PPBE tutorial Nov 2013
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Transcript of PPBE tutorial Nov 2013
US Department of Defense Planning, Programming, Budgeting, Execution
PPBE
2
PPBE Process
Programming Budget Execute Planning
FY-14 FY-15 FY16-20 FY-20+
• Planning: Strategic Vision, Initial Program Evaluation
• Programming: Program development, Program Competition
• Budgeting: Program defense, Allocation of Funds, Supplemental
• Execution: Monitor, In Close Adjustments
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.
4
• 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
PPBES Historical Background
5
PPBE Ethereal to Reality
QDR
Ship To
Objective Maneuver
OMFTS Army 2010
and beyond
EMW
Force 21
RMA
AND BEYOND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FY15 FY14 FY13 FY12 FY11 FY10 FY09
Detailed
1-year Budget
Stra
tegy &
Vis
ion 2
025
Sea Power 21
National Security Strategy
National Military Strategy
CINC Integrated Priority Lists
Defense Planning Guidance
Commandant’s Planning Guidance
National Defense Strategy
Unconstrained
6
PPBE Stages
PLANNING PROGRAMMING BUDGETING EXECUTION
15+ YEARS Unconstrained 6 YEARS Constrained 2 YEARS Constrained Appropriation
Dependent
(Capabilities Required) (Fiscal Reality) (Public Law) (Spending)
FY (FY)
Forces & Support
Level Objectives to
Accomplish the
Mission
Objectives Translated
into Resource
Requirements
Time-Phased
Financial
Execution
Expenditures
IAW
Budget
7
Defense Within the U.S. Budget Process
Defense Department
prepares a budget
President submits
budget to
Congress
Defense Department uses PPBE system to link defense strategy to resources
Budget Legislation
(Authorization & Appropriation)
President’s
Budget
Congress has the power to
“help” the process, i.e. F-22
and JSF Alt Engine
Secretary of Defense
submits
budget to
President’s Office of Management
and Budget
8
PPBE Overlapping ‘Cycles’
Today JAN 12 JAN 15 JAN 14
PR15
FY15 PB
Execution Budgeting
Programming
Budgeting
Planning
POM14
FY14 PB
JAN 13
POM16
FY16 PB Programming
PR: Program Review
POM: Program Objectives Memorandum
PB: President’s Budget
Develop the strategy
Capability assessment Allocate resources
Fiscal constraints
Program balance
Detail & accuracy
Justification
Develop the plan
Perform plan
Execution Budgeting
Programming
Planning
9
FY15 FY16 FY17 FY18 FY19
FY14 FY15 FY16 FY17 FY18 FY19
PR-17
POM-14
PR-15
POM-16
PPBE = Overlapping Budget Cycles
• FY-14 Execute (E)
• PB-15 Defend/Testify (B)
• POM-16 Plan / Program (PP)
POM for 2 Years
Adjust 2nd Year
FY17 FY18 FY19 FY20 FY21
FY16 FY17 FY18 FY19 FY20 FY21
POM = Program Objective Memorandum
PR = Program Review
FY = Fiscal Year
PB = Presidential Budget
• 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
PPBE Overview: Planning
When money is free, lots of things are good ideas.
• 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
PPBE Overview: Programming
Conflict between ‘buy now’ vs future vision.
Money is NOT FREE – lots of good ideas will not get funded
• 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
PPBE Overview: Budgeting / Execution
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