Quick guide to DOD Programming and funding Process

1. US Department of Defense
Planning, Programming, Budgeting, Execution
PPBE

2. PPBE Process
FY-14
FY-15
FY16-20
FY-20+
Execute
Budget
Programming
Planning
• Planning: Strategic Vision, Initial Program Evaluation
• Programming: Program development, Program Competition
• Budgeting: Program defense, Allocation of Funds, Supplemental
• Execution: Monitor, In Close Adjustments
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3. PPBE
Planning, Programming, Budgeting and Execution
DoD’s process for:
Strategic planning
Predict and describe the most likely future strategic environment
Define the military capabilities it requires
Resource allocation
Assign assets to meet identified missions according to established priorities
Program integration
Identify and analyze mission shortfalls and duplications
Suggest alternatives for minimizing or eliminating them
Budget formulation
Produce an annual budget to Congress linking missions to requested funding
Result: 4 Concurrent Processes running at the same time.
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4. PPBES
Historical Background
•
1961: PPBS introduced by SecDef R McNamara
•
1986: Congress authorized biennial budgeting
– Two budget years in PresBud; continue one-year appropriations
– DoD implemented on-year (rigorous)/off-year (on-margins) PPBS
–
•
In-practice, rigorous process continued annually
2003: Management Initiative Directive 913 established PPBE (vice PPBS)
– Reduces annual ‘churn’, introduces process stability
– Enforces on-year (POM)/off-year (PR) cycle
– Creates Budget execution as a formal process phase
– Continues concurrent OSD program & budget reviews
– Installs Quadrennial Defense Review is planning centerpiece
– Ensures Significant change in near-term process as unlikely
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5. PPBE
Ethereal to Reality
National Military Strategy
Ship To
Objective Maneuver
National Defense Strategy
Force 21
Defense Planning Guidance
Sea Power 21
Strategy & Vision 2025
RMA
Unconstrained
Army 2010
and beyond
OMFTS
Commandant’s Planning Guidance
EMW
QDR
Detailed
1-year Budget
National Security Strategy
CINC Integrated Priority Lists
AND BEYOND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FY15
FY14
FY13
FY12
FY11
FY10
FY09
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6. PPBE
Stages
PLANNING
(Capabilities Required)
Forces & Support
Level Objectives to
Accomplish the
Mission
15+ YEARS Unconstrained
PROGRAMMING
BUDGETING
(Fiscal Reality)
(Public Law)
Objectives Translated
into Resource
Requirements
Time-Phased
Financial
Execution
6 YEARS Constrained
2 YEARS Constrained
Dependent
FY (FY)
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EXECUTION
(Spending)
Expenditures
IAW
Budget
Appropriation

7. Defense Within the U.S. Budget Process
Defense Department
prepares a budget
Secretary of Defense
submits
budget to
President’s Office of Management
and Budget
President submits
budget to
Congress
President’s
Budget
Budget Legislation
(Authorization & Appropriation)
Congress has the power to
“help” the process, i.e. F-22
and JSF Alt Engine
Defense Department uses PPBE system to link defense strategy to resources
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8. PPBE
Overlapping ‘Cycles’
POM14
FY14 PB
POM: Program Objectives Memorandum
PB: President’s Budget
PR: Program Review
Programming
Budgeting
Execution
Planning
PR15
FY15 PB
Programming
Budgeting
Execution
Perform plan
Planning
POM16
FY16 PB
Programming
Develop the strategy
Capability assessment
JAN 12
Allocate resources
Fiscal constraints
Program balance
JAN 14
JAN 13
Today
Budgeting
Detail & accuracy
Justification
Develop the plan
JAN 15
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9. PPBE = Overlapping Budget Cycles
POM for 2 Years
POM-14 FY14 FY15 FY16 FY17 FY18 FY19
Adjust 2 Year
PR-15 FY15 FY16 FY17 FY18 FY19
POM-16 FY16 FY17 FY18 FY19 FY20 FY21
PR-17 FY17 FY18 FY19 FY20 FY21
nd
• FY-14
• PB-15
• POM-16
POM = Program Objective Memorandum
PR = Program Review
FY = Fiscal Year
PB = Presidential Budget
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Execute (E)
Defend/Testify (B)
Plan / Program (PP)

10. PPBE Overview: Planning
•
Long-Term Vision for Defense
•
Based on
– President’s National Security Strategy (NSS)
– Joint Chief of Staff National Military Strategy (NMS)
•
Results in Strategic Planning Guidance (SPG)
– Combines each service specific ‘vision’ of the future
Not Fiscally Constrained
$
When money is free, lots of things are good ideas.

11. PPBE Overview: Programming
•
•
•
•
Open, Competitive Process
Produces POM
Translates objectives into balanced program that best fills Defense needs
within available resources
Guided by plans and policy decisions
Fiscally Constrained
$
Conflict between ‘buy now’ vs future vision.
Money is NOT FREE – lots of good ideas will not get funded

12. PPBE Overview: Budgeting / Execution
•
First two years of POM
•
Emphasis on first year
•
Precise pricing
•
Executable programs
– Meets spending benchmarks
•
Services submit to OSD
•
OSD modifies via PBDs
– OSD Directives / pet projects, etc
Becomes part of the President’s Budget, forwarded to Congress first Monday in February

13. Summary
• PPBE is DoD’s resource allocation process
– Planning establishes strategic priorities & capabilities required to achieve strategy
– Programming applies resources to programs that provide capabilities required to
achieve the strategic priorities
– Budgeting:
• Properly prices the programs
• Develops justification
• Creates execution plan
– Execution performs the approved plan
• Constrained resources drive the process
– Must achieve both program and Total Obligation Authority (TOA) balance
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