FY2025 obligations by the NAICS code on the award
53% of the $1.9B obligated under AC11 in FY2025 went to awards coded NAICS 541715.
- 541712 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)not in NAICS 2022$89.0M
FY2025 federal contract obligations, USAspending.gov
PSC AC11 is basic research for the Department of Defense military subfunction. The manual defines the stage carefully: experimental or theoretical work undertaken primarily to acquire new knowledge of the underlying foundations of phenomena and observable facts, which may have broad applications in mind but must exclude research directed at a specific application or requirement. FY2025 obligations totalled $1.85 billion.
Where basic research money goes
The second-largest code is 336412, Aircraft Engine and Engine Parts Manufacturing, at $376 million. Basic research money flowing to engine manufacturers reflects how much foundational propulsion and materials science happens in OEM laboratories, not academic ones. Physical, Engineering, and Life Sciences R&D (541715) leads at $981 million, 336411, Aircraft Manufacturing, adds $303 million, 541712 adds $89 million, and engineering services 541330 adds $35 million.
Two codes, two different questions
The PSC answers what stage of research the government funded; the NAICS code answers what industry the work belongs to.
For a research organization, the useful comparison is AC11 against AC12 and AC13. Basic research is the smallest of the three DoD military stages by a wide margin, and it is also the one where the manual's definition is strictest. A proposal that names a specific application undermines its own stage classification.
PSC AC11 FAQ
What does PSC AC11 cover?
Basic research funded under the Department of Defense military subfunction: experimental or theoretical work to acquire new knowledge of underlying phenomena, excluding work directed at a specific application.
What NAICS codes win AC11 work?
Physical, Engineering, and Life Sciences R&D (541715) took $981 million of $1.85 billion in FY2025, with Aircraft Engine and Engine Parts Manufacturing (336412) an unusual second at $376 million.
Why do manufacturers win basic research awards?
Foundational propulsion, materials, and sensing research is often performed in manufacturer laboratories. The award carries the manufacturing code the contracting officer assigned to the contract even though the work is basic science.
How strict is the basic research definition?
Strict. The manual permits broad or general applications in mind but excludes research directed toward a specific application or requirement, which is the line between AC11 and AC12.