1. 9 MAY 2007
COL Wesley Jennings U.S. Army Command and Installation Division, PAED, Deputy Chief of Staff G8
Introduction and purpose
OPMG Brief V1.0

2. Understanding the Strategic Context POM 08-13 review Army Challenges
Agenda
Understanding the Strategic Context
POM review
Army Challenges
PBR 09-13

3. Program Analysis & Evaluation Directorate
Current Strength
Military
Civilian
Created 1972 during Nixon Administration
PAE develops the Program ABO develops the Budget & works Execution year
PAED Mission:
Responsible for the Army’s $737 billion (FY08-13) Program Objective Memorandum (POM)
Single authoritative source for resource information
Experts in all facets of the Army’s programs
Points of Influence:
Develops courses of action for the Senior Review Group’s resource allocation decisions
Provides independent assessment of the Army’s programs
Produces strategic documents for the POM (Section III of the Army Plan, Technical Guidance Memorandum, POM EXSUM)

4. Transnational Deterrence
Building Army Capabilities to Meet the QDR Strategy…
Steady State
Surge
Active Partnering with USG Agencies
Homeland
Defense
Consequence Management
Global Deterrence
Interdiction
Train & Equip
Stability Ops
War on Terror /
Irregular Warfare
Enabling Partners
Info Ops
Transnational Deterrence
Foreign Internal Defense
WMD Elimination
Build to 70 full-spectrum BCTs
Provide BCTs for Steady State Security Posture
Surge capacity of additional BCTs.
Increase Special Operations Forces
Improve capabilities for Stability, Security, Transition, and Reconstruction Operations
Rebalance the force to create the right mix of units in high demand.
Increase to 76 BCTs to build Strategic Depth
20-22 BCTs for Steady State Security Posture
Forward Presence
Major Combat / Strike
Enabling Partners
Conventional
Campaigns
Regional Deterrence
Reconstruction
QDR Strategic Priorities
Defeating terrorist networks
Defending the homeland in depth
Shaping the choices of countries at strategic crossroads
Preventing hostile states and non-state actors from acquiring or using weapons of mass destruction
Build to 70 full-spectrum BCTs
Provide BCTs for Steady State Security Posture
Surge capacity of additional BCTs.
Increase Special Operations Forces
Improve capabilities for Stability, Security, Transition, and Reconstruction Operations
Rebalance the force to create the right mix of units in high demand.
Information Ops
Sizing Variables:
Frequency Number Scale / Intensity Concurrency Ops Risks Duration Policy Environment Partner Capabilities

5. POM 08-13 Strategy – Resource Mismatch
>
>
Operational Demand
QDR
Strategy
Resources
$220B
$138.8B
$113B
Supplemental
Program
Army requires base and supplemental funding to meet operational demand and strategic requirements.

6. POM/BES FY08-13 Process DEC NOV OCT SEP AUG JUL JUN MAY APR MAR FEB
PPBE DOCUMENT – FOR OFFICIAL USE ONLY – PREDECISIONAL – CLOSE HOLD
PAED
POM/BES FY08-13 Process
EOH POM/BES priorities 4 3
(22 Dec)
OMB meeting with OSD/Army 2 1
DEC
SA/CSA
engage SecDef
NOV
OSD brief to VP and OMB
OCT
Submit POM/BES FY08-13
(22 Nov)
SEP
Issue Team work
EOH: “Broken Program”
AUG
PAED transfer database to ABO
(5 Nov)
SA/CSA meet w/ SecDef; Verbal revised fiscal guidance
(+$7B FY08-11; +$12B FY12-13)
Revised fiscal guidance
(19 Oct)
DAWG Brief – “Army Capabilities & Resources”
JUL
PEG compliance briefs
(3 Nov)
Issue Team Outbrief
Fiscal
Guidance
(-$22.5B)
(3 Apr)
JUN
CSA meets SecDef – Issue Teams approved
2006 PPBE Conference
MAY
POM/BES 1st Half
POM/BES 2d Half (proposed)
APR
OSD/JS/Army Issue Team
Program/Budget Review
MAR
24 EOH engagements to define resource problem and strategic choices
Signed PDM
FEB
Grow the Army
JAN
Command briefs
Develop/lock requirements (PEGs/CMDs)
21 February 2007

7. Base and Supplemental Funding
Base Funding
GWOT Request
Reality
Growth in total Army spending is largely a function of the war. Growth in our base budget is a function of the evolving security environment.
$200B
$108B
Total Request
($49B In
Title IX)
$180B
$92B
$160B
$140B
$46B
$66B
$68B
$120B
$100B
$80B
$60B
$96B
$101B
$108B
$110B
$130B
$141B
$144B
$143B
$144B
$144B
$40B
$20B
$0B
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
Actual Execution
Appropriations
President’s Budget FY08

8. Goal: 1 forward : 3 back…or Stress to All-Volunteer Force
Just in Time Readiness
PRESENT REALITY
Environment requires readiness in depth – Army lacks readiness in depth
Equipment and Personnel shortages drive readiness ratings
IAs/TTs require significant Officer/NCO leadership
QDR/OA-06 GOAL
Preparing Today’s Army for the Next Fight
The operational demands placed on the Army exceed the Army's supply of ready forces
The diversion of resources to operational requirements has rendered the Army’s strategic depth unready
The Army is at high strategic risk due to unready strategic depth
With operational demands and resource shortfalls, Army is still moving to posture for the Long War
There are specific steps that can be taken to decrease Army strategic risk by restoring the Army's strategic depth
Environment requires readiness in depth – Army lacks readiness in depth
Equipment and Personnel shortages drive readiness ratings
ARNG Full-Spectrum/COIN BCT unavailable until FY09
73% of Army Combat Units (All Compo) ≤ C3
83% of Army CS/CSS Units (All Compo) ≤ C3
IAs/TTs require another 18.5 BCTs worth of leaders
Goal: 1 forward : 3 back…or Stress to All-Volunteer Force

9. Army Challenges “Just in Time Readiness”
Restoring strategic depth—Readiness of next-to-deploy forces
Equipping brigades by 2019
Training units to counter insurgency mission
Continuing to rely heavily on supplemental
Implementing Reserve Component utilization policy
Increasing pre-mobilization readiness of Reserve Component forces
Sustaining core capabilities while executing mission specific training
Resetting the force for next fight
Replacing/recapitalizing/repairing unit equipment
Rebuilding Army prepositioned sets & War Reserve Secondary Items
Preparing units for next deployment
Growing a ready Army
Synchronizing elements of growth
Sustaining all-volunteer force
Reducing stress on Soldiers and families
Increasing dwell time
Supplying Army Forces for the Long War

10. Transforming While at War “Building a Campaign-quality Army with Joint & Expeditionary Capabilities”
Next Slide
Transforming organizational design
Countering traditional and irregular threats
Building brigades that can fight under any joint headquarters
Redesigning Division and Corps headquarters to enable them to serve as joint headquarters
Shifting personnel from institutional force to operational force
Modernizing all components
Implementing OSD guidance—increasing Joint interdependence
Protecting the force is a continuous process—must adapt to changing environment
Fielding Future Combat System of Systems initial spinouts during this program
Realigning Army footprint
Implementing BRAC, Global Defense Posture Realignment, and stationing changes
Adjusting Grow the Army plan
Implementing new readiness paradigm
Establishing Force Generation model
Assuring access to Reserve Component
Transforming leader development
Increasing skill sets to adapt to changing environment
Improving cultural awareness
Modularity (Standardized Unit Designs)
Building flexible and agile general purpose forces
Converting all brigade combat teams and support brigades (Active; National Guard; Reserves)
Completing conversions to modular organizations with equipment by 2019
Future Combat System of Systems
Enabling networked battle command (JNN/WIN-T study underway; report out in June)
Fielding spinouts beginning in FY08
Fielding first Future Combat System brigade combat team by 2015 (one per year thereafter)
Empowering Soldiers with the network (situational awareness)
Improving maneuver, protection, and sustainment capabilities (e.g. manned ground vehicles)
Enhancing intelligence, surveillance, and reconnaissance capabilities (e.g. unmanned aerial systems, unmanned ground vehicles)
Grow the Army
Increasing brigade combat team surge capacity from to plus 2 maneuver enhancement brigades per rotation given a surge rotation rate of 1:2 active component and 1:4 reserve component
Improving active component dwell by 2013 with recurrent, assured access to reserve component
Growing and rebalancing capabilities to mitigate high demand/low density shortfalls and increase combat support/combat service support capacity:
Patriot Engineer Military Police Transportation
EOD Medical Military Intelligence Maintenance

11. Ground Force Initiatives
Next Slide
Ground Force Initiatives
Modularity (Standardized Unit Designs)
Building flexible and agile general purpose forces
Converting all brigade combat teams and support brigades (Active; National Guard; Reserves)
Completing conversions to modular organizations with equipment by 2019
Future Combat System of Systems
Enabling networked battle command (JNN/WIN-T study underway; report out in June)
Fielding spinouts beginning in FY08
Fielding first Future Combat System brigade combat team by 2015 (one per year thereafter)
Empowering Soldiers with the network (situational awareness)
Improving maneuver, protection, and sustainment capabilities (e.g. manned ground vehicles)
Enhancing intelligence, surveillance, and reconnaissance capabilities (e.g. unmanned aerial systems, unmanned ground vehicles)
Grow the Army
Increasing brigade combat team surge capacity from to plus 2 maneuver enhancement brigades per rotation given a surge rotation rate of 1:2 active component and 1:4 reserve component
Improving active component dwell by 2013 with recurrent, assured access to reserve component
Growing and rebalancing capabilities to mitigate high demand/low density shortfalls and increase combat support/combat service support capacity:
Patriot Engineer Military Police Transportation
EOD Medical Military Intelligence Maintenance

12. Program Evaluation Groups
ASA(M&RA) & G-1
ASA(ALT) & G-8
ASA(M&RA) & G-3
ASA(M&RA) & AASA
ASA(ALT) & G-4
ASA(I&E) & ACSIM
Manning
Equipping
Training
Organizing
Sustaining
Installations
Co - Chairs
Title X Function
COCOM IPL
EOH
PEG
PPBC
SRG
SA,
CSA
MACOM POM
Integrators
MDEP Mgrs
3 Wise Men
Six Program Evaluation Groups (PEGs) support PPBE
Secretariat & functional proponent co-chair each PEG
ARNG, OCAR, and G-6 serve as Integrators within each PEG
PEGs, assisted by the Program integrators:
Build Section III of The Army Plan (TAP)
Administer a set of Management Decision Packages (MDEP)
Set the scope, quantity, priority, and nature of requirements
Construct program performance measures and define metrics
Build the POM and convert the programs into budget-level detail
Help defend program during the review process
Track program during execution
3 Kings
You have seen this chart in Block III. However this chart adds the functions PEGs perform during programming.
They work with PAE on drafting the TAP Section III
They maintain the MDEP dictionary
They play an important role in requirements determination
They help defend Army decisions during budget presentation and justification
They stay abreast of performance and execution
The PEGs are the workhorses of the POM/BES process they make the initial resourcing decisions that are reviewed by the budget office, G-3, PAED, and the various resource decision-making bodies (CoC, PPBC, SRG, ARB)

13. Issues Army is Addressing During Program Budget Review FY09-13
Grow the Army
Implement Reserve Component utilization policy
Equip and modernize the force
Review Stationing/MILCON plan
CSA Initiatives
Accelerate Growth
Families & Supporting Soldiers
Modularity & Modernization
Reserve Components
Leader Development
Adapting Institutional Policies & Programs
Strategic Communications
CJCS recommendations
POM/BES FY08-13 Efficiencies Realignment
Realigning efficiencies identified in POM/BES FY08-13, per commanders’ needs
Equipping
Armed Reconnaissance Helicopter
Tactical Networks for Ground Forces (JNN / WIN-T)
Stationing
Required if FY07 Supplemental does not include $2B for BRAC
Grow the Army
Greater fidelity of issues—refining requirements to align with force structure
Developing options to accelerate growth
AFRICOM
Working with AFRICOM Transition Team, EUCOM and OSD to validate requirements and resources
Developing requirements for new Army Service Component Command – US Army Africa
Reserve Component Utilization
Developing requirements for 12-month mobilization policy (to include shifting post- to pre-mobilization training)

14. COCOM J8 Conference
BACKUP

15. Capability Gaps Army Must Close by 2020 “Supporting the Joint Fight”
Next Slide
Soldier Protection: situational awareness; counter IED, mine, and sniper; improved vehicle and body armor; active protective system; chemical and biological detection/protection; unmanned systems
Network Enabled Battle Command: communications on the move; joint integrated situational awareness through sensor integration; networked precision fires; planning and direction; scalable, tailorable, and lowest level
Battlespace Awareness: persistent surveillance; multi-spectrum surveillance; situational awareness; real-time intelligence distributed to appropriate levels
Force Protection: counter air, missile, rocket, artillery, and mortar; combat identification; biometrics; platform survivability
Operational Maneuver: ground mobility; strategic and intra-theater movements
Information Operations: cultural awareness; electronic warfare; PSYOPs
Logistics: joint rapid distribution; logistics information fusion; situational awareness and asset visibility; tactical medical transport; reducing demand

16. Growing Capabilities to Meet Global Demand
Increase ~74K across the Army by FY2013 building a total of 76 BCTs (48/28) and about 225 Support Brigades (80/85/60)
Continue to rebalance capabilities across the three components
Current Program
482.4K
350.0K
205.0K
1,037.4K
Approved Program
Active
ARNG
USAR
Total
547.4K
358.2K
206.0K
1,111.6K
+ 74.2K
+ 65.0K
+ 8.2K
+ 1.0K
Increases BCT surge capacity from to Maneuver Enhancement Brigades per rotation given a surge rotation rate of 1:2 AC and 1:4 RC
Improves AC Dwell by FY 2013 with recurrent, assured access to the RC
Grows and rebalances capabilities to mitigate HD/LD shortfalls and increase CS/CSS capacity:
Patriot Engineer Military Police Transportation
EOD Medical Military Intelligence Maintenance

17. The Force Integration Challenges
Adjust (Plus-Up)
Grow
Accelerate
Rebalance
Train
TTs
Convert
Reset
Modernize
Restation
5BCTs + Enablers
The Army by 74.2K
1 HBCT + 1 IBCT
Remaining Legacy Force
AC/ RC, CBT, CS, CSS
Army Equipment for distribution
New Demand; Post 1/1ID Conversion
FCS / AETF / 2 nd
GEN
IGPBS / BRAC
Mobilize / Deploy
ARNG and USAR / AC

18. Cost of the Army reflects the cost of modern war
Impact of Modern War
Current commitments and demand for forces exceeds planning constructs.
Timing of funding has impacted strategic depth.
Changes to threat and mission have permanently increased cost of ground forces.
Sustained commitment of ground forces requires sustained commitment of national resources.
Changes to threat and mission are changing resources and requirements inside Army.
Cost of the Army reflects the cost of modern war

19. Equipping Soldiers for War
Parachutists &
Ground Troops
(PASGT)
Helmet & Accessories
PVS 7
Night Vision Device
& Accessories*
Army Combat Helmet
& Accessories
PVS 14 Monocular
Night Vision
Device & Accessories
Protective
Goggles
MOLLE
Close Combat Optic
Interceptor Body Armor
(ACU Camouflage Pattern)
Outer Tactical
Vest (OTV)
Enhanced Small Arms Protective Inserts
Deltoid
Axillary
Protector **
Side Plates**
PASGT
Vest
Load Carrying
Equipment
PEQ-2A Infrared
Aiming Light
Gloves
Close Combat Optic
Gloves
Battle Dress
Uniform
PAC-4 Infrared
Aiming Light*
M4 Carbine
M4 carbine
Army Combat
Uniform
Jungle
Combat Boot
PVS-4
Weapons Sight
Infantry Combat Boot
Type II (Tan)
Knee and Elbow Pads
Equipment Spending Per Soldier:
*$11,148
Protective
Eyewear (Wiley X)
Thermal Weapons Sight II (Light)
Equipment Spending Per Soldier:
$17,472
*Adjusted to FY06 dollars
Increased cost and increased numbers equipped
**Item Not Shown

20. Army - Combatant Command Engagement
in PPBES
SA,
CSA
COCOM Integrated Priority List (IPL)
COCOMs highest priority capability gaps
COCOMs main tool during PPBE process
COCOM ASCC POM
Focus Includes:
Integrating COCOM requirements to provide joint capability
MACOM Commander's Program Assessment
Commanders’ Narrative Assessments
Commander’s personal program assessment and priorities
Provides information on priorities from the MACOMs as well as selected COCOMs
COCOM Program Review
COCOM IPL
COCOM
ASCC
ARSTAFF
Integration
BES/POM
CJCS
Prog
Review 13