The FY07 National Defense Authorization Act (NDAA), Section 816, instituted a reporting regime requiring MAIS programs to submit annual and quarterly reports. This was codified in Chapter 144A of title 10, United States Code and has been amended several times.

Briefly, the statute defines dollar thresholds for Major Automated Information System (MAIS) programs and other investments required to report. A MAIS Annual Report (MAR) is due to Congress 45 days after submission of the President's Budget, and each quarter a MAIS Quarterly Report (MQR) is due to "a senior Department of Defense official responsible for a MAIS program," hereafter referred to as the Senior Official.

The Senior Official responsible for a program is:

The Service Acquisition Executive (SAE) for a program acquired by a Military Department (Army, Navy, or Air Force).
The Under Secretary of Defense (Acquisition, Technology, and Logistics) (USD(AT&L)) for a program acquired by a DoD Component.

The statute also describes reports that are due to the congressional defense committees if a Program Manager (PM) estimates a Significant or Critical Change and the Senior Official agrees. As shown in table 10.11.T1, below, Significant and Critical Changes can occur in performance, schedule, and/or cost.

Table 10.11.T1. Significant and Critical Changes

	Significant	Critical
Cost - total acquisition - total life-cycle	15-25% increase	≥ 25% increase
Schedule	>6 month - 1 year delay	≥ 1 year delay
Schedule		Failed to achieve FDD within 5 years after the MS A decision or the date when the preferred alternative was selected and approved by the MDA. (See 10.11.5.2)
Performance	Significant adverse change in expected performance.	Undermines the ability of the system to perform mission as originally intended (i.e., did not meet a KPP threshold)
Report to congressional defense committees	Notification due 45 days after the MQR was due in the office of Senior Official	Program Evaluation and Report due 60 days after the MQR was due in the office of Senior Official

If a Significant Change to a program is determined by the Senior Official, the requirement to send the congressional defense committees a Notification within 45 days is triggered. Determination of a Critical Change, however, will initiate the requirement to conduct an Evaluation of the program and send a Report (with certifications) to Congress within 60 days. If the Report is not submitted within the 60-day period, appropriated funds may not be obligated for any major contract under the program. This prohibition ends on the day on which the congressional defense committees receive a report in compliance with the statute.

For additional information please see the Chapter 144A Key Documents and References. A complete copy of this DAG implementation guidance is also available there.

10.11.1. Major Automated Information System (MAIS) Programs Required to Report

Chapter 144A of title 10 United States Code requires annual and quarterly reports for each MAIS program and each other major information technology investment program for which funds are requested by the President in the budget.

10.11.1.1. Major Automated Information System (MAIS) Programs versus Increments

In the Defense acquisition context the terms "Program" and "Increment" refer to the management structure of the acquisition effort. Information System (IS) acquisitions require a short cycle time, so the Increment has become the basic unit for management of an Information System (IS) acquisition.

Increment—the Increment is "a militarily useful and supportable operational capability that can be developed, produced, deployed, and sustained. Each Increment must have an Acquisition Program Baseline (APB) with its own set of threshold and objective values set by the user." (DODI 5000.02, Encl.2, 2.c.) In the context of an IS acquisition, this means that both threshold and objective values for cost, schedule, and performance parameters must be established for each Increment.

Program—the term "Program" in the IS context will refer to the summation of a succession of Increments, and is a consolidation of acquisition efforts that is useful for Planning, Programming, Budgeting, and Execution System purposes. An IS "Program" does not have its own APB, rather each "Program" Increment has its own APB and is a separate acquisition program (as defined in DoDD 5000.01).

For a more complete discussion of Programs and Increments, see the AIS Acquisition Terms of Reference and Definitions.

10.11.1.2. Major Automated Information System (MAIS) Programs

A MAIS Program is defined in Chapter 144A of title 10 United States Code as "a Department of Defense acquisition program for an Automated Information System (either as a product or a service) that is either:

"Designated by the Milestone Decision Authority (MDA) as a MAIS; or
Estimated to exceed [one of the MAIS dollar thresholds]."

The MAIS threshold definition is statutory (per title 10 U.S.C. Chapter 144A) and explained in Table 1 of DoD Instruction 5000.02:

$32 million in fiscal year (FY) 2000 constant dollars for all expenditures, for all increments, regardless of the appropriation or fund source, directly related to the AIS definition, design, development, and deployment, and incurred in any single fiscal year; or
$126 million in FY 2000 constant dollars for all expenditures, for all increments, regardless of the appropriation or fund source, directly related to the AIS definition, design, development, and deployment, and incurred from the beginning of the Materiel Solution Analysis Phase through deployment at all sites; or
$378 million in FY 2000 constant dollars for all expenditures, for all increments, regardless of the appropriation or fund source, directly related to the AIS definition, design, development, deployment, operations and maintenance, and incurred from the beginning of the Materiel Solution Analysis Phase through sustainment for the estimated useful life of the system.

As a footnote to Table 1, AIS is defined as "a system of computer hardware, computer software, data or telecommunications that performs functions such as collecting, processing, storing, transmitting, and displaying information. Excluded are computer resources, both hardware and software, that are:

an integral part of a weapon or weapon system;
used for highly sensitive classified programs (as determined by the Secretary of Defense);
used for other highly sensitive information technology programs (as determined by the DoD Chief Information Officer); or
determined by the USD(AT&L) or designee to be better overseen as a non-AIS program (e.g., a program with a low ratio of RDT&E funding to total program acquisition costs or that requires significant hardware development)."

10.11.1.3. Pre-Major Automated Information System (Pre-MAIS (now "Unbaselined MAIS")) Programs and Other Investments

Chapter 144A of title 10 United States Code extends coverage of the reporting requirements to pre-MAIS Programs and other investments in Automated Information System (AIS).

A Pre-MAIS program is defined as "an investment that is designated by the Secretary of Defense, or a designee of the Secretary, as a ‘pre-Major Automated Information System' or 'pre-MAIS' program." Pre-MAIS designations are made by the Under Secretary of Defense (Acquisition, Technology, and Logistics (USD(AT&L)). The Department will also consider that an "investment" exists at Milestone A or when the preferred alternative is approved by the Milestone Decision Authority. Despite historic and statutory references to "pre-MAIS," the acquisition community prefers the term "unbaselined MAIS" as it is more descriptive of the program’s acquisition status. Chapter 144A requirements will apply, whether the statutory or preferred term is used. See the AIS Acquisition Terms of Reference and Definitions.
The reporting requirements also apply to "any other investment in [AIS] products or services that is expected to exceed the [MAIS thresholds] but is not considered to be a [MAIS] program because a formal acquisition decision has not yet been made with respect to such investment."

10.11.1.4. Major Automated Information System (MAIS)/Major Defense Acquisition Program (MDAP) Section 817 Determination

Section 817 of the Fiscal Year 2010 National Defense Authorization Act amended Section 2445d of title 10 U.S.C. giving the Secretary of Defense authority to designate a program that both meets the definition of a MAIS and meets or exceeds the cost threshold for an MDAP, to be treated only as a MAIS or only as an MDAP.

Section 817 provides that as a general rule:

A program that requires the development of customized hardware shall be treated only as an MDAP under chapter 144 of title 10 United States Code, and
A program that does not require the development of customized hardware shall be treated only as a MAIS program under chapter 144A of title 10 United States Code.

While these criteria will be employed as a general rule, other factors will also be considered in determining whether to designate a program a MAIS or an MDAP, and will be applied on a case-by-case basis.

10.11.1.5. Ending the Requirement to Report under Chapter 144A of title 10 United States Code; Close-out Reports

Many reasons exist to suggest the need for a program to report under Chapter 144A should not arise or has come to an end. The Under Secretary of Defense (Acquisition, Technology, and Logistics) or his designee will make this determination based on consideration of the facts, including:

The program does not or no longer meets the definitions presented above in 10.11.1.2;
The program has been terminated*; or
The program has achieved full deployment (FD)**.

For programs determined to no longer require Chapter 144A reporting, a "close-out" Major Automated Information System (MAIS) Annual Report must be completed and submitted to Congress during the next reporting cycle. Similarly, a "close-out" MAIS Quarterly Report must be completed and submitted to the Senior Official when it is next due. Close-out reports should articulate one of the three circumstances above and cite an existing authoritative document (signed by an appropriate authority) as support. If subsequent increments of a program survive, note their existence in the Program Description of close-out reports.

NOTES:

* Terminating an Increment does not cause a Critical Change to be determined. Programs being terminated, however, must comply with Section 806 of P.L. 109-163 (FY06 NDAA). This statute requires the Secretary of Defense to notify the congressional defense committees not less than 60 days before cancelling (or significantly reducing the scope of) a MAIS program that is already post-Milestone C or has been fielded.

** Full Deployment is achieved according to the terms of an Acquisition Decision Memorandum (ADM) which documents a Full Deployment Decision (FDD). The FDD ADM should:

Define FD in sufficient detail so that it can be reasonably determined when FD has occurred.
Define FD Objective and Threshold dates. Following the FDD ADM approval, the Program Manager should submit a new Original Estimate using the Defense Acquisition Management Information Retrieval tool updating ONLY the FD TBD date with the FD Objective date from the ADM. (See page 21 of the DAMIR MAR User's Guide for instructions to update the FD Date.)
Identify the acquisition organization that is responsible to declare (in writing) when FD has occurred.

10.11.2. Major Automated Information System (MAIS) Annual Report (MAR)

Chapter 144A of title 10 United States Code requires the Secretary of Defense to "submit to Congress each calendar year, not later than 45 days after the President submits to Congress the budget … justification documents regarding cost, schedule and performance for each [Program Required to Report] for which funds are requested by the President in the budget." DoD meets this requirement by preparing for each program a report called the MAIS Annual Report (MAR). The MAR should be unclassified. If the required information is classified, then the classified data is replaced with the word "CLASSIFIED."

10.11.2.1. Preparing the Major Automated Information System (MAIS) Annual Report (MAR)

The MAR is prepared using the Defense Acquisition Management Information Retrieval (DAMIR) tool. A separate MAR for each Increment is prepared by the Program Manager and consists of the following sections: Program Information, Points of Contact, Program Description, Business Case, Program Status, Schedule, Performance Characteristics, and Cost. Do not report Increments that have submitted a close-out MAR. The DAMIR MAR User’s Guide explain how to prepare the report.

10.11.2.2. Submitting the Major Automated Information System (MAIS) Annual Report (MAR)

Program Managers should submit the MAR via the Defense Acquisition Management Information Retrieval (DAMIR) tool to the DoD Component Acquisition Executive (CAE) (or equivalent official). The CAE's designated representative will then release the unclassified reports through the established DAMIR hierarchy.

Components will submit Final Draft reports as detailed above for Office of Secretary of Defense (OSD)-level review and coordination by the second Friday of January each year. The Office of the Under Secretary of Defense (Acquisition, Technology, and Logistics) (OUSD(AT&L)) will coordinate the OSD-level review and provide feedback to the Components through issue resolution teleconferences held during the second week of February.

Components will release a Final MAR not later than the last Friday in February. OUSD(AT&L) will prepare and coordinate transmittal letter and release (via DAMIR) the final MARs to Congress no later than 45 days after submission of the President's Budget (normally the first Monday in February). Table 10.11.2.2.T1 describes a typical reporting cycle.

Table 10.11.2.2.T1. Review Cycle Events and Typical Target Dates

Event	Responsible Party	Typical Target Date
Train the Component Trainers	OUSD(AT&L)	Nov 15
Task Components for MAR cycle	OUSD(AT&L)	Dec 10
Submit final Draft MARs	Components	Jan 15
Review and consolidate feedback to the OSD acquisition analyst	OSD staff	Feb 5
OSD/Component issue resolution teleconferences	OSD & Components	Feb 10
Release Final MARs to OSD	Components	Feb 25
Hold final OSD MAR Reviews	OUSD(AT&L)	Mar 2
Coordinate MAR package within OSD	OUSD(AT&L)	Mar 3-Mar 10
Staff MAR package to USD(AT&L) for signature	OUSD(AT&L)	Mar 12
Sign MAR transmittal letters	USD(AT&L)	Mar 18
Deliver MAR "transmittal" letters to Congress; release MARs via DAMIR	OUSD(AT&L)	Mar 20

10.11.3. Major Automated Information System (MAIS) Quarterly Report (MQR)

Chapter 144A of title 10 United States Code requires the Program Manager to submit a written MQR to the Senior Official that identifies any variance from the projected schedule, cost, or key performance parameters as baselined in the Major Automated Information System (MAIS) Annual Report (MAR). All Programs Required to Report, once having submitted a MAR, will submit MQRs even if they have not experienced any variance from their cost, schedule or performance baseline.

10.11.3.1. Reporting Cycle: Major Automated Information System (MAIS) Quarterly Report (MQR)

Although a separate report, the MQRs follow the Defense Acquisition Executive Summary (DAES) submission cycle and bear the same date as the program's DAES. The Component Acquisition Executive’s representative should release the MQRs (via the Defense Acquisition Management Information Retrieval tool) to the Senior Official (and to the OSD Lead) on the last business day of every third month, maintaining the DAES group reporting rotation. The OSD Lead may review MQRs to assist Components in compliance with Chapter 144A of title 10 United States Code and this guidance.

10.11.3.2. Major Automated Information System (MAIS) Quarterly Report (MQR) Form and Contents

The Defense Acquisition Management Information Retrieval (DAMIR) tool will adapt the most recent MAR or MQR (if MQR is more recent than the MAR) to create each new MQR. Instructions for the MQR can be found in the DAMIR MQR Users’ Guide.

The Program Manager should update information that has changed and summarize any program variances not previously reported in an MQR in the Program Status section.

The "Current Estimate or Actual" columns for each of the cost, schedule, and performance factors should be updated to reflect the Current Estimate on the as-of-date of the MQR.

10.11.3.3. Major Automated Information System (MAIS) Program Manager's Current Estimate

The Program Manager's (PM’s) Current Estimate is the latest estimate of program acquisition cost, schedule milestone dates, and performance characteristic values of the approved program (i.e., the approved program as reflected in the currently approved Acquisition Program Baseline, Acquisition Decision Memorandum, or in any other document containing a more current decision of the Milestone Decision Authority or other approval authority).

For cost, the current estimate is normally the President's budget plus or minus fact of life changes.
For schedule, the Current Estimate is normally the PM’s best estimate of current schedule milestone dates.
For performance, it is normally the PM's best estimate of current performance characteristic values.

10.11.3.4. Major Automated Information System (MAIS) Quarterly Report (MQR) Anticipation and Receipt

Program Managers (PMs) are responsible for reporting the execution status of their programs to their acquisition management chain: Program Executive Officer, Component Acquisition Executive, Milestone Decision Authority, and—for Chapter 144A Quarterly Reports purposes—the Senior Official. If a PM becomes aware the program will experience a variance exceeding a Significant or Critical Change threshold, the PM should immediately notify his/her acquisition management chain, in advance of the due date for the next MQR. Since the MQR is the vehicle for official notification of Significant and Critical changes, the 45- or 60-day deadlines for reporting to Congress are established from the date the MQR is due to the office of the Senior Official, i.e., the last business day of the month the MQR is due.

If determination of a Significant Change is contemplated, the deadline for Notification to Congress is the last business day before 45 days expire.
If determination of a Critical Change is contemplated, the deadline for conducting a program evaluation and certifying a report of results to Congress is the last business day before 60 days expire.

10.11.3.5. Determinations by the Senior Official

The (staff office of a) Senior Official should 1) promptly review a Major Automated Information System (MAIS) Quarterly Report (MQR) to see whether it reflects a less than "significant" (or no) variance, a "Significant Change," or a "Critical Change" in cost, schedule or performance and, 2) each month promptly provide the MQR to the Senior Official. Senior Officials may choose to obtain independent opinions on the measurement of a variance and proper determination of a Change.

If none of the reported factors exhibit a variance exceeding a Significant Change threshold, nothing further needs to be done to satisfy the statute.

If a cost, schedule, or performance factor exhibits a variance exceeding a Significant or Critical Change threshold, the Senior Official makes such determination, and proceeds to satisfy the statutory requirements. Model processes for Significant Changes and Critical Changes are suggested below.

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