---
kind: "section"
citation: "33 U.S.C. § 878a"
title: "33"
title_heading: "Navigation and Navigable Waters"
number: "878a"
heading: "Contract for development of a major program; costs; Major Program Annual Report for satellite development program"
release: "119-102"
url: "https://uscodex.org/usc/33/878a"
units:
  - "Chapter 17 — National Oceanic and Atmospheric Administration"
  - "Subchapter I — General Provisions"
---

# §878a. Contract for development of a major program; costs; Major Program Annual Report for satellite development program

- (a) **Definitions—** For purposes of this section—
  - (1) the term “Under Secretary” means Under Secretary of Commerce for Oceans and Atmosphere;
  - (2) the term “appropriate congressional committees” means—
    - (A) the [Committee](/usc/33/3301.md?p=3) on Appropriations and the [Committee](/usc/33/3301.md?p=3) on Commerce, Science, and Transportation of the Senate; and
    - (B) the [Committee](/usc/33/3301.md?p=3) on Appropriations and the [Committee](/usc/33/3301.md?p=3) on Science, Space and Technology of the House of Representatives;
  - (3) the term “satellite” means the satellites proposed to be acquired for the National Oceanic and Atmospheric Administration (NOAA);
  - (4) the term “development” means the phase of a [program](/usc/33/467.md?p=11) following the formulation phase and beginning with the approval to proceed to implementation, as defined in NOAA Administrative Order 216–108, Department of Commerce Administrative Order 208–3, and NASA’s Procedural Requirements 7120.5c, dated March 22, 2005;
  - (5) the term “development cost” means the total of all costs, including [construction](/usc/33/426e.md?p=c) of facilities and civil servant costs, from the period beginning with the approval to proceed to implementation through the achievement of operational readiness, without regard to funding source or management control, for the life of the [program](/usc/33/467.md?p=11);
  - (6) the term “life-cycle cost” means the total of the direct, indirect, recurring, and nonrecurring costs, including the [construction](/usc/33/426e.md?p=c) of facilities and civil servant costs, and other related expenses incurred or estimated to be incurred in the design, [development](#a-4), verification, production, operation, maintenance, support, and retirement of a [program](/usc/33/467.md?p=11) over its planned lifespan, without regard to funding source or management control;
  - (7) the term “major program” means an activity approved to proceed to implementation that has an estimated [life-cycle cost](#a-6) of more than $250,000,000; and
  - (8) the term “baseline” means the [program](/usc/33/467.md?p=11) as set following contract award and preliminary design review of the space and ground [systems](/usc/33/3602.md?p=8).
- (b) **Contract requirements for major programs—**
  - (1) NOAA shall not enter into a contract for [development](#a-4) of a [major program](#a-7), unless the [Under Secretary](#a-1) determines that—
    - (A) the technical, cost, and schedule risks of the [program](/usc/33/467.md?p=11) are clearly identified and the [program](/usc/33/467.md?p=11) has developed a plan to manage those risks;
    - (B) the technologies required for the [program](/usc/33/467.md?p=11) have been demonstrated in a relevant laboratory or test environment;
    - (C) the [program](/usc/33/467.md?p=11) complies with all relevant policies, regulations, and directives of NOAA and the Department of Commerce;
    - (D) the [program](/usc/33/467.md?p=11) has demonstrated a high likelihood of accomplishing its intended goals; and
    - (E) the acquisition of [satellites](#a-3) for use in the [program](/usc/33/467.md?p=11) represents a good value to accomplishing NOAA’s mission.
  - (2) The [Under Secretary](#a-1) shall transmit a report describing the basis for the determination required under [paragraph (1)](#b-1) to the [appropriate congressional committees](#a-2) at least 30 days before entering into a contract for [development](#a-4) under a [major program](#a-7).
  - (3) The [Under Secretary](#a-1) may not delegate the determination requirement under this subsection, except in cases in which the [Under Secretary](#a-1) has a conflict of interest.
- (c) **Reports—**
  - (1) Annually, at the same time as the President’s annual budget submission to the Congress, the [Under Secretary](#a-1) shall transmit to the [appropriate congressional committees](#a-2) a report that includes the information required by this section for the [satellite](#a-3) [development](#a-4) [program](/usc/33/467.md?p=11) for which NOAA proposes to expend funds in the subsequent fiscal year. The report under this paragraph shall be known as the [Major Program](#a-7) Annual Report.
  - (2) The first [Major Program](#a-7) Annual Report for NOAA’s [satellite](#a-3) [development](#a-4) [program](/usc/33/467.md?p=11) shall include a [Baseline](#a-8) Report that shall, at a minimum, include—
    - (A) the purposes of the [program](/usc/33/467.md?p=11) and key technical characteristics necessary to fulfill those purposes;
    - (B) an estimate of the [life-cycle cost](#a-6) for the [program](/usc/33/467.md?p=11), with a detailed breakout of the [development cost](#a-5), [program](/usc/33/467.md?p=11) reserves, and an estimate of the annual costs until [development](#a-4) is completed;
    - (C) the schedule for [development](#a-4), including key [program](/usc/33/467.md?p=11) milestones;
    - (D) the plan for mitigating technical, cost, and schedule risks identified in accordance with [subsection (b)(1)(A)](#b-1-A); and
    - (E) the name of the person responsible for making notifications under [subsection (d)](#d), who shall be an individual whose primary responsibility is overseeing the [program](/usc/33/467.md?p=11).
  - (3) For the [major program](#a-7) for which a [Baseline](#a-8) Report has been submitted, subsequent [Major Program](#a-7) Annual Reports shall describe any changes to the information that had been provided in the [Baseline](#a-8) Report, and the reasons for those changes.
- (d) **Notification to Under Secretary of excess development costs—**
  - (1) The individual identified under [subsection (c)(2)(E)](#c-2-E) shall immediately notify the [Under Secretary](#a-1) any time that individual has reasonable cause to believe that, for the [major program](#a-7) for which he or she is responsible, the [development cost](#a-5) of the [program](/usc/33/467.md?p=11) has exceeded the estimate provided in the [Baseline](#a-8) Report of the [program](/usc/33/467.md?p=11) by 20 percent or more.
  - (2) Not later than 30 days after the notification required under [paragraph (1)](#d-1), the individual identified under [subsection (c)(2)(E)](#c-2-E) shall transmit to the [Under Secretary](#a-1) a written notification explaining the reasons for the change in the cost of the [program](/usc/33/467.md?p=11) for which notification was provided under [paragraph (1)](#d-1).
  - (3) Not later than 15 days after the [Under Secretary](#a-1) receives a written notification under [paragraph (2)](#d-2), the [Under Secretary](#a-1) shall transmit the notification to the [appropriate congressional committees](#a-2).
- (e) **Determination by Under Secretary of excess development costs—** Not later than 30 days after receiving a written notification under [subsection (d)(2)](#d-2), the [Under Secretary](#a-1) shall determine whether the [development cost](#a-5) of the [program](/usc/33/467.md?p=11) has exceeded the estimate provided in the [Baseline](#a-8) Report of the [program](/usc/33/467.md?p=11) by 20 percent or more. If the determination is affirmative, the [Under Secretary](#a-1) shall—
  - (1) transmit to the [appropriate congressional committees](#a-2), not later than 15 days after making the determination, a report that includes—
    - (A) a description of the increase in cost and a detailed explanation for the increase;
    - (B) a description of actions taken or proposed to be taken in response to the cost increase; and
    - (C) a description of any impacts the cost increase, or the actions described under [subparagraph (B)](#e-1-B), will have on any other [program](/usc/33/467.md?p=11) within NOAA; and
  - (2) if the [Under Secretary](#a-1) intends to continue with the [program](/usc/33/467.md?p=11), promptly initiate an analysis of the [program](/usc/33/467.md?p=11), which shall include, at a minimum—
    - (A) the projected cost and schedule for completing the [program](/usc/33/467.md?p=11) if current requirements of the [program](/usc/33/467.md?p=11) are not modified;
    - (B) the projected cost and the schedule for completing the [program](/usc/33/467.md?p=11) after instituting the actions described under [paragraph (1)(B)](#e-1-B); and
    - (C) a description of, and the projected cost and schedule for, a broad range of alternatives to the [program](/usc/33/467.md?p=11).
- (f) **Completion and transmittal of analysis—** NOAA shall complete an analysis initiated under [subsection (e)(2)](#e-2) not later than 6 months after the [Under Secretary](#a-1) makes a determination under [subsection (e)](#e). The [Under Secretary](#a-1) shall transmit the analysis to the [appropriate congressional committees](#a-2) not later than 30 days after its completion.

## Source credit

(Pub. L. 112–55, div. B, title I, § 105, Nov. 18, 2011, 125 Stat. 599; Pub. L. 113–6, div. B, title I, § 105(a), Mar. 26, 2013, 127 Stat. 242.)

## Notes

### Editorial Notes

### Codification

Section is from the Commerce, Justice, Science, and Related Agencies Appropriations Act, 2012, which is division B of the Consolidated and Further Continuing Appropriations Act, 2012.

### Prior Provisions

Provisions similar to those in this section were contained in the following prior appropriation act:

Pub. L. 110–161, div. B, title I, § 112, Dec. 26, 2007, 121 Stat. 1894.

### Amendments

2013—Subsec. (f). Pub. L. 113–6 substituted “subsection (e)(2)” for “paragraph (2)” and “subsection (e)” for “this subsection”.

### Statutory Notes and Related Subsidiaries

### Requirements Adopted by Reference

Pub. L. 119–74, div. A, title I, § 104, Jan. 23, 2026, 140 Stat. 15, provided that: “The requirements set forth by section 105 of the Commerce, Justice, Science, and Related Agencies Appropriations Act, 2012 (Public Law 112–55) [33 U.S.C. 878a], as amended by section 105 of title I of division B of Public Law 113–6, are hereby adopted by reference and made applicable with respect to fiscal year 2026”.

Similar provisions were contained in the following prior appropriation acts:

Pub. L. 118–42, div. C, title I, § 104, Mar. 9, 2024, 138 Stat. 130.

Pub. L. 117–328, div. B, title I, § 104, Dec. 29, 2022, 136 Stat. 4519.

Pub. L. 117–103, div. B, title I, § 104, Mar. 15, 2022, 136 Stat. 111.

Pub. L. 116–260, div. B, title I, § 104, Dec. 27, 2020, 134 Stat. 1243.

Pub. L. 116–93, div. B, title I, § 104, Dec. 20, 2019, 133 Stat. 2394.

Pub. L. 116–6, div. C, title I, § 104, Feb. 15, 2019, 133 Stat. 100.

Pub. L. 115–141, div. B, title I, § 104, Mar. 23, 2018, 132 Stat. 408.

Pub. L. 115–31, div. B, title I, § 104, May 5, 2017, 131 Stat. 191.

Pub. L. 114–113, div. B, title I, § 104, Dec. 18, 2015, 129 Stat. 2294.

Pub. L. 113–235, div. B, title I, § 104, Dec. 16, 2014, 128 Stat. 2181.

Pub. L. 113–76, div. B, title I, § 104, Jan. 17, 2014, 128 Stat. 51.

Pub. L. 113–6, div. B, title I, § 105(b), Mar. 26, 2013, 127 Stat. 242.