Acquisition Categories

Summary

In this video, Matt Ambrose from the Defense Acquisition University explains the Acquisition Category (ACAT) system, which classifies defense programs based on their budget and oversight needs. He details the different ACAT levels, from major defense acquisition programs (ACAT 1) to smaller ones (ACAT 3 and 4), and the criteria for each. He also discusses the distinction between weapon systems and automated information systems, their respective ACAT designations, and how programs can be escalated to higher categories based on interest or spending. The video concludes with resources for further information and a tool to help determine required documents for specific ACAT levels.

Takeaways

• 📚 ACAT stands for Acquisition Category, which determines the level of oversight and review a program receives based on its budget and interest from Congress.
• 🔍 There are different levels of ACATs: ACAT 1 for major defense acquisition programs, ACAT 2 for major systems, and ACAT 3 or 4 for smaller programs, with specific services using ACAT 4.
• 💡 The categorization into ACAT levels is influenced by the type of system: weapon systems or automated information systems, each with distinct rules and monetary thresholds.
• 💰 For ACAT 1, the thresholds are $480 million for RDT&E and $2.79 billion for procurement, indicating the scale and importance of these programs.
• 🔑 Milestone decision authorities differ by ACAT level, with ACAT 1B programs managed by service acquisition executives and exceptions like joint programs managed at the DoD level.
• 🛠️ ACAT 2 programs have lower financial thresholds for development ($185 million) and procurement ($835 million) compared to ACAT 1.
• 📉 ACAT 3 programs are those that fall below the financial thresholds of ACAT 2, and even smaller programs may be ACAT 4, particularly within the Marine Corps, Army, or Navy.
• 📈 Automated information systems have unique ACAT categorization based on annual expenditure, lifecycle costs, and material solution analysis to deployment costs.
• 🏢 The defense acquisition executive has the authority to designate a program as a higher acquisition category based on DoD or Congressional interest, regardless of financial thresholds.
• 🔗 There are resources available for more information, such as the 5000.02 document and the Milestone Documentation Identification Tool, which helps determine required documents for decision points.
• 🛑 The script emphasizes the importance of understanding ACAT levels for program management and the different rules and scrutiny associated with each category.

Q & A

What does ACAT stand for?

ACAT stands for Acquisition Category, which determines the level of oversight and review for a program based on factors such as cost and congressional interest.

What are the different levels of Acquisition Categories?

There are several levels: Acquisition Category 1 for major defense acquisition programs, Acquisition Category 2 for major systems, and Acquisition Categories 3 and 4 for smaller programs, with Category 4 being used specifically by the Marine Corps, Army, and Navy.

What are the two designations for systems in the Acquisition Categories?

The two designations are weapon systems, which include things like the F22 and power generation systems, and automated information systems, which deal with information and include systems like defense travel systems or command and control systems.

What is the spending threshold for a program to be classified as an Acquisition Category 1 in terms of RDT&E dollars?

A program is classified as an Acquisition Category 1 if it spends $480 million or more on Research, Development, Test, and Evaluation (RDT&E).

What is the default ACAT designation for programs that have their milestone decision in October 2016 or later?

The default ACAT designation for such programs is ACAT 1B, which is managed by the services at the service acquisition executive level.

What are the exceptions that would cause a program to be managed at the Department of Defense (DoD) level instead of the service level?

Exceptions include joint programs, where managing the program at the DoD level ensures all service interests are considered and an enterprise view is maintained.

What is the spending threshold for a program to be classified as an Acquisition Category 2 in terms of procurement dollars?

A program is classified as an Acquisition Category 2 if it spends $835 million or more on procurement.

What is the role of the Milestone Documentation Identification Tool mentioned in the script?

The Milestone Documentation Identification Tool helps to identify which documents are required for a particular decision point in the acquisition process based on the program's acquisition category and the decision being made.

Can a program be designated as a higher Acquisition Category even if it falls below the specified dollar figures?

Yes, the defense acquisition executive can designate a program as a higher acquisition category based on interest at the DoD or Congressional level, or if the program is deemed significant enough.

What are the annual spending thresholds for an automated information system to be classified as an Acquisition Category 1?

An automated information system is classified as an Acquisition Category 1 if it spends $40 million or more annually, $165 million from the material solution analysis phase through deployment, or has a total lifecycle cost of $520 million or more.

How can one find more information about Acquisition Categories and related documentation?

More information can be found in the document '5000.02' on the Defense Acquisition University's website or by using the Milestone Documentation Identification Tool.