10 U.S.C. § 4202

(a) Adjustments to Thresholds for Major Defense Acquisition Programs.— (1) Authority .— The Secretary of Defense may adjust the amounts (and the base fiscal year) provided in section 4201(a)(2) of this title on the basis of Department of Defense escalation rates. (2) Matters to be considered .— For purposes of section 4201(a)(2) of this title , the Secretary shall consider, as applicable, the following: (A) The estimated level of resources required to fulfill the relevant joint military requirement, as determined by the Joint Requirements Oversight Council pursuant to section 181 of this title . (B) The cost estimate referred to in section 4251(a)(6) of this title . (C) The cost estimate referred to in section 4252(a)(1)(C) of this title . (D) The cost estimate within a baseline description as required by section 4214 of this title . (b) Adjustment Authority for Major Systems.— (1) Authority .— The Secretary of Defense may adjust the amounts and the base fiscal year provided in section 3041(c)(1) of this title on the basis of Department of Defense escalation rates. (2) Rounding .— An amount, as adjusted under paragraph (1), that is not evenly divisible by $5,000,000 shall be rounded to the nearest multiple of $5,000,000. In the case of an amount that is evenly divisible by $2,500,000 but not evenly divisible by $5,000,000, the amount shall be rounded to the next higher multiple of $5,000,000. (c) Notification to Congressional Committees .— An adjustment under subsection (a) or (b) shall be effective after the Secretary transmits to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a written notification of the adjustment.