Which action would be required following a critical Nunn-McCurdy APB cost breach?

Which action would be required following a critical Nunn-McCurdy APB cost breach?

• A. Only the program manager writes a report.
• B. The president makes the decision.
• C. Congress must be notified, the root cause must be determined, and the USD (A&S) must terminate the program or certify essential; If not terminated, SECDEF must certify to Congress.
• D. The contracting officer cancels the contract.

Answer: (C)

When a major defense program experiences a critical cost breach under Nunn-McCurdy, the process moves to formal oversight and high-level decision-making. The action required is to notify Congress, identify the root cause of the breach, and have the Under Secretary of Defense for Acquisition and Sustainment decide whether to terminate the program or certify that it remains essential to national security. If the program is not terminated, the Secretary of Defense must certify to Congress about its essential status. This sequence ensures Congress is aware and able to oversee whether the program should continue, be re-baselined, or be terminated. A single program manager reporting isn’t sufficient oversight, the president doesn’t unilaterally decide in this scenario, and a contracting officer canceling the contract would not address the broader program-level decision required by the Nunn-McCurdy process.

When a major defense program experiences a critical cost breach under Nunn-McCurdy, the process moves to formal oversight and high-level decision-making. The action required is to notify Congress, identify the root cause of the breach, and have the Under Secretary of Defense for Acquisition and Sustainment decide whether to terminate the program or certify that it remains essential to national security. If the program is not terminated, the Secretary of Defense must certify to Congress about its essential status. This sequence ensures Congress is aware and able to oversee whether the program should continue, be re-baselined, or be terminated.

A single program manager reporting isn’t sufficient oversight, the president doesn’t unilaterally decide in this scenario, and a contracting officer canceling the contract would not address the broader program-level decision required by the Nunn-McCurdy process.