PSC AC22

Overview

The Product Service Code system is a governmentwide taxonomy used to categorize the goods, services, and research the U.S. government buys. PSCs appear on contract actions in FPDS and related systems and are maintained through the official PSC Manual to support consistent reporting, analysis, and category management. ¹ PSC AC22 identifies National Defense R&D Services for “Atomic energy defense activities” at the Applied Research stage. In the R&D PSC structure, the second character “C” denotes National Defense; the third character “2” identifies the sub-area “Atomic energy defense activities;” and the fourth character “2” designates the stage “Applied Research.” ¹

What this PSC covers

• Applied research activities supporting atomic energy defense mission needs within National Defense R&D. ¹
• Original investigations aimed at practical objectives (as opposed to basic science), such as advancing knowledge toward defined defense applications. ¹
• Studies, analyses, experiments, and other research tasks that materially progress concepts toward use but stop short of experimental prototype development. ¹
• R&D services coded under the predominant purpose rule for FPDS when the main effort is applied research in the “atomic energy defense activities” sub-area. ¹
• Work that is not simply procurement of products in support of R&D; supplies and non-R&D services should use the appropriate product/service PSCs. ¹
• Excludes experimental development (coded under AC23), administrative expenses (AC24), and facilities/major equipment (AC25). ¹

Related NAICS and PSC codes

Code structure and stage meaning for AC22

• R&D PSCs use two letters and two digits: “A” (R&D); an area letter (here “C” for National Defense); a sub-area digit (here “2” = Atomic energy defense activities); and a stage digit (here “2” = Applied Research). ¹
• Stage “2 — Applied Research” means original investigation to acquire knowledge directed primarily at a specific practical aim or objective. ¹

Coding boundaries and common misclassifications

• Do not assign an R&D PSC when acquiring products in support of R&D; code the product itself using the proper product PSC. ¹
• Technology demonstrations and prototype build/test are treated as Experimental Development, not Applied Research; use AC23 when that work predominates. ¹
• Pre-production development (e.g., tooling, low-rate initial production) is excluded from R&D and should be coded outside the R&D family. ¹
• Administrative overheads and facility/major instrument purchases belong under AC24 or AC25, not AC22. ¹

Frequently asked questions

• What does PSC AC22 represent?
  AC22 is National Defense R&D Services for “Atomic energy defense activities” at the Applied Research stage—original investigation aimed at practical objectives within that sub-area. Use it when applied research is the predominant purpose rather than experimental development. ¹

• How is “Applied Research” defined for R&D PSCs?
  Applied research is original investigation undertaken to acquire knowledge directed primarily toward a specific practical aim or objective. It is distinct from basic research (knowledge for its own sake) and from experimental development (prototype building, testing, or demonstration activities). ¹

• When should AC22 be used instead of AC23?
  Select AC22 when the main effort is applied research (e.g., studies and experiments advancing a concept toward use). Choose AC23 if the effort centers on producing or testing experimental prototypes or conducting technology demonstrations. ¹

• Are admin costs and facility/major equipment purchases included in AC22?
  No. R&D administrative expenses should be coded AC24, and expenses for R&D facilities and major equipment should be coded AC25. These categories are explicitly excluded from AC22. ¹

• Does the PSC Manual prescribe NAICS pairings for AC22?
  The PSC Manual defines R&D scopes and stages but does not prescribe specific NAICS pairings. Agencies select NAICS based on the primary purpose and work description of each action. Not specified by official sources ¹.

Useful resources

• G2X — PSC AC22 overview
• PSC Manual (April 2025 PDF), including R&D code structure and AC22 listing. ¹
• PSC Manual library (current and archived manuals, with spreadsheet listings). ²
• DPCAP Product Service Code Selection Tool (lookup utility). ³

References

1. Acquisition.gov — Product and Service Code Manual, April 2025 (PDF), Section A: Research and Development Codes; includes definitions and AC22 entry. https://www.acquisition.gov/sites/default/files/manual/PSC%20Manual%20April%202025.pdf
2. Acquisition.gov — Product and Service Code Manual library (current and archives). https://www.acquisition.gov/psc-manual/all
3. psctool.us — DPCAP Product Service Code Selection Tool. https://psctool.us