Product Service Code (PSC)
A 4-character code that describes what the government is buying — from "R&D in weapons systems" to "janitorial services" — used to categorize contract spending.
How It Works
While NAICS codes classify the contractor's industry, PSC codes classify the product or service being purchased. There are hundreds of PSC codes organized into categories: services (R, S, T, etc.), supplies and equipment (1-9), and research and development (A). PSC codes are attached to every contract action and are used to analyze spending patterns. For example, PSC code D302 represents "IT and Telecom - Systems Development," while H160 represents "Quality Control - Aircraft Components." TaxDollarData uses PSC codes to show what types of work the government buys from each contractor.
Related Terms
- NAICS Code — The North American Industry Classification System code — a 6-digit number that classifies a business by the type of economic activity it performs, used to determine small business size standards.
- Federal Contract — A legally binding agreement between the U.S. government and a private company to provide goods or services — from fighter jets to IT consulting.
- USASpending.gov — The official U.S. government website that tracks all federal spending — contracts, grants, loans, and other financial assistance — searchable by agency, recipient, and location.
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About This Definition
This definition is part of the TaxDollarData Federal Spending Glossary — 31 terms explaining how the U.S. government spends taxpayer money. All definitions are written in plain language for taxpayers, journalists, contractors, and researchers.