ACAT

ACAT levels determine who has decision authority over a program — from the Secretary of Defense down to individual service component heads. Higher ACAT levels mean more oversight, longer timelines, and more complex procurement processes.

ACAT levels:

• ACAT I — Major Defense Acquisition Programs (MDAPs). Total R&D cost exceeds $525M or procurement exceeds $3.065B (FY2020 dollars). Decision authority: Under Secretary of Defense for Acquisition & Sustainment (USD(A&S)) or delegated to a Component Acquisition Executive.
• ACAT II — Major systems that don't meet ACAT I thresholds but exceed ACAT III. Decision authority: Component Acquisition Executive (e.g., Army Acquisition Executive).
• ACAT III — All other acquisition programs below ACAT II thresholds. Decision authority: Designated by the Component Acquisition Executive, typically a PEO.

For contractors, ACAT level tells you about the procurement timeline, competition level, and documentation requirements. ACAT I programs take years to award but represent billions in contract value. ACAT III programs move faster and are more accessible to mid-size contractors.