PSC AB23

Overview

The Product Service Code system is the federal government’s standard taxonomy for classifying purchases in contracts, enabling consistent tracking, analysis, and reporting across procurement systems. PSCs are maintained through the PSC Manual and recorded on contract actions in the Federal Procurement Data System (FPDS). ¹

PSC AB23 identifies Research and Development services in the Community and Regional Development major area, specifically the “Area and regional development” subdomain at the Experimental Development stage. Experimental Development includes the design, construction, and testing of experimental prototypes or methods, and may include first-of-a-kind technology demonstrations where further refinement is expected; user demonstrations and pre‑production development are explicitly excluded. ¹

What this PSC covers

• Experimental development of systems or methods for area and regional development, including designing, constructing, and testing experimental prototypes. ¹
• First-of-a-kind technology demonstrations within area/regional development when further design refinement is anticipated (feedback R&D). ¹
• R&D efforts categorized under the Community and Regional Development major area and the “Area and regional development” subdomain, where Experimental Development is the primary objective. ¹
• Contract actions coded by the predominant product or service per FPDS guidance when multiple elements are present. ¹
• Excludes user demonstrations and pre‑production development activities; those are not R&D and should be coded outside AB23. ¹
• Administrative expenses tied to Community and Regional Development R&D belong under AB24, not AB23. ¹
• Expenses for R&D facilities and major equipment should be coded to AB25. ¹

Related NAICS and PSC codes

Stage-of-R&D context (per PSC Manual)

• Basic Research: Systematic study to gain fuller knowledge without specific applications in mind; corresponds to codes such as AB21 within the same subdomain. ¹
• Applied Research: Investigation to determine and exploit potential of scientific discoveries or improvements; maps to AB22 for the area/regional development subdomain. ¹
• Experimental Development: Systematic work drawing on knowledge from research and practical experience to produce or improve materials, devices, systems, or methods; AB23 applies here. ¹

Inclusions and exclusions specific to AB23

• Include: Design, construction, and testing of experimental prototypes or methods that advance area or regional development capabilities; first-of-a-kind demonstrations with expected iterative refinement. ¹
• Exclude: User demonstrations validating costs/benefits for specific use cases and pre‑production development (e.g., tooling, production facility development); these are not R&D. ¹
• Code separately: Administrative expenses under AB24 and R&D facilities/major movable equipment under AB25. ¹

Frequently asked questions

• What does PSC AB23 cover?
  AB23 designates Community and Regional Development R&D services for “Area and regional development” at the Experimental Development stage. It includes designing, constructing, and testing experimental prototypes and certain first-of-a-kind demonstrations; user demonstrations and pre‑production development are excluded. ¹

• How does PSC AB23 differ from PSC AB22 and PSC AB21?
  AB21 is Basic Research and AB22 is Applied Research in the same subdomain; AB23 is Experimental Development, focused on creating or improving prototypes, systems, or methods. Select the code that reflects the R&D stage that predominates in the award. ¹

• Are administrative expenses and facilities costs part of AB23?
  No. Administrative expenses for Community and Regional Development R&D are coded to AB24, and R&D facilities/major movable equipment are coded to AB25. ¹

• How should AB23 be reported in FPDS when an action includes mixed supplies and services?
  Select the PSC based on the predominant product or service purchased. The PSC is recorded in FPDS data element 8A; environmental attributes, when applicable, are recorded in element 8L. ¹

• Does the PSC Manual provide topical examples or NAICS crosswalks for AB23?
  Not specified by official sources. ²

Useful resources

• G2X — PSC AB23 overview: https://app.g2xchange.com/psc/AB23
• Product and Service Codes Manual (April 2025), official PDF. ¹
• Product and Service Code Manual portal and archives. ²
• FAR Part 35 — Research and Development Contracting. ³

References

1. U.S. General Services Administration, Product and Service Codes (PSC) Manual, April 2025 edition (PDF), https://www.acquisition.gov/sites/default/files/manual/PSC%20Manual%20April%202025.pdf
2. U.S. General Services Administration, Product and Service Code Manual — index and archives, https://www.acquisition.gov/psc-manual/all
3. Federal Acquisition Regulation, Part 35 — Research and Development Contracting, https://www.acquisition.gov/far/part-35