By Outrider Editorial Team · Updated August 20, 2026
PSC AC32 is applied research coded to the defense-related activities subfunction. At $7.3 billion in FY2025 it is the second-largest R&D code in the federal government, behind only AC13. That does not add up, because defense-related activities is by far the smallest of the three National Defense subfunctions in budget terms. The size of AC32 suggests contracting offices are using the AC3x block as a general-purpose defense research bucket rather than as the narrow subfunction the manual describes.
Almost entirely one registration
Physical, Engineering, and Life Sciences R&D (541715) took $6.5 billion, about 89 percent. Then 541712 at $257 million, 336411, Aircraft Manufacturing, at $169 million, 541713, Research and Development in Nanotechnology, at $138 million, and 541380, Testing Laboratories and Services, at $48 million.
The two-code system in a sentence
Read the PSC for the work funded and the NAICS code for the industry that performed it.
Never infer the buying agency from an A-series code's subfunction. Filter AC32 results by awarding agency before drawing any conclusion about who is spending, because the subfunction label and the actual buyer frequently disagree.
NAICS crosswalk
Where FY2025 AC32 dollars landed, by the winning vendor's registered NAICS code.
- 541712Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)$256.9M
- 336411Aircraft Manufacturing$169.4M
- 541713Research and Development in Nanotechnology$137.8M
- 541380Testing Laboratories and Services$48.5M
FY2025 federal contract obligations, USAspending.gov
Frequently Asked
PSC AC32 questions, answered.
What does PSC AC32 cover?
Applied research under the defense-related activities subfunction of the National Defense budget function: original investigation directed at a specific practical defense objective.
What NAICS codes win AC32 work?
Physical, Engineering, and Life Sciences R&D (541715) took $6.5 billion of $7.3 billion in FY2025, roughly 89 percent, with 541712 a distant second at $257 million.
Why is AC32 so large for a small budget subfunction?
The volume is out of proportion to the defense-related activities subfunction, which suggests the AC3x codes are being used broadly for defense research, not strictly by budget subfunction. Always check the awarding agency.
Should I search AC32 or AC12?
Both, plus AC22. All three are applied research inside the National Defense function and the subfunction split is applied inconsistently across buying offices.
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