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         Congressiona Research Service
~~Info rmig the liltive debate since 1914


December 15, 2016


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 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 that provide most of the discretionary
funding for operation of the federal government. In
FY2016, Congress appropriated $72.7 billion for DOD
RDT&E, nearly half of all federal research and
development appropriations and more than twice that of the
next largest federal recipient. DOD RDT&E funding is
provided in four of the act's titles (see box). DOD RDT&E
can be characterized by the receiving organization or
program and by the character of the work.

RDT&E by Organization and Program

RDT&E Appropriations Under Title IV
More than 95% 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, a Defense-wide RDT&E account, and the Director of
Operational Test and Evaluation. The Defense-wide
account includes the Defense Advanced Research Projects
Agency (DARPA), Missile Defense Agency (MDA), and
16 other DOD organizations. Within each of these accounts
are program elements (PEs) that provide funding for
particular activities (e.g., night vision technology, aviation
survivability).

RDT&E Under Other Titles
RDT&E funds are also appropriated for programs in other
titles. For example, RDT&E funds are appropriated as part
of the National Defense Sealift Fund in Title V and for the
Chemical Agents and Munitions Destruction Program and
Defense Health Program in Title VI.

In some years, RDT&E funds have also been appropriated
in Title IX as part of DOD's funding for Overseas
Contingency Operations (OCO, formerly the Global War on
Terror). 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 the Joint
Improvised-Threat Defeat Fund or certain transfer funds.


   DOD Appropriations Titles That Fund RDT&E
Title IV: Research, Development, Test, and Evaluation
   Army
   Navy
   Air 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
Title IX: Overseas Contingency Operations
   Any of the above
   joint Improvised-Threat Defeat Fund
  e Transfer Funds

RDT-&E by Character of Work
While DOD Title IV funds are appropriated only by
organization or program, 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 seven categories, each with a budget activity
code (6.1 through 6.7) and a description. (See Table 1.)

Table I. DOD RDT&E Budget Activity Codes

Code     Description
  6.1    Basic Research
  6.2   Applied Research
  6.3   Advanced Technology Development
  6.4   Advanced Component Development and Prototypes
  6.5   System Development and Demonstration
  6.6    RDT&E Management Support
  6.7   Operational System Development
Source: Department of Defense, Financial Management Regulation
(DoD 7000.14-R), Volume 2B, March 2016.

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. Within the S&T program, basic research


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