INCREASE IN THRESHOLD AMOUNTS FOR MAJOR SYSTEMS.

SEC. 805. INCREASE IN THRESHOLD AMOUNTS FOR MAJOR SYSTEMS. (a) Increase and Adjustment.— Chapter 137 of title 10, United States Code, is amended— (1) in section 2302(5), by striking out the third sentence and inserting in lieu thereof the following: “A system shall be considered a major system if (A) the conditions of section 2302d of this title are satisfied, or (B) the system is designated a ‘major system’ by the head of the agency responsible for the system.”; and (2) by inserting after section 2302c the following: “§ 2302d. Major system: definitional threshold amounts “(a) Department of Defense Systems.— For purposes of section 2302(5) of this title, a system for which the Department of Defense is responsible shall be considered a major system if— “(1) the total expenditures for research, development, test, and evaluation for the system are estimated to be more than $115,000,000 (based on fiscal year 1990 constant dollars); or “(2) the eventual total expenditure for procurement of more than $540,000,000 (based on fiscal year 1990 constant dollars). “(b) Civilian Agency Systems.— For purposes of section 2302(5) of this title, a system for which a civilian agency is responsible shall be considered a major system if total expenditures for the system are estimated to exceed the greater of— “(1) $750,000 (based on fiscal year 1980 constant dollars); or “(2) the dollar threshold for a ‘major system’ established by the agency pursuant to Office of Management and Budget (OMB) Circular A–109, entitled ‘Major Systems Acquisitions’. 110 STAT. 2606 “(c) Adjustment Authority.— (1) The Secretary of Defense may adjust the amounts and the base fiscal year provided in subsection (a) on the basis of Department of Defense escalation rates. “(2) 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. “(3) An adjustment under this subsection shall be effective after the Secretary transmits to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a written notification of the adjustment.”. (b) Clerical Amendment.— The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 2302c the following: “2302d. Major system: definitional threshold amounts.”.