# 1246.101-70 1246.101-70 Additional definitions.
As used in this subpart—
*At no additional cost to the Government* means at no increase in price for firm-fixed-price contracts, at no increase in target or ceiling price for fixed price incentive contracts (*see* FAR 46.707), or at no increase in estimated cost or fee for cost-reimbursement contracts.
*Defect* means any condition or characteristic in any supplies or services furnished by the contractor under the contract that is not in compliance with the requirements of the contract.
*Major acquisition* means an acquisition or for supplies or services that requires submission of an OMB Exhibit 300 (Capital Asset Plan/Business Case) in accordance with OMB Circular A-11, Preparation, Submission and Execution of the Budget, and for information technology or information technology related acquisitions, compliance with the Department Chief Information Officer (CIO) Policy (CIOP). A major acquisition typically has one or more of the following characteristics—
(1) Life-cycle costs of $150 million or more;
(2) Is a financial system, e-gov system, or e-business system with a life-cycle cost of $500,000 or more; or
(3) An acquisition that does not meet the dollar thresholds of paragraph (1) or (2) of this definition but—
(i) Is mission-critical;
(ii) Requires special management attention because of its importance to an OA mission;
(iii) Plays a significant role in the administration of OA programs, processes or other resources; or
(iv) Directly supports the President's Management Agenda.
*Performance requirements* means the operating capabilities, maintenance, and reliability characteristics of a system that are determined to be necessary for it to fulfill the requirement for which the system is designed.