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U.S. Code as of:
01/19/04
Section 415a-1. Budget treatment of costs of acquisition of major systems by the intelligence community
(a) Independent cost estimates
(1) The Director of Central Intelligence shall, in consultation
with the head of each element of the intelligence community
concerned, prepare an independent cost estimate of the full
life-cycle cost of development, procurement, and operation of each
major system to be acquired by the intelligence community.
(2) Each independent cost estimate for a major system shall, to
the maximum extent practicable, specify the amount required to be
appropriated and obligated to develop, procure, and operate the
major system in each fiscal year of the proposed period of
development, procurement, and operation of the major system.
(3)(A) In the case of a program of the intelligence community
that qualifies as a major system, an independent cost estimate
shall be prepared before the submission to Congress of the budget
of the President for the first fiscal year in which appropriated
funds are anticipated to be obligated for the development or
procurement of such major system.
(B) In the case of a program of the intelligence community for
which an independent cost estimate was not previously required to
be prepared under this section, including a program for which
development or procurement commenced before December 13, 2003, if
the aggregate future costs of development or procurement (or any
combination of such activities) of the program will exceed
$500,000,000 (in current fiscal year dollars), the program shall
qualify as a major system for purposes of this section, and an
independent cost estimate for such major system shall be prepared
before the submission to Congress of the budget of the President
for the first fiscal year thereafter in which appropriated funds
are anticipated to be obligated for such major system.
(4) The independent cost estimate for a major system shall be
updated upon -
(A) the completion of any preliminary design review associated
with the major system;
(B) any significant modification to the anticipated design of
the major system; or
(C) any change in circumstances that renders the current
independent cost estimate for the major system inaccurate.
(5) Any update of an independent cost estimate for a major system
under paragraph (4) shall meet all requirements for independent
cost estimates under this section, and shall be treated as the most
current independent cost estimate for the major system until
further updated under that paragraph.
(b) Preparation of independent cost estimates
(1) The Director shall establish within the Office of the Deputy
Director of Central Intelligence for Community Management an office
which shall be responsible for preparing independent cost
estimates, and any updates thereof, under subsection (a) of this
section, unless a designation is made under paragraph (2).
(2) In the case of the acquisition of a major system for an
element of the intelligence community within the Department of
Defense, the Director and the Secretary of Defense shall provide
that the independent cost estimate, and any updates thereof, under
subsection (a) of this section be prepared by an entity jointly
designated by the Director and the Secretary in accordance with
section 2434(b)(1)(A) of title 10.
(c) Utilization in budgets of President
(1) If the budget of the President requests appropriations for
any fiscal year for the development or procurement of a major
system by the intelligence community, the President shall, subject
to paragraph (2), request in such budget an amount of
appropriations for the development or procurement, as the case may
be, of the major system that is equivalent to the amount of
appropriations identified in the most current independent cost
estimate for the major system for obligation for each fiscal year
for which appropriations are requested for the major system in such
budget.
(2) If the amount of appropriations requested in the budget of
the President for the development or procurement of a major system
is less than the amount of appropriations identified in the most
current independent cost estimate for the major system for
obligation for each fiscal year for which appropriations are
requested for the major system in such budget, the President shall
include in the budget justification materials submitted to Congress
in support of such budget -
(A) an explanation for the difference between the amount of
appropriations requested and the amount of appropriations
identified in the most current independent cost estimate;
(B) a description of the importance of the major system to the
national security;
(C) an assessment of the consequences for the funding of all
programs of the National Foreign Intelligence Program in future
fiscal years if the most current independent cost estimate for
the major system is accurate and additional appropriations are
required in future fiscal years to ensure the continued
development or procurement of the major system, including the
consequences of such funding shortfalls on the major system and
all other programs of the National Foreign Intelligence Program;
and
(D) such other information on the funding of the major system
as the President considers appropriate.
(d) Inclusion of estimates in budget justification materials
The budget justification materials submitted to Congress in
support of the budget of the President shall include the most
current independent cost estimate under this section for each major
system for which appropriations are requested in such budget for
any fiscal year.
(e) Definitions
In this section:
(1) The term "budget of the President" means the budget of the
President for a fiscal year as submitted to Congress under
section 1105(a) of title 31.
(2) The term "independent cost estimate" means a pragmatic and
neutral analysis, assessment, and quantification of all costs and
risks associated with the acquisition of a major system, which
shall be based on programmatic and technical specifications
provided by the office within the element of the intelligence
community with primary responsibility for the development,
procurement, or operation of the major system.
(3) The term "major system" means any significant program of an
element of the intelligence community with projected total
development and procurement costs exceeding $500,000,000 (in
current fiscal year dollars), which costs shall include all
end-to-end program costs, including costs associated with the
development and procurement of the program and any other costs
associated with the development and procurement of systems
required to support or utilize the program.
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