Advanced Component Development & Prototypes (ACD&P) (BA-4) finances efforts necessary to evaluate integrated technologies, representative models, or prototype systems in high fidelity and realistic operating environment are funded in this BA. The ACD&P phase includes system-specific efforts that help expedite technology transition from the laboratory to operational use. Emphasis is on proving component and subsystem maturity prior to integration in major and complex systems and may involve risk reduction initiatives. Program elements in this category involve efforts prior to MS B and are referred to as advanced component development activities and include technology demonstrations. Completion of Technology Readiness Levels 6 and 7 should be achieved for major programs. Program control is exercised at the program and project levels. A logical progression of program phases and development and/or production funding must be evident in the FYDP.

Below are the Budget Activities (BA) for Research, Development, Test, and Evaluation (RDT&E) accounts:
01 – Basic Research
02 – Applied Research
03 – Advanced Technology Development
04 – Advanced Component Development and Prototypes
05 – System Development and Demonstration
06 – RDT&E Management Support
07 – Operational System Development