Direct Attack Division WarWinning CapabilitiesOn Time On Cost

Direct Attack Division War-Winning Capabilities…On Time, On Cost A Day in the Life of a PEM & A Materiel Leader’s Perspective Lt Col Tom Bierly Materiel Leader, Hard Target Munition Branch Integrity Service Excellence 1

Purpose n Day in the Life of a PEM Provide general understanding n How you can help your PEM n How your PEM can help you n Reviews / O&Es n n Materiel Leader’s perspective Be an expert in your field n Know the battle rhythm in DC n Have a good attitude / have fun n Stay focused on the warfighter n 2

Headquarters U. S. Air Force Integrity - Service - Excellence I A R PEM 101: A Day in T the M Life of a E PEM P 2014 L A U T M O T N E K A R F C A N I N

The Critical Piece…The PEM Program Element Monitor n HQ USAF focal point Provides oversight for a specific Program Element (PE) or group of related PEs n Closely monitors financial requirements (funded and unfunded) and financial execution (obligations and expenditures) n Information broker – “honest broker” n n HQ USAF acquisition “expert” on Program Knowledgeable of program requirements and status n In-depth understanding of acquisition strategy and status n Guides program through acquisition reviews and coordination n Liaison to Congress n Critical to program success n The PEM is the program’s FACE & VOICE in Wash DC 4

PEM Broker of Info to Many Organizations, Internal and External AT&L OSD NII USD(I) USD(C) Other Services DOT&E USAF Other SAF/LL & FMBL A 5 A 3 A 8 AQP Media AQI Joint Staff IA A 10 PEM Unified & Combatant Commands A 4/7 FM SPOs Contractors PEOs MAJCOMs Congress FOIA RFIs 5

The PEM and the SPO n Regular interaction between the PEM and SPO is critical Daily e-mail, phone, and frequent VTCs and/or TDYs n Attend program reviews with contractor or SPO as available n PEM should be able to bring issues to program director--good relationship is key n The SPO is the primary conduit of information for the PEM n n The PEM works for SAF/AQ, not the Program Director or PEO The PEM provides unbiased assessments n The PEM is NOT here to help the SPO hide money or problems n Losses/gains in funding do not necessarily reflect on the PEM n n AQX, FMB, Panels/Corp AF perform “cut drills” to pay bills PEM-SPO engagement key—accuracy, impacts, quick turns…BUT in today’s environment, many POM and PB drills are “CLOSE HOLD” for HQ Air Force only---that’s why knowing your programs is critical so you can answer the taskers yourself! n Be aware of when you can and cannot discuss issues with the SPO n 6

How the SPO can help PEM n Give continuous insight into programmatic efforts Funding Changes n Obligation and Expenditures (Spend plans by month) n Slips/Accelerations n Contractual Actions n n Help answer tasking that will have impacts to your program Whether positive or negative n Provide him/her the facts n Provide good contact numbers -- Questions come at all times n Give responses that answer the question and take into account second and third order effects n n Eliminate the need to come back with follow on questions Decisions will be made with/without SPO input. You need to create the relationship to get the information for any and all decisions being made on your program. 7

How the PEM can help the SPO? Provide Insight to what’s Hot in the bldg & Congress! n Are you or AQX questioning MAR inputs? n n Tell SPO where area of concern is; recommend ways to fix Is AF facing a shortfall and looking for funding? n May be looking at your programs to source; critical that MARs are correct and you understand O&Es and obs plan Where are we in the PPBE cycle? Provide a heads-up on where we are, what’s coming shortly, and how the SPO can start preparing n Inform them of status of Omnibus, Congressional marks, QFRs and what they could mean, execution status and how A 8, AQX, OSD, Congress will view it; recommendations on offering sources prior to SPR n The more insight the SPO has on what is important and why, the more they will understand why you need what you’re asking for 8 & the more prepared you will be!

OSD Goals n % goals used by many to determine how programs are executing (see next page) End of Fiscal Year percentage established (divided by 12 to get a monthly % goal) n Both Obligation AND Expenditures are CLOSELY monitored by SAF/AQ, SAF/FM, OSD and Congress n RDTE focus is Expenditures; Procurement focus is Obligations n No official Procurement expenditures (staffers have occasionally requested) n n Little chance of receiving BTR if not meeting OSD goals; little chance if obligation plan shows funds carrying over into next FY n Often told to use current funds first and then BTR funds when actually needed n Direction will be to manage your program within the PE. If a PE consists of several efforts, they should realign funding to cover shortfalls PEMs will scrutinize the data and question O&E projections

Obligations and Expenditures: Traditional Execution Reviews Jan Feb Mar Apr May Jun Jul Wing / PEO Staffer days SPR / IBR Aug Sep Oct Nov Dec OSD hearings Expiring Yr Type of Review Purpose Acquisition Wing / PEO Continuous tracking (Wing) / periodic reviews (PEO) to find problems SAF/AQX Spring Program Review (SPR)* Review RDT&E AF, APAF, MPAF for current year bill-payer sources SAF/FM Investment Budget Review (IBR)* Review investment accounts to identify execution issues and FYDP adjustments OSD(C) Budget Hearings Find sources for adjustments to service POM submissions Congressional Staffer Days Review prior year O&E to help determine if PB requests for new funds are justified Air Force Panels and Capability Directorates May do intermittent reviews to inform outyear budget decisions or source bills 10

DETAILED PEM BATTLE RHYTHM JAN FEB MAR MAY JUN JUL AUG SEP MAJCOMs/ CFLIs deliver POM to Pentagon PEM Parades to A 8 Finalize Docs for Congress PB to Congress Build & Dry-Run Staffer Briefs Answer A 8 Questions Validate ABIDES runs & IDECS correctly loaded POM Deliberations (AF Corp Structure)/Answer A 8 questions NOV DEC Build PEM Parade Brief (next cycle) Answer OSD Issue Team Questions Finalize FY 14 Docs Work closely with SPO to Build Docs for OSD-C OCT PBR BES PB POM CONGRESS EXECUTION APR Answer AF/A 8 Warchest Questions Build OSD-C & OMB Briefs to OSDC & OMB RMDs Work closely with SPO to Build Docs for Congress Skull up Sec. Def, Sec. AF, CSAF, SAF/AQ, SAF/FM for Hearings/Congressional Testimonies Congressional Staffer Briefs Congressional/Conference Marks BPFPs/Appeals Possible Continuing Resolution (CR) Answer Congressional QFRs (i. e. Follow-up QFRs from Staffer briefs, impact of marks, update program status) Work Omnibus Spring Program Reviews OSD Submits Omnibus to Congress Work SPR decisions Answer Omnibus Questions to Congress AF Top Down CR Impacts (if applicable) OCO Focus ATRs case-by-case starting in March) BTRs (60+ days after Appropriations Law signed) Expiring Year Focus (unexecuteable; additional that can be executed) Key Event/Deliverables Outside Pentagon Key Events PEM Working Level Focus/Events

1. Staffer Days § The Purpose of Staffer Day Briefings…. . § Staffers use the briefings to… § Augment R Doc information § Understand changes since previous budget submission § Prepare committee members for hearings § Prepare members and staff for committee markup negotiations § Execute program oversight/identify cuts § The Air Force uses the briefings to… § Tell our story – Why should Congress support this program? § Introduce new programs/initiatives § Highlight progress made since last year § “Good-news stories” – DABs, start of flight testing, deployment, etc. § Communicate problems § Staffers strongly emphasize open lines of communications 12

Documentation So what is the impact of poor J-books? Loss of Air Force spending power!!!! n Loss of Credibility!!!! n n n No confidence in our program plans combined with our past performance (expiring funds)—it all works against us Quotes from Congressional Language as to why funding was adjusted: AF identified excess Poor execution Request ahead of need Program reduction Pricing adjustment Program restructure Unjustified program Program underexecution Excess funding Contract/Program delay PEM Action: Spend time on your J-books and develop executable and realistic (not hopeful) program plans 13

PEM Key Takeaways n Keep your PEM informed; help your PEM help you Coordinate info/documents before you send them to Air Staff n Easy to understand info n n Understand the battle rhythm Know when the reviews are n Know what they’re for n Build your spend plans accordingly (if possible) n n O&Es matter “USCYBERCOM had 1/3 of their FY 14 AF Total Obligation Authority pulled (by AQX) for bad O&Es. The G. O. was not happy but couldn't get the funds back. It was $30 M in RDT&E. ” n “If your O&Es are bad, you are at risk no matter how important your program is. ” n “A 8 also just rephased 10% of total funding out of our OCO and RCA lines in FY 16. That was done about 2 months ago as FY 14 was under-executing. ” n “Spring Program Reviews are occurring now and they are looking to pull funds. AQX pulls CCARS and puts under-executing programs on the list automatically. I've seen the list it's pretty big and there will be some withholds on some programs. ” n 14

Materiel Leader’s Perspective n Be an expert in your field! Know the rules/regs on the types of funding you have n Know your flex in/flex out, language in R/P-Docs, etc n Know the process to execute funds (Approval level, timelines, vehicles, etc) n n Know the battle rhythm in DC Keep your team informed of upcoming events/reviews n Build your spend plans according n n Ex: Plan major contract awards BEFORE spring program review n n Help posture your program to execute late in the year Know your program Why it is important / What the priority is n How loss of funding will impact the program n Cost drivers / opportunities n 15

Materiel Leader’s Perspective n Be proactive “What If” drills n Raise problems as you see them n UFRs n Do your research n n Have a good attitude Attitude is everything n Be grateful n Have fun n It’s all about relationships! n Don’t forget why we do this n 16

Summary n Day in the Life of a PEM Provide general understanding n How you can help your PEM n How your PEM can help you n Reviews / O&Es n n Materiel Leader’s perspective Be an expert in your field n Know the battle rhythm in DC n Have a good attitude / have fun n Stay Focused on Delivering Capability to the Warfighter 17