The Nunn-McCurdy Amendment, introduced in 1982, is a UnitedStates legislative measure designed to control cost overruns in major defense acquisition programs. Named after its sponsors, Senators Sam Nunn and Dave McCurdy, the amendment mandates specific reporting requirements to Congress when a program's costs exceed certain thresholds. This mechanism aims to ensure fiscal responsibility and accountability within the Department of Defense (DoD).
A Nunn-McCurdy breach occurs when a defense acquisition program’s cost growth surpasses predefined limits. These thresholds for reporting are as follows:
1. Significant Breach: When a program's unit cost increases by 15% or more over the current baseline estimate or 30% or more over the original baseline estimate.
2. Critical Breach: When a program's unit cost increases by25% or more over the current baseline estimate or 50% or more over the original baseline estimate.
- The program is essential to national security.
- There are no feasible alternatives.
- The new cost estimates are reasonable.
- Management has been sufficiently restructured to control costs.
Failure to certify results in the program's termination.
1. F-35 Joint Strike Fighter Program: The F-35 program has encountered multiple Nunn-McCurdy breaches due to significant cost overruns and delays. Despite these breaches, the program was certified as essential to national security, and efforts were made to control costs and improve management.For more details on the F-35 program, [readhere](https://www.defensenews.com/air/2020/04/01/f-35-joint-strike-fighter-program-nunn-mccurdy-breach/).
2. Littoral Combat Ship (LCS): The LCS program experienced a Nunn-McCurdy breach due to escalating costs and technical challenges. The program was restructured, and cost-control measures were implemented to address the issues. Additional information on the LCS program can be found [here](https://www.defensenews.com/naval/2020/02/15/littoral-combat-ship-nunn-mccurdy-breach/).
3. Global Hawk Unmanned Aerial Vehicle (UAV):The Global Hawk UAV program faced a Nunn-McCurdy breach due to cost overruns and technical problems. The program was certified as critical, and corrective actions were taken to manage costs better. For a comprehensive overview of the global Hawk program,
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