Presentation on theme: "Planning, Programming, Budgeting, and Execution (PPBE)"— Presentation transcript:
1Planning, Programming, Budgeting, and Execution (PPBE) Roberta TomasiniDSMC-SPM(703)
2From Requirement to Capability Planning, Programming,Budgeting and ExecutionLife CycleCostAnnualFundingCostAnalysisEstimateFundingPoliciesICEFYDP DPPG POM RMDFullFunding (Exceptions)MFP PE BES FEACAIVCCEFiscalEnvironmentIncrementalFundingMBIsPOEAoACongressionalEnactmentHAC HASC HBCSAC SASC SBCPresident’sBudgetBudgetResolutionAuthorization&AppropriationLawsREVIEW:- Last refresher looked at cost estimating concepts and required documentation. We said then that the cost estimate is the basis for the program’s budget requests.- In this refresher, we’ll examine how we turn the cost estimate into a budget.Acquisition Program BaselineOperationalConceptForce StructureModernizationOperational CapabilityReadinessSustainabilityFeedbackCommitment ReprogrammingCapabilities-BasedAssessmentCapability DocsBudget Authority Obligation Expenditure OutlayBudgetExecution
3PPBE Outline PPBE Overview Building Blocks FYDP, MFP, Program Elements PPBE ProcessMembership of DAWG and SLRGCapability Portfolio Managers (CPMs)FY Schedule
4Three Major DoD Management Systems Planning,Programming,Budgeting andExecutionQDRJoint CapabilitiesIntegration andDevelopmentSystem (JCIDS)DefenseAcquisitionSystem-DoD has three Decision-making Support Systems-1. AMS (Acquisition Management System)-- how we acquire weapon systems-- primary document is DoDI-- also referred to as little “a” acquisition-- event driven process2. JCIDS--determines what is needed-- primary document is CJCSI 3170, which is capabilities-based with more emphasis on jointness-3. PPBE-- resource allocation in DoD – providing warfighter with best mix of forces, equipment and support attainable under fiscal constraints-- increased emphasis on using performance metrics to focus on output, return on investment-- Calendar driven-QDR: the major statement of defense strategy and business policy--MID 913 states that QDR is the single hierarchical link integrating all internal decision processes-JCIDS and AMS are event-driven; PPBE is calendar-driven, backing off from the PB-All three circles form “Big “A” Acquisition
5Resource Management System PPBE is the primary resource management system for DoD:Articulates strategyIdentifies size, structure and equipment for military forcesSets programming prioritiesAllocates resourcesEvaluates actual output against planned performance and adjusts resources as appropriatePPBE is the primary resource management system for DoD.Until now, unchanged since developed by McNamara in 1961What do we do in PPBE?Strategy - How are we going to defend the nation? National GoalsForces - What are we going to use to defend the nation? to execute that Strategy?Prioritize - Which ones, which programs will be funded now?Resources - How much will be spent on each program?Output - Where are we getting our best return?Trans: What are the phases in PPBE?
6PPBE Phases Planning (OSD Policy) Assess capabilities / review threat Develop guidanceProgramming (OSD CAPE)Turn guidance into achievable, affordable packagesFive-year program (Future Years Defense Program)Budgeting (OSD Comptroller)Test for efficient funds executionScrub budget yearsPrepare defensible budgetExecution Review (concurrent with program/budget review)Develop performance metricsAssess actual output against planned performanceAdjust resources to achieve desired performance goals
7Future Years Defense Program (FYDP) Computer database maintained by D,CAPEApproved force structure and resources in SECDEF Defense ProgramContains PY, CY, BY + 4 Out-Years +3 additional years for force structure onlyUpdated two times per PPBE Cycle:Program Objectives Memorandum/Budget Estimate Submission (POM/BES) – JulyPresident’s Budget (PB) - February1213Computer database maintained by Dir (PA&E)Summarizes forces, equipment and resources.Comprises one prior year (PY), the current year (CY), the “biennial” budget years (BY1 and BY2), four additional years for resources (POM) and three additional years for force structure only.It is a “living” record reflecting the decisions made in the three phases of PPBSUpdated two times per year to reflect theBES (Aug/Sep), andPresident’s Budget (Jan/Feb) submissions.New Approved Numbers for your programWhy two budget years? The process was intended to produce a two year budget. However, Congress appropriates one year at a time. So, we have “odd years”. The components will “tweak” the POM as part of an off year effort called the APOM by the Air Force, Mini-POM by the Army and Program Review by the Navy.QTS: When was the POM/BES submission this year? 22 Aug 02TRANSITION: Let’s take a look at how the FYDP is structured
8Future Years Defense Program (FYDP) DOD APPROPRIATIONSProcurementMilitary ConstructionMilitary PersonnelOps & MaintenanceOtherRDT&EOTHERDEFAGENCIESAIRFORCENAVYARMYStrategic ForcesGeneral Purpose ForcesCommand, Control, Communications, Intell & SpaceMobility ForcesGuard & Reserve ForcesResearch and DevelopmentCentral Supply & MaintenanceTraining, Medical, and Other Personnel ActivitiesAdministration and Associated ActivitiesSupport of Other NationsSpecial Operations Forces(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)(11)MAJOR FORCE PROGRAMSCube Chart to illustrate how the FYDP is structured: Divided in three ways:Appropriation categories for use by Congress and Comptroller“other” category represents the various other appropriations that exist, such as family housingComponent categories, of interest to Services and other DoD agencies.11 “Major Force Programs” (MFP) mission-oriented for DoD internal management uses.Break by MFP in Planning & Programming; by Appropriation in BudgetingAny single category can contain data from any or all of the other two major divisionsExample: MFP #1 Strategic Forces contains both Navy and AF Ballistic Missiles, as well as data from all five appropriations.FYDP is broken down into manageable segments called Program Elements (PEs)Note: Marines fall under Dept of Navy which is considered the “Component”One Component, two ServicesCOMPONENTS
9Program ElementsPROGRAM ELEMENT (PE): Smallest aggregation of resources normally controlled by OSD- PE NUMBER: Used to track and identify resources; seven digit number followed by an alphabetic suffixPROGRAM 1 ( STRATEGIC FORCES )F - B-1B SquadronsF - Peacekeeper SquadronsN - TridentA - Worldwide Joint Strategic CommF - SPACETRACKPROGRAM 2 ( GENERAL PURPOSE FORCES )A - Airborne DivisionsN - Frigates - MissileF - F-22 SquadronsF - Advanced Communications SystemsA - ARMYN - NAVYM - MARINEF - AFD - OSDC - MDAE - DARPAJ - JCSS - DLABB - SOCOMDBD - DFASProgram Elements are a tool OSD uses to track resources by program, system, or function so they can see how much is being spent on them.PEs can be very broad, containing several programs. They also can be very specific, covering a single component of a weapon system. It all depends on the visibility OSD wants to maintain.These are some examples of Program Elements (PEs), use Trident since talking about Ballistic Missiles.Seven digit code followed by a letter suffix designating the applicable component or agency.The first two digits indicate the MFP to which the PE belongs. Although a PE is limited to a specific MFP, it is not in most cases, limited to a single Appropriation.RDT&E PEs are used by Congress to control program funding levels and to set Below Thresholds Reprogramming (BTR) limits, and are, therefore, somewhat more structured and specific than most other PE’s -- we will discuss this further in FM 5.All programs and all resources have PEs. The entire FYDP database can be listed by PE. There are over 3600 of them.SUMMARY: So now that we’ve talked about the major Building blocks of PPBS: the FYDP, MFPs and PEs, Let’s compare the old PPBS to the new PPBE…Ref: DoD H
10FEAs PPBE – Planning Phase APR ( DPPG)/Sep ( FEAs) Finish 2nd Year~Starts FEB/MAR (1st Year)PresidentNational Security CouncilCIA/DIA/JCS/OSDFEAsPlanning Phase focus:Threat vs CapabilitiesUpdate strategyGuidance for programmingUnder direction of CAPEFEAs developed in Planning Phase. UsedTo inform program reviews.NSSTo Concurrent Program/Budget ReviewNDSQDRDPPGOSDLevelJCSNMSCPRLevel(JCS,COCOMs,SERVICES)CIA – Central Intelligence Agency; COCOM – Combatant Commander; CPR – Chairman’s Program RecommendationDIA – Defense Intelligence Agency; DPPG –Defense Planning &Programming Guidance; JCS – Joint Chiefs of StaffNDS – National Defense Strategy; NMS – National Military Strategy; NSS – National Security StrategyOSD – Office of the Secretary of Defense; QDR – Quadrennial Defense Review; FEA – Front End Assessments
11Concurrent Program/Budget Review JULOCTNOVDECFEBFEAs Continued3-Star GroupOSD CAPE/OMBIssueResolutionPOMSECDEF/DEPSECDEFSLRG*&DAWG*CPMsCPAJCSComponentsDefense AgenciesRMDsTBD = *Budget Review:There are four areas considered by the USD(C) and OMB analysts as principal issue areas during the review and “scrub” of the budget submission from the Services and agencies: program pricing, program phasing, funding policies and program/budget execution.Program Pricing - Examines whether the specific program has been priced out properly (e.g., that the budget was prepared on the basis of “most likely cost” of the work to be done and that the proper escalation index has been applied to the constant- year budget estimate to determine the current then-year funding requirement).Program phasing - Examines the compatibility between the approved acquisition strategy and the funding necessary to pay for the requirements shown in that strategy (e.g., that have Procurement funds been phased properly to coincide with program plans for production).Funding policies - Examines the compliance of the budget request with the proper policy for each specific appropriation category (e.g., RDT&E has been budgeted on an incremental basis; procurement and MILCON on a full funding basis; and O&M and MILPERS on an annual basis).Program/Budget execution - Examines the efficiency with which an organization has executed (i.e., obligated and expended) currently available funds and the effect of current year execution on budget year submissions. As an example, has the organization met established goals for obligations and expenditures during the current fiscal year? If not, can those “excess” funds from the current fiscal year be allowed to slip into a future year and, therefore, allow a decrease in the funding requirement in that future year?Of the four budget review issues, program executability/budget execution is the primary concernAdv Questions/Budget HearingsUSD(C)/OMBBESMBI*PBServices / PEO / PMAnswer / ReclamaUpdatesFYDPUpdatesFYDPBES – Budget Estimate Submission; CAPE – Cost Assessment & Prgm EvaluationCOCOM – Combatant Command; CPA – Chairman’s Pgm Assessment; CPM – Capability Portfolio ManagerDAWG – Deputy’s Advisory Working Group; FEAs- Front End Assessments; FYDP – Future Years Defense ProgramMBI – Major Budget Issues; OMB – Office of Management and Budget; PB – President’s BudgetPOM – Program Objectives MemoRMD – Resource Management Decision; SLRG – Senior Leader Review Group
12Deputy’s Advisory Working Group Deputy Secretary of Defense (Chair)Vice Chairman Joint Chiefs of Staff (Vice Chair)Under Secretary of Defense (AT&L)Under Secretary of Defense (Policy) and Principal DeputyUnder Secretary of Defense (Comptroller) /Chief Financial Officer or Principal DeputyUnder Secretary of Defense (P&R) or Principal DeputyUnder Secretary of Defense (Intelligence) or Principal DeputySecretary or Under Secretary of the ArmySecretary or Under Secretary of the NavySecretary or Under Secretary of the Air ForceChief or Vice Chief of Staff of the ArmyChief or Vice Chief of Naval OperationsChief or Vice Chief of Staff of the Air ForceCommandant or Assistant Commandant of the Marine CorpsCommander or Deputy Commander, SOCOMDeputy Chief Management OfficerASD (Legislative Affairs)ASD (Networks & Information Integration/Chief Information Officer)ASD for Public AffairsGeneral CounselDirector of Administration and ManagementDirector or Principal Deputy Director, CAPEDirector, Joint StaffChief, National Guard Bureau or DeputyDirector, SP&P-J5Director, FS,R&A-J8This is the membership of the DAWG, chaired by DepSecDef. It started out as the ”Group of 12” for the QDR reviews done in 2005.
13Senior Leader Review Group Secretary of DefenseDeputy Secretary of DefenseSecretary or Under Secretary of the ArmySecretary or Under Secretary of the NavySecretary or Under Secretary of Air ForceChairman Joint Chiefs of StaffVice Chairman Joint Chiefs of StaffUnder Secretary of Defense (AT&L)*Under Secretary of Defense (Policy)*Under Secretary of Defense (Comptroller)/Chief Financial Officer*Under Secretary of Defense (Intelligence)*Under Secretary of Defense (P&R)*Commandant or Assistant Commandantof the Marine CorpsDirector of Administration and ManagementChief or Vice Chief of Staff of the ArmyChief or Vice Chief of Naval OperationsChief of Staff or Vice Chief of the Air ForceGeneral CounselASD (Legislative Affairs)ASD (Networks & Information Integration/Chief Information OfficerASD for Public AffairsDirector, Cost Assessment & Prgm EvalDirector, Joint StaffDeputy Chief Management OfficerChief, National Guard BureauThis is the membership of the Senior Leader Review Group, chaired by SecDef.* Or Principal Deputy
14Capability Portfolio Managers (CPMs) 9 Portfolios are Based on Existing Joint Capability Area (JCA) StructureCivilian/Military Co-Leads Designated by DEPSECDEFHave No Independent Decision Making AuthorityAfforded Access to JROC, DAB & Other Established Component ForumsShall Establish or Identify Existing Portfolio-Level Governance for Each PortfolioRoles and responsibilities of the CPMs , based on DepSecDef memos and draft 7045.aa as of Aug 08CPMS are primarily advisory to the DAWG, but note that they do not have decision making authority.
15Capability Portfolio Managers (CPMs) Leadership andTier 1 JCACPMCivilianLeadMilitarySenior Warfighting Forum (SWarF)Lead *Joint StaffOPR *FunctionalCapabilityBoards *Command and ControlASD (NII)JFCOMJ-3Battlespace AwarenessUSD (I)STRATCOMJ-2Net CentricJ-6LogisticsUSD (AT&L)TRANSCOMJ-4Building PartnershipsUSD (P)Director, J-5N/AJ-5ProtectionDirector, J-8J-8Force SupportUSD (P&R)Force ApplicationJoint Requirements Oversight Council (JROC)SOCOMCorporate Management & SupportDCMODirector, Joint Staff* As designated by the Chairman of the Joint Chiefs of Staff (CJCS)
16FY 12–16 Program/Budget Schedule 2 Apr Fiscal Guidance IssuedApr Defense Planning and Programming Guidance Issued30 Jul Component POM/BES Submissions Due (databases lock)2-13 Aug Component POM Briefs to 3-Star/DAWG30 Aug Issue Nominations Due3 Sep Budget Justification Material Due to OSD/OMB22 Nov Program/Budget Review Complete7 Feb President’s Budget Submitted to CongressNOTE: Submission includes FY 12 OCO (supplemental) requestThis is the schedule we have for the FY Off-Year cycle; they are all Key datesHowever, note that:Fact-of-Life information is due 1 August with OSD decisions being made by 15 AugustService and Agency Change Proposals are due 6 September, along with electronic submissions of OSD-accepted Fact-of Life justification material and any other material OSD may have requestedOSD expects to complete a review of the Service and Agency-submitted Change Proposals by 30 SeptemberThey’ll review for compliance with the guidance and acceptability of the offsetsThose that are accepted will be assigned to PA&E or USD(C) for further issue development and resolutionPlease note that, as I said before, OSD staff will prepare any Change Proposals considered necessary to implement BRAC and QDR decisions that are made prior to submission of the FY 07 Pres BudThe overall process should be complete by 20 December with the DoD budget lockThis is a good time to point out that the 12 May Memo announcing the Procedures and Schedule for FY Integrated Program and Budget Review stated that detailed instructions will be provided later in another document and on the Program Review website16