Department of Defense INSTRUCTION

DoDI 5000.02, January 7, 2015
Table 4. Statutory Program Breach and Change Definitions
Significant Nunn-
McCurdy Unit Cost
Breaches
(10 U.S.C. 2433 and
2433a (Reference (g)(h)))
Applicable to MDAPs
only
Critical Nunn-
McCurdy Unit Cost
Breaches
(10 U.S.C. 2433
(Reference (g)(h)))
Applicable to MDAPs
only
Significant Change
(10 U.S.C. 2445c
(Reference (g)(h)))
Applicable to MAIS
programs only
Critical Change
(10 U.S.C. 2445c
(Reference (g)(h)))
Applicable to MAIS
programs and other
major IT investment
programs only
Cost or Schedule
Growth Notification
for 2366a/b Certified
Programs
(10 U.S.C. 2366a and
2366b (Reference (g)(h)))
Applicable to MDAPs
only
Additional Critical
Change Applicable to
All Defense Business
Systems
(Sec. 811 of P.L. 109-364
(Reference (k)))
• The cost growth threshold, as it relates to the current APB, is defined to be an increase of at least
15 percent over the program acquisition unit cost (PAUC) or average procurement unit cost
(APUC) for the current program as shown in the current Baseline Estimate.
• The cost growth threshold, as it relates to the original APB, is defined to be an increase of at least
30 percent over the PAUC or APUC for the original program as shown in the original Baseline
Estimate.
• Only the current APB will be revised.
• The cost growth threshold, as it relates to the current APB, is defined to be an increase of at least
25 percent over the PAUC or APUC for the program or subprogram as shown in the current
Baseline Estimate/APB.
• The cost growth threshold, as it relates to the original APB, is defined to be an increase of at least
50 percent over the PAUC or APUC for the program or subprogram as shown in the original
Baseline Estimate/APB for the program or subprogram.
• If the program or subprogram is certified rather than terminated, the most recent major milestone
must be rescinded and a new milestone is required after certification. The program establishes a
revised original Baseline Estimate/APB that reflects MDA certification and approval.
As it relates to the original estimate (see definition in Table 3, this enclosure):
• A schedule change that will cause a delay of more than 6 months but less than 1 year;
• An increase in the estimated development cost or full life-cycle cost for the program by at least 15
percent, but less than 25 percent; or
• A significant, adverse change in the expected performance of the MAIS to be acquired.
As it relates to the original estimate (see definition in Table 3, this enclosure):
• The system has failed to achieve an FD Decision within 5 years after the Milestone A decision for
the program or, if there was no Milestone A, the date when the preferred alternative is selected
for the program (excluding any time during which program activity is delayed as a result of a bid
protest);
• A schedule change will cause a delay of 1 year or more;
• The estimated development cost or full life-cycle cost for the program has increased 25 percent
or more; or
• A change in expected performance will undermine the ability of the system to perform the
functions anticipated (i.e., the expected failure to meet a threshold KPP).
• If a MAIS program is already baselined and the MAR shows a Milestone C event, and a Milestone
C is not conducted, a critical change will occur.
• Sec. 2366a: At any time prior to Milestone B approval, if the cost estimate exceeds the cost
estimate for the program submitted at the time of the certification by at least 25 percent, or the
program manager determines that the period of time required for the delivery of an IOC is likely to
exceed the schedule objective established pursuant to 10 U.S.C. 181 (Reference (g)(h)),
paragraph (b)(5), by more than 25 percent, the Program Manager for the program concerned will
notify the MDA.
• Sec. 2366b: The Program Manager for an MDAP that has received Milestone B certification will
immediately notify the MDA of any changes to the program or a designated major subprogram of
such program that alter the substantive basis for the certification of the milestone decision.
• ANY DBS, regardless of ACAT, that has received Milestone A approval and has not achieved
IOC within 5 years after the Milestone A decision will have experienced a critical change and will
be subject to the evaluation and reporting required by 10 U.S.C. 2445c (Reference (g)(h)), and
the row identified as “MAIS ASSESSMENT AND CERTIFICATION OF A CRITICAL CHANGE TO
THE DEFENSE COMMITTEES” in Table 6 in this enclosure.
NOTE: A DBS that is a MAIS program or other major IT investment program remains subject to the
Significant and/or Critical Change rows above, if conditions warrant.
Change 2, 02/02/2017 68
ENCLOSURE 1