Nunn–McCurdy Amendment
Encyclopedia
The Nunn–McCurdy Amendment or Nunn–McCurdy Provision, introduced by Senator Sam Nunn
and Congressman Dave McCurdy
in the United States
1982 Defense Authorization Act
and made permanent in 1983, is designed to curtail cost growth in American weapons procurement programs.
It requires cost growth of more than 15% to be notified to the United States Congress
, and calls for the termination of programs whose total cost grew by more than 25% over the original estimate, unless the Secretary of Defense
submits a detailed explanation certifying that the program is essential to the national security, that no suitable alternative of lesser cost is available, that new estimates of total program costs are reasonable, and that the management structure is (or has been made) adequate to control costs.
Very rarely is a program actually cancelled under this provision—Congress normally regards the explanations from the Secretary of Defense as acceptable—but it has led to many changes to project management. SBIRS has been affected by the provision in 2002 and again in 2005, and the NPOESS
meteorology satellites have been redesigned with lesser capabilities after being affected by the provision.
In 2006 the House of Representatives
proposed amending the provision to require a detailed explanation, including information about possible alternatives, at the 15%-cost-growth mark.
However, in 2010 and 2011 the US Army's FCS and the USMC EFV vehicle programs were both cancelled due to cost overruns.
Sam Nunn
Samuel Augustus Nunn, Jr. is an American lawyer and politician. Currently the co-chairman and Chief Executive Officer of the Nuclear Threat Initiative , a charitable organization working to reduce the global threats from nuclear, biological and chemical weapons, Nunn served for 24 years as a...
and Congressman Dave McCurdy
Dave McCurdy
David Keith McCurdy is a U.S. lawyer, politician, conservative Democrat, and a former Oklahoma Congressman from Oklahoma's 4th congressional district. He is president of the American Gas Association.-Early life and education:...
in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
1982 Defense Authorization Act
National Defense Authorization Act
The National Defense Authorization Act is the name of a United States federal law that has been enacted for each of the past 48 fiscal years to specify the budget and expenditures of the United States Department of Defense.-See also:...
and made permanent in 1983, is designed to curtail cost growth in American weapons procurement programs.
It requires cost growth of more than 15% to be notified to the United States Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
, and calls for the termination of programs whose total cost grew by more than 25% over the original estimate, unless the Secretary of Defense
United States Secretary of Defense
The Secretary of Defense is the head and chief executive officer of the Department of Defense of the United States of America. This position corresponds to what is generally known as a Defense Minister in other countries...
submits a detailed explanation certifying that the program is essential to the national security, that no suitable alternative of lesser cost is available, that new estimates of total program costs are reasonable, and that the management structure is (or has been made) adequate to control costs.
Very rarely is a program actually cancelled under this provision—Congress normally regards the explanations from the Secretary of Defense as acceptable—but it has led to many changes to project management. SBIRS has been affected by the provision in 2002 and again in 2005, and the NPOESS
NPOESS
The National Polar-orbiting Operational Environmental Satellite System was to be the United States' next-generation satellite system that would monitor the Earth's weather, atmosphere, oceans, land and near-space environment. NPOESS satellites were to host proven technologies and operational...
meteorology satellites have been redesigned with lesser capabilities after being affected by the provision.
In 2006 the House of Representatives
United States House of Representatives
The United States House of Representatives is one of the two Houses of the United States Congress, the bicameral legislature which also includes the Senate.The composition and powers of the House are established in Article One of the Constitution...
proposed amending the provision to require a detailed explanation, including information about possible alternatives, at the 15%-cost-growth mark.
However, in 2010 and 2011 the US Army's FCS and the USMC EFV vehicle programs were both cancelled due to cost overruns.