Demonstration and Validation is a Research and Development (R&D) activity that falls under Budget Activity (BA) category 04 under Major Force Program (MFP) 6 of the Future Years Defense Program (FYDP). It includes all efforts necessary to evaluate integrated technologies in as realistic an operating environment as possible to assess the performance or cost reduction potential of advanced technology. This category is system-specific and also includes Advanced Technology Demonstrations (ATD) that help expedite technology transition from the laboratory to operational use. A logical progression of program phases and funding (development and/or production) must be evident.

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 BA’s for 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