What does a Nunn-McCurdy breach refer to?

A Nunn-McCurdy breach specifically relates to the significant increase in the costs of military acquisition programs. When the estimated costs of a program exceed certain thresholds compared to the original estimates, it triggers a review process mandated by the Nunn-McCurdy Amendment. This is crucial for maintaining oversight and accountability in defense spending. The thresholds are determined based on the severity of the cost increase and aim to ensure that the Department of Defense revisits the justification for continuing funding of the program in question. This concept is particularly significant in terms of budgetary implications and program viability, highlighting the importance of fiscal responsibility in defense contracting efforts.

The other options do not accurately capture the essence of a Nunn-McCurdy breach. For instance, while delivery issues might affect a contract’s success, they do not pertain to the specific cost-related monitoring established by the Nunn-McCurdy Amendment. Likewise, violations of contract terms or labor laws are distinct legal matters unrelated to cost overruns, thereby further emphasizing the unique nature of the Nunn-McCurdy breach in the context of military contracts.