3A.2 ACATS

a. Categories

A program’s ACAT is determined by the criteria outlined in Table 1. It identifies the program’s Milestone Decision Authority (MDA), required processes, and documents.  

• ACAT I: Major Defense Acquisition Programs (MDAPs) valued at over $525 million for research, development, test, and evaluation, or over $3.065 billion for procurement. These are further divided into:
  • ACAT ID: Reviewed by the Defense Acquisition Executive (DAE).  
  • ACAT IB: Reviewed by the Service Acquisition Executive (SAE).  
  • ACAT IC: Reviewed by the Component Acquisition Executive (CAE) or Head of the DoD Component.  
• ACAT II: Major systems not meeting ACAT I criteria, with estimated expenditures between $200 million and $525 million for research, development, test, and evaluation, or between $920 million and $3.065 billion for procurement. Reviewed by the CAE.  
• ACAT III: Programs not meeting the criteria for ACAT I or II, and not designated as major systems. Reviewed by the CAE.  

b. ACAT IB Programs

The document further clarifies the role and responsibilities of the SAE in ACAT IB programs. It emphasizes the SAE’s authority in decision-making for these MDAPs, outlining specific conditions for alternate MDA designations. It also details the information-sharing and reporting requirements between the SAE and the DAE to ensure transparency and oversight.  

c. Program Re-categorization

The MDA may consider re-categorizing a program if its cost grows to within 10% of the next highest ACAT level.