Acquisition Category

The United States Department of Defense divides future acquisition programs into four acquisition categories: ACAT I, ACAT II, ACAT III, or ACAT IA. The differences between these categories depend on their size and programatic differences.

Acquisition Category I (ACAT I)

ACAT I programs are Major Defense Acquisition Programs (MDAPs). An MDAP is defined as a program estimated by the Under Secretary of Defense (Acquisition and Technology) (USD (A&T)) to require eventual expenditure for research, development, test, and evaluation of more than $355 million (FY 1996 constant dollars) or procurement of more than $2.135 billion (FY 1996 constant dollars), or those designated by the USD (A&T) to be ACAT I (10 USC 2430). ACAT I programs have two sub-categories:

1. ACAT ID, for which the Milestone Decision Authority (MDA) is USD (A&T). The D refers to the Defense Acquisition Board (DAB), which advises the USD (A&T) at major decision points.

2. ACAT IC, for which the MDA is the DoD Component Head or, if delegated, the Component Acquisition Executive (CAE) – ASN RDA for Navy. The C refers to Component.

The USD (A&T) designates programs as ACAT ID or ACAT IC.

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Acquisition Category II (ACAT II)

ACAT II programs are defined as those acquisition programs that do not meet the criteria for an ACAT I program, but do meet the criteria for a major system. A major system is defined as a program estimated by the DoD Component Head to require eventual expenditure for research, development, test, and evaluation of more than $75M in fiscal year (FY) 1980 constant dollars (approximately $140M in FY 1996 constant dollars), or for procurement of more than $300M in FY 1980 constant dollars (approximately $645M in FY 1996 constant dollars), or those designated by the DoD Component Head to be ACAT II (10 USC 2302(5)). The MDA is the CAE.

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Acquisition Category III (ACAT III)

ACAT III programs are defined as those acquisition programs that do not meet the criteria for an ACAT I, an ACAT IA, or an ACAT II. The MDA is designated by the CAE and shall be at the lowest appropriate level. This category includes less-than-major AISs.

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Acquisition Category IA (ACAT IA)

ACAT IA programs are Major Automated Information Systems (MAISs). A MAIS is estimated by the Assistant Secretary of Defense for [Networks and Information Integration] (ASD (NII)) to require all program costs for any single year in excess of $32 million (FY 2000 constant dollars), total program acquisition cost in excess of $126 million (FY 2000 constant dollars), or total life-cycle costs in excess of $368 million (FY 2000 constant dollars), or those designated by the Secretary of Defense or his designee to be ACAT IA. ACAT IA programs have two sub-categories:

1. ACAT IAM for which the MDA is the [Department of Defense] (DoD) Chief Information Officer (CIO) (the ASD (NII)). The M refers to Major Automated Information Systems Review Council MAISRC.

2. ACAT IAC, for which the MDA is the Component Chief Information Officer (CIO). The C refers to Component.

The ASD (C3I) designates programs as ACAT IAM or ACAT IAC.

The DoD Component is responsible for notifying the USD (A&T) or ASD (NII) when cost growth or a change in acquisition strategy results in reclassifying a formerly lower ACAT program as an ACAT I or IA program.

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title=Paragraph 1.3.2 Instruction 5000.2
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References