PSC AN21

Overview

The Product and Service Code (PSC) is a governmentwide taxonomy used to classify what the U.S. government buys. PSCs are recorded in FPDS and SAM systems to categorize products, services, and research and development, supporting tracking, analysis, and reporting of federal spend. The PSC Manual is the official catalog and guidance for using these codes. ¹

AN21 is defined as “Health R&D Services; Health research and training; Basic Research.” It applies when the action’s predominant purpose is basic research in the health research and training domain. The PSC Manual instructs agencies to report an R&D code when the work is R&D, to use the “predominant product or service” principle, and to apply the OMB basic/applied/experimental development definitions embedded in the Manual. ¹

See also on G2X:

• G2X — PSC AN21 overview: https://app.g2xchange.com/psc/AN21
• G2X — PSC AN22 overview: https://app.g2xchange.com/psc/AN22
• G2X — PSC AN23 overview: https://app.g2xchange.com/psc/AN23

What this PSC covers

• Basic research efforts within health research and training, as labeled in the PSC Manual’s Section A (Research and Development). ¹
• Creative and systematic work intended to increase the stock of knowledge; research must be novel, creative, uncertain, systematic, and transferable and/or reproducible. ¹
• R&D service contracts where basic research is the predominant purpose of the action, per the FPDS “predominant” coding rule. ¹
• Early-stage inquiries not directed primarily toward a specific practical application, consistent with the Manual’s basic research definition. ¹
• R&D that may include demonstrations conducted as part of research; however, user demonstrations and pre‑production development are excluded. ¹
• Excludes applied research and experimental development, which belong under AN22 and AN23, respectively. ¹
• Excludes R&D administrative expenses and facilities/major equipment, which belong under AN24 and AN25. ¹

Related NAICS and PSC codes

Source: PSC Manual, Section A (R&D codes). ¹

Using AN21 vs. adjacent R&D codes

• Choose AN21 when the work is basic research in “health research and training”; select AN22 for applied research and AN23 for experimental development. ¹
• Do not code purchases of supplies/equipment used to support research under an R&D PSC; code those under the applicable product PSC. ¹
• If the action is primarily for R&D administrative costs or R&D facilities/major equipment, use AN24 or AN25 per the Manual. ¹

FPDS reporting notes relevant to AN21

• R&D PSCs are required when the contract action is for “research and experimental development (R&D) services,” per Section A of the Manual. ¹
• The PSC chosen should reflect the predominant purpose of the action; mixed purchases should still be coded to the predominant PSC. ¹
• The Manual embeds OMB’s R&D definitions; use those to distinguish basic from applied research and experimental development during coding. ¹

Frequently asked questions

• What does “basic research” mean for AN21? Basic research is creative and systematic work to increase knowledge without a primary focus on a specific practical application. The Manual states R&D must be novel, creative, uncertain, systematic, and transferable/reproducible; use AN21 when those characteristics fit and the domain is health research and training. ¹

• How is AN21 different from AN22 and AN23? AN21 is basic research; AN22 is applied research directed toward a specific practical aim; AN23 is experimental development to produce new or improved products/processes. Select based on the project’s purpose and maturity. ¹

• When should a non‑R&D PSC be used instead of AN21? Use a non‑R&D PSC when the action is for products or non‑R&D services supporting research (e.g., supplies, equipment, or routine services). The Manual directs agencies not to assign an R&D PSC to products purchased in support of R&D work. ¹

• Does AN21 cover training services that lack an R&D component? No. The “health research and training” label is the R&D sub‑area. Non‑R&D training services should be coded under the appropriate education/training services PSC, using the Manual to determine the specific code based on the requirement. ¹

• Are user demonstrations or pre‑production development coded under AN21? No. The Manual excludes user demonstrations and pre‑production development from R&D; such efforts should not be coded under AN21. Only demonstrations conducted as part of research are treated as R&D. ¹

Useful resources

• G2X — PSC AN21 overview: https://app.g2xchange.com/psc/AN21
• Acquisition.gov — PSC Manual April 2025 (current edition, PDF). ¹
• Acquisition.gov — PSC Manual landing page (catalog and archives). ²

References

1. Acquisition.gov. PSC Manual April 2025 (Fiscal Year 2025 Edition), Section A — Research and Development Codes; FPDS and coding guidance. https://www.acquisition.gov/content/psc-manual-april-2025.pdf
2. Acquisition.gov. Product and Service Code Manual — official catalog and archives. https://www.acquisition.gov/psc-manual