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Transcript of June 2003 Defense Acquisition University Planning, Programming, Budgeting and Execution (PPBE)...
June 2003June 2003 Defense Acquisition UniversityDefense Acquisition University
Planning, Programming, Budgeting Planning, Programming, Budgeting and Execution (PPBE)and Execution (PPBE)
Business, Cost Estimating, & Financial ManagementBusiness, Cost Estimating, & Financial ManagementCapital and Northeast CampusCapital and Northeast CampusDefense Acquisition UniversityDefense Acquisition University
June 2003June 2003(Revised Nov 2003)(Revised Nov 2003)
Defense Acquisition UniversityDefense Acquisition University
Nov 2003Nov 2003 Defense Acquisition UniversityDefense Acquisition University
Decision Support SystemsDecision Support Systems
Planning, Programming & Budgeting System
Acquisition Management System
Requirements Generation System
Planning,Programming,Budgeting, &
Execution(PPBE)
NewDoDD 5000.1DoDI 5000.2
Joint Capabilities Integration & Development System
QDRQDRQDRQDR
Nov 2003Nov 2003 Defense Acquisition UniversityDefense Acquisition University
Resource Management SystemResource Management System
PPBE is the primary resource management system for PPBE is the primary resource management system for DoD:DoD:
– Articulates strategyArticulates strategy– Identifies size, structure and equipment for military forcesIdentifies size, structure and equipment for military forces– Sets programming prioritiesSets programming priorities– Allocates resources Allocates resources – Evaluates actual output against planned performance and Evaluates actual output against planned performance and
adjusts resources as appropriateadjusts resources as appropriate
Nov 2003Nov 2003 Defense Acquisition UniversityDefense Acquisition University
PPBE PhasesPPBE Phases
Planning Planning – Assess capabilities / review threatAssess capabilities / review threat– Develop guidanceDevelop guidance
Programming Programming – Turn guidance into achievable, affordable packagesTurn guidance into achievable, affordable packages– Six-year program (Future Years Defense Program)Six-year program (Future Years Defense Program)
Budgeting Budgeting – Test for efficient funds execution Test for efficient funds execution – Scrub budget yearsScrub budget years– Prepare defensible budgetPrepare defensible budget
Execution Review Execution Review (concurrent with program/budget review)(concurrent with program/budget review)– Develop performance metricsDevelop performance metrics– Assess actual output against planned performanceAssess actual output against planned performance– Adjust resources to achieve desired performance goalsAdjust resources to achieve desired performance goals
Nov 2003Nov 2003 Defense Acquisition UniversityDefense Acquisition University
Old Process:Old Process: Annual, Consecutive-Phase PPBS Annual, Consecutive-Phase PPBS
FY 02-07 POM and prior:FY 02-07 POM and prior: Defense Planning Guidance (DPG) (Apr)Defense Planning Guidance (DPG) (Apr) Programming (POM Development) (May – Sep)Programming (POM Development) (May – Sep) Budgeting (BES Development / Review) (Sep – Dec)Budgeting (BES Development / Review) (Sep – Dec) Submission of President’s Budget (Feb)Submission of President’s Budget (Feb) Congressional Review of Budget Request (Feb – Aug)Congressional Review of Budget Request (Feb – Aug) Congressional Authorization and AppropriationCongressional Authorization and Appropriation Execution of Budget Authority Execution of Budget Authority
– Commit, obligate, expend, and outlay fundsCommit, obligate, expend, and outlay funds
Nov 2003Nov 2003 Defense Acquisition UniversityDefense Acquisition University
FY 2004-2009FY 2004-2009 Defense Planning Guidance Defense Planning Guidance
““The Department’s current planning, programming, The Department’s current planning, programming, budgeting and acquisition systems are rigid, unresponsive budgeting and acquisition systems are rigid, unresponsive and ill-suited for a dynamic and uncertain security and ill-suited for a dynamic and uncertain security environment. DoD needs to streamline and integrate environment. DoD needs to streamline and integrate PPBS and the major acquisition and requirements PPBS and the major acquisition and requirements processes with particular attention paid to those areas processes with particular attention paid to those areas where technological change occurs most rapidly.”where technological change occurs most rapidly.”
Tasked the Senior Executive Council, under the leadership Tasked the Senior Executive Council, under the leadership of the SECNAV, to provide a systematic approach for of the SECNAV, to provide a systematic approach for replacing these processesreplacing these processes
Nov 2003Nov 2003 Defense Acquisition UniversityDefense Acquisition University
Management Initiative Decision Management Initiative Decision (MID) 913(MID) 913
Major Initiatives:Major Initiatives: Quadrennial Defense Review (QDR) shifted from the Quadrennial Defense Review (QDR) shifted from the
first to the second year of a new administrationfirst to the second year of a new administration Move to a two-year cycleMove to a two-year cycle Off-year Off-year Strategic Planning Guidance (SPG)/Joint Strategic Planning Guidance (SPG)/Joint
Programming Guidance (JPG)Programming Guidance (JPG) is optional (at the is optional (at the discretion of SECDEF); will not introduce major discretion of SECDEF); will not introduce major changes in off-yearchanges in off-year
Off-year review focus on execution and performanceOff-year review focus on execution and performance Create a single standardized programming and Create a single standardized programming and
budgeting system for data collection and managementbudgeting system for data collection and management
Nov 2003Nov 2003 Defense Acquisition UniversityDefense Acquisition University
MID 913MID 913
Changes to Program/Budget/Execution Review:Changes to Program/Budget/Execution Review: Transition to a true biennial processTransition to a true biennial process Incorporate metrics and cost models Incorporate metrics and cost models
– Focus on outputs: what are we getting for our money?Focus on outputs: what are we getting for our money?
Over time, metrics will become the analytical Over time, metrics will become the analytical underpinning to ascertain whether the appropriate underpinning to ascertain whether the appropriate allocation of resources existsallocation of resources exists
Nov 2003Nov 2003 Defense Acquisition UniversityDefense Acquisition University
DEPSECDEF Direction forDEPSECDEF Direction forFY 2005 - 2009 SubmissionFY 2005 - 2009 Submission
No DPG-05No DPG-05– Components comply with DPG-04 and PDM directionComponents comply with DPG-04 and PDM direction
No FY05-09 Program Objective Memorandum (POM) or No FY05-09 Program Objective Memorandum (POM) or Budget Estimate Submission (BES) submittal to OSDBudget Estimate Submission (BES) submittal to OSD
Components instead submit Program Change Components instead submit Program Change Proposals (PCPs) or Budget Change Proposals (BCPs)Proposals (PCPs) or Budget Change Proposals (BCPs)– Both BCPs and PCPs will be cost neutral (offsets required)Both BCPs and PCPs will be cost neutral (offsets required)– PCPs resolved thru Program Decision Memorandums (PDMs) PCPs resolved thru Program Decision Memorandums (PDMs) – BCPs resolved thru Program Budget Decisions (PBDs)BCPs resolved thru Program Budget Decisions (PBDs)
Nov 2003Nov 2003 Defense Acquisition UniversityDefense Acquisition University
Program Change ProposalsProgram Change Proposals(PCPs)(PCPs)
Identify areas to take additional risk (offsets)Identify areas to take additional risk (offsets)– Offsets may be used for other initiativesOffsets may be used for other initiatives
Limited to items that exceed $250 million across FYDPLimited to items that exceed $250 million across FYDP– Threshold at individual programmatic issue levelThreshold at individual programmatic issue level– May address smaller issues if serious programmatic problemMay address smaller issues if serious programmatic problem– If less than $250 million, may submit as BCP if budget year is If less than $250 million, may submit as BCP if budget year is
affectedaffected
Must comply with PDM decisionsMust comply with PDM decisions Combatant Commanders may submit up to six Combatant Commanders may submit up to six
prioritized PCPs regardless of dollar valueprioritized PCPs regardless of dollar value Full budgetary data submitted for accepted PCPsFull budgetary data submitted for accepted PCPs
Nov 2003Nov 2003 Defense Acquisition UniversityDefense Acquisition University
Budget Change ProposalsBudget Change Proposals(BCPs)(BCPs)
Generally limited to fact-of-life changes:Generally limited to fact-of-life changes:– Cost increasesCost increases– Schedule delaysSchedule delays– Management reform savingsManagement reform savings– Workload changesWorkload changes– Budget execution experienceBudget execution experience– Congressional actionCongressional action
May involve FYDP years if total cost is less than May involve FYDP years if total cost is less than $250 million and budget year is affected$250 million and budget year is affected
Offsets requiredOffsets required Backed up with appropriate budget exhibitsBacked up with appropriate budget exhibits
Nov 2003Nov 2003 Defense Acquisition UniversityDefense Acquisition University
Who Submits PCPs/BCPsWho Submits PCPs/BCPs
Under Secretaries of Defense (USDs)Under Secretaries of Defense (USDs) ASD (Network and Information Integration)ASD (Network and Information Integration) Director, Operational Test & Evaluation (DOT&E)Director, Operational Test & Evaluation (DOT&E) Chairman, Joint Chiefs of StaffChairman, Joint Chiefs of Staff Secretaries of Military DepartmentsSecretaries of Military Departments Combatant Commanders (COCOMs)Combatant Commanders (COCOMs)
– Submit PCPs through J-8Submit PCPs through J-8– Submit BCPs through Service Executive AgentSubmit BCPs through Service Executive Agent
Directors of Defense AgenciesDirectors of Defense Agencies– Submit PCPs through OSD Principal Staff AssistantSubmit PCPs through OSD Principal Staff Assistant– Submit BCPs to OSD ComptrollerSubmit BCPs to OSD Comptroller
Nov 2003Nov 2003 Defense Acquisition UniversityDefense Acquisition University
Year 1 (Review and Refinement):Year 1 (Review and Refinement):Early National Security Strategy (NSS)Early National Security Strategy (NSS)Off-year Off-year SPG/JPGSPG/JPG as required (at discretion of SECDEF) as required (at discretion of SECDEF)Limited Changes to Baseline ProgramLimited Changes to Baseline Program
Year 2 (Formalize the Agenda):Year 2 (Formalize the Agenda):Quadrennial Defense Review (QDR) – Aligned with PB submission in Quadrennial Defense Review (QDR) – Aligned with PB submission in
second year of an administrationsecond year of an administrationFiscal Guidance IssuedFiscal Guidance IssuedOn-year On-year SPG/JPGSPG/JPG (implementing QDR) (implementing QDR)POM/BES SubmissionsPOM/BES Submissions
Year 3 (Execution of Guidance):Year 3 (Execution of Guidance):Off-year Off-year SPG/JPGSPG/JPG as required (at discretion of SECDEF) as required (at discretion of SECDEF)Limited Changes to Baseline ProgramLimited Changes to Baseline Program
Year 4 (Ensuring the Legacy):Year 4 (Ensuring the Legacy):Fiscal Guidance IssuedFiscal Guidance IssuedOn-year On-year SPG/JPG SPG/JPG (refining alignment of strategy and programs)(refining alignment of strategy and programs)POM/BES SubmissionsPOM/BES Submissions
Four Years in the Biennial CycleFour Years in the Biennial Cycle Corresponding to Four-Year Presidential TermsCorresponding to Four-Year Presidential Terms
Nov 2003Nov 2003 Defense Acquisition UniversityDefense Acquisition University
JPG
PresidentNational Security CouncilCIA/DIA/JCS/OSD
JCSCOCOMsSERVICES
NMS JPD
NSS
CPR
SPG
APR/MAY
JCS, OSD,COCOMs,SVC HQs,ETC.
SEP DEC MAR
SECDEF
1st Year 2nd Year
1st year of a new administration
Planning PhasePlanning Phase
COCOM – Combatant CommanderCPR – Chairman’s Pgm RecommendationJPD – Joint Planning DocumentJPG – Joint Programming GuidanceNSS – National Security StrategyNMS – National Military StrategyQDR – Quadrennial Defense ReviewSPG – Strategic Planning Guidance
Strategyalso reflected in QDR
(2nd year of new administration)
Notes• SPG replaces Draft Defense Planning Guidance (DPG)• JPG replaces DPG
Nov 2003Nov 2003 Defense Acquisition UniversityDefense Acquisition University
PBDs
PDM
ServicesPEO/PM,SVC HQsCOCOMs
BESPBMBI
Adv Ques/Hearings
AUG JAN/FEBOCT
Issue Resolution
SECDEFSLRG
POM
OSD/OMB
CPA
DECNOV
Services / PEO / PM Answer / Reclama
JCS
OSD/OMB
BES – Budget Estimate SubmissionCOCOM – Combatant CommanderCPA – Chairman’s Pgm AssessmentMBI – Major Budget IssuesPB – President’s BudgetPBD – Program Budget DecisionPDM – Program Decision MemoPOM – Program Objectives MemoSLRG – Senior Leadership Review Group
Concurrent Program/Budget ReviewConcurrent Program/Budget Review
UpdatesFYDP
UpdatesFYDP
3-Star Group
Notes• 3-Star Group replaces Program Review Group (PRG)• SLRG replaces Defense Resources Board (DRB)
Nov 2003Nov 2003 Defense Acquisition UniversityDefense Acquisition University
PBDs
PDM
ServicesPEO/PM,SVC HQsCOCOMs
BCPsPBMBI
Adv Ques/Hearings
AUG JAN/FEBOCT
Accepted PCP Resolution
SECDEFSLRG
PCPs
OSD/OMB
CPA
DECNOV
Services / PEO / PM Answer / Reclama
JCS
OSD/OMB
BCP – Budget Change ProposalCOCOM – Combatant CommanderCPA – Chairman’s Pgm AssessmentMBI – Major Budget IssuesPB – President’s BudgetPBD – Program Budget DecisionPCP – Program Change ProposalPDM – Program Decision MemoSLRG – Senior Leadership Review Group
Off-Year Program/Budget ReviewOff-Year Program/Budget Review
3-Star Group
UpdatesFYDP
Notes• 3-Star Group replaces Program Review Group (PRG)• SLRG replaces Defense Resources Board (DRB)
Nov 2003Nov 2003 Defense Acquisition UniversityDefense Acquisition University
FY03
DJJ F M A M J A S O NJJ F M A M J A S O N D JJ F M A M J A S O N D
FY02 Execution
FY02 and prior
FY03
Program/Budgeting Execution
FY04
FY04
FY05 Planning
CY02 CY03 CY04
Enactment Execution
FY03 and prior
Enactment
FY05
Planning
2nd Yr
2nd Yr
2nd
Enactment
FY06
3rd Yr
3rd Yr
FY04 and prior
FY 05-09 DPG FY 05-09 PCPs
Exec
FY05+
FY 05 BCPs
Planning
Program/Budgeting
Program/Budgeting
DPG – Defense Planning Guidance PCP – Program Change Proposal BCP – Budget Change Proposal
FY04-09
DPG
Cancelled
Resource Allocation ProcessResource Allocation Process
FY 06-11 SPG/JPG
FY 04-09 POMFY 04-05 BES
FY 06-11 POMFY 06-07 BES
Nov 2003Nov 2003 Defense Acquisition UniversityDefense Acquisition University
FY 2005 - 2009 Program/Budget FY 2005 - 2009 Program/Budget ScheduleSchedule
Aug 1Aug 1 PCPs due to OSD (PA&E)PCPs due to OSD (PA&E) Aug 15Aug 15 PCP Dispositions issuedPCP Dispositions issued Sep 1Sep 1 Detailed info submitted for accepted PCPsDetailed info submitted for accepted PCPs Oct 1Oct 1 BCPs due to OSD (Comptroller)BCPs due to OSD (Comptroller) Nov 1Nov 1 PDM issuedPDM issued Nov 21Nov 21 1st Round PBDs completed1st Round PBDs completed Nov 24Nov 24 Top line guidance from OMBTop line guidance from OMB Dec 9-10Dec 9-10 Major Budget IssuesMajor Budget Issues Dec 12Dec 12 Final FY 2005 Budget DecisionsFinal FY 2005 Budget Decisions Dec 19Dec 19 FY 2005 President’s Budget LockFY 2005 President’s Budget Lock Jan/FebJan/Feb Lessons LearnedLessons Learned
Nov 2003Nov 2003 Defense Acquisition UniversityDefense Acquisition University
Additional InformationAdditional Information
OSD PA&E website (Program Review)OSD PA&E website (Program Review)http://www.ra.pae.osd.mil/pr/index.htmhttp://www.ra.pae.osd.mil/pr/index.htm