That combination of elements that will function together to produce the
capabilities required to fulfill a mission need. The elements may
include hardware, equipment, software, or any combination thereof, but
exclude construction or other improvements to real property. A system
is a major system if:
(1) The Department of Defense is responsible for the system and the
total expenditures for research, development, test, and evaluation for
the system are estimated to be more than $173.5 million or the eventual
total expenditure for the acquisition exceeds $814.5 million;
(2) A civilian agency is responsible for
the system and total expenditures for the system are estimated to
exceed $1.8 million or the dollar threshold for a “major system”
established by the agency pursuant to Office of Management and Budget
Circular A-109, entitled “Major System Acquisitions,” whichever is
(3) The system is designated a “major
system” by the head of the agency responsible for the system (10 U.S.C.
2302 and 41 U.S.C. 403).
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