FUNCTIONAL AREA 45 INTERMEDIATE LEVEL EDUCATION (ILE)

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FUNCTIONAL AREA 45 INTERMEDIATE LEVEL EDUCATION
(ILE)
PPBE The Armys Planning, Programming,
Budgeting, and Execution System
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Terminal Learning Objective
Action Understand the dynamics, flow and
methodology of the Planning, Programming, Budget
and Execution (PPBE) process by illustrating the
PPBE process and then applying to resource an
approved organizational requirement. Conditions
Given PPBES An Executive Primer pages 1-20 How
the Army Runs 03-04, Chapter 9 Standards
Student must achieve 70 on the Interim Module
test
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Enabling Learning Objectives

• Understand where monetary resources come from and
  how they are distributed.
• Describe the processes and decision-making bodies
  of the PPBE process.
• Differentiate the processes and products of the
  PPBE process.
• Apply student understanding of the PPBE process
  to resource an organizational requirement.

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PPBE The Armys Planning, Programming,
Budgeting, and Execution System
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Certain Victory, The US Army in the Gulf War
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The Big 5
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The National Training Center
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PPBE ties together the Armys strategy, program
and budget
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The Need for a Responsive Resource Management
System

• Provide the best possible mix of forces - today
  and in the future
• Provide accountability
• Determine priorities and distribute shortages

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Total Federal Spending
Discretionary
Non- discretionary
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Spending Within the DoD
Total Discretionary
Non- defense
Total Defense
Defense
Defense -wide
Navy/ Marines
Army
Air Force
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Allocating Army Resources
Total Discretionary
Total Outlay
Non- defense
Defense
Discretionary
Non- discretionary
Defense -wide
MILCON AFH Other
Navy/ Marines
RDA
MILPAY
Army
OM
Air Force
Total Defense
Total Army
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Flow of Funds
CONGRESS
APPROPRIATES
APPROPRIATION ACTS
TREASURY
CREATES BANK ACCOUNTS
OMB
DoD
APPORTIONS
ISSUE WARRANTS
ALLOCATES/ RELEASE of PROGRAMS
HQDA
Major Commands / Agencies
ALLOCATES
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"The cost of one modern bomber is this a modern
school in more than 30 cites. It is two electric
power plants...It is two, fine, fully equipped
hospitals. It is some 50 miles of concrete
highway. We pay for a single fighter with half a
million bushels of wheat. We pay for a single
destroyer with new homes that could have housed
more than 8,000 people. President Dwight D.
Eisenhower, 1953
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The Planning, Programming, and Budgeting System
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PPBE Functions

• Develop and Articulate Strategy
• Identify required forces and programs
• Request program funding
• Execute available funding monitor and adjust

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• The Four Phases of PPBE
• Planning
• Programming
• Budgeting
• Execution

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A Continuous and Repetitious Process

• Annual submission of the President's budget
• Multi-year program authorizations
• Annual appropriations
• Current budget execution
• Future budget preparation

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Budget Cycle Terms

• Fiscal Year (FY)
• Current Year (CY)
• Prior Year (PY)
• Budget Year(s) (BY)
• Program Year(s) (PrYs)

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Fiscal Year
Fiscal Year 1999
31 Sep end of FY
1 Oct start of FY
Calendar Year 1998
Calendar Year 1999
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Current Year
Jan 15, 2000 CY FY00
Oct 1, 2000 CY FY 01
Oct 1, 1999 start of new FY
Oct 1, 2000 new FY
J F M A M J J
A S O N D J
F M A M J J
A S O N D
Calendar Year 1998
Calendar Year 1999
FY 00
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Prior Year
Jan 15, 2000 CY FY00
Oct 1, 1999 start of new FY
O N D J F M A
M J J A S O
N D J F M A M
J J A S
FY 99 PY
FY00 CY
FY00
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Budget Year
Jan 15, 2000
Oct 1, 1999 start of new FY
O N D J F M A
M J J A S O
N D J F M A M
J J A S
FY 00 CY
FY01 BY
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Two Budget Year
Biennial Budget Cycle
Todays date is Jan 15, 2000
O N D J F M A M J J A
S O N D J F M A M J J
A S 0 N D J F M A M
J J A S
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Program Years (PrYs)
Example Assuming the current date is January 15,
2000 The Prior Year is Fiscal Year 1999
(FY99) The Current Year is FY00 The Two Budget
Years (Bys) are FY01 and FY02 The Seven Program
Years (PrYs) are FY03-FY09
FY99 FY00 FY01 FY02 FY03 FY04
FY05 FY06 FY07 FY08 FY09
PY
CY
BY 1
BY 2
PrY1
PrY2
PrY3
PrY4
PrY5
PrY6
PrY7
Program Years
Personnel Strength and Financial Resources
Force Structure
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PPBES is a continuous andrepetitious process
If today is Jan 15, 2000
FY99 FY00 FY01 FY02 FY03
PY
CY
BY 1
BY 2
PrY1
PrY2
PrY3
PrY4
PrY5
PrY6
PrY7
If today is Oct 1, 2000
FY00 FY01 FY02 FY03
PY
CY
BY 1
BY 2
PrY1
PrY2
PrY3
PrY4
PrY5
PrY6
PrY7
If today is Oct 1, 2002
FY02 FY03
PY
CY
BY 1
BY 2
PrY1
PrY2
PrY3
PrY4
PrY5
PrY6
PrY7
If today is Oct 1, 2003
FY03
PY
CY
BY 1
BY 2
PrY1
PrY2
PrY3
PrY4
PrY5
PrY6
PrY7
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Phase Overlap

• All phases overlap and interrelate

Jan 15, 2001
Oct 1, 01
Oct 1, 02
Oct 1, 03
Oct 1, 04
Oct 1, 05
Oct 1, 06
Cal Yr 01
Cal Yr 02
Cal Yr 03
Cal Yr 04
Cal Yr 05
Cal Yr 06
FY 01
Execution
FY 02
Budgeting
FY 03
Budgeting
FY 04
Planning and Programming
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Major Players in the PPBE Process

• Level Organization
• OSD Defense Resources Board
  (DRB)
  
• HQDA Army Resources Board (ARB)
  
• HQDA Senior Review Group (SRG)
  
• HQDA The Planning Program Budget
  Committee (PPBC)
• HQDA Council of Colonels
  
• HQDA Program Evaluation Groups
  (PEGs)
• MACOM/ Program Budget Advisory Committee
  (PBAC)
• Installation

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DRB Composition
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DRB Composition (Cont.)
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Major Players in the PPBE Process

• Level Organization
• OSD Defense Resources Board
  (DRB)
  
• HQDA Army Resources Board (ARB)
  
• HQDA Senior Review Group (SRG)
  
• HQDA The Planning Program Budget
  Committee (PPBC)
• HQDA Council of Colonels
  
• HQDA Program Evaluation Groups
  (PEGs)
• MACOM/ Program Budget Advisory Committee
  (PBAC)
• Installation

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ARB Members
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Major Players in the PPBE Process

• Level Organization
• OSD Defense Resources Board
  (DRB)
  
• HQDA Army Resources Board (ARB)
  
• HQDA Senior Review Group (SRG)
  
• HQDA The Planning Program Budget
  Committee (PPBC)
• HQDA Council of Colonels
  
• HQDA Program Evaluation Groups
  (PEGs)
• MACOM/ Program Budget Advisory Committee
  (PBAC)
• Installation

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SRG Members
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Major Players in the PPBE Process

• Level Organization
• OSD Defense Resources Board
  (DRB)
  
• HQDA Army Resources Board (ARB)
  
• HQDA Senior Review Group (SRG)
  
• HQDA The Planning Program Budget
  Committee (PPBC)
• HQDA Council of Colonels
  
• HQDA Program Evaluation Groups
  (PEGs)
• MACOM/ Program Budget Advisory Committee
  (PBAC)
• Installation

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PPBC Members
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Major Players in the PPBE Process

• Level Organization
• OSD Defense Resources Board
  (DRB)
  
• HQDA Army Resources Board (ARB)
  
• HQDA Senior Review Group (SRG)
  
• HQDA The Planning Program Budget
  Committee (PPBC)
• HQDA Council of Colonels
  
• HQDA Program Evaluation Groups
  (PEGs)
• MACOM/ Program Budget Advisory Committee
  (PBAC)
• Installation

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Major Players in the PPBE Process

• Level Organization
• OSD Defense Resources Board
  (DRB)
  
• HQDA Army Resources Board (ARB)
  
• HQDA Senior Review Group (SRG)
  
• HQDA The Planning Program Budget
  Committee (PPBC)
• HQDA Council of Colonels
  
• HQDA Program Evaluation Groups
  (PEGs)
• MACOM/ Program Budget Advisory Committee
  (PBAC)
• Installation

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Program Evaluation Group (PEG) Members
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Major Players in the PPBE Process

• Level Organization
• OSD Defense Resources Board
  (DRB)
  
• HQDA Army Resources Board (ARB)
  
• HQDA Senior Review Group (SRG)
  
• HQDA The Planning Program Budget
  Committee (PPBC)
• HQDA Council of Colonels
  
• HQDA Program Evaluation Groups
  (PEGs)
• MACOM/ Program Budget Advisory Committee
  (PBAC)
• Installation

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The PPBE Planning Phase
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The PPBE Planning Phase
(Facets Analyzed)
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Army Planning Timeframes

• Long-range guidance (out to 20 years),
• Long-range objectives (out to 10 years)
• Mid-range guidance objectives (out to 6 years)

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Chairmans Program Recommendation
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Defense Planning Guidance(DPG)
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The Army Plan
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The Army Plan
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TAP Section I Army Strategic Planning Guidance
(ASPG)
WHAT WE WILL LOOK LIKE
END STATE
HOW WE WILL GET THERE
END STATE GOALS LINKAGE TO END STATE GENERAL
LOGIC GENERAL PHASING
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PPBE Programming Phase
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Management Decision Packages (MDEPs)
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Management Decision Package (MDEPs) Six Resource
Areas
Missions of MTOE units Missions of TDA units and
Army-wide functions Missions of
Installations Acquisition, fielding, and
sustainment of weapon and information
systems Special visibility programs
(SVPs) Short term projects (STPs)
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Program Evaluation Groups (PEGs)
PEG Chair(s) Manning
ASA (Manpower and Reserve Affairs)
/ DCSPER
Equipping ASA Acquisition,
Logistics, Technology /
DCSOPS Training
ASA (Manpower and Reserve Affairs) /
DCSOPS Sustaining
ASA (Installations Environment)
/ DCSLOG
Organizing ASA (Manpower and
Reserve Affairs) /
DCSOPS Installations ASA
(Installations Environment) /
Assistant Chief of Staff for
Installation Management
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Secretary of the Army (SA) /Chief of Staff, Army
(CSA)
Army Resources Board (ARB)
Planning Program Budget Committee (PPBC)
Program Evaluation Groups (PEGs)
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POM Building...The Process
MACOM POMs Submitted
Program Evaluation Groups
UNRESOURCED
Included
UNRESOURCED
(PEGs) meet
AT RISK
UNRESOURCED
AT RISK
Cdrs Program Assessments
RESOURCED
UNRESOURCED
Assess Affordability
AT RISK
PROGRAMS
RESOURCED
MACOM Exec Pgm Review Update
AT RISK
PROGRAMS
Review MACOM inputs, U-CDR IPL
RESOURCED
Proposed realignments
PROGRAMS
RESOURCED
Draft program in 6 functional areas
PROGRAMS
Summary Decrement Lists
6 Areas
(Jan-Feb)
(Dec-Jan)
PPBC FUNCTIONAL REVIEW
ARB
SENIOR REVIEW GROUP
Prioritize issues on the margin for
presentation to ARB (Mid Apr)
Resolve resourcing issues SA and CSA, as ARB
Members, make final decisions.
(Mid May)
SA CSA FINAL DECISIONS
(Late May)
Submit POM to DRB
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PPBES Planning/ProgrammingPhases
DPG
Defense
TAP
Planning
POM
Guidance
The
Army
Program
Plan
Objective
Memorandum
Planning Programming
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PPBES Planning/ProgrammingPhases
DPG
Defense
TAP
Planning
POM
Guidance
The
Army
FYDP
Plan
Future Years Defense Plan
Planning Programming
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PPBES Planning/ProgrammingPhases
DPG
TAP
POM
Summer Issue Cycle
Program
FYDP
Review
CPA
DRB
JCS
UCCs
PRGs
Planning Programming
OSD/OMB
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PPBES Planning/ProgrammingPhases
DPG
TAP
POM
Planning Programming
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PPBES Planning/ProgrammingPhases
DPG
TAP
POM
Tier I DoD Level Tier II One Service Tier III
Budget Item
Planning Programming
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PPBES Planning/ProgrammingPhases
DPG
Planning Programming
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PPBES Planning/ProgrammingPhases
DPG
Planning Programming
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PPBES Planning/ProgrammingPhases
DPG
Planning Programming
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PPBE Budgeting Phase
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PPBES Phases
DPG
Planning Programming
Budgeting
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PPBES Phases
DPG
Planning Programming
Budgeting
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PPBES Planning/ProgrammingPhases
DPG
MACOMs Installations
Planning Programming
Budgeting
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Programmer vs. Budgeteer View
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DoD Programs vs. Appropriations
RDTE 2040
PROC 2031-5
MCA 2050
CONGRESS
APPROPRIATION CATEGORIES
MPA 2010
OMA 2020
I STRATEGIC FORCES
II GENERAL PURPOSE FORCES
III INTELLIGENCE COMM
ARMY, AIR FORCE, NAVY, OTHER DOD AGENCIES
IV AIRLIFT SEALIFT
V GUARD RESERVE FORCES
OSD
VI RESEARCH DEVELOPMENT
VII CENTRAL SUPPLY MAINT
VIII TNG, MED, GEN PERS ACT
IX ADMIN ASSOC ACTIVITIES
X SUPPORT OF OTHER NATIONS
XI SPECIAL OPNS FORCES
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Appropriation Structure

• 21 2010 - Military Personnel, Army (MPA)
• 21 2020 - Operation Maintenance, Army (OMA)
• 21 2031 - Aircraft Procurement, Army
• 21 2032 - Missile Procurement, Army
• 21 2033 - Procurement of Weapons Tracked
  Combat Vehicles, Army
• 21 2034 - Procurement of Ammunition, Army
• 21 2035 - Other Procurement, Army
• 21 2040 - Research, Development, Test,
  Evaluation, Army (RDTE)
• 21 2050 - Military Construction, Army (MCA)
• 21 2060 - National Guard Personnel, Army (NGPA)
• 21 2065 - Operation Maintenance, Army National
  Guard (OMANG)
• 21 2070 - Reserve Personnel, Army (RPA)
• 21 2080 - Operation Maintenance, Army Reserve
  (OMAR)
• 21 2085 - Military Construction, Army National
  Guard (MCANG)
• 21 2086 - Military Construction, Army Reserve
  (MCAR)

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PPBES Phases
DA Review, Approval, Submission To OSD
Planning Programming
Budgeting
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Budget Process
CONGRESS
AUTHORIZATIONS
APPROPRIATIONS
PRESIDENT OMB
APPORTIONMENT
PRESIDENTS BUDGET
DEPARTMENT OF DEFENSE
BUDGET ESTIMATES
BUDGET EXECUTION
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Six Congressional Committees

• House Budget Committee (HBC)
• Concurrent Budget Resolution (CBR)
• Senate Budget Committee (SBC)
• House Armed Services Committee (HASC)
• Defense Authorization Bills
• Senate Armed Services Committee (SASC)
• House Appropriations Committee (HAC)
• 13 Appropriation Bills
• Senate Appropriations Committee (SAC)

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PPBE Execution Phase
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PPBES Phases
Congress Authorizations Appropriations
DoD/Army Planning
Presidents Budget
Flow of Funds
Services
Planning Programming
Budgeting Execution
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Flow of Funds
Submits a Budget
CONGRESS
TREASURY
APPROPRIATES
OMB
OSD
APPORTIONS
ISSUE WARRANTS
HQDA
Major Commands / Agencies
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Two Critical Execution Responsibilities

• Compliance Did we comply with the planning,
  programming, budgeting guidance as approved by
  Congress?
• Performance Measurement Did we get the expected
  results?

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Terminal Learning Objective
Action Understand the dynamics, flow and
methodology of the Planning, Programming, Budget
and Execution (PPBE) process by illustrating the
PPBE process and then applying to resource an
approved organizational requirement. Conditions
Given PPBES An Executive Primer pages 1-20 How
the Army Runs 03-04, Chapter 9 Standards
Student must achieve 70 on the Interim Module
test