PSC AC14

Overview

The Product Service Code (PSC) is a standardized taxonomy the U.S. government uses to classify what is being bought so spending can be tracked, analyzed, and reported across procurement systems. Agencies record PSCs in the Federal Procurement Data System (FPDS) and use the PSC Manual to ensure consistent coding governmentwide. ¹
PSC AC14 identifies “National Defense R&D Services; Department of Defense – Military; R&D Administrative Expenses.” It is used when the predominant purpose of a contracting action is to fund administrative and overhead expenses associated with Department of Defense (DoD) military research and development (R&D), rather than the R&D performance itself or R&D plant. ²

See also on G2X:

• G2X — PSC AC11 (DoD basic research)
• G2X — PSC AC15 (DoD R&D facilities and major equipment)

What this PSC covers

• Administrative expenses supporting DoD military R&D programs when these costs are the primary purpose of the buy. ²
• Operating costs of research facilities that are part of the conduct of R&D (e.g., utilities, routine operations), when not constituting R&D plant investment. ³
• Minor R&D‑related equipment purchases (e.g., standard lab or computing items) tied to the conduct of R&D, not major capital assets. ³
• Other overhead costs clearly attributable to R&D performance (e.g., indirect administrative expenses associated with R&D). ³
• Excludes investments in R&D plant (construction or major equipment), which fall under PSC AC15. ³
• Excludes separately purchased non‑R&D supplies or services (including schedule orders); use the applicable product/service PSC instead of an R&D series code. ⁵

Related NAICS and PSC codes

Coding boundaries and exclusions (quick guidance)

• Do not use an R&D PSC for purchases of equipment, supplies, or services separately bought in support of R&D; choose the appropriate product or service PSC instead. ⁵
• When entering an award in FPDS, select the PSC based on the predominant purpose of the action; PSC is captured in FPDS data element 8A (“Product or Service Code”). ²
• OMB Circular A‑11 distinguishes conduct of R&D (which includes administrative expenses and minor equipment) from R&D plant (facilities and major equipment); code the former under AC14 when it is the award’s primary purpose, and the latter under AC15. ⁴

Frequently asked questions

• What is PSC AC14 in plain terms?
  PSC AC14 is the DoD military R&D code for “R&D Administrative Expenses,” used when the award’s main purpose is to fund administrative or overhead aspects of defense R&D rather than R&D performance or R&D plant such as facilities or major equipment. ²

• How is AC14 different from AC15?
  AC14 covers administrative and overhead costs associated with conducting R&D. AC15 covers investments in R&D plant—facilities and major equipment. Use AC15 when the award’s predominant purpose is R&D construction or major capital equipment. ²

• Can AC14 be used for stand‑alone purchases of lab gear or support services?
  No. Using an R&D PSC is inappropriate for items or services separately purchased in support of R&D. Select the specific product or service PSC instead (e.g., the relevant Federal Supply/Class). This rule applies even when RDT&E funds are cited on the action. ⁵

• Is there an official NAICS that maps to PSC AC14?
  Not specified by official sources. ¹

• Where is the PSC recorded for AC14 awards?
  The PSC is recorded in FPDS at data element 8A (“Product or Service Code”). Agencies rely on the PSC Manual’s definitions and examples to ensure consistent selection across awards and reporting. ²

Useful resources

• G2X — PSC AC14
• Product and Service Code Manual (Acquisition.gov) — current and archived editions. ¹
• PSC Manual, April 2025 Edition (PDF) — official code list and FPDS guidance. ²
• NSF/OMB definitions of federal R&D, including administrative expenses and R&D plant distinctions. ³
• OMB Circular A‑11 — budget definitions for conduct of R&D vs. R&D plant. ⁴

References

1. Acquisition.gov — Product and Service Code Manual (library index): https://www.acquisition.gov/psc-manual
2. Acquisition.gov — PSC Manual April 2025 (PDF): https://login.acquisition.gov/sites/default/files/manual/PSC%20Manual%20April%202025.pdf
3. National Science Foundation (NCSES) — Federal R&D definitions (Table 11): https://ncses.nsf.gov/pubs/nsf22316/table/11
4. OMB Circular A‑11 (official circulars index): https://www.whitehouse.gov/omb/circulars/
5. Acquisition.gov — Notice citing DoD Procurement Coding Manual (MN02) guidance on RDT&E coding limits: https://www.acquisition.gov/reg-change-notice/dac919