Introduction to PPBE II What Is the Purpose

Introduction to PPBE II-

What Is the Purpose of PPBE? Provide Civilian Control and Strategic Direction Create a joint (Do. D-wide) program Integrates individual components’ inputs into a single defense program Ensures stakeholders have a voice; builds consensus Provide financial “checks and balances” Centralizes decision-making in the Office of the Secretary of Defense Manages allocation of resources to meet the Secretary’s goals Promotes efficient and effective allocation of funds Ensures the cost of defense programs are realistic / affordable Provide basis for justifying programs and budgets to the White House and Congress PPBE is the principal tool used by the Secretary and the Deputy Secretary in managing the Department of Defense II-2

The Objective of PPBE’s main objective is to establish, justify, and acquire the fiscal and manpower resources needed to accomplish missions in executing the Defense Strategy PLANNING PROGRAMMING & BUDGETING PROGRAM EXECUTION BUDGET EXECUTION PPBE is the process through which Do. D takes a long term perspective of its needs and prioritizes operational requirements within given fiscal constraints II-3

Notional FY 10 -15 PPBE Cycle Components Today Strategy & Goals/ Objectives FY 10 -15 Planning JAN 07 II-4 Assessment & Resource Allocation & Budget Formulation Presentation, Justification & Approval Management & Apportionment Programming & Congress Budget JAN 08 JAN 09 Execution JAN 10 JAN 11

Multiple PPBE Cycles Ongoing Each Year Today FY 06 -11 FY 07 -11 FY 08 -13 Congress Change Prop Planning FY 09 -13 Execution Congress POM/BES Planning FY 10 -15 Congress Change Prop Planning JAN 05 II-5 Execution JAN 06 JAN 07 Execution Congress POM/BES JAN 08 Execution Congress Execution JAN 09 JAN 10

FY 09 Year 1 PPBE Process -- 4 -Year Flow (FY 09 – FY 12 example ) New Admin Jan Program/Budget/Execution Review Feb Mar Apr May Jun QDR FY 10 Year 2 Modify Budget Submission (Prev Admin) On-year GDF Jul Aug Sep Oct Nov Dec Change Proposals Program/Budget/Execution Review On-year JPG TAA 12 -17 TAP 12 -17 Jan Feb Mar Apr May Jun QDR Budget Submission (Year 1) Jul Aug Sep POM/BES Submissions Oct Nov Dec FY 11 Year 3 Program/Budget/Execution Review Jan Feb Mar Apr May Jun Jul Year 4 FY 08 and FY 12 Jan Mar Apr May Jun Budget Submission (Year 3) Now II-6 Oct Nov Dec Program/Budget/Execution Review ’ 08 Election On-year JPG Feb Sep Change Proposals Budget Submission (Year 2) On-year GDF Aug Jul Aug Sep POM/BES Submissions FY 08 Oct Nov Dec

Summary II-7 PPBE is Do. D’s resource allocation decision support system Processes are overlapping and iterative PPBE is impacted by both internal and external factors; players have differing agendas Strategic planning sets overarching direction and priorities for the PPBE process Programming assigns resources to achieve direction Budgeting works cost details