Life-cycle cost estimates of certain atomic energy defense capital assets

  1. Law
  2. USC 50
  3. War And National Defense
  4. ATOMIC ENERGY DEFENSE PROVISIONS
  5. BUDGET AND FINANCIAL MANAGEMENT MATTERS
  6. Recurring National Security Authorization Provisions
  7. Life-cycle cost estimates of certain atomic energy defense capital assets

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§2754. Life-cycle cost estimates of certain atomic energy defense capital assets

(a) In general

The Secretary of Energy shall ensure that an independent life-cycle cost estimate under Department of Energy Order 413.3B (relating to program management and project management for the acquisition of capital assets), or a successor order, of each capital asset described in subsection (b) is conducted before the asset achieves critical decision 2 in the acquisition process.

(b) Capital assets described

A capital asset described in this subsection is an atomic energy defense capital asset-

(1) the total project cost of which exceeds $100,000,000; and

(2) the purpose of which is to perform a limited-life, single-purpose mission.

(c) Independent defined

For purposes of subsection (a), the term "independent", with respect to a life-cycle cost estimate of a capital asset, means that the life-cycle cost estimate is prepared by an organization independent of the project sponsor, using the same detailed technical and procurement information as the sponsor, to determine if the life-cycle cost estimate of the sponsor is accurate and reasonable.

(Pub. L. 107–314, div. D, title XLVII, §4714, as added Pub. L. 113–291, div. C, title XXXI, §3113(a), Dec. 19, 2014, 128 Stat. 3887 ; amended Pub. L. 116–92, div. C, title XXXI, §3139(b)(6), Dec. 20, 2019, 133 Stat. 1963 .)

Amendments

2019-Subsec. (a). Pub. L. 116–92 substituted "413.3B" for "413.3" and inserted ", or a successor order," after "assets)".

Use of Best Practices for Capital Asset Projects and Nuclear Weapon Life Extension Programs

Pub. L. 114–92, div. C, title XXXI, §3117, Nov. 25, 2015, 129 Stat. 1195 , provided that:

"(a) Analyses of Alternatives.-Not later than 30 days after the date of the enactment of this Act [Nov. 25, 2015], the Secretary of Energy, in coordination with the Administrator for Nuclear Security, shall ensure that analyses of alternatives are conducted (including through contractors, as appropriate) in accordance with best practices for capital asset projects and life extension programs of the National Nuclear Security Administration and capital asset projects relating to defense environmental management.

"(b) Cost Estimates.-Not later than 30 days after the date of the enactment of this Act, the Secretary, in coordination with the Administrator, shall develop cost estimates in accordance with cost estimating best practices for capital asset projects and life extension programs of the National Nuclear Security Administration and capital asset projects relating to defense environmental management.

"(c) Revisions to Departmental Project Management Order and Nuclear Weapon Life Extension Requirements.-As soon as practicable after the date of the enactment of this Act [Nov. 25, 2015], but not later than two years after such date of enactment, the Secretary shall revise-

"(1) the capital asset project management order of the Department of Energy to require the use of best practices for preparing cost estimates and for conducting analyses of alternatives for National Nuclear Security Administration and defense environmental management capital asset projects; and

"(2) the nuclear weapon life extension program procedures of the Department to require the use of use of [sic] best practices for preparing cost estimates and conducting analyses of alternatives for National Nuclear Security Administration life extension programs."


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