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Congressional Research Service
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June 27, 2018


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. DOD
RDT&E funding is provided in four of this act's titles (see
box). Congress also sometimes provides DOD RDT&E
funding through supplemental appropriations acts. Congress
appropriated a total of $93.5 billion for DOD RDT&E for
FY2018, including $92.1 billion in the Defense
Appropriations Act, 2018 (P.L. 115-141) and $1.3 billion in
the Department of Defense Missile Defeat and Defense
Enhancements Appropriations Act, 2018 (P.L. 115-96).

RDT&E by Organization

RDT&E Appropriations Under Title IV
Approximately 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 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
(e.g., night vision technology, aviation survivability).

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 sometimes appropriated as part of the
National Defense Sealift Fund in Title V and as part of 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). 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.


  Defense Appropriations Act 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
  e Any ofthe above
  0 Transfer Funds


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 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 Systems 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-


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