The United States Department of Defense

United States Department of Defense

The United States Department of Defense is the U.S...

 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

Research

Research can be defined as the scientific search for knowledge, or as any systematic investigation, to establish novel facts, solve new or existing problems, prove new ideas, or develop new theories, usually using a scientific method...

, development, test, and evaluation

Evaluation

Evaluation is systematic determination of merit, worth, and significance of something or someone using criteria against a set of standards.Evaluation often is used to characterize and appraise subjects of interest in a wide range of human enterprises, including the arts, criminal justice,...

 of more than $365 million (FY 2000 constant dollars) or procurement

Procurement

Procurement is the acquisition of goods or services. It is favourable that the goods/services are appropriate and that they are procured at the best possible cost to meet the needs of the purchaser in terms of quality and quantity, time, and location...

 of more than $2.19 billion (FY 2000 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

Defense Acquisition Board

The Defense Acquisition Board is the senior advisory board for defense acquisitions in the Department of Defense of the United States of America. The board includes the Vice Chairman of the Joint Chiefs of Staff, the Service Secretaries , and a number of Under Secretaries of Defense...

 (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..

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

Constant dollars

The term constant dollars refers to a metric for valuing the price of something over time, without that metric changing due to inflation or deflation. The term specifically refers to dollars whose present value is linked to a given year. The term constant dollars refers to a metric for valuing the...

 (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..

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..

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

Chief information officer

Chief information officer , or information technology director, is a job title commonly given to the most senior executive in an enterprise responsible for the information technology and computer systems that support enterprise goals...

 (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 (NII) 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

Strategy

Strategy, a word of military origin, refers to a plan of action designed to achieve a particular goal. In military usage strategy is distinct from tactics, which are concerned with the conduct of an engagement, while strategy is concerned with how different engagements are linked...

results in reclassifying a formerly lower ACAT program as an ACAT I or IA program..