ACAT I programs are Major Defense Acquisition Programs (PDDPs). An MDAP is a program that is not a highly sensitive classified program and is called MDAP by the Secretary of Defense (10 USC, 2430); or that are estimated to require a total expenditure on research, development, testing and evaluation (TDR and E), including all planned increases, of more than $525 million (constant fiscal 2020 dollars) or for procurement, including any planned increase, of more than $3.065 billion (constant dollars for fiscal 2020). Note: Automated information systems, defense enterprise systems, and projects executed using rapid prototyping or commissioning techniques do not meet the definition of MDAP unless they are marked as MDAP. There are three (3) acquisition categories (ACAT): ACAT I, ACAT II and ACAT III. ACAT I programs have the highest level of oversight, with ACAT II and ACAT III having a decreasing level of oversight. The difference between each category depends on the location of a program in the procurement process, the amount of funding for research, development, testing and evaluation (TDR and E), the total procurement costs, the particular interest of the Milestone Decision-Making Authority (MDA), and the decision-making authority. The MDA will consider recategorization if a program`s cost growth is less than 10% of the next upper ACAT level. ACAT IC: Head of the dod component or, if delegated, CAE ACAT II programs are programs that do not meet the ACAT I criteria and are estimated to require the DoD component manager to spend more than $200 million (constant dollars for fiscal year 2020) or raise more than $920 million (constant dollars for fiscal 2020). The MDAs for these programs are the BDC or its representative. Table 1 — Description and decision-making authority for ACAT I – III programmes. The Defense Acquisition System divides its development program into acquisition categories (ACAT). These categories describe the level and extent of oversight, decision-making authority and applicable procedures necessary for the operation of a programme. An acquisition category is assigned to a program primarily based on the expected costs of the program and/or the amount of interest.
NOTE: For the ACAT II and ACAT III programs, CAE stands for SAE and applies to all components of the DOD, including military departments. Marine/Marine Corps: Navy and Marine Corps ACAT programs that are not otherwise referred to as ACAT I-III are referred to as ACAT IV. There are two categories of ACAT IV programs: IVT (test) and IVM (monitor). ACAT IVT programs require operational testing and evaluation (OT&E), unlike ACAT IVM programs. The AD for these programs is determined by the Program Executive Officer (Army), the Direct Reporting Program Manager (DPRD) or the Systems Command Commander (SYSCOM). [SECNAVINST 5000.02E, “Defence Acquisition System and Implementation of Joint Integration and Capability Development Systems”, 26. March 2019] ACAT IB, for which the MDA is the SAE, except delegate. IB ACAT programmes are administered by a military department.
ACAT IV: Although not defined in doDI 5000.85, the Navy/Marine Corps and Army continue to categorize programs with aCAT IV. An acquisition category may be assigned to acquisition programs. The acquisition category provides information on the level and scope of review, decision-making authority and applicable procedures required for a program. The category of acquisition is primarily determined by the expected costs of the program and/or the amount of interest. ACAT I programs have the highest level of oversight, with ACAT II and III programs having a decreasing level of oversight. Army: ACAT IV programs are programs that do not meet the ACAT III criteria and are estimated to require a total potential TDR and E expenditure of less than $100 million (constant dollars for fiscal year 2014) or a procurement of less than $400 million. Note: These funding thresholds are guidelines and not mandatory. The Stage Decision Authority (MDA) for ACAT IV programs may be delegated by the Army Procurement Officer to an Army Procurement Director, who may further delegate the MDA to a Project Manager at the rank of Colonel or equivalent civilian rank. [ASA ALT ASCI Memorandum, “Implementing Acquisition Streamlining and Cultural Change,” December 15, 2017] ACAT III programs are programs that do not meet the dollar thresholds for ACAT II or higher and are not designated by the MDA as the “core system”. The WMD for these programs is determined by the CAE. ACAT ID, for which the Milestone Decision Authority (MDA) is the Defense Acquisition Executive (DAE), unless delegated.
An acquisition program is classified according to the criteria in Table 1. Table 1 presents the description and decision-making authority of the ACAT I to ACAT III programmes. The DAE or agent verifies ACAT ID programs. In accordance with 10 U.S.C. § 2430, the Service Acquisition Executive (SAE) reviews ACAT IB programs unless otherwise specified. CAE will review ACAT`s COI programs. The CAE or person designated by the EAC reviews the ACAT II and ACAT III programs and the lower programs. All major skills capture programs are determined by an ACAT. ACAT identifies the program`s MDA, processes and required documents. Details of the ACATs, decision-making authority and related policies are presented in Appendix 3A.