Federal Obligations for R&D Contracts Increase 1.8% in FY 2022; Obligations for R&D Grants Increase 2.7%

1Obligations represent the amount for orders placed, contracts awarded, services received, and similar transactions during a given period, regardless of when the funds were appropriated or when future payment of money is required.

2Contracts are legal commitments in which a good or service is provided by the external performer that benefits the agency. The agency specifies the deliverables and gains the rights to results. These transactions are consistent with Office of Management and Budget (OMB) Object Class code 25.5, research and development contracts. See OMB Circular A-11, Section 83.6, Schedule O. Grants are legal agreements to provide funding by an agency to support a specific purpose, but not to acquire property and services for the agency. Cooperative agreements (e.g., CRADAs [Cooperative Research and Development Agreements]) are also reported as part of the grants category.

3R&D plant is defined as spending on both R&D facilities and major equipment as defined in OMB Circular A-11 Section 84 (Schedule C) and includes physical assets, such as land, structures, equipment, and intellectual property (e.g., software or applications) that have an estimated useful life of 2 years or more. Reporting for R&D plant includes the purchase, construction, manufacture, rehabilitation, or major improvement of physical assets regardless of whether the assets are owned or operated by the federal government, states, municipalities, or private individuals. The cost of the asset includes both its purchase price and all other costs incurred to bring it to a form and location suitable for use. For more details see the survey Technical Notes at https://ncses.nsf.gov/surveys/federal-funds-research-development/2022-2023#technical-notes_definitions.

4Details available in the full set of data tables: table 9.

5Executive Office of the President, OMB, Budget of the United States Government, Fiscal Year 2023. Analytical Perspectives volume, chapter 6, "Research and Development." Available at https://www.whitehouse.gov/wp-content/uploads/2022/04/spec_fy2023.pdf.