PSC AC33

Overview

The Product Service Code (PSC) is a governmentwide taxonomy that classifies the products, services, and research and development that federal agencies buy, enabling consistent reporting and analysis in systems such as FPDS and agency reporting environments. The PSC structure and updates are maintained through the PSC Manual on acquisition.gov. ²

PSC AC33 denotes National Defense R&D Services; defense-related activities; experimental development. “Experimental development” is defined in the PSC Manual as creative and systematic work that produces new products or processes or improves existing ones, and includes activities like prototype design, construction, and testing for defense-related aims. ²

See also on G2X:

• G2X — PSC AC33 overview
• G2X — PSC AC31
• G2X — PSC AC32

What this PSC covers

• Experimental development work for defense-related activities that creates new products or processes or improves existing ones. ²
• Design, construction, and testing of experimental prototypes tied to defense-related objectives. ²
• First-of-a-kind technology demonstrations at scale where further refinements are expected based on demonstration feedback. ²
• Experimental development conducted under National Defense R&D outside DoD military (e.g., “defense-related activities” as categorized in the PSC structure). ²
• Excludes user demonstrations validating costs/benefits for a specific use case, including low-rate initial production activities. ²
• Excludes pre-production development such as tooling and development of production facilities; these are not R&D services. ²
• Purchases of products used in R&D should be coded with the appropriate product PSC, not an R&D PSC. ²

Related NAICS and PSC codes

Source: PSC Manual April 2025. ²

R&D coding structure and stage context

• R&D PSCs use “A” + major area (A–Z) + sub-area digit (1–6) + stage digit (1–5). The fourth position indicates stage: 1 Basic Research, 2 Applied Research, 3 Experimental Development, 4 Administrative Expenses for R&D, 5 Facilities and Major Equipment. ²
• For R&D services, agencies select the precise R&D service being purchased; products acquired in support of R&D are coded with product PSCs, not R&D PSCs. ²

Reporting context

• PSC is reported in FPDS as data element 8A “Product or Service Code”; environmental attributes, when applicable, are reported in FPDS data element 8L. ²
• DoD’s PGI 204.1703 identifies PSCs that require service contract information to be reported in the System for Award Management (SAM) for the Service Contract Inventory. ¹

Frequently asked questions

• What does PSC AC33 mean?

  • PSC AC33 is “National Defense R&D Services; defense-related activities; experimental development,” covering creative and systematic development work to produce or improve defense-related products/processes, including experimental prototypes and qualifying technology demonstrations. ²

• How is AC33 different from AC32 or AC31?

  • AC31 is basic research (new knowledge); AC32 is applied research (directed toward a practical aim); AC33 is experimental development (creation or improvement of products/processes, including prototypes and certain demonstrations). ²

• Are prototype builds and technology demonstrations included under AC33?

  • Yes. Experimental prototype design, construction, and testing are included. Technology demonstrations at scale for the first time, where additional refinements are realistically expected, are also treated as R&D. ²

• What activities are explicitly excluded from AC33?

  • User demonstrations validating costs/benefits for a specific use (including low-rate initial production) and pre-production development like tooling or establishing production facilities are excluded from R&D services coding. ²

• Where is AC33 recorded within federal reporting systems?

  • PSCs are captured in FPDS under data element 8A, and environmental attributes (if relevant) under 8L; DoD also references PSCs in SAM’s Service Contract Inventory reporting requirements. ²

Useful resources

• G2X — PSC AC33 overview
• Product and Service Code (PSC) Manual — current library on acquisition.gov
• PSC Manual April 2025 (PDF) — definitions, R&D stages, and AC-series codes
• DFARS PGI 204.1703 — PSCs referenced for SAM Service Contract Inventory reporting

References

1. Defense Federal Acquisition Regulation Supplement (DFARS) Procedures, Guidance, and Information (PGI) 204.1703, Reporting requirements. https://www.acquisition.gov/dfars/pgi/part-204-administrative-and-information-matters#PGI_204_1703
2. Product and Service Code (PSC) Manual — official library. https://www.acquisition.gov/psc-manual