The Nunn–McCurdy Amendment or Nunn–McCurdy Provision, introduced by Senator Sam Nunn and Congressman Dave McCurdy in the United States 1982 Defense Authorization Act and made permanent in 1983, is designed to curtail cost growth in American weapons procurement programs.
It requires notification to the United States Congress if the cost per unit goes more than 25% beyond what was originally estimated and calls for the termination of programs with total cost growth greater than 50%, unless the Secretary of Defense submits a detailed explanation certifying: Congress normally regards the explanations from the Secretary of Defense as acceptable.
It is unusual for a program to be cancelled as a result of notification, but it has led to many changes to project management.
In 2006, the House of Representatives proposed amending the provision to require a detailed explanation, including information about possible alternatives, at the 15%-cost-growth mark.
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