ACAT (Acquisition Category)

What is Acquisition Category (ACAT)?

Acquisition Category (ACAT) is a classification system used by the Department of Defense (DoD) to categorize acquisition programs based on their cost, complexity, and level of oversight required. The ACAT designation helps determine the management level and decision authority for a particular defense acquisition program, ensuring that appropriate resources and attention are allocated to the development and procurement processes.

Types of Acquisition Categories

  1. ACAT I: These are Major Defense Acquisition Programs (MDAPs) with significant investment costs. ACAT I programs are further divided into:
    • ACAT ID: Decision authority resides with the Defense Acquisition Executive (DAE).
    • ACAT IC: Decision authority resides with the Component Acquisition Executive (CAE).
  2. ACAT II: These programs do not meet the cost thresholds of ACAT I but are still significant enough to require a high level of oversight. Decision authority typically resides with the CAE.
  3. ACAT III: These are smaller programs that do not meet the ACAT II thresholds and are managed at a lower level, often by the Program Executive Officer (PEO) or the Program Manager (PM).
  4. ACAT IV: Primarily used by the Navy and Marine Corps for smaller acquisition programs that require less oversight.

Importance of ACAT Designations

  • Resource Allocation: ACAT designations help prioritize resources and management attention based on the program’s size and impact.
  • Oversight and Accountability: Ensures that appropriate levels of oversight are applied to manage risks and achieve program objectives.
  • Streamlined Processes: Allows for tailored acquisition processes that fit the scale and complexity of the program, improving efficiency and effectiveness.