FY2025 obligations by the NAICS code on the award
79% of the $3.8B obligated under AC12 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$146.3M
FY2025 federal contract obligations, USAspending.gov
PSC AC12 is applied research for the Department of Defense military subfunction. The manual defines applied research as original investigation undertaken to acquire knowledge but directed primarily toward a specific practical aim or objective, which distinguishes it from the open-ended basic research of AC11. FY2025 obligations reached $3.8 billion.
Roughly, but not exactly, 6.2
The three research stages line up loosely with DoD budget activities: AC11 against 6.1 basic research, AC12 against 6.2 applied research, AC13 against advanced development. The alignment is not formal, and the manual makes one hard break of its own by pushing operational systems development, budget activity 6.7, out of the R&D codes entirely. Treat the mapping as a search heuristic rather than a rule.
An extremely concentrated code
Physical, Engineering, and Life Sciences R&D (541715) took $3.0 billion, about 79 percent of the total. Everything else is small: All Other Professional, Scientific, and Technical Services (541990) at $258 million, 541712 at $146 million, engineering services 541330 at $70 million, and 336414, Guided Missile and Space Vehicle Manufacturing, at $66 million.
The two code systems, once
A PSC describes what the government funded and a NAICS code describes the industry the contracting officer assigned to the work.
If you perform applied defense research and are not registered under 541715, you are outside the code that holds four dollars in five.
PSC AC12 FAQ
What does PSC AC12 cover?
Applied research funded under the Department of Defense military budget subfunction: original investigation directed toward a specific practical objective, not general knowledge.
What NAICS codes win AC12 work?
Physical, Engineering, and Life Sciences R&D (541715) dominates at $3.0 billion of $3.8 billion in FY2025. No other code reaches $258 million plus a small margin.
How is AC12 different from AC11?
AC11 is basic research, defined as work to acquire new knowledge of underlying foundations without a specific application in mind. AC12 is applied research aimed at a practical objective.
Does AC12 correspond to 6.2 funding?
Loosely. The PSC stages and DoD budget activities are separate systems that happen to align in spirit. The manual's own hard rule is that operational systems development is not R&D at all.