PSC AJ12

Overview

The Product Service Code (PSC) is a governmentwide taxonomy that classifies supplies, services, and research and development so contract actions can be consistently recorded, searched, and analyzed. PSCs are entered in the Federal Procurement Data System (FPDS) and maintained through the PSC Manual to standardize “what” was purchased across agencies. ¹

PSC AJ12 covers General Science and Technology R&D services at the Applied Research stage. “Applied research” is defined in the FAR as effort that follows basic research and seeks to determine and exploit the potential of scientific discoveries or technology improvements to advance the state of the art; it excludes work whose principal aim is the design, development, or testing of specific items for sale. ²

What this PSC covers

• Applied research activities in the general science and technology domain when work is not tied to a specific mission area (e.g., agriculture, energy, space). ¹
• Studies and investigations that determine and exploit the potential of scientific discoveries or technology improvements. ²
• Efforts intended to advance the state of the art without committing to design, develop, or test specific saleable end items. ²
• Cross-disciplinary R&D services where “general S&T” is the appropriate subject area for FPDS reporting. ¹
• R&D services distinct from administrative expenses, which are coded under AJ14. ¹
• R&D services distinct from facilities construction or major movable equipment purchases, which are coded under AJ15. ¹

Related NAICS and PSC codes

How AJ12 differs from adjacent R&D stages

• AJ11 Basic Research seeks fuller knowledge or understanding of a subject without specific application; Applied Research under AJ12 attempts to exploit discoveries toward practical ends. ²
• AJ12 excludes work whose main aim is designing, developing, or testing specific items; those efforts align to Experimental Development under AJ13. ²
• Administrative costs (e.g., program management of R&D portfolios) and R&D facilities/major equipment are reported under AJ14 and AJ15, not AJ12. ¹

FPDS reporting notes for AJ12

• PSC is recorded in FPDS data element 8A “Product or Service Code”; select the code that best identifies the item procured and, if multiple apply, report the one representing most of the ultimate contract value. ³
• The PSC Manual states PSCs indicate “what” was bought; select based on the predominant product or service for the action being reported. ¹

Frequently asked questions

• What is PSC AJ12?
  PSC AJ12 is General Science and Technology Applied Research. It covers efforts that translate discoveries into potential practical applications, advancing the state of the art without committing to design, development, or testing of specific end items for sale or deployment. ²

• How is “applied research” distinguished from “experimental development” for coding AJ12 vs. AJ13?
  Applied research seeks to determine and exploit the potential of scientific or technological advances. Development uses that knowledge to design, develop, test, or evaluate specific products, systems, or services against defined requirements. Applied research maps to AJ12; development maps to AJ13. ²

• Does AJ12 include administrative costs or R&D facility construction?
  No. Administrative and overhead costs associated with R&D portfolios are coded under AJ14. Construction of R&D facilities and acquisition of major movable equipment are coded under AJ15. These items are outside the scope of applied research services. ¹

• Which NAICS codes are required or officially mapped to AJ12?
  Not specified by official sources. ¹

• What contract types are typically used for applied research under AJ12?
  Because objectives and outcomes are uncertain in early-stage R&D, the FAR notes that cost-reimbursement arrangements are often appropriate. However, contracting officers must select the contract type that best fits the risk, price realism, and work characteristics for each requirement. ⁴

Useful resources

• G2X — PSC AJ12 overview
• PSC Manual, FY 2025 Edition (General Science & Technology R&D codes AJ11–AJ15) ¹
• FAR 35.001 definitions (applied research; development) ²
• FPDS Data Dictionary — Element 8A Product or Service Code (definition and instructions) ³
• FAR Part 35 — Research and Development Contracting (R&D policies and methods) ⁴

References

1. PSC Manual April 2025 (Federal Procurement Data System Product and Service Codes Manual), https://www.acquisition.gov/sites/default/files/manual/PSC%20Manual%20April%202025.pdf
2. FAR 35.001 Definitions (Applied research; development), https://www.acquisition.gov/far/35.001
3. FPDS-NG Data Dictionary, Element 8A Product or Service Code, https://www.fpds.gov/wiki/index.php/V1.4_FPDS-NG_Data_Dictionary
4. FAR Part 35 — Research and Development Contracting, https://www.acquisition.gov/far/part-35