 1, 2021, 134 Stat. 4265, 4269; Pub. L. 117–81, div. A, title XVII, § 1701(o)(6)(E)(v), Dec. 27, 2021, 135 Stat. 2148; Pub. L. 119–60, div. A, title XVIII, § 1811(g)(4), Dec. 18, 2025, 139 Stat. 1243.)

## Notes

### Editorial Notes

### Codification

The text of subsecs. (a) and (b) of section 2433a of this title, which was transferred to this section by Pub. L. 116–283, § 1850(j)(1), was based on Pub. L. 111–23, title II, § 206(a)(1), May 22, 2009, 123 Stat. 1726; Pub. L. 111–383, div. A, title X, § 1075(b)(35), Jan. 7, 2011, 124 Stat. 4371.

The text of subsec. (d) of section 2433a of this title, which was transferred to this section and redesignated subsec. (c) by Pub. L. 116–283, § 1850(j)(2), was based on Pub. L. 111–23, title II, § 206(a)(1), May 22, 2009, 123 Stat. 1726.

### Amendments

2025—Subsec. (a). Pub. L. 119–60, § 1811(g)(4)(A), struck out “, after consultation with the Joint Requirements Oversight Council regarding program requirements,” after “Secretary of Defense” in introductory provisions.

Subsec. (b)(2)(B). Pub. L. 119–60, § 1811(g)(4)(B), struck out “to meet the joint military requirement (as defined in section 181(g)(1) of this title)” after “capability”.

Subsec. (c)(3). Pub. L. 119–60, § 1811(g)(4)(C), struck out “joint” before “military requirements”.

2021—Pub. L. 116–283, § 1850(j)(1), (2), transferred subsecs. (a), (b), and (d) of section 2433a of this title to this section and redesignated subsec. (d) as (c).

Subsec. (a). Pub. L. 116–283, § 1850(j)(3)(A), substituted “section 4374” for “section 2433(d)” in introductory provisions.

Subsec. (b)(1). Pub. L. 116–283, § 1850(j)(4)(A), inserted heading.

Pub. L. 116–283, § 1850(j)(3)(B), as amended by Pub. L. 117–81, § 1701(o)(6)(E)(v), substituted “section 4375(d) and (e)” for “section 2433(g)” and “section 4351(f)” for “section 2432(f)”.

Subsec. (b)(2), (3). Pub. L. 116–283, § 1850(j)(4)(B)–(D), realigned margins and inserted headings.

### Statutory Notes and Related Subsidiaries

### Effective Date of 2021 Amendment

Amendment by Pub. L. 117–81 applicable as if included in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and Effective Date note below.

### Effective Date

Section and amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as an Effective Date of 2021 Amendment note preceding section 3001 of this title.