ACAT (Acquisition Category)

What is ACAT (Acquisition Category)?

ACAT, or Acquisition Category, is a designation used by the Department of Defense (DoD) to classify acquisition programs based on their size, complexity, and potential impact. This classification determines the level of management oversight, reporting requirements, and decision authority applied to the program. Understanding ACAT is crucial for government contractors because it directly impacts the requirements, processes, and resources needed to successfully compete for and execute DoD contracts.

Definition

Acquisition Categories are primarily defined in DoD Instruction 5000.02, Operation of the Defense Acquisition System. The categories range from ACAT I (major defense acquisition programs requiring the highest level of oversight) to ACAT IV (programs with minimal oversight). Factors considered when determining an ACAT include the estimated cost of the program, the number of personnel involved, the technological complexity, and the program's significance to national security. A higher ACAT level typically involves more stringent review processes, detailed documentation requirements (like Acquisition Program Baselines), and formal decision points managed by senior DoD officials. For government contractors, a project's ACAT designation significantly influences the proposal process, compliance obligations, and the depth of performance reporting.

Key Points

• Cost Thresholds: ACAT levels are largely defined by specific dollar thresholds. Exceeding these thresholds triggers more rigorous oversight.
• Oversight and Reporting: Higher ACAT levels require more frequent and detailed reporting to senior leadership within the DoD.
• Program Documentation: ACAT designations dictate the type and depth of program documentation required, including acquisition strategies, test and evaluation master plans, and life cycle sustainment plans.
• Risk Management: Programs with higher ACAT levels necessitate more robust risk management processes due to their complexity and potential impact.

Practical Examples

1. ACAT I Program (Major Defense Acquisition Program): Development of a new fighter jet system. This program would be subject to extensive oversight by the Under Secretary of Defense for Acquisition and Sustainment and would involve detailed reporting at each milestone. Contractors would face rigorous compliance requirements and intense scrutiny of cost and performance.
2. ACAT III Program (Less Significant Acquisition Program): A software upgrade to an existing communication system. This program would require less oversight than an ACAT I program but still require formal documentation and reporting to the program manager. Contractors would still need to demonstrate compliance with applicable regulations but face a less intense review process.
3. ACAT IV Program (Minimal Oversight): Purchase of commercial-off-the-shelf (COTS) office supplies. This program requires minimal documentation and oversight. Contractors need to ensure compliance with basic procurement regulations, but the administrative burden is significantly lower.