Statutory Law - US Code - Title 50: Chapter 15: National Security: Subchapter III: Accountability for Intelligence Activities


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Chapter 15: National Security: Subchapter III: Accountability for Intelligence Activities

*Current through Public Law 112-173, August 16th, 2012.
**Selected Provisions Relevant to U.S. Intelligence Law

SUBCHAPTER III—ACCOUNTABILITY FOR INTELLIGENCE ACTIVITIES

50 USC § 413. General congressional oversight provisions

(a) Reports to congressional committees of intelligence activities and anticipated activities
(1) The President shall ensure that the congressional intelligence committees are kept fully and currently informed of the intelligence activities of the United States, including any significant anticipated intelligence activity as required by this subchapter.
(2) Nothing in this subchapter shall be construed as requiring the approval of the congressional intelligence committees as a condition precedent to the initiation of any significant anticipated intelligence activity.
(b) Reports concerning illegal intelligence activities
The President shall ensure that any illegal intelligence activity is reported promptly to the congressional intelligence committees, as well as any corrective action that has been taken or is planned in connection with such illegal activity.
(c) Procedures for reporting information
The President and the congressional intelligence committees shall each establish such written procedures as may be necessary to carry out the provisions of this subchapter.
(d) Procedures to protect from unauthorized disclosure
The House of Representatives and the Senate shall each establish, by rule or resolution of such House, procedures to protect from unauthorized disclosure all classified information, and all information relating to intelligence sources and methods, that is furnished to the congressional intelligence committees or to Members of Congress under this subchapter. Such procedures shall be established in consultation with the Director of National Intelligence. In accordance with such procedures, each of the congressional intelligence committees shall promptly call to the attention of its respective House, or to any appropriate committee or committees of its respective House, any matter relating to intelligence activities requiring the attention of such House or such committee or committees.
(e) Construction of authority conferred
Nothing in this Act shall be construed as authority to withhold information from the congressional intelligence committees on the grounds that providing the information to the congressional intelligence committees would constitute the unauthorized disclosure of classified information or information relating to intelligence sources and methods.
(f) “Intelligence activities” defined
As used in this section, the term “intelligence activities” includes covert actions as defined in section 413b(e) of this title, and includes financial intelligence activities.
(July 26, 1947, ch. 343, title V, §501, as added Pub. L. 102–88, title VI, §602(a)(2), Aug. 14, 1991, 105 Stat. 441; amended Pub. L. 107–306, title III, §§342(b), 353(b)(3)(A), (7), Nov. 27, 2002, 116 Stat. 2399, 2402; Pub. L. 108–458, title I, §1071(a)(1)(V), Dec. 17, 2004, 118 Stat. 3689; Pub. L. 111–259, title III, §331(a), Oct. 7, 2010, 124 Stat. 2685.)

50 USC § 413a. Reporting of intelligence activities other than covert actions

(a) In general
To the extent consistent with due regard for the protection from unauthorized disclosure of classified information relating to sensitive intelligence sources and methods or other exceptionally sensitive matters, the Director of National Intelligence and the heads of all departments, agencies, and other entities of the United States Government involved in intelligence activities shall—
(1) keep the congressional intelligence committees fully and currently informed of all intelligence activities, other than a covert action (as defined in section 413b(e) of this title), which are the responsibility of, are engaged in by, or are carried out for or on behalf of, any department, agency, or entity of the United States Government, including any significant anticipated intelligence activity and any significant intelligence failure; and
(2) furnish the congressional intelligence committees any information or material concerning intelligence activities (including the legal basis under which the intelligence activity is being or was conducted), other than covert actions, which is within their custody or control, and which is requested by either of the congressional intelligence committees in order to carry out its authorized responsibilities.
(b) Form and contents of certain reports
Any report relating to a significant anticipated intelligence activity or a significant intelligence failure that is submitted to the congressional intelligence committees for purposes of subsection (a)(1) of this section shall be in writing, and shall contain the following:
(1) A concise statement of any facts pertinent to such report.
(2) An explanation of the significance of the intelligence activity or intelligence failure covered by such report.
(c) Standards and procedures for certain reports
The Director of National Intelligence, in consultation with the heads of the departments, agencies, and entities referred to in subsection (a) of this section, shall establish standards and procedures applicable to reports covered by subsection (b) of this section.
(July 26, 1947, ch. 343, title V, §502, as added Pub. L. 102–88, title VI, §602(a)(2), Aug. 14, 1991, 105 Stat. 442; amended Pub. L. 107–108, title III, §305, Dec. 28, 2001, 115 Stat. 1398; Pub. L. 107–306, title III, §353(b)(3)(B), Nov. 27, 2002, 116 Stat. 2402; Pub. L. 108–458, title I, §1071(a)(1)(W), (X), Dec. 17, 2004, 118 Stat. 3689; Pub. L. 111–259, title III, §331(b), Oct. 7, 2010, 124 Stat. 2685.)

50 USC § 413b. Presidential approval and reporting of covert actions

(a) Presidential findings
The President may not authorize the conduct of a covert action by departments, agencies, or entities of the United States Government unless the President determines such an action is necessary to support identifiable foreign policy objectives of the United States and is important to the national security of the United States, which determination shall be set forth in a finding that shall meet each of the following conditions:
(1) Each finding shall be in writing, unless immediate action by the United States is required and time does not permit the preparation of a written finding, in which case a written record of the President's decision shall be contemporaneously made and shall be reduced to a written finding as soon as possible but in no event more than 48 hours after the decision is made.
(2) Except as permitted by paragraph (1), a finding may not authorize or sanction a covert action, or any aspect of any such action, which already has occurred.
(3) Each finding shall specify each department, agency, or entity of the United States Government authorized to fund or otherwise participate in any significant way in such action. Any employee, contractor, or contract agent of a department, agency, or entity of the United States Government other than the Central Intelligence Agency directed to participate in any way in a covert action shall be subject either to the policies and regulations of the Central Intelligence Agency, or to written policies or regulations adopted by such department, agency, or entity, to govern such participation.
(4) Each finding shall specify whether it is contemplated that any third party which is not an element of, or a contractor or contract agent of, the United States Government, or is not otherwise subject to United States Government policies and regulations, will be used to fund or otherwise participate in any significant way in the covert action concerned, or be used to undertake the covert action concerned on behalf of the United States.
(5) A finding may not authorize any action that would violate the Constitution or any statute of the United States.
(b) Reports to congressional intelligence committees; production of information
To the extent consistent with due regard for the protection from unauthorized disclosure of classified information relating to sensitive intelligence sources and methods or other exceptionally sensitive matters, the Director of National Intelligence and the heads of all departments, agencies, and entities of the United States Government involved in a covert action—
(1) shall keep the congressional intelligence committees fully and currently informed of all covert actions which are the responsibility of, are engaged in by, or are carried out for or on behalf of, any department, agency, or entity of the United States Government, including significant failures; and
(2) shall furnish to the congressional intelligence committees any information or material concerning covert actions (including the legal basis under which the covert action is being or was conducted) which is in the possession, custody, or control of any department, agency, or entity of the United States Government and which is requested by either of the congressional intelligence committees in order to carry out its authorized responsibilities.
(c) Timing of reports; access to finding
(1) The President shall ensure that any finding approved pursuant to subsection (a) of this section shall be reported in writing to the congressional intelligence committees as soon as possible after such approval and before the initiation of the covert action authorized by the finding, except as otherwise provided in paragraph (2) and paragraph (3).
(2) If the President determines that it is essential to limit access to the finding to meet extraordinary circumstances affecting vital interests of the United States, the finding may be reported to the chairmen and ranking minority members of the congressional intelligence committees, the Speaker and minority leader of the House of Representatives, the majority and minority leaders of the Senate, and such other member or members of the congressional leadership as may be included by the President.
(3) Whenever a finding is not reported pursuant to paragraph (1) or (2) of this section, the President shall fully inform the congressional intelligence committees in a timely fashion and shall provide a statement of the reasons for not giving prior notice.
(4) In a case under paragraph (1), (2), or (3), a copy of the finding, signed by the President, shall be provided to the chairman of each congressional intelligence committee.
(5)(A) When access to a finding, or a notification provided under subsection (d)(1), is limited to the Members of Congress specified in paragraph (2), a written statement of the reasons for limiting such access shall also be provided.
(B) Not later than 180 days after a statement of reasons is submitted in accordance with subparagraph (A) or this subparagraph, the President shall ensure that—
(i) all members of the congressional intelligence committees are provided access to the finding or notification; or
(ii) a statement of reasons that it is essential to continue to limit access to such finding or such notification to meet extraordinary circumstances affecting vital interests of the United States is submitted to the Members of Congress specified in paragraph (2).
(d) Changes in previously approved actions
(1) The President shall ensure that the congressional intelligence committees, or, if applicable, the Members of Congress specified in subsection (c)(2) of this section, are notified in writing of any significant change in a previously approved covert action, or any significant undertaking pursuant to a previously approved finding, in the same manner as findings are reported pursuant to subsection (c) of this section.
(2) In determining whether an activity constitutes a significant undertaking for purposes of paragraph (1), the President shall consider whether the activity—
(A) involves significant risk of loss of life;
(B) requires an expansion of existing authorities, including authorities relating to research, development, or operations;
(C) results in the expenditure of significant funds or other resources;
(D) requires notification under section 414 of this title;
(E) gives rise to a significant risk of disclosing intelligence sources or methods; or
(F) presents a reasonably foreseeable risk of serious damage to the diplomatic relations of the United States if such activity were disclosed without authorization.
(e) “Covert action” defined
As used in this subchapter, the term “covert action” means an activity or activities of the United States Government to influence political, economic, or military conditions abroad, where it is intended that the role of the United States Government will not be apparent or acknowledged publicly, but does not include—
(1) activities the primary purpose of which is to acquire intelligence, traditional counterintelligence activities, traditional activities to improve or maintain the operational security of United States Government programs, or administrative activities;
(2) traditional diplomatic or military activities or routine support to such activities;
(3) traditional law enforcement activities conducted by United States Government law enforcement agencies or routine support to such activities; or
(4) activities to provide routine support to the overt activities (other than activities described in paragraph (1), (2), or (3)) of other United States Government agencies abroad.
(f) Prohibition on covert actions intended to influence United States political processes, etc.
No covert action may be conducted which is intended to influence United States political processes, public opinion, policies, or media.
(g) Notice and general description where access to finding or notification limited; maintenance of records and written statements
(1) In any case where access to a finding reported under subsection (c) or notification provided under subsection (d)(1) is not made available to all members of a congressional intelligence committee in accordance with subsection (c)(2), the President shall notify all members of such committee that such finding or such notification has been provided only to the members specified in subsection (c)(2).
(2) In any case where access to a finding reported under subsection (c) or notification provided under subsection (d)(1) is not made available to all members of a congressional intelligence committee in accordance with subsection (c)(2), the President shall provide to all members of such committee a general description regarding the finding or notification, as applicable, consistent with the reasons for not yet fully informing all members of such committee.
(3) The President shall maintain—
(A) a record of the members of Congress to whom a finding is reported under subsection (c) or notification is provided under subsection (d)(1) and the date on which each member of Congress receives such finding or notification; and
(B) each written statement provided under subsection (c)(5).
(July 26, 1947, ch. 343, title V, §503, as added Pub. L. 102–88, title VI, §602(a)(2), Aug. 14, 1991, 105 Stat. 442; amended Pub. L. 107–306, title III, §353(b)(3)(C), (8), Nov. 27, 2002, 116 Stat. 2402; Pub. L. 108–458, title I, §1071(a)(1)(Y), Dec. 17, 2004, 118 Stat. 3689; Pub. L. 111–259, title III, §331(c), Oct. 7, 2010, 124 Stat. 2685.)

50 USC § 413c. Communications with the Committees on Armed Services of the Senate and the House of Representatives

(a) Requests of committees
The Director of the National Counterterrorism Center, the Director of a national intelligence center, or the head of any element of the intelligence community shall, not later than 45 days after receiving a written request from the Chair or ranking minority member of the Committee on Armed Services of the Senate or the Committee on Armed Services of the House of Representatives for any existing intelligence assessment, report, estimate, or legal opinion relating to matters within the jurisdiction of such Committee, make available to such committee such assessment, report, estimate, or legal opinion, as the case may be.
(b) Assertion of privilege
(1) In general
In response to a request covered by subsection (a), the Director of the National Counterterrorism Center, the Director of a national intelligence center, or the head of any element of the intelligence community shall provide to the Committee making such request the document or information covered by such request unless the President determines that such document or information shall not be provided because the President is asserting a privilege pursuant to the Constitution of the United States.
(2) Submission to Congress
The White House Counsel shall submit to Congress in writing any assertion by the President under paragraph (1) of a privilege pursuant to the Constitution.
(c) Definitions
In this section:
(1) Intelligence community
The term “intelligence community” has the meaning given the term in section 401a(4) of this title.
(2) Intelligence assessment
The term “intelligence assessment” means an intelligence-related analytical study of a subject of policy significance and does not include building-block papers, research projects, and reference aids.
(3) Intelligence estimate
The term “intelligence estimate” means an appraisal of available intelligence relating to a specific situation or condition with a view to determining the courses of action open to an enemy or potential enemy and the probable order of adoption of such courses of action.
(Pub. L. 110–181, div. A, title X, §1079, Jan. 28, 2008, 122 Stat. 334.)

50 USC § 414. Funding of intelligence activities

(a) Obligations and expenditures for intelligence or intelligence-related activity; prerequisites
Appropriated funds available to an intelligence agency may be obligated or expended for an intelligence or intelligence-related activity only if—
(1) those funds were specifically authorized by the Congress for use for such activities; or
(2) in the case of funds from the Reserve for Contingencies of the Central Intelligence Agency and consistent with the provisions of section 413b of this title concerning any significant anticipated intelligence activity, the Director of the Central Intelligence Agency has notified the appropriate congressional committees of the intent to make such funds available for such activity; or
(3) in the case of funds specifically authorized by the Congress for a different activity—
(A) the activity to be funded is a higher priority intelligence or intelligence-related activity;
(B) the use of such funds for such activity supports an emergent need, improves program effectiveness, or increases efficiency; and
(C) the Director of National Intelligence, the Secretary of Defense, or the Attorney General, as appropriate, has notified the appropriate congressional committees of the intent to make such funds available for such activity;

(4) nothing in this subsection prohibits obligation or expenditure of funds available to an intelligence agency in accordance with sections 1535 and 1536 of title 31.
(b) Activities denied funding by Congress
Funds available to an intelligence agency may not be made available for any intelligence or intelligence-related activity for which funds were denied by the Congress.
(c) Presidential finding required for expenditure of funds on covert action
No funds appropriated for, or otherwise available to, any department, agency, or entity of the United States Government may be expended, or may be directed to be expended, for any covert action, as defined in section 413b(e) of this title, unless and until a Presidential finding required by subsection (a) of section 413b of this title has been signed or otherwise issued in accordance with that subsection.
(d) Report to Congressional committees required for expenditure of nonappropriated funds for intelligence activity
(1) Except as otherwise specifically provided by law, funds available to an intelligence agency that are not appropriated funds may be obligated or expended for an intelligence or intelligence-related activity only if those funds are used for activities reported to the appropriate congressional committees pursuant to procedures which identify—
(A) the types of activities for which nonappropriated funds may be expended; and
(B) the circumstances under which an activity must be reported as a significant anticipated intelligence activity before such funds can be expended.

(2) Procedures for purposes of paragraph (1) shall be jointly agreed upon by the congressional intelligence committees and, as appropriate, the Director of National Intelligence or the Secretary of Defense.
(e) Definitions
As used in this section—
(1) the term “intelligence agency” means any department, agency, or other entity of the United States involved in intelligence or intelligence-related activities;
(2) the term “appropriate congressional committees” means the Permanent Select Committee on Intelligence and the Committee on Appropriations of the House of Representatives and the Select Committee on Intelligence and the Committee on Appropriations of the Senate; and
(3) the term “specifically authorized by the Congress” means that—
(A) the activity and the amount of funds proposed to be used for that activity were identified in a formal budget request to the Congress, but funds shall be deemed to be specifically authorized for that activity only to the extent that the Congress both authorized the funds to be appropriated for that activity and appropriated the funds for that activity; or
(B) although the funds were not formally requested, the Congress both specifically authorized the appropriation of the funds for the activity and appropriated the funds for the activity.
(July 26, 1947, ch. 343, title V, §504, formerly §502, as added Pub. L. 99–169, title IV, §401(a), Dec. 4, 1985, 99 Stat. 1004; renumbered §504 and amended Pub. L. 102–88, title VI, §§602(a)(1), (c)(1), 603, Aug. 14, 1991, 105 Stat. 441, 444; Pub. L. 107–306, title III, §353(b)(3)(D), Nov. 27, 2002, 116 Stat. 2402; Pub. L. 108–458, title I, §1071(a)(1)(Z), (AA), (5), Dec. 17, 2004, 118 Stat. 3689, 3690; Pub. L. 111–259, title III, §362, Oct. 7, 2010, 124 Stat. 2701.)

50 USC § 415. Notice to Congress of certain transfers of defense articles and defense services

(a)(1) The transfer of a defense article or defense service, or the anticipated transfer in any fiscal year of any aggregation of defense articles or defense services, exceeding $1,000,000 in value by an intelligence agency to a recipient outside that agency shall be considered a significant anticipated intelligence activity for the purpose of this subchapter.
(2) Paragraph (1) does not apply if—
(A) the transfer is being made to a department, agency, or other entity of the United States (so long as there will not be a subsequent retransfer of the defense articles or defense services outside the United States Government in conjunction with an intelligence or intelligence-related activity); or
(B) the transfer—
(i) is being made pursuant to authorities contained in part II of the Foreign Assistance Act of 1961 [22 U.S.C. 2301 et seq.], the Arms Export Control Act [22 U.S.C. 2751 et seq.], title 10 (including a law enacted pursuant to section 7307(a) of that title), or chapters 1 to 11 of title 40 and division C (except sections 3302, 3307(e), 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41, and
(ii) is not being made in conjunction with an intelligence or intelligence-related activity.

(3) An intelligence agency may not transfer any defense articles or defense services outside the agency in conjunction with any intelligence or intelligence-related activity for which funds were denied by the Congress.
(b) As used in this section—
(1) the term “intelligence agency” means any department, agency, or other entity of the United States involved in intelligence or intelligence-related activities;
(2) the terms “defense articles” and “defense services” mean the items on the United States Munitions List pursuant to section 38 of the Arms Export Control Act [22 U.S.C. 2778] (22 CFR part 121);
(3) the term “transfer” means—
(A) in the case of defense articles, the transfer of possession of those articles; and
(B) in the case of defense services, the provision of those services; and

(4) the term “value” means—
(A) in the case of defense articles, the greater of—
(i) the original acquisition cost to the United States Government, plus the cost of improvements or other modifications made by or on behalf of the Government; or
(ii) the replacement cost; and

(B) in the case of defense services, the full cost to the Government of providing the services.
(July 26, 1947, ch. 343, title V, §505, formerly §503, as added Pub. L. 99–569, title VI, §602(a), Oct. 27, 1986, 100 Stat. 3203; renumbered §505 and amended Pub. L. 102–88, title VI, §§602(a)(1), (c)(2), 604, Aug. 14, 1991, 105 Stat. 441, 444, 445; Pub. L. 103–160, div. A, title VIII, §828(d)(1), Nov. 30, 1993, 107 Stat. 1715.)

50 USC § 415a. Specificity of National Intelligence Program budget amounts for counterterrorism, counterproliferation, counternarcotics, and counterintelligence

(a) In general
The budget justification materials submitted to Congress in support of the budget of the President for a fiscal year that is submitted to Congress under section 1105(a) of title 31 shall set forth separately the aggregate amount requested for that fiscal year for the National Intelligence Program for each of the following:
(1) Counterterrorism.
(2) Counterproliferation.
(3) Counternarcotics.
(4) Counterintelligence.
(b) Election of classified or unclassified form
Amounts set forth under subsection (a) of this section may be set forth in unclassified form or classified form, at the election of the Director of National Intelligence.
(July 26, 1947, ch. 343, title V, §506, as added Pub. L. 107–306, title III, §311(a), Nov. 27, 2002, 116 Stat. 2390; amended Pub. L. 108–458, title I, §1074(b)(1)(A), Dec. 17, 2004, 118 Stat. 3694; Pub. L. 112–87, title V, §505(2), Jan. 3, 2012, 125 Stat. 1897.)

50 USC § 415a–1. Budget treatment of costs of acquisition of major systems by the intelligence community

(a) Independent cost estimates
(1) The Director of National Intelligence shall, in consultation with the head of each element of the intelligence community concerned, prepare an independent cost estimate of the full life-cycle cost of development, procurement, and operation of each major system to be acquired by the intelligence community.
(2)(A) Each independent cost estimate for a major system shall, to the maximum extent practicable, specify the amount required to be appropriated and obligated to develop, procure, and operate the major system in each fiscal year of the proposed period of development, procurement, and operation of the major system.
(B) For major system acquisitions requiring a service or capability from another acquisition or program to deliver the end-to-end functionality for the intelligence community end users, independent cost estimates shall include, to the maximum extent practicable, all estimated costs across all pertinent elements of the intelligence community. For collection programs, such cost estimates shall include the cost of new analyst training, new hardware and software for data exploitation and analysis, and any unique or additional costs for data processing, storing, and power, space, and cooling across the life cycle of the program. If such costs for processing, exploitation, dissemination, and storage are scheduled to be executed in other elements of the intelligence community, the independent cost estimate shall identify and annotate such costs for such other elements accordingly.
(3)(A) In the case of a program of the intelligence community that qualifies as a major system, an independent cost estimate shall be prepared before the submission to Congress of the budget of the President for the first fiscal year in which appropriated funds are anticipated to be obligated for the development or procurement of such major system.
(B) In the case of a program of the intelligence community for which an independent cost estimate was not previously required to be prepared under this section, including a program for which development or procurement commenced before December 13, 2003, if the aggregate future costs of development or procurement (or any combination of such activities) of the program will exceed $500,000,000 (in current fiscal year dollars), the program shall qualify as a major system for purposes of this section, and an independent cost estimate for such major system shall be prepared before the submission to Congress of the budget of the President for the first fiscal year thereafter in which appropriated funds are anticipated to be obligated for such major system.
(4) The independent cost estimate for a major system shall be updated upon—
(A) the completion of any preliminary design review associated with the major system;
(B) any significant modification to the anticipated design of the major system; or
(C) any change in circumstances that renders the current independent cost estimate for the major system inaccurate.

(5) Any update of an independent cost estimate for a major system under paragraph (4) shall meet all requirements for independent cost estimates under this section, and shall be treated as the most current independent cost estimate for the major system until further updated under that paragraph.
(b) Preparation of independent cost estimates
(1) The Director shall establish within the Office of the Director of National Intelligence for Community Management an office which shall be responsible for preparing independent cost estimates, and any updates thereof, under subsection (a) of this section, unless a designation is made under paragraph (2).
(2) In the case of the acquisition of a major system for an element of the intelligence community within the Department of Defense, the Director and the Secretary of Defense shall provide that the independent cost estimate, and any updates thereof, under subsection (a) of this section be prepared by an entity jointly designated by the Director and the Secretary in accordance with section 2434(b)(1)(A) of title 10.
(c) Utilization in budgets of President
(1) If the budget of the President requests appropriations for any fiscal year for the development or procurement of a major system by the intelligence community, the President shall, subject to paragraph (2), request in such budget an amount of appropriations for the development or procurement, as the case may be, of the major system that is equivalent to the amount of appropriations identified in the most current independent cost estimate for the major system for obligation for each fiscal year for which appropriations are requested for the major system in such budget.
(2) If the amount of appropriations requested in the budget of the President for the development or procurement of a major system is less than the amount of appropriations identified in the most current independent cost estimate for the major system for obligation for each fiscal year for which appropriations are requested for the major system in such budget, the President shall include in the budget justification materials submitted to Congress in support of such budget—
(A) an explanation for the difference between the amount of appropriations requested and the amount of appropriations identified in the most current independent cost estimate;
(B) a description of the importance of the major system to the national security;
(C) an assessment of the consequences for the funding of all programs of the National Intelligence Program in future fiscal years if the most current independent cost estimate for the major system is accurate and additional appropriations are required in future fiscal years to ensure the continued development or procurement of the major system, including the consequences of such funding shortfalls on the major system and all other programs of the National Intelligence Program; and
(D) such other information on the funding of the major system as the President considers appropriate.
(d) Inclusion of estimates in budget justification materials
The budget justification materials submitted to Congress in support of the budget of the President shall include the most current independent cost estimate under this section for each major system for which appropriations are requested in such budget for any fiscal year.
(e) Definitions
In this section:
(1) The term “budget of the President” means the budget of the President for a fiscal year as submitted to Congress under section 1105(a) of title 31.
(2)(A) The term “independent cost estimate” means a pragmatic and neutral analysis, assessment, and quantification of all costs and risks associated with the development, acquisition, procurement, operation, and sustainment of a major system across its proposed life cycle, which shall be based on programmatic and technical specifications provided by the office within the element of the intelligence community with primary responsibility for the development, procurement, or operation of the major system.
(B) In accordance with subsection (a)(2)(B), each independent cost estimate shall include all costs required across elements of the intelligence community to develop, acquire, procure, operate, and sustain the system to provide the end-to-end intelligence functionality of the system, including—
(i) for collection programs, the cost of new analyst training, new hardware and software for data exploitation and analysis, and any unique or additional costs for data processing, storing, and power, space, and cooling across the life cycle of the program; and
(ii) costs for processing, exploitation, dissemination, and storage scheduled to be executed in other elements of the intelligence community.

(3) The term “major system” means any significant program of an element of the intelligence community with projected total development and procurement costs exceeding $500,000,000 (based on fiscal year 2010 constant dollars), which costs shall include all end-to-end program costs, including costs associated with the development and procurement of the program and any other costs associated with the development and procurement of systems required to support or utilize the program.
(July 26, 1947, ch. 343, title V, §506A, as added Pub. L. 108–177, title III, §312(b)(1), Dec. 13, 2003, 117 Stat. 2607; amended Pub. L. 108–458, title I, §§1071(a)(1)(BB), 1072(a)(6), Dec. 17, 2004, 118 Stat. 3689, 3692; Pub. L. 111–259, title III, §321(b), Oct. 7, 2010, 124 Stat. 2669; Pub. L. 112–87, title III, §306(a), title V, §505(3), Jan. 3, 2012, 125 Stat. 1881, 1897.)

50 USC § 415a–2. Exhibits for inclusion with budget justification books

Beginning with the fiscal year 2010 budget request, the Director of National Intelligence shall include the budget exhibits identified in paragraphs (1) and (2) as described in the Department of Defense Financial Management Regulation with the congressional budget justification books.
(1) For procurement programs requesting more than $20,000,000 in any fiscal year, the P–1, Procurement Program; P–5, Cost Analysis; P–5a, Procurement History and Planning; P–21, Production Schedule; and P–40  Budget Item Justification.
(2) For research, development, test and evaluation projects requesting more than $10,000,000 in any fiscal year, the R–1, RDT&E Program; R–2, RDT&E Budget Item Justification; R–3, RDT&E Project Cost Analysis; and R–4, RDT&E Program Schedule Profile.
(Pub. L. 110–329, div. C, title VIII, §8107, Sept. 30, 2008, 122 Stat. 3644.)

50 USC § 415a–3. Repealed. Pub. L. 111–259, title III, §325(c)(2), Oct. 7, 2010, 124 Stat. 2683

Section, Pub. L. 111–118, div. A, title VIII, §8104, Dec. 19, 2009, 123 Stat. 3451, required the Director of National Intelligence annually to submit a future-years intelligence program (including associated annexes) reflecting estimated expenditures and proposed appropriations. See notes under section 415a–9 of this title.

50 USC § 415a–4. Annual personnel level assessments for the intelligence community

(a) Requirement to provide
The Director of National Intelligence shall, in consultation with the head of each element of the intelligence community, prepare an annual personnel level assessment for such element that assesses the personnel levels for such element for the fiscal year following the fiscal year in which the assessment is submitted.
(b) Schedule
Each assessment required by subsection (a) shall be submitted to the congressional intelligence committees each year at the time that the President submits to Congress the budget for a fiscal year pursuant to section 1105 of title 31.
(c) Contents
Each assessment required by subsection (a) submitted during a fiscal year shall contain the following information for the element of the intelligence community concerned:
(1) The budget submission for personnel costs for the upcoming fiscal year.
(2) The dollar and percentage increase or decrease of such costs as compared to the personnel costs of the current fiscal year.
(3) The dollar and percentage increase or decrease of such costs as compared to the personnel costs during the prior 5 fiscal years.
(4) The number of full-time equivalent positions that is the basis for which personnel funds are requested for the upcoming fiscal year.
(5) The numerical and percentage increase or decrease of the number referred to in paragraph (4) as compared to the number of full-time equivalent positions of the current fiscal year.
(6) The numerical and percentage increase or decrease of the number referred to in paragraph (4) as compared to the number of full-time equivalent positions during the prior 5 fiscal years.
(7) The best estimate of the number and costs of core contract personnel to be funded by the element for the upcoming fiscal year.
(8) The numerical and percentage increase or decrease of such costs of core contract personnel as compared to the best estimate of the costs of core contract personnel of the current fiscal year.
(9) The numerical and percentage increase or decrease of such number and such costs of core contract personnel as compared to the number and cost of core contract personnel during the prior 5 fiscal years.
(10) A justification for the requested personnel and core contract personnel levels.
(11) The best estimate of the number of intelligence collectors and analysts employed or contracted by each element of the intelligence community.
(12) A statement by the Director of National Intelligence that, based on current and projected funding, the element concerned will have sufficient—
(A) internal infrastructure to support the requested personnel and core contract personnel levels;
(B) training resources to support the requested personnel levels; and
(C) funding to support the administrative and operational activities of the requested personnel levels.
(July 26, 1947, ch. 343, title V, §506B, as added Pub. L. 111–259, title III, §305(a), Oct. 7, 2010, 124 Stat. 2659.)

50 USC § 415a–5. Vulnerability assessments of major systems

(a) Initial vulnerability assessments
(1)(A) Except as provided in subparagraph (B), the Director of National Intelligence shall conduct and submit to the congressional intelligence committees an initial vulnerability assessment for each major system and its significant items of supply—
(i) except as provided in clause (ii), prior to the completion of Milestone B or an equivalent acquisition decision for the major system; or
(ii) prior to the date that is 1 year after October 7, 2010, in the case of a major system for which Milestone B or an equivalent acquisition decision—
(I) was completed prior to such date; or
(II) is completed on a date during the 180-day period following such date.

(B) The Director may submit to the congressional intelligence committees an initial vulnerability assessment required by clause (ii) of subparagraph (A) not later than 180 days after the date such assessment is required to be submitted under such clause if the Director notifies the congressional intelligence committees of the extension of the submission date under this subparagraph and provides a justification for such extension.
(C) The initial vulnerability assessment of a major system and its significant items of supply shall include use of an analysis-based approach to—
(i) identify vulnerabilities;
(ii) define exploitation potential;
(iii) examine the system's potential effectiveness;
(iv) determine overall vulnerability; and
(v) make recommendations for risk reduction.

(2) If an initial vulnerability assessment for a major system is not submitted to the congressional intelligence committees as required by paragraph (1), funds appropriated for the acquisition of the major system may not be obligated for a major contract related to the major system. Such prohibition on the obligation of funds for the acquisition of the major system shall cease to apply on the date on which the congressional intelligence committees receive the initial vulnerability assessment.
(b) Subsequent vulnerability assessments
(1) The Director of National Intelligence shall, periodically throughout the procurement of a major system or if the Director determines that a change in circumstances warrants the issuance of a subsequent vulnerability assessment, conduct a subsequent vulnerability assessment of each major system and its significant items of supply within the National Intelligence Program.
(2) Upon the request of a congressional intelligence committee, the Director of National Intelligence may, if appropriate, recertify the previous vulnerability assessment or may conduct a subsequent vulnerability assessment of a particular major system and its significant items of supply within the National Intelligence Program.
(3) Any subsequent vulnerability assessment of a major system and its significant items of supply shall include use of an analysis-based approach and, if applicable, a testing-based approach, to monitor the exploitation potential of such system and reexamine the factors described in clauses (i) through (v) of subsection (a)(1)(C).
(c) Major system management
The Director of National Intelligence shall give due consideration to the vulnerability assessments prepared for a given major system when developing and determining the National Intelligence Program budget.
(d) Congressional oversight
(1) The Director of National Intelligence shall provide to the congressional intelligence committees a copy of each vulnerability assessment conducted under subsection (a) or (b) not later than 10 days after the date of the completion of such assessment.
(2) The Director of National Intelligence shall provide the congressional intelligence committees with a proposed schedule for subsequent periodic vulnerability assessments of a major system under subsection (b)(1) when providing such committees with the initial vulnerability assessment under subsection (a) of such system as required by paragraph (1).
(e) Definitions
In this section:
(1) The term “item of supply” has the meaning given that term in section 4(10)  of the Office of Federal Procurement Policy Act (41 U.S.C. 403(10)).
(2) The term “major contract” means each of the 6 largest prime, associate, or Government-furnished equipment contracts under a major system that is in excess of $40,000,000 and that is not a firm, fixed price contract.
(3) The term “major system” has the meaning given that term in section 415a–1(e) of this title.
(4) The term “Milestone B” means a decision to enter into major system development and demonstration pursuant to guidance prescribed by the Director of National Intelligence.
(5) The term “vulnerability assessment” means the process of identifying and quantifying vulnerabilities in a major system and its significant items of supply.
(July 26, 1947, ch. 343, title V, §506C, as added Pub. L. 111–259, title III, §321(a)(1), Oct. 7, 2010, 124 Stat. 2667.)

50 USC § 415a–6. Intelligence community business system transformation

(a) Limitation on obligation of funds
(1) Subject to paragraph (3), no funds appropriated to any element of the intelligence community may be obligated for an intelligence community business system transformation that will have a total cost in excess of $3,000,000 unless—
(A) the Director of the Office of Business Transformation of the Office of the Director of National Intelligence makes a certification described in paragraph (2) with respect to such intelligence community business system transformation; and
(B) such certification is approved by the board established under subsection (f).

(2) The certification described in this paragraph for an intelligence community business system transformation is a certification made by the Director of the Office of Business Transformation of the Office of the Director of National Intelligence that the intelligence community business system transformation—
(A) complies with the enterprise architecture under subsection (b) and such other policies and standards that the Director of National Intelligence considers appropriate; or
(B) is necessary—
(i) to achieve a critical national security capability or address a critical requirement; or
(ii) to prevent a significant adverse effect on a project that is needed to achieve an essential capability, taking into consideration any alternative solutions for preventing such adverse effect.

(3) With respect to a fiscal year after fiscal year 2010, the amount referred to in paragraph (1) in the matter preceding subparagraph (A) shall be equal to the sum of—
(A) the amount in effect under such paragraph (1) for the preceding fiscal year (determined after application of this paragraph), plus
(B) such amount multiplied by the annual percentage increase in the consumer price index (all items; U.S. city average) as of September of the previous fiscal year.
(b) Enterprise architecture for intelligence community business systems
(1) The Director of National Intelligence shall, acting through the board established under subsection (f), develop and implement an enterprise architecture to cover all intelligence community business systems, and the functions and activities supported by such business systems. The enterprise architecture shall be sufficiently defined to effectively guide, constrain, and permit implementation of interoperable intelligence community business system solutions, consistent with applicable policies and procedures established by the Director of the Office of Management and Budget.
(2) The enterprise architecture under paragraph (1) shall include the following:
(A) An information infrastructure that will enable the intelligence community to—
(i) comply with all Federal accounting, financial management, and reporting requirements;
(ii) routinely produce timely, accurate, and reliable financial information for management purposes;
(iii) integrate budget, accounting, and program information and systems; and
(iv) provide for the measurement of performance, including the ability to produce timely, relevant, and reliable cost information.

(B) Policies, procedures, data standards, and system interface requirements that apply uniformly throughout the intelligence community.
(c) Responsibilities for intelligence community business system transformation
The Director of National Intelligence shall be responsible for the entire life cycle of an intelligence community business system transformation, including review, approval, and oversight of the planning, design, acquisition, deployment, operation, and maintenance of the business system transformation.
(d) Intelligence community business system investment review
(1) The Director of the Office of Business Transformation of the Office of the Director of National Intelligence shall establish and implement, not later than 60 days after October 7, 2010, an investment review process for the intelligence community business systems for which the Director of the Office of Business Transformation is responsible.
(2) The investment review process under paragraph (1) shall—
(A) meet the requirements of section 11312 of title 40; and
(B) specifically set forth the responsibilities of the Director of the Office of Business Transformation under such review process.

(3) The investment review process under paragraph (1) shall include the following elements:
(A) Review and approval by an investment review board (consisting of appropriate representatives of the intelligence community) of each intelligence community business system as an investment before the obligation of funds for such system.
(B) Periodic review, but not less often than annually, of every intelligence community business system investment.
(C) Thresholds for levels of review to ensure appropriate review of intelligence community business system investments depending on the scope, complexity, and cost of the system involved.
(D) Procedures for making certifications in accordance with the requirements of subsection (a)(2).
(e) Budget information
For each fiscal year after fiscal year 2011, the Director of National Intelligence shall include in the materials the Director submits to Congress in support of the budget for such fiscal year that is submitted to Congress under section 1105 of title 31 the following information:
(1) An identification of each intelligence community business system for which funding is proposed in such budget.
(2) An identification of all funds, by appropriation, proposed in such budget for each such system, including—
(A) funds for current services to operate and maintain such system;
(B) funds for business systems modernization identified for each specific appropriation; and
(C) funds for associated business process improvement or reengineering efforts.

(3) The certification, if any, made under subsection (a)(2) with respect to each such system.
(f) Intelligence community business system transformation governance board
(1) The Director of National Intelligence shall establish a board within the intelligence community business system transformation governance structure (in this subsection referred to as the “Board”).
(2) The Board shall—
(A) recommend to the Director policies and procedures necessary to effectively integrate all business activities and any transformation, reform, reorganization, or process improvement initiatives undertaken within the intelligence community;
(B) review and approve any major update of—
(i) the enterprise architecture developed under subsection (b); and
(ii) any plans for an intelligence community business systems modernization;

(C) manage cross-domain integration consistent with such enterprise architecture;
(D) coordinate initiatives for intelligence community business system transformation to maximize benefits and minimize costs for the intelligence community, and periodically report to the Director on the status of efforts to carry out an intelligence community business system transformation;
(E) ensure that funds are obligated for intelligence community business system transformation in a manner consistent with subsection (a); and
(F) carry out such other duties as the Director shall specify.
(g) Relation to annual registration requirements
Nothing in this section shall be construed to alter the requirements of section 8083 of the Department of Defense Appropriations Act, 2005 (Public Law 108–287; 118 Stat. 989), with regard to information technology systems (as defined in subsection (d) of such section).
(h) Relationship to defense business enterprise architecture
Nothing in this section shall be construed to exempt funds authorized to be appropriated to the Department of Defense from the requirements of section 2222 of title 10 to the extent that such requirements are otherwise applicable.
(i) Relation to Clinger-Cohen Act
(1) Executive agency responsibilities in chapter 113 of title 40 for any intelligence community business system transformation shall be exercised jointly by—
(A) the Director of National Intelligence and the Chief Information Officer of the Intelligence Community; and
(B) the head of the executive agency that contains the element of the intelligence community involved and the chief information officer of that executive agency.

(2) The Director of National Intelligence and the head of the executive agency referred to in paragraph (1)(B) shall enter into a Memorandum of Understanding to carry out the requirements of this section in a manner that best meets the needs of the intelligence community and the executive agency.
(j) Reports
Not later than March 31 of each of the years 2011 through 2015, the Director of National Intelligence shall submit to the congressional intelligence committees a report on the compliance of the intelligence community with the requirements of this section. Each such report shall—
(1) describe actions taken and proposed for meeting the requirements of subsection (a), including—
(A) specific milestones and actual performance against specified performance measures, and any revision of such milestones and performance measures; and
(B) specific actions on the intelligence community business system transformations submitted for certification under such subsection;

(2) identify the number of intelligence community business system transformations that received a certification described in subsection (a)(2); and
(3) describe specific improvements in business operations and cost savings resulting from successful intelligence community business systems transformation efforts.
(k) Definitions
In this section:
(1) The term “enterprise architecture” has the meaning given that term in section 3601(4) of title 44.
(2) The terms “information system” and “information technology” have the meanings given those terms in section 11101 of title 40.
(3) The term “intelligence community business system” means an information system, including a national security system, that is operated by, for, or on behalf of an element of the intelligence community, including a financial system, mixed system, financial data feeder system, and the business infrastructure capabilities shared by the systems of the business enterprise architecture, including people, process, and technology, that build upon the core infrastructure used to support business activities, such as acquisition, financial management, logistics, strategic planning and budgeting, installations and environment, and human resource management.
(4) The term “intelligence community business system transformation” means—
(A) the acquisition or development of a new intelligence community business system; or
(B) any significant modification or enhancement of an existing intelligence community business system (other than necessary to maintain current services).

(5) The term “national security system” has the meaning given that term in section 3542 of title 44.
(6) The term “Office of Business Transformation of the Office of the Director of National Intelligence” includes any successor office that assumes the functions of the Office of Business Transformation of the Office of the Director of National Intelligence as carried out by the Office of Business Transformation on October 7, 2010.
(July 26, 1947, ch. 343, title V, §506D, as added Pub. L. 111–259, title III, §322(a)(1), Oct. 7, 2010, 124 Stat. 2669.)

50 USC § 415a–7. Reports on the acquisition of major systems

(a) Definitions
In this section:
(1) The term “cost estimate”—
(A) means an assessment and quantification of all costs and risks associated with the acquisition of a major system based upon reasonably available information at the time the Director establishes the 2010 adjusted total acquisition cost for such system pursuant to subsection (h) or restructures such system pursuant to section 415a–8(c) of this title; and
(B) does not mean an “independent cost estimate”.

(2) The term “critical cost growth threshold” means a percentage increase in the total acquisition cost for a major system of at least 25 percent over the total acquisition cost for the major system as shown in the current Baseline Estimate for the major system.
(3)(A) The term “current Baseline Estimate” means the projected total acquisition cost of a major system that is—
(i) approved by the Director, or a designee of the Director, at Milestone B or an equivalent acquisition decision for the development, procurement, and construction of such system;
(ii) approved by the Director at the time such system is restructured pursuant to section 415a–8(c) of this title; or
(iii) the 2010 adjusted total acquisition cost determined pursuant to subsection (h).

(B) A current Baseline Estimate may be in the form of an independent cost estimate.
(4) Except as otherwise specifically provided, the term “Director” means the Director of National Intelligence.
(5) The term “independent cost estimate” has the meaning given that term in section 415a–1(e) of this title.
(6) The term “major contract” means each of the 6 largest prime, associate, or Government-furnished equipment contracts under a major system that is in excess of $40,000,000 and that is not a firm, fixed price contract.
(7) The term “major system” has the meaning given that term in section 415a–1(e) of this title.
(8) The term “Milestone B” means a decision to enter into major system development and demonstration pursuant to guidance prescribed by the Director.
(9) The term “program manager” means—
(A) the head of the element of the intelligence community that is responsible for the budget, cost, schedule, and performance of a major system; or
(B) in the case of a major system within the Office of the Director of National Intelligence, the deputy who is responsible for the budget, cost, schedule, and performance of the major system.

(10) The term “significant cost growth threshold” means the percentage increase in the total acquisition cost for a major system of at least 15 percent over the total acquisition cost for such system as shown in the current Baseline Estimate for such system.
(11) The term “total acquisition cost” means the amount equal to the total cost for development and procurement of, and system-specific construction for, a major system.
(b) Major system cost reports
(1) The program manager for a major system shall, on a quarterly basis, submit to the Director a major system cost report as described in paragraph (2).
(2) A major system cost report shall include the following information (as of the last day of the quarter for which the report is made):
(A) The total acquisition cost for the major system.
(B) Any cost variance or schedule variance in a major contract for the major system since the contract was entered into.
(C) Any changes from a major system schedule milestones or performances that are known, expected, or anticipated by the program manager.
(D) Any significant changes in the total acquisition cost for development and procurement of any software component of the major system, schedule milestones for such software component of the major system, or expected performance of such software component of the major system that are known, expected, or anticipated by the program manager.

(3) Each major system cost report required by paragraph (1) shall be submitted not more than 30 days after the end of the reporting quarter.
(c) Reports for breach of significant or critical cost growth thresholds
If the program manager of a major system for which a report has previously been submitted under subsection (b) determines at any time during a quarter that there is reasonable cause to believe that the total acquisition cost for the major system has increased by a percentage equal to or greater than the significant cost growth threshold or critical cost growth threshold and if a report indicating an increase of such percentage or more has not previously been submitted to the Director, then the program manager shall immediately submit to the Director a major system cost report containing the information, determined as of the date of the report, required under subsection (b).
(d) Notification to Congress of cost growth
(1) Whenever a major system cost report is submitted to the Director, the Director shall determine whether the current acquisition cost for the major system has increased by a percentage equal to or greater than the significant cost growth threshold or the critical cost growth threshold.
(2) If the Director determines that the current total acquisition cost has increased by a percentage equal to or greater than the significant cost growth threshold or critical cost growth threshold, the Director shall submit to Congress a Major System Congressional Report pursuant to subsection (e).
(e) Requirement for Major System Congressional Report
(1) Whenever the Director determines under subsection (d) that the total acquisition cost of a major system has increased by a percentage equal to or greater than the significant cost growth threshold for the major system, a Major System Congressional Report shall be submitted to Congress not later than 45 days after the date on which the Director receives the major system cost report for such major system.
(2) If the total acquisition cost of a major system (as determined by the Director under subsection (d)) increases by a percentage equal to or greater than the critical cost growth threshold for the program or subprogram, the Director shall take actions consistent with the requirements of section 415a–8 of this title.
(f) Major System Congressional Report elements
(1) Except as provided in paragraph (2), each Major System Congressional Report shall include the following:
(A) The name of the major system.
(B) The date of the preparation of the report.
(C) The program phase of the major system as of the date of the preparation of the report.
(D) The estimate of the total acquisition cost for the major system expressed in constant base-year dollars and in current dollars.
(E) The current Baseline Estimate for the major system in constant base-year dollars and in current dollars.
(F) A statement of the reasons for any increase in total acquisition cost for the major system.
(G) The completion status of the major system—
(i) expressed as the percentage that the number of years for which funds have been appropriated for the major system is of the number of years for which it is planned that funds will be appropriated for the major system; and
(ii) expressed as the percentage that the amount of funds that have been appropriated for the major system is of the total amount of funds which it is planned will be appropriated for the major system.

(H) The fiscal year in which the major system was first authorized and in which funds for such system were first appropriated by Congress.
(I) The current change and the total change, in dollars and expressed as a percentage, in the total acquisition cost for the major system, stated both in constant base-year dollars and in current dollars.
(J) The quantity of end items to be acquired under the major system and the current change and total change, if any, in that quantity.
(K) The identities of the officers responsible for management and cost control of the major system.
(L) The action taken and proposed to be taken to control future cost growth of the major system.
(M) Any changes made in the performance or schedule milestones of the major system and the extent to which such changes have contributed to the increase in total acquisition cost for the major system.
(N) The following contract performance assessment information with respect to each major contract under the major system:
(i) The name of the contractor.
(ii) The phase that the contract is in at the time of the preparation of the report.
(iii) The percentage of work under the contract that has been completed.
(iv) Any current change and the total change, in dollars and expressed as a percentage, in the contract cost.
(v) The percentage by which the contract is currently ahead of or behind schedule.
(vi) A narrative providing a summary explanation of the most significant occurrences, including cost and schedule variances under major contracts of the major system, contributing to the changes identified and a discussion of the effect these occurrences will have on the future costs and schedule of the major system.

(O) In any case in which one or more problems with a software component of the major system significantly contributed to the increase in costs of the major system, the action taken and proposed to be taken to solve such problems.

(2) A Major System Congressional Report prepared for a major system for which the increase in the total acquisition cost is due to termination or cancellation of the entire major system shall include only—
(A) the information described in subparagraphs (A) through (F) of paragraph (1); and
(B) the total percentage change in total acquisition cost for such system.
(g) Prohibition on obligation of funds
If a determination of an increase by a percentage equal to or greater than the significant cost growth threshold is made by the Director under subsection (d) and a Major System Congressional Report containing the information described in subsection (f) is not submitted to Congress under subsection (e)(1), or if a determination of an increase by a percentage equal to or greater than the critical cost growth threshold is made by the Director under subsection (d) and the Major System Congressional Report containing the information described in subsection (f) and section 415a–8(b)(3) of this title and the certification required by section 415a–8(b)(2) of this title are not submitted to Congress under subsection (e)(2), funds appropriated for construction, research, development, test, evaluation, and procurement may not be obligated for a major contract under the major system. The prohibition on the obligation of funds for a major system shall cease to apply at the end of the 45-day period that begins on the date—
(1) on which Congress receives the Major System Congressional Report under subsection (e)(1) with respect to that major system, in the case of a determination of an increase by a percentage equal to or greater than the significant cost growth threshold (as determined in subsection (d)); or
(2) on which Congress receives both the Major System Congressional Report under subsection (e)(2) and the certification of the Director under section 415a–8(b)(2) of this title with respect to that major system, in the case of an increase by a percentage equal to or greater than the critical cost growth threshold (as determined under subsection (d)).
(h) Treatment of cost increases prior to October 7, 2010
(1) Not later than 180 days after October 7, 2010, the Director—
(A) shall, for each major system, determine if the total acquisition cost of such major system increased by a percentage equal to or greater than the significant cost growth threshold or the critical cost growth threshold prior to such date;
(B) shall establish for each major system for which the total acquisition cost has increased by a percentage equal to or greater than the significant cost growth threshold or the critical cost growth threshold prior to such date a revised current Baseline Estimate based upon an updated cost estimate;
(C) may, for a major system not described in subparagraph (B), establish a revised current Baseline Estimate based upon an updated cost estimate; and
(D) shall submit to Congress a report describing—
(i) each determination made under subparagraph (A);
(ii) each revised current Baseline Estimate established for a major system under subparagraph (B); and
(iii) each revised current Baseline Estimate established for a major system under subparagraph (C), including the percentage increase of the total acquisition cost of such major system that occurred prior to October 7, 2010.

(2) The revised current Baseline Estimate established for a major system under subparagraph (B) or (C) of paragraph (1) shall be the 2010 adjusted total acquisition cost for the major system and may include the estimated cost of conducting any vulnerability assessments for such major system required under section 415a–5 of this title.
(i) Requirements to use base year dollars
Any determination of a percentage increase under this section shall be stated in terms of constant base year dollars.
(j) Form of report
Any report required to be submitted under this section may be submitted in a classified form.
(July 26, 1947, ch. 343, title V, §506E, as added Pub. L. 111–259, title III, §323(a)(1), Oct. 7, 2010, 124 Stat. 2674.)

50 USC § 415a–8. Critical cost growth in major systems

(a) Reassessment of major system
If the Director of National Intelligence determines under section 415a–7(d) of this title that the total acquisition cost of a major system has increased by a percentage equal to or greater than the critical cost growth threshold for the major system, the Director shall—
(1) determine the root cause or causes of the critical cost growth, in accordance with applicable statutory requirements, policies, procedures, and guidance; and
(2) carry out an assessment of—
(A) the projected cost of completing the major system if current requirements are not modified;
(B) the projected cost of completing the major system based on reasonable modification of such requirements;
(C) the rough order of magnitude of the costs of any reasonable alternative system or capability; and
(D) the need to reduce funding for other systems due to the growth in cost of the major system.
(b) Presumption of termination
(1) After conducting the reassessment required by subsection (a) with respect to a major system, the Director shall terminate the major system unless the Director submits to Congress a Major System Congressional Report containing a certification in accordance with paragraph (2) and the information described in paragraph (3). The Director shall submit such Major System Congressional Report and certification not later than 90 days after the date the Director receives the relevant major system cost report under subsection (b) or (c) of section 415a–7 of this title.
(2) A certification described by this paragraph with respect to a major system is a written certification that—
(A) the continuation of the major system is essential to the national security;
(B) there are no alternatives to the major system that will provide acceptable capability to meet the intelligence requirement at less cost;
(C) the new estimates of the total acquisition cost have been determined by the Director to be reasonable;
(D) the major system is a higher priority than other systems whose funding must be reduced to accommodate the growth in cost of the major system; and
(E) the management structure for the major system is adequate to manage and control the total acquisition cost.

(3) A Major System Congressional Report accompanying a written certification under paragraph (2) shall include, in addition to the requirements of section 415a–7(e) of this title, the root cause analysis and assessment carried out pursuant to subsection (a), the basis for each determination made in accordance with subparagraphs (A) through (E) of paragraph (2), and a description of all funding changes made as a result of the growth in the cost of the major system, including reductions made in funding for other systems to accommodate such cost growth, together with supporting documentation.
(c) Actions if major system not terminated
If the Director elects not to terminate a major system pursuant to subsection (b), the Director shall—
(1) restructure the major system in a manner that addresses the root cause or causes of the critical cost growth, as identified pursuant to subsection (a), and ensures that the system has an appropriate management structure as set forth in the certification submitted pursuant to subsection (b)(2)(E);
(2) rescind the most recent Milestone approval for the major system;
(3) require a new Milestone approval for the major system before taking any action to enter a new contract, exercise an option under an existing contract, or otherwise extend the scope of an existing contract under the system, except to the extent determined necessary by the Milestone Decision Authority, on a nondelegable basis, to ensure that the system may be restructured as intended by the Director without unnecessarily wasting resources;
(4) establish a revised current Baseline Estimate for the major system based upon an updated cost estimate; and
(5) conduct regular reviews of the major system.
(d) Actions if major system terminated
If a major system is terminated pursuant to subsection (b), the Director shall submit to Congress a written report setting forth—
(1) an explanation of the reasons for terminating the major system;
(2) the alternatives considered to address any problems in the major system; and
(3) the course the Director plans to pursue to meet any intelligence requirements otherwise intended to be met by the major system.
(e) Form of report
Any report or certification required to be submitted under this section may be submitted in a classified form.
(f) Waiver
(1) The Director may waive the requirements of subsections (d)(2), (e), and (g) of section 415a–7 of this title and subsections (a)(2), (b), (c), and (d) of this section with respect to a major system if the Director determines that at least 90 percent of the amount of the current Baseline Estimate for the major system has been expended.
(2)(A) If the Director grants a waiver under paragraph (1) with respect to a major system, the Director shall submit to the congressional intelligence committees written notice of the waiver that includes—
(i) the information described in section 415a–7(f) of this title; and
(ii) if the current total acquisition cost of the major system has increased by a percentage equal to or greater than the critical cost growth threshold—
(I) a determination of the root cause or causes of the critical cost growth, as described in subsection (a)(1); and
(II) a certification that includes the elements described in subparagraphs (A), (B), and (E) of subsection (b)(2).

(B) The Director shall submit the written notice required by subparagraph (A) not later than 90 days after the date that the Director receives a major system cost report under subsection (b) or (c) of section 415a–7 of this title that indicates that the total acquisition cost for the major system has increased by a percentage equal to or greater than the significant cost growth threshold or critical cost growth threshold.
(g) Definitions
In this section, the terms “cost estimate”, “critical cost growth threshold”, “current Baseline Estimate”, “major system”, and “total acquisition cost” have the meaning given those terms in section 415a–7(a) of this title.
(July 26, 1947, ch. 343, title V, §506F, as added Pub. L. 111–259, title III, §324(a), Oct. 7, 2010, 124 Stat. 2679.)

50 USC § 415a–9. Future budget projections

(a) Future Year Intelligence Plans
(1) The Director of National Intelligence, with the concurrence of the Director of the Office of Management and Budget, shall provide to the congressional intelligence committees a Future Year Intelligence Plan, as described in paragraph (2), for—
(A) each expenditure center in the National Intelligence Program; and
(B) each major system in the National Intelligence Program.

(2)(A) A Future Year Intelligence Plan submitted under this subsection shall include the year-by-year proposed funding for each center or system referred to in subparagraph (A) or (B) of paragraph (1), for the budget year for which the Plan is submitted and not less than the 4 subsequent fiscal years.
(B) A Future Year Intelligence Plan submitted under subparagraph (B) of paragraph (1) for a major system shall include—
(i) the estimated total life-cycle cost of such major system; and
(ii) major milestones that have significant resource implications for such major system.
(b) Long-term Budget Projections
(1) The Director of National Intelligence, with the concurrence of the Director of the Office of Management and Budget, shall provide to the congressional intelligence committees a Long-term Budget Projection for each element of the intelligence community funded under the National Intelligence Program acquiring a major system that includes the budget for such element for the 5-year period that begins on the day after the end of the last fiscal year for which year-by-year proposed funding is included in a Future Year Intelligence Plan for such major system in accordance with subsection (a)(2)(A).
(2) A Long-term Budget Projection submitted under paragraph (1) shall include—
(A) projections for the appropriate element of the intelligence community for—
(i) pay and benefits of officers and employees of such element;
(ii) other operating and support costs and minor acquisitions of such element;
(iii) research and technology required by such element;
(iv) current and planned major system acquisitions for such element;
(v) any future major system acquisitions for such element; and
(vi) any additional funding projections that the Director of National Intelligence considers appropriate;

(B) a budget projection based on effective cost and schedule execution of current or planned major system acquisitions and application of Office of Management and Budget inflation estimates to future major system acquisitions;
(C) any additional assumptions and projections that the Director of National Intelligence considers appropriate; and
(D) a description of whether, and to what extent, the total projection for each year exceeds the level that would result from applying the most recent Office of Management and Budget inflation estimate to the budget of that element of the intelligence community.
(c) Submission to Congress
The Director of National Intelligence, with the concurrence of the Director of the Office of Management and Budget, shall submit to the congressional intelligence committees each Future Year Intelligence Plan or Long-term Budget Projection required under subsection (a) or (b) for a fiscal year at the time that the President submits to Congress the budget for such fiscal year pursuant section 1105 of title 31.
(d) Major system affordability report
(1) The Director of National Intelligence, with the concurrence of the Director of the Office of Management and Budget, shall prepare a report on the acquisition of a major system funded under the National Intelligence Program before the time that the President submits to Congress the budget for the first fiscal year in which appropriated funds are anticipated to be obligated for the development or procurement of such major system.
(2) The report on such major system shall include an assessment of whether, and to what extent, such acquisition, if developed, procured, and operated, is projected to cause an increase in the most recent Future Year Intelligence Plan and Long-term Budget Projection submitted under this section for an element of the intelligence community.
(3) The Director of National Intelligence shall update the report whenever an independent cost estimate must be updated pursuant to section 415a–1(a)(4) of this title.
(4) The Director of National Intelligence shall submit each report required by this subsection at the time that the President submits to Congress the budget for a fiscal year pursuant to section 1105 of title 31.
(e) Definitions
In this section:
(1) Budget year
The term “budget year” means the next fiscal year for which the President is required to submit to Congress a budget pursuant to section 1105 of title 31.
(2) Independent cost estimate; major system
The terms “independent cost estimate” and “major system” have the meaning given those terms in section 415a–1(e) of this title.
(July 26, 1947, ch. 343, title V, §506G, as added Pub. L. 111–259, title III, §325(a), Oct. 7, 2010, 124 Stat. 2681.)

50 USC § 415a–10. Reports on security clearances

(a) Quadrennial audit of position requirements
(1) The President shall every four years conduct an audit of the manner in which the executive branch determines whether a security clearance is required for a particular position in the United States Government.
(2) Not later than 30 days after the completion of an audit conducted under paragraph (1), the President shall submit to Congress the results of such audit.
(b) Report on security clearance determinations
(1) Not later than February 1 of each year, the President shall submit to Congress a report on the security clearance process. Such report shall include, for each security clearance level—
(A) the number of employees of the United States Government who—
(i) held a security clearance at such level as of October 1 of the preceding year; and
(ii) were approved for a security clearance at such level during the preceding fiscal year;

(B) the number of contractors to the United States Government who—
(i) held a security clearance at such level as of October 1 of the preceding year; and
(ii) were approved for a security clearance at such level during the preceding fiscal year; and

(C) for each element of the intelligence community—
(i) the total amount of time it took to process the security clearance determination for such level that—
(I) was among the 80 percent of security clearance determinations made during the preceding fiscal year that took the shortest amount of time to complete; and
(II) took the longest amount of time to complete;

(ii) the total amount of time it took to process the security clearance determination for such level that—
(I) was among the 90 percent of security clearance determinations made during the preceding fiscal year that took the shortest amount of time to complete; and
(II) took the longest amount of time to complete;

(iii) the number of pending security clearance investigations for such level as of October 1 of the preceding year that have remained pending for—
(I) 4 months or less;
(II) between 4 months and 8 months;
(III) between 8 months and one year; and
(IV) more than one year;

(iv) the percentage of reviews during the preceding fiscal year that resulted in a denial or revocation of a security clearance;
(v) the percentage of investigations during the preceding fiscal year that resulted in incomplete information;
(vi) the percentage of investigations during the preceding fiscal year that did not result in enough information to make a decision on potentially adverse information; and
(vii) for security clearance determinations completed or pending during the preceding fiscal year that have taken longer than one year to complete—
(I) the number of security clearance determinations for positions as employees of the United States Government that required more than one year to complete;
(II) the number of security clearance determinations for contractors that required more than one year to complete;
(III) the agencies that investigated and adjudicated such determinations; and
(IV) the cause of significant delays in such determinations.

(2) For purposes of paragraph (1), the President may consider—
(A) security clearances at the level of confidential and secret as one security clearance level; and
(B) security clearances at the level of top secret or higher as one security clearance level.
(c) Form
The results required under subsection (a)(2) and the reports required under subsection (b)(1) shall be submitted in unclassified form, but may include a classified annex.
(July 26, 1947, ch. 343, title V, §506H, as added Pub. L. 111–259, title III, §367(a)(1)(A), Oct. 7, 2010, 124 Stat. 2703.)

50 USC § 415a–11. Summary of intelligence relating to terrorist recidivism of detainees held at United States Naval Station, Guantanamo Bay, Cuba

(a) In general
The Director of National Intelligence, in consultation with the Director of the Central Intelligence Agency and the Director of the Defense Intelligence Agency, shall make publicly available an unclassified summary of—
(1) intelligence relating to recidivism of detainees currently or formerly held at the Naval Detention Facility at Guantanamo Bay, Cuba, by the Department of Defense; and
(2) an assessment of the likelihood that such detainees will engage in terrorism or communicate with persons in terrorist organizations.
(b) Updates
Not less frequently than once every 6 months, the Director of National Intelligence, in consultation with the Director of the Central Intelligence Agency and the Secretary of Defense, shall update and make publicly available an unclassified summary consisting of the information required by subsection (a) and the number of individuals formerly detained at Naval Station, Guantanamo Bay, Cuba, who are confirmed or suspected of returning to terrorist activities after release or transfer from such Naval Station.
(July 26, 1947, ch. 343, title V, §506I, as added Pub. L. 112–87, title III, §307(a)(1), Jan. 3, 2012, 125 Stat. 1882.)

50 USC § 415b. Dates for submittal of various annual and semiannual reports to the congressional intelligence committees

(a) Annual reports
(1) The date for the submittal to the congressional intelligence committees of the following annual reports shall be the date each year provided in subsection (c)(1)(A) of this section:
(A) The annual report on the protection of the identities of covert agents required by section 423 of this title.
(B) The annual report of the Inspectors Generals of the intelligence community on proposed resources and activities of their offices required by section 8H(g) of the Inspector General Act of 1978.
(C) The annual report on the acquisition of technology relating to weapons of mass destruction and advanced conventional munitions required by section 2366 of this title.
(D) The annual report on commercial activities as security for intelligence collection required by section 437(c)  of title 10.
(E) The annual report on certifications for immunity in interdiction of aircraft engaged in illicit drug trafficking required by section 2291–4(c)(2) of title 22.
(F) The annual report on activities under the David L. Boren National Security Education Act of 1991 (title VIII of Public Law 102–183; 50 U.S.C. 1901 et seq.) required by section 806(a) of that Act (50 U.S.C. 1906(a)).
(G) The annual report on hiring and retention of minority employees in the intelligence community required by section 404i(c) of this title.
(H) The annual report on outside employment of employees of elements of the intelligence community required by section 403–1(u)(2) of this title.
(I) The annual report on financial intelligence on terrorist assets required by section 404m of this title.

(2) The date for the submittal to the congressional intelligence committees of the following annual reports shall be the date each year provided in subsection (c)(1)(B) of this section:
(A) The annual report on the safety and security of Russian nuclear facilities and nuclear military forces required by section 404i(a) of this title.
(B) The annual report on the threat of attack on the United States from weapons of mass destruction required by section 404i(c) of this title.
(b) Semiannual reports
The dates for the submittal to the congressional intelligence committees of the following semiannual reports shall be the dates each year provided in subsection (c)(2) of this section:
(1) The semiannual reports on the Office of the Inspector General of the Central Intelligence Agency required by section 403q(d)(1) of this title.
(2) The semiannual reports on decisions not to prosecute certain violations of law under the Classified Information Procedures Act (18 U.S.C. App.) as required by section 13 of that Act.
(3) The semiannual reports on the disclosure of information and consumer reports to the Federal Bureau of Investigation for counterintelligence purposes required by section 1681u(h)(2) of title 15.
(4) The semiannual provision of information on requests for financial information for foreign counterintelligence purposes required by section 3414(a)(5)(C) of title 12.
(c) Submittal dates for reports
(1)(A) Except as provided in subsection (d) of this section, each annual report listed in subsection (a)(1) of this section shall be submitted not later than February 1.
(B) Except as provided in subsection (d) of this section, each annual report listed in subsection (a)(2) of this section shall be submitted not later than December 1.
(2) Except as provided in subsection (d) of this section, each semiannual report listed in subsection (b) of this section shall be submitted not later than February 1 and August 1.
(d) Postponement of submittal
(1) Subject to paragraph (3), the date for the submittal of—
(A) an annual report listed in subsection (a)(1) of this section may be postponed until March 1;
(B) an annual report listed in subsection (a)(2) of this section may be postponed until January 1; and
(C) a semiannual report listed in subsection (b) of this section may be postponed until March 1 or September 1, as the case may be,

if the official required to submit such report submits to the congressional intelligence committees a written notification of such postponement.
(2)(A) Notwithstanding any other provision of law and subject to paragraph (3), the date for the submittal to the congressional intelligence committees of any report described in subparagraph (B) may be postponed by not more than 30 days from the date otherwise specified in the provision of law for the submittal of such report if the official required to submit such report submits to the congressional intelligence committees a written notification of such postponement.
(B) A report described in this subparagraph is any report on intelligence or intelligence-related activities of the United States Government that is submitted under a provision of law requiring the submittal of only a single report.
(3)(A) The date for the submittal of a report whose submittal is postponed under paragraph (1) or (2) may be postponed beyond the time provided for the submittal of such report under such paragraph if the official required to submit such report submits to the congressional intelligence committees a written certification that preparation and submittal of such report at such time will impede the work of officers or employees of the intelligence community in a manner that will be detrimental to the national security of the United States.
(B) A certification with respect to a report under subparagraph (A) shall include a proposed submittal date for such report, and such report shall be submitted not later than that date.
(July 26, 1947, ch. 343, title V, §507, as added Pub. L. 107–306, title VIII, §811(a)(1), Nov. 27, 2002, 116 Stat. 2418; amended Pub. L. 108–177, title III, §361(l), Dec. 13, 2003, 117 Stat. 2626; Pub. L. 111–259, title III, §349, title V, §501(b)(3), Oct. 7, 2010, 124 Stat. 2700, 2739.)

50 USC § 415c. Availability to public of certain intelligence funding information

(a) Budget request
At the time that the President submits to Congress the budget for a fiscal year pursuant to section 1105 of title 31, the President shall disclose to the public the aggregate amount of appropriations requested for that fiscal year for the National Intelligence Program.
(b) Amounts appropriated each fiscal year
Not later than 30 days after the end of each fiscal year, the Director of National Intelligence shall disclose to the public the aggregate amount of funds appropriated by Congress for the National Intelligence Program for such fiscal year.
(c) Waiver
(1) In general
The President may waive or postpone the disclosure required by subsection (a) or (b) for a fiscal year by submitting to the Select Committee on Intelligence of the Senate and Permanent Select Committee on Intelligence of the House of Representatives—
(A) a statement, in unclassified form, that the disclosure required in subsection (a) or (b) for that fiscal year would damage national security; and
(B) a statement detailing the reasons for the waiver or postponement, which may be submitted in classified form.
(2) Submission dates
The President shall submit the statements required under paragraph (1)—
(A) in the case of a waiver or postponement of a disclosure required under subsection (a), at the time of the submission of the budget for the fiscal year for which such disclosure is waived or postponed; and
(B) in the case of a waiver or postponement of a disclosure required under subsection (b), not later than 30 days after the date of the end of the fiscal year for which such disclosure is waived or postponed.
(d) Definition
As used in this section, the term “National Intelligence Program” has the meaning given the term in section 401a(6) of this title.
(Pub. L. 110–53, title VI, §601, Aug. 3, 2007, 121 Stat. 335; Pub. L. 111–259, title III, §364, Oct. 7, 2010, 124 Stat. 2702.)

50 USC § 415d. Certification of compliance with oversight requirements

The head of each element of the intelligence community shall annually submit to the congressional intelligence committees—
(1) a certification that, to the best of the knowledge of the head of such element—
(A) the head of such element is in full compliance with the requirements of this subchapter; and
(B) any information required to be submitted by the head of such element under this Act before the date of the submission of such certification has been properly submitted; or

(2) if the head of such element is unable to submit a certification under paragraph (1), a statement—
(A) of the reasons the head of such element is unable to submit such a certification;
(B) describing any information required to be submitted by the head of such element under this Act before the date of the submission of such statement that has not been properly submitted; and
(C) that the head of such element will submit such information as soon as possible after the submission of such statement.
(July 26, 1947, ch. 343, title V, §508, as added Pub. L. 111–259, title III, §332(a), Oct. 7, 2010, 124 Stat. 2686.)