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Department of Defense INSTRUCTION

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DoDI 5000.02, January 7,

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 • If the program or subprogram is certified rather than terminated, the most recent major milestone must be rescinded and a new milestone is required after certification.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

DoDI 5000.02, January 7, 2015 5. REPORTING REQUIREMENTS a. Tables 5 through 8 9 of this enclosure summarize STATUTORY and Regulatory reporting requirements, and specify when the reports are due. (1) Table 5 presents recurring reporting requirements. (2) Table 6 lists the reporting requirements established for exceptions, waivers, and alternative reporting. (3) Table 7 summarizes Cost and Software Data Reporting (CSDR) System requirements. (4) Tables 8 and 9 summarizes Earned Value Management (EVM) reporting requirements. b. In Tables 5 and 6 of this enclosure, each row identifies an information requirement and the source of the requirement. STATUTORY items and sources appear in ALL CAPS; Regulatory items and sources appear in normal text. A dot (●) in a cell indicates the applicability of the requirement to the program type for that column. (1) Table 5 summarizes STATUTORY and Regulatory recurring reporting requirements, and specifies when the reports are due. Change 2, 02/02/2017 69 ENCLOSURE 1

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