What is a potential consequence of a Nunn-McCurdy breach?

The potential consequence of a Nunn-McCurdy breach is that notification to Congress is required. The Nunn-McCurdy Act mandates that when a program experiences cost overruns that exceed certain thresholds, the Department of Defense must provide notification to Congress. This legislative oversight is designed to ensure transparency and accountability in defense acquisition programs.

By notifying Congress, the government can take necessary actions to address the issues surrounding the program, including reassessing its viability, determining whether it should continue, be restructured, or face additional scrutiny. This process serves to involve legislative oversight to prevent excessive expenditure of taxpayer funds without adequate justification or oversight.

In contrast, other options like automatic cancellation of the program, imposition of penalties on the contractor, or immediate renegotiation of contracts do not accurately reflect the procedural response required under the Nunn-McCurdy thresholds. Such actions may occur as a result of a breach, but they are not direct consequences of the Nunn-McCurdy notification requirements.