10 USC § 3225 - Discussion of risk in cost estimates

---
identifier: "/us/usc/t10/s3225"
source: "usc"
legal_status: "official_legal_evidence"
title: "10 USC § 3225 - Discussion of risk in cost estimates"
title_number: 10
title_name: "ARMED FORCES"
section_number: "3225"
section_name: "Discussion of risk in cost estimates"
chapter_number: 222
chapter_name: "INDEPENDENT COST ESTIMATION AND COST ANALYSIS"
part_number: "V"
part_name: "ACQUISITION"
positive_law: true
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1812(a), (f), Jan. 1, 2021, 134 Stat. 4174, 4176; Pub. L. 117–81, div. A, title XVII, § 1701(o)(6)(A)(ii), Dec. 27, 2021, 135 Stat. 2147; Pub. L. 118–159, div. A, title XVII, § 1701(a)(36), Dec. 23, 2024, 138 Stat. 2205.)"
---


# § 3225. Discussion of risk in cost estimates

The Director of Cost Assessment and Program Evaluation, and the Secretary of the military department concerned or the head of the Defense Agency concerned (as applicable), shall each—

**(1)** issue guidance requiring a discussion of risk, the potential impacts of risk on program costs, and approaches to mitigate risk in cost estimates for major defense acquisition programs and major subprograms;

**(2)** ensure that cost estimates are developed, to the extent practicable, based on historical actual cost information that is based on demonstrated contractor and Government performance and that such estimates provide a high degree of confidence that the program or subprogram can be completed without the need for significant adjustment to program budgets; and

**(3)** include the information required in the guidance under paragraph (1)—

**(A)** in any decision documentation approving a cost estimate within the baseline description or any other cost estimate for use at any event specified in section 3221(b)(6) of this title; and

**(B)** in the next Selected Acquisition Report pursuant to section 4351 of this title in the case of a major defense acquisition program or major subprogram.

---

**Source Credit**: (Added and amended Pub. L. 116–283, div. A, title XVIII, § 1812(a), (f), Jan. 1, 2021, 134 Stat. 4174, 4176; Pub. L. 117–81, div. A, title XVII, § 1701(*o*)(6)(A)(ii), Dec. 27, 2021, 135 Stat. 2147; Pub. L. 118–159, div. A, title XVII, § 1701(a)(36), Dec. 23, 2024, 138 Stat. 2205.)

## Editorial Notes

### Codification

The text of subsec. (e) of , which was transferred to this section and amended by , was based on , , ; , , ; , (6), (b)(5), , .

### Prior Provisions

A prior section 3225, , ; , , ; , , , related to authorized strength of Army National Guard and Army National Guard of United States, exclusive of members on active duty, prior to repeal by , §§ 1662(a)(3), 1691, , , 3026, effective . See .

### Amendments

2024—Par. (3)(B).  struck out “, or the next quarterly report pursuant to  in the case of a major automated information system program” before period at end.

2021—, (2)(A), transferred subsec. (e) of  to this section and struck out subsec. (e) designation and heading “Discussion of Risk in Cost Estimates” at beginning.

Par. (3)(A). , substituted “” for “subsection (a)(6)”.

Par. (3)(B). , as amended by ()(6)(A)(ii), substituted “section 4351” for “section 2432”.

## Statutory Notes and Related Subsidiaries

### Effective Date of 2021 Amendment

Amendment by  applicable as if included in the enactment of title XVIII of  as enacted, see , set out in a note preceding  and Effective Date note below.

### Effective Date

Section and amendment by  effective , with additional provisions for delayed implementation and applicability of existing law, see , set out as an Effective Date of 2021 Amendment note preceding .