123STA T . 1 708PUBLIC LA W 111 – 23 —M A Y 22 , 200 9ofamil i t a rydep artme n tor D efen s e Ag en c yforama j or defense ac qu isition program or major automated information system program of t h e Department of Defense
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‘ (2) comment on deficiencies in the methodology or e x ecu - tion of any cost estimate or cost analysis de v eloped b y a military department or Defense Agency for a major defense acquisition program or major automated information system program; ‘‘( 3 ) concur in the choice of a cost estimate w ithin the baseline description or any other cost estimate (including the confidence level for any such cost estimate) for use at any event specified in subsection (a)( 6 ); and ‘‘( 4 ) participate in the consideration of any decision to request authori z ation of a multiyear procurement contract for a major defense acquisition program . ‘‘(d) D ISCLO S URE O FC O N FI D ENCE L E V ELS FOR BA SELINE E S T I- M ATES OF M A J OR DEFENSE AC Q UISITION P RO G RAMS. —T he Director of Cost Assessment and Program Evaluation , and the S ecretary of the military department concerned or the head of the Defense Agency concerned (as applicable), shall each— ‘‘( 1 ) disclose in accordance with paragraph (2) the con- fidence level used in establishing a cost estimate for a major defense acquisition program or major automated information system program, the rationale for selecting such confidence level, and, if such confidence level is less than 80 percent, the justification for selecting a confidence level of less than 80 percent; and ‘‘(2) include the disclosure required by paragraph (1)— ‘‘(A) in any decision documentation approving a cost estimate within the baseline description or any other cost estimate for use at any event specified in subsection (a)(6); and ‘‘(B) in the next Selected Acquisition R eport pursuant to section 2432 of this title in the case of a major defense acquisition program, or the next quarterly report pursuant to section 244 5 c of this title in the case of a major auto- mated information system program. ‘‘(e) ANNUAL RE P ORT ON COST ASSESSMENT ACTIVITIES.—(1) The Director of Cost Assessment and Program Evaluation shall prepare an annual report summarizing the cost estimation and cost analysis activities of the Department of Defense during the previous year and assessing the progress of the Department in improving the accuracy of its cost estimates and analyses. Each report shall include, for the year covered by such report, an assess- ment of— ‘‘(A) the extent to which each of the military departments and Defense Agencies have complied with policies, procedures, and guidance issued by the Director with regard to the prepara- tion of cost estimates for major defense acquisition programs and major automated information systems; ‘‘(B) the overall quality of cost estimates prepared by each of the military departments and Defense Agencies for major defense acquisition programs and major automated information system programs; and ‘‘(C) any consistent differences in methodology or approach among the cost estimates prepared by the military departments, the Defense Agencies, and the Director.
