System Development & Demonstration programs (BA-5) have passed Milestone B approval and are conducting engineering and manufacturing development tasks aimed at meeting validated requirements prior to full-rate production. This BA is characterized by major line item projects and program control is exercised by review of individual programs and projects. Prototype performance is near or at planned operational system levels. Characteristics of this BA involve mature system development, integration and demonstration to support MS C decisions, and conducting live fire test and evaluation and initial operational test and evaluation of production representative articles. A logical progression of program phases and development and production funding must be evident in the FYDP consistent with the Department’s full funding policy.

A Budget Activity (BA) is a category within each appropriation and fund account that identify the purposes, projects, or types of activities financed by the appropriation or fund.

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

Updated: 11/29/2017