National Defense R&D Services; Department of Defense - Military; Experimental Development

PSC AC13 is the largest federal R&D code, with $9.2 billion obligated in FY2025 for DoD experimental development. Low-rate initial production is excluded.

PSC AC13 · Family A: Research and Development · Published

By Outrider Editorial Team

FY2025 obligations by the NAICS code on the award

63% of the $9.2B obligated under AC13 in FY2025 went to awards coded NAICS 541715.

  1. 541712 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)not in NAICS 2022$476.3M

FY2025 federal contract obligations, USAspending.gov

PSC AC13 is the biggest research and development code in the federal government at $9.2 billion in FY2025. It sits at the intersection of the National Defense budget function, the Department of Defense military subfunction, and stage three of the manual's five R&D stages, experimental development.

The exclusions decide the code

Stage three is defined as creative and systematic work drawing on research and practical experience, directed at producing new products or processes or improving existing ones, including the design, construction, and testing of experimental prototypes and first-of-a-kind technology demonstrations at scale. The manual then excludes three things by name: user demonstrations validating cost and benefit for a specific use case, low-rate initial production, and pre-production development such as tooling and production facility work, which it maps to DoD's Operational Systems Development budget activity. A prototype that has moved into LRIP has left AC13.

Where the money lands

Physical, Engineering, and Life Sciences R&D (541715) took $5.9 billion, engineering services 541330 took $1.30 billion, 336413 took $595 million, 541712 took $476 million, and 336992 took $159 million.

PSC and NAICS in one line

The PSC classifies the requirement by budget function and R&D stage; the NAICS code classifies the work by industry.

Search AC11, AC12, and AC13 together, since the stage boundary is a judgement call.

PSC AC13 FAQ

What does PSC AC13 cover?

Experimental development for the Department of Defense military budget subfunction: prototype design, construction, and testing, and first-of-a-kind technology demonstrations at scale.

What NAICS codes win AC13 work?

Physical, Engineering, and Life Sciences R&D (541715) took $5.9 billion of $9.2 billion in FY2025, with Engineering Services (541330) at $1.30 billion and Other Aircraft Parts and Auxiliary Equipment Manufacturing (336413) at $595 million.

Is low-rate initial production coded AC13?

No. The manual excludes low-rate initial production, user demonstrations validating a specific use case, and pre-production development including tooling from the experimental development stage.

How do the R&D stage digits work?

The fourth character of an A-series code is the stage: 1 basic research, 2 applied research, 3 experimental development, 4 R&D administrative expenses, and 5 R&D facilities and major equipment.

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