50 USC 2753 – Notification of cost overruns for certain Department of Energy projects
(a) Establishment of cost and schedule baselines
(1) Stockpile life extension projects
(A) In general
The Administrator shall establish a cost and schedule baseline for each nuclear stockpile life extension project of the Administration. In addition to the requirement under subparagraph (B), the cost and schedule baseline of a nuclear stockpile life extension project established under this subparagraph shall be the cost and schedule as described in the first Selected Acquisition Report submitted under section 2537(a) of this title for the project.
(B) Per unit cost
The cost baseline developed under subparagraph (A) shall include, with respect to each life extension project, an estimated cost for each warhead in the project.
(C) Notification to congressional defense committees
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) Major alteration projects
(A) In general
The Administrator shall establish a cost and schedule baseline for each major alteration project.
(B) Per unit cost
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.
(C) Notification to congressional defense committees
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.
(D) Major alteration project defined
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) Defense-funded construction projects
(A) In general
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) Notification to congressional defense committees
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) Defense environmental cleanup projects
(A) In general
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) Notification to congressional defense committees
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) Notification of costs exceeding baseline
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 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) Notification of determination with respect to termination or continuation of projects and root cause analyses
Terms Used In 50 USC 2753
- Baseline: Projection of the receipts, outlays, and other budget amounts that would ensue in the future without any change in existing policy. Baseline projections are used to gauge the extent to which proposed legislation, if enacted into law, would alter current spending and revenue levels.
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
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 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) 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
(C) 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) Applicability of requirements to revised cost and schedule baselines
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
(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).