PPBE tutorial Nov 2013


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Quick guide to DOD Programming and funding Process

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PPBE tutorial Nov 2013

  1. 1. US Department of Defense Planning, Programming, Budgeting, Execution PPBE
  2. 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 2
  3. 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. 3
  4. 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 4
  5. 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 5
  6. 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) 6 EXECUTION (Spending) Expenditures IAW Budget Appropriation
  7. 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 7
  8. 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 8
  9. 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 9 Execute (E) Defend/Testify (B) Plan / Program (PP)
  10. 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. 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. 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. 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 13