10.11.6. Restrictions on Obligation of Funds
If the Senior Official determines a Critical Change has been reported by a program and a Critical Change Report (CCR) is not submitted to the congressional defense committees within the 60-day period, "Appropriated funds may not be obligated for any major contract under the program." For Chapter 144A purposes, the term "major contract" is defined as any contract under the program that is not a firm-fixed price contract whose target cost exceeds $17M (FY00 constant dollars); or if no contract exceeds $17M (FY00 constant dollars), then the largest contract under the program.
Program Managers should not obligate funds for a major contract during the period in which the CCR is being prepared.
The prohibition on the obligation of funds will cease to apply on the date on which the congressional defense committees have received a report in compliance with Chapter 144A requirements.
10.11.7. Revision of the Original Estimate
According to Chapter 144A of title 10 United States Code, a Critical Change is the only opportunity to update the Original Estimate contained in the Major Automated Information System (MAIS) Annual Report (MAR): "an adjustment or revision of the Original Estimate or information originally submitted on a program may be treated as the Original Estimate or information initially submitted on the program if the adjustment or revision is the result of a Critical Change…."
10.11.7.1. Status of the Critical Change Report (CCR) Estimate
The new estimates of cost, schedule, and performance parameters included in a CCR will be the basis for a revised Original Estimate in the Major Automated Information System (MAIS) Annual Report (MAR) and the MAIS Quarterly Report (MQR), and inform the continuing management of the program. An Acquisition Decision Memorandum and an Acquisition Program Baseline (APB) should therefore be coordinated concurrently with the CCR to direct the actions responsive to the CCR. Failing to get concurrent signatures, the Program Manager (PM) should make approval of an updated APB a high priority.
Once the CCR has been sent to Congress and before the next MQR is prepared, the Program Manager should submit the new cost, schedule, and performance parameters as an updated MAR Original Estimate using the Defense Acquisition Management Information Retrieval (DAMIR) tool (see the DAMIR MAR Users’ Guide, and call the DAMIR Hot Line for assistance). Subsequent MQRs will commence reporting variances from the revised Original Estimate.
10.11.7.2. Independent Cost Estimates
The Weapon Systems Acquisition Reform Act of 2009 (P.L. 111-23, May 22, 2009), codified at section 2334(a)(6)) of title 10 United States Code, requires the Director, Cost Assessment and Program Evaluation (D, CAPE) to conduct an Independent Cost Estimate (ICE) in the case of a Major Automated Information System (MAIS) Critical Change if the Milestone Decision Authority (MDA) is the Under Secretary of Defense (Acquisition, Technology, and Logistics) (USD(AT&L); and “at any other time considered appropriate by the Director or upon the request of the USD(AT&L).”
Additionally, DTM 11-009, “Acquisition Policy for Defense Business Systems (DBS),” June 23, 2011, requires the D, CAPE to conduct an ICE for all DBS MAIS reporting a Critical Change if the MDA is the USD(AT&L), the Deputy Chief Management Officer, or the Department of Defense Chief Information Officer. If the MDA is delegated after incurrence of a Critical Change, an ICE is still required.
If a D, CAPE ICE was conducted, great weight should be given to the resulting estimate derived from that effort as it is likely to possess the accuracy desired for publication in the Acquisition Program Baseline.
10.11.7.3. Base Year Conversion
The Base Year of an Original Estimate (as reported in the Major Automated Information System (MAIS) Annual Report (MAR) and MAIS Quarterly Report) may be updated without going through a Critical Change process, provided that the proper conversion factors have been applied. Such a conversion should be footnoted in those reports through submittal of the next MAR. The conversion calculations should be retained as a Memorandum for the Record in the program files.
10.11.8. Sources for Additional Information
Chapter 144A Key Documents and References includes:
- Defense Acquisition Guidebook 10.11 - MAIS Statutory Reporting
- DAMIR MAR User's Guide
- DAMIR MQR User's Guide
- Section 811 FY07 NDAA - Time-Certain Development for Defense Business Systems
- Automated Information System Acquisition Terms of Reference and Definitions
- Chapter 144A of title 10 United States Code (annotated)
- MAIS Annual Report Program Analysts and Principal Staff Representatives
- Chapter 144A Overview Briefing
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