Acquisition Category (ACAT)

Definition

ACAT designations sort major defense programs into oversight tiers. ACAT I programs are Major Defense Acquisition Programs (MDAPs) with the largest budgets and report to the Office of the Secretary of Defense. ACAT II are major systems reporting at the service level, and ACAT III programs cover smaller efforts approved by a Program Executive Office. The category drives documentation requirements, milestone reviews, and the identity of the Milestone Decision Authority.

Why It Matters

For a contractor, the ACAT level tells you who the real decision-makers are, how long source selection is likely to take, and how much compliance overhead will come with execution.

Example

The B-21 Raider is an ACAT ID program — the highest tier — so its milestone reviews are chaired by the Under Secretary of Defense for Acquisition and Sustainment.

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