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A PSC code is a Product and Service Code, the code the US federal government uses to record what it bought on a contract action. This guide covers the federal procurement meaning only. It explains how a code is chosen, how the research and development (R&D) codes are built, and where research offices most often get the classification wrong.
What a PSC code is and who runs it
The PSC Manual says its codes “describe products, services, and research and development (R&D) purchased by the federal government” and that they indicate “WHAT” was bought for each contract action reported in the Federal Procurement Data System (FPDS). The manual is prepared by the U.S. General Services Administration (GSA), Federal Acquisition Service. In FPDS the code is entered in data element 8A, “Product or Service Code.”
As described on the official acquisition.gov PSC Manual page on 2026-10-29, the current edition listed is the PSC Manual of April 2025 (Fiscal Year 2025 Edition), published with a matching spreadsheet of codes. The same page lists the PSC Management Standard Operating Procedure (SOP) that governs how codes are added, changed and end-dated.
The manual is organised in four sections: Section A, research and development codes; Section B, IT service codes; Section C, service codes; and Section D, product codes.
Who uses PSC codes (there is no eligibility)
A PSC code is not a program you apply for, so there is no eligibility test. Contracting personnel assign a code to each contract action they report. Everyone else reads the codes: vendors, analysts and research offices use them to filter federal award data. The CASRAI guide on finding federal awards in USAspending mentions NAICS and PSC codes as filters for exactly this purpose.
The manual explains why accuracy matters: the codes “gather data that forms the basis of legally mandated reports,” and policy and acquisition decisions made by government and private sector executives “may be informed by the data captured in and reported from FPDS.”
What the codes record
The codes cover research and development, services and products. The manual’s own examples show the range:
- 5510, Lumber and Related Wood Materials (a product code).
- 4110, Refrigeration Equipment (a product code).
- AN12, Health R&D Services, Applied Research (an R&D code).
- AA11, Agriculture R&D Services, Basic Research (an R&D code).
How an R&D code is built
An R&D code is “composed of two alphabetic and two numeric digits.” Each position carries meaning:
| Position | What it identifies | Values |
|---|---|---|
| 1st | R&D | Always the letter A |
| 2nd | Major area | A to Z, for example AA Agriculture, AG Energy, AH Natural Resources and Environment, AJ General Science and Technology, AN Health, AR Space, AS Transportation |
| 3rd | Sub-area within the major area | Numeric 1 to 6 |
| 4th | Stage of R&D | 1 Basic Research; 2 Applied Research; 3 Experimental Development; 4 Administrative Expenses for R&D; 5 Expenses for R&D Facilities and Major Equipment |
The manual defines basic research as work “undertaken primarily to acquire new knowledge of the underlying foundations of phenomena and observable facts,” applied research as work “directed primarily towards a specific practical aim or objective,” and experimental development as work directed at producing new products or processes or improving existing ones. It also places the subject matter above the sponsor: its example is a contract for research on air pollution by aircraft, which is shown under Natural Resources and Environment (AH4*), not under aerospace research.
When to use an R&D code and when to use a product code
This is the part research offices most need and most often skip. The manual tells contracting staff to report an R&D code when the contract action is for R&D services. For that purpose it adopts the Office of Management and Budget definition in Circular A-11, Section 84, under which R&D must have each of five characteristics: novel, creative, uncertain, systematic, and transferable and/or reproducible.
The manual then draws a line that is easy to miss: “Do not assign an R&D code to products purchased in support of research and development work; such products shall be coded using the appropriate PSC product code.” Equipment follows the same logic, split by size:
- Minor equipment, such as personal computers, standard microscopes and simple spectrometers, is reported with a product PSC code.
- Major movable equipment, such as mass spectrometers, research vessels and DNA sequencers, falls under stage 5 (R&D Facilities and Major Equipment), where the manual refers to programs of $1 million or more devoted to R&D major equipment under OMB Circular A-11, Section 84.3(a).
The PSC treatment is separate from how a grant defines equipment and supplies. For the grant-side rules, see the CASRAI comparison of supplies and equipment under 2 CFR 200 and the dictionary entry for the 2 CFR 200.1 definition of equipment.
Steps to choose a code
- Decide what was bought. Product, service or research and development service. The code answers “what,” not “who sold it.”
- If the action bundles several items, pick by the predominant one. The manual says the code “should be selected based on the predominant product or service that is being purchased.” Its example: a contract for $1000 of lumber and $500 of pipe is coded 5510, Lumber and Related Wood Materials.
- For R&D services, work through the code positions. Start with the major area by subject (AH, not aerospace, for the aircraft air-pollution example), then the sub-area, then the stage from 1 to 5.
- Look the code up in the current manual. Use the April 2025 PSC Manual or its companion spreadsheet from acquisition.gov, which are the editions listed as current as of 2026-10-29.
- Enter it in FPDS data element 8A. If environmental attributes apply, they go in a separate element, 8L, “Recovered Materials/Environmental Attributes,” and are also filled in by the predominant product or service.
Typical phases of the code lifecycle
Codes are not frozen. The SOP on acquisition.gov describes the process for administering and managing them, and the manual points questions about the change process to [email protected]. In practice there are three phases to be aware of:
- Edition review. Each manual edition lists what was activated, updated or end-dated. The change summary in the April 2025 edition lists one product code activated, 9105, Electric Power Supply from a Third Party Generation Entity, and no R&D or service code changes.
- Change request. A proposed new or changed code goes through the SOP’s change-management process, which also publishes a business case template as an appendix.
- Reporting. Once active, a code is used on contract actions reported to FPDS, where, as the manual notes, ad hoc reports and the ezSearch tool at fpds.gov can be used to search contracts.
Common mistakes
- Coding research supplies as R&D. Products bought in support of a research project take product codes, not R&D codes.
- Treating every instrument as “major equipment.” Standard microscopes and personal computers are minor equipment under the manual and use product codes.
- Coding R&D by the nearest-sounding field instead of the subject studied. The air-pollution example goes under environment, not aerospace.
- Coding a bundled purchase by its smallest or first line. The rule is the predominant item.
- Confusing the code with the vendor’s industry. The PSC records what was bought; the vendor’s industry classification is a different code, covered in the CASRAI NAICS code lookup guide.
- Using a superseded edition. Codes are activated and end-dated between editions, so check the edition listed as current.
Related codes and forms
| Item | How it relates to the PSC | Where to read more |
|---|---|---|
| NAICS code | A separate classification system. The PSC records what the government bought. | NAICS code lookup |
| FPDS | The system where the PSC is entered, in data element 8A. | fpds.gov (ezSearch and ad hoc reports) |
| USAspending | Award data that can be filtered by NAICS and PSC codes. | Finding federal awards |
| SF 1449 | A federal solicitation and contract form covered in its own CASRAI guide. | SF 1449 guide |
FAQ
What does PSC stand for in federal contracting?
Product and Service Code. The PSC Manual, prepared by GSA’s Federal Acquisition Service, lists the codes for products, services and research and development purchased by the federal government.
Where is the PSC entered?
In the Federal Procurement Data System, in data element 8A, “Product or Service Code.”
Which code applies if a contract covers several items?
The code for the predominant product or service. The manual’s example codes a contract for $1000 of lumber and $500 of pipe as 5510.
Does equipment bought for a research project get an R&D code?
Minor equipment, such as standard microscopes and personal computers, takes a product code. Major movable equipment such as mass spectrometers and DNA sequencers is reported under the R&D facilities and major equipment stage (the fourth character 5 in an R&D code).
Who do I ask about changing a code?
The manual refers questions on the PSC change management process to [email protected] and points to the PSC Management SOP at acquisition.gov.
Sources
- U.S. General Services Administration, Federal Acquisition Service, Product and Service Codes (PSC) Manual, Fiscal Year 2025 Edition, effective April 2025, checked 2026-10-29: acquisition.gov PSC Manual (PDF).
- acquisition.gov, PSC Manual page (current edition, spreadsheet and SOP listing), checked 2026-10-29: acquisition.gov/psc-manual.
- FPDS help, checked 2026-10-29: fpds.gov/help.
