Chapter 607, Subchapter I, Section 6284 · 10 U.S.C. Chapter 607 — BUDGET AND FINANCIAL MANAGEMENT MATTERS

Contents

6284Notification of cost overruns for certain Department of Energy projects#

(a)

(1)

(A)The Administrator shall establish a cost and schedule baseline for each nuclear stockpile life extension or new nuclear weapon program project of the Administration prior to entry into Phase 6.4 or Phase 4, as appropriate. In addition to the requirement under subparagraph (B), the cost and schedule baseline of a nuclear stockpile life extension or new nuclear weapon program project established under this subparagraph shall be the cost and schedule as described in the first Selected Acquisition Report submitted under section 6125(a) for the project.

(B)The cost baseline developed under subparagraph (A) shall include, with respect to each stockpile life extension or new nuclear weapon program project, an estimated cost for each warhead in the project.

(C)Not later than 30 days after establishing a cost and schedule baseline under subparagraph (A), the Administrator shall submit the cost and schedule baseline to the congressional defense committees.

(2)

(A)The Administrator shall establish a cost and schedule baseline for each major alteration project prior to entry into Phase 6.4.

(B)The cost baseline developed under subparagraph (A) shall include, with respect to each major alteration project, an estimated cost for each warhead in the project.

(D)In this paragraph, the term "major alteration project" means a nuclear weapon system alteration project of the Administration the cost of which exceeds $800,000,000.

(3)

(A)The Secretary of Energy shall establish a cost and schedule baseline under the project management protocols of the Department of Energy for each construction project that is—

(i)in excess of $65,000,000; and

(ii)carried out by the Department using funds authorized to be appropriated for a fiscal year pursuant to a DOE national security authorization.

(B)Not later than 30 days after establishing a cost and schedule baseline under subparagraph (A), the Secretary shall submit the cost and schedule baseline to the congressional defense committees.

(4)

(A)The Secretary shall establish a cost and schedule baseline under the project management protocols of the Department of Energy for each defense environmental cleanup project that is—

(i)in excess of $65,000,000; and

(ii)carried out by the Department pursuant to such protocols.

(B)Not later than 30 days after establishing a cost and schedule baseline under subparagraph (A), the Secretary shall submit the cost and schedule baseline to the congressional defense committees.

(b)The Administrator or the Secretary, as applicable, shall notify the congressional defense committees not later than 30 days after determining that—

(1)the total cost for a project referred to in paragraph (1), (2), (3), or (4) of subsection (a) will exceed an amount that is equal to 125 percent of the cost baseline established under subsection (a) for that project; and

(2)in the case of a stockpile life extension or new nuclear weapon program project referred to in subsection (a)(1) or a major alteration project referred to in subsection (a)(2), the cost for any warhead in the project will exceed an amount that is equal to 150 percent of the cost baseline established under subsection (a)(1)(B) or (a)(2)(B), as applicable, for each warhead in that project.

(c)Not later than 90 days after submitting a notification under subsection (b) with respect to a project, the Administrator or the Secretary, as applicable, shall—

(1)notify the congressional defense committees with respect to whether the project will be terminated or continued;

(2)if the project will be continued, certify to the congressional defense committees that—

(A)a revised cost and schedule baseline has been established for the project and, in the case of a stockpile life extension or new nuclear weapon program project referred to in subparagraph (A) or (B) of subsection (a)(1) or a major alteration project referred to in subsection (a)(2), a revised estimate of the cost for each warhead in the project has been made;

(B)a review of the revised baseline has been conducted by the Director of Cost Estimating and Program Evaluation of the National Nuclear Security Administration, consistent with section 3221(d)(1)(F) of the National Nuclear Security Administration Act (50 U.S.C. 2411(d)(1)(F)).

(C)the continuation of the project is necessary to the mission of the Department of Energy and there is no alternative to the project that would meet the requirements of that mission; and

(D)a management structure is in place adequate to manage and control the cost and schedule of the project; and

(3)submit to the congressional defense committees an assessment of the root cause or causes of the growth in the total cost of the project, including the contribution of any shortcomings in cost, schedule, or performance of the program, including the role, if any, of—

(A)unrealistic performance expectations;

(B)unrealistic baseline estimates for cost or schedule;

(C)immature technologies or excessive manufacturing or integration risk;

(D)unanticipated design, engineering, manufacturing, or technology integration issues arising during program performance;

(E)changes in procurement quantities;

(F)inadequate program funding or funding instability;

(G)poor performance by personnel of the Federal Government or contractor personnel responsible for program management; or

(H)any other matters.

(d)A revised cost and schedule baseline established under subsection (c) shall—

(1)be submitted to the congressional defense committees with the certification submitted under subsection (c)(2) and the results of the review conducted by the Director of Cost Estimating and Program Evaluation under subsection (c)(2)(B); and

(2)be subject to the notification requirements of subsections (b) and (c) in the same manner and to the same extent as a cost and schedule baseline established under subsection (a).

United States Government work; public domain under 17 U.S.C. § 105.

Defined terms · 10

Show every defined term

acquisition process
means the acquisition process for a project, as defined in Department of Energy Order 413.3B (relating to project management and project management for the acquisition of capital assets), or a successor order.
appropriate head
means—
capital assets acquisition project
means a project—
defense environmental cleanup funds
means funds appropriated to the Department of Energy pursuant to an authorization for carrying out defense environmental cleanup activities necessary for national security programs.
minor construction project
means any plant project not specifically authorized by law for which the approved total estimated cost does not exceed the minor construction threshold.
minor construction threshold
means $30,000,000.
program or project
means, with respect to a field office of the Department of Energy, a program or project that is for weapons activities necessary for national security programs of the Department, that is being carried out by that office, and for which weapons activities funds have been authorized and appropriated.
threshold
means a benchmark over which a balance carried over at the end of a fiscal year should be given greater scrutiny by Congress.
total funds available to cost
means the sum of—
weapons activities funds
means funds appropriated to the Department of Energy pursuant to an authorization for carrying out weapons activities necessary for national security programs.

10 U.S.C. Chapter 607 — BUDGET AND FINANCIAL MANAGEMENT MATTERS

6284Notification of cost overruns for certain Department of Energy projects#

Defined terms · 10

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6284Notification of cost overruns for certain Department of Energy projects#

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