Proposed Legislation to Require the Enactment of Special Legislation to Continue Funding Any Major Acquisition Whenever Costs or Estimated Costs Increase by 50 Percent or More

PSAD-77-160: Published: Sep 14, 1977. Publicly Released: Sep 14, 1977.

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Proposed legislation (S. 1313) would require the Comptroller General to determine twice a year the cost growth statistics on all major military and civil acquisitions and to report to the Congress and the head of the department or agency concerned when he determines that the actual cost or estimated projected cost of such acquisitions have resulted or will result in a cost growth of 50% or more, excluding inflation. Upon receipt of such report, no additional funds could be obligated or expended with respect to the acquisition unless authorizing legislation were enacted by the Congress.

The data gathering and reporting requirements are executive agency responsibilities. Since departments and agencies should be compiling cost data on major acquisitions, it would place little additional burden on them to report to the Congress when such data shows that costs or estimates have increased by 50% or more.

Matter for Congressional Consideration

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Matter: The proposed legislation should require that each department and agency establish the baseline cost and the current estimated costs for each major acquisition, identify the amount of cost growth attributable to inflation, and formally notify the Congress when a cost growth of 50% has been attained or is anticipated on each major acquisition. For the purposes of this bill, baseline estimates should be defined as those which are based on reasonably firm designs and which are the support for requests to the Congress for total project authorizations. (SC)


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