# § 4202. Authority to increase definitional threshold amounts: major defense acquisition programs; major systems
**(a)** **Adjustments to Thresholds for Major Defense Acquisition Programs.—**
**(1)** **Authority.—** The Secretary of Defense may adjust the amounts (and the base fiscal year) provided in section 4201(a)(2) of this title on the basis of Department of Defense escalation rates.
**(2)** **Matters to be considered.—** For purposes of section 4201(a)(2) of this title, the Secretary shall consider, as applicable, the following:
**(A)** 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.
**(B)** The cost estimate referred to in section 4251(a)(6) of this title.
**(C)** The cost estimate referred to in section 4252(a)(1)(C) of this title.
**(D)** The cost estimate within a baseline description as required by section 4214 of this title.
**(b)** **Adjustment Authority for Major Systems.—**
**(1)** **Authority.—** The Secretary of Defense may adjust the amounts and the base fiscal year provided in section 3041(c)(1) of this title on the basis of Department of Defense escalation rates.
**(2)** **Rounding.—** An amount, as adjusted under paragraph (1), that is not evenly divisible by $5,000,000 shall be rounded to the nearest multiple of $5,000,000. In the case of an amount that is evenly divisible by $2,500,000 but not evenly divisible by $5,000,000, the amount shall be rounded to the next higher multiple of $5,000,000.
**(c)** **Notification to Congressional Committees.—** An adjustment under subsection (a) or (b) shall be effective after the Secretary transmits to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a written notification of the adjustment.
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**Source Credit**: (Added and amended Pub. L. 116–283, div. A, title XVIII, § 1846(b), (d), (e), Jan. 1, 2021, 134 Stat. 4248, 4249.)
## Editorial Notes
### Codification
The text of subsecs. (b) and (c) of , which was transferred to this section, redesignated as pars. (1) and (2) of subsec. (a), respectively, and amended by , (2)(A), was based on , , ; , , ; , , ; , , ; , , ; , , .
The text of subsec. (c) of , which was transferred to this section and redesignated as subsecs. (b) and (c) by , was based on , , ; , , .
### Amendments
2021—Subsec. (a). , (B), inserted subsec. heading and par. (1) designation and heading before “The Secretary” and substituted “in ” for “in subsection (a)(1)(B)”.
, transferred subsecs. (b) and (c) of to this section, redesignated subsec. (b) and subsec. (c) and its pars. (1) to (4) as subsec. (a) and subsec. (a)(2) and its subpars. (A) to (D), respectively, realigned margin of subsec. (a)(2), and struck out second sentence of subsec. (a)(1) as redesignated which read as follows: “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.”
Subsec. (a)(2). , (ii), inserted par. heading before “For purposes of” and substituted “” for “subsection (a)(1)(B)”.
Subsec. (a)(2)(B). , substituted “section 4251(a)(6)” for “section 2366a(a)(6)”.
Subsec. (a)(2)(C). , substituted “section 4252(a)(1)(C)” for “section 2366b(a)(1)(C)”.
Subsec. (a)(2)(D). , substituted “section 4214” for “section 2435”.
Subsec. (b). , substituted “Adjustment Authority for Major Systems” for “Adjustment Authority” in subsec. heading, inserted par. headings, substituted “” for “subsection (a)” in par. (1), and realigned margins of par. (2).
, transferred subsec. (c) of to subsec. (b) of this section and redesignated par. (3) as subsec. (c).
Subsec. (c). , inserted heading and substituted “under subsection (a) or (b)” for “under this subsection” in text.
, redesignated par. (3) of subsec. (b) as subsec. (c).
## Statutory Notes and Related Subsidiaries
### 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 .