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  • Question

    Has the ACAT I threshold actually changed, or was the old FY00 standard simply adjusted to be reflected in FY14 base-year?


    Answer

    1)  The DoDI 5000.02 (http://www.acq.osd.mil/fo/docs/500002p.pdf), dated January 7, 2015, updated the ACAT I dollar thresholds as follows:
     

    ACAT I programs are Major Defense Acquisition Programs (MDAPs). A MDAP is a program that is not a highly sensitive classified program and that is designated by the Under Secretary of Defense for Acquisition, Technology and Logistics (USD(AT&L)) as a MDAP; or that is estimated to require eventual expenditure for research, development, test, and evaluation (RDT&E), including all planned increments, of more than $480 million (Fiscal Year (FY) 2014 constant dollars) or procurement, including all planned increments, of more than $2.79 billion (FY 2014 constant dollars).

    2)  In addition, Title 10 of the United States Code (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section2430&num=0&edition=prelim), gives the Secretary of Defense the authority to adjust the dollar thresholds on the basis of DoD escalation rates as follows:
    §2430. Major defense acquisition program defined
    (a) In this chapter, the term "major defense acquisition program" means a Department of Defense acquisition program that is not a highly sensitive classified program (as determined by the Secretary of Defense) and-
    (1) that is designated by the Secretary of Defense as a major defense acquisition program; or
    (2) that is estimated by the Secretary of Defense to require an eventual total expenditure for research, development, test, and evaluation of more than $300,000,000 (based on fiscal year 1990 constant dollars) or an eventual total expenditure for procurement, including all planned increments or spirals, of more than $1,800,000,000 (based on fiscal year 1990 constant dollars).
     
    (b) The Secretary of Defense may adjust the amounts (and the base fiscal year) provided in subsection (a)(2) on the basis of Department of Defense escalation rates. An adjustment under this subsection shall be effective after the Secretary transmits a written notification of the adjustment to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives.
    (c) For purposes of subsection (a)(2), the Secretary shall consider, as applicable, the following:
    (1) The estimated level of resources required to fulfill the relevant joint military requirement, as determined by the Joint Requirements Oversight Council pursuant to section 181 of this title.
    (2) The cost estimate referred to in section 2366a(a)(6) of this title.
    (3) The cost estimate referred to in section 2366b(a)(1)(C) of this title.
    (4) The cost estimate within a baseline description as required by section 2435 of this title.

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