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Updated June 14, 2021

Defense Primer: RDT&E
Advanced technology plays a critical role in ensuring U.S.
national security. To maintain technological superiority on
the battlefield, the Department of Defense (DOD) relies on
scientific and technical knowledge developed in large
measure through research, development, test, and
evaluation (RDT&E) funded by the department and
performed by industry, universities, federal laboratories,
and others. DOD also relies increasingly on technology
developed by the private sector for commercial markets.
This In Focus describes DOD's RDT&E appropriations
structure and funding levels.
DOD appropriations are provided annually through the
defense appropriations act, one of the 12 regular
appropriations acts. DOD RDT&E funding is generally
provided in three of this act's titles (see box). Congress also
sometimes provides DOD RDT&E funding through
supplemental appropriations acts. DOD reports FY2021
total obligational authority (enacted) of $110.8 billion.
RDT&E by Organization
RDT&E Appropriations Under Title IV
Approximately 97% of DOD's RDT&E funding is
appropriated in Title IV (Research, Development, Test, and
Evaluation), which includes appropriations for the Army,
Navy, Air Force, Space Force, a Defense-wide RDT&E
account, and the Director of Operational Test and
Evaluation. Space Force is a new account included in the
FY2021 request. The Defense-wide account includes the
Missile Defense Agency (MDA), Defense Advanced
Research Projects Agency (DARPA), Office of the
Secretary of Defense, and 15 other DOD organizations.
Within each of these accounts are program elements (PEs)
that provide funding for particular activities.
RDT&E Under Other Titles
RDT&E funds are also appropriated for programs in other
titles of the defense appropriations act. For example,
RDT&E funds are also appropriated in Title VI as part of
the Chemical Agents and Munitions Destruction Program,
the Defense Health Program, and the Inspector General. In
some years, RDT&E funds have been provided in Title V
as part of the National Defense Sealift Fund.
In recent years, RDT&E funds have also been appropriated
in Title IX as part of DOD's funding for Overseas
Contingency Operations (OCO). Typically, the RDT&E
funds appropriated for OCO activities support specified PEs
in Title IV, though they are requested and accounted for
separately. Alternatively, they may be provided to a transfer
fund. Congress establishes transfer funds for a particular
purpose, and may authorize DOD to transfer a portion of
these funds to other accounts, such as RDT&E, to help
achieve that purpose. President Biden's budget request
does not include OCO funding for FY2022.

Defense Appropriations Act Titles That Fund RDT&E
Title IV: Research, Development, Test, and Evaluation
 Army
 Navy
e Air Force
 Space Force
 Defense-wide
 Operational Test and Evaluation
Title V: Revolving and Management Funds
e National Defense Sealift Fund
Title VI: Other Defense Programs
 Chemical Agents and Munitions Destruction
 Defense Health Program
 Inspector General
RDT&E by Character of Work
While DOD Title IV funds are appropriated only by
organization, DOD budget justifications and congressional
appropriations reports and explanatory statements also
typically describe this funding by the character of the work
to be performed. This characterization consists of eight
categories, each with a budget activity code (6.1 through
6.8) and a description. (See Table 1.)
Table 1. DOD RDT&E Budget Activity Codes
Code    Description
6.1    Basic Research
6.2    Applied Research
6.3    Advanced Technology Development
6.4    Adv. Component Development and Prototypes
6.5    System Development and Demonstration
6.6    RDT&E Management Support
6.7    Operational Systems Development
6.8    Software and Digital Technology Pilot Programs
Source: Department of Defense, Financial Management Regulation
(DoD 7000.1 4-R), Volume 2B, November 2017.
Funding in codes 6.1 to 6.3 is referred to by DOD as the
science and technology (S&T) budget. This portion of DOD
RDT&E is often singled out for attention by analysts, as it
is seen as the pool of knowledge necessary for the
development of future military systems. In contrast, 6.4,
6.5, and 6.7 funds are focused on the application of existing
scientific and technical knowledge to meet current or near-
term operational needs. The funds in 6.6 are for RDT&E
management and support work in any of the other RDT&E
budget accounts. DOD added budget activity 6.8 in its
FY2021 budget request to support software and digital
technology pilot programs.

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