CARD: Basically must be prepared any time an independent estimate (ICE or CCA) is to be done POE: Every ACAT I and IA program must have a life cycle cost estimate at each milestone. This is inferred from DoD 5000.2R. Note that ACAT IA estimates are to include estimates of benefits as well as costs (to determine ROI). CCA: These requirements are taken from DoD 5000.2R. Note that a CCA serves as the ICE for an ACAT IC program when CAIG does not perform ICE. Why no CCA MSB for ACAT IA pgms? Majority of costs are in development ICE: Title 10, USC Sec 2434 requires ICE at MS II and III for MDAPs; DoD 5000.2R requires ICE at MS A, B, C. CAIG will do ICE for all ACAT ID programs and those ACAT IC programs requested by USD (A&T). Note that ACAT IA programs are not subject to Title 10 requirement because they are not weapon systems (MDAPs). TRANS: Now let’s take a look at the review process for these estimates

New slide - Removed reference to SPRs With one exception, this slide depicts the “new” annual Planning phase that is to be used for the PPBE cycle starting in Calendar Year 2010 and which will, ultimately produce the Defense portion of the President’s Budget for FY2012. The one exception to the annual process is the QDR which is conducted in the 1st year of an administration and submitted to Congress in the 2nd year. The DPPG replaces the GDF (Guidance for Development of the Force) and the JPG (Joint Programming Guidance) and is signed by the SECDEF. The FEAs are intended to address major issues for the SECDEF early in the POM/BES review process. For the Calendar Year 2010 process the SECDEF has selected eight major issues. The Director, CAPE is the Executive Secretary for the FEAs and tri-chairs the process with the VCJCS and the USD(P). Issues nominated but not selected for the FEA review process will be addressed by the DEPSECDEF through the Deputy’s Advisory Working Group (DAWG).

This is a notional timetable -- based on perfect conditions (which almost never happens in real life.) Committees (HBC/SBC, HASC/SASC, HAC-D/SAC-D) Budget Resolution is not a law, but ceilings are binding If point of order because ceiling exceeded, 60% vote to pass Should be passed before Auth/Approp begin debating legislation Auth/Approp all going on at same time (House tends to lead Senate) Language (Committee and Conference Reports) TRANSITION: Now that we’ve seen the overall flow of a bill through Congress, let’s look at what DoD can do to affect Congressional action during the process. After the Committees mark up the PB, DoD attempts to convince Congress that some of the marks will be counterproductive -- these are called appeals.

BTR actions are approved by individual services BTR actions are approved by individual services. Service Comptrollers can reprogram these amounts without prior approval of SECDEF or Congress. These thresholds apply only within Appropriation accts and within the same FY Delegated to different levels in each Service Must identify source as well as bill Go thru thresholds MILCON has its own appropriation bill (and its own rules in the FMR) Obligation Availability: Remember that when we talk about reprogrammings, we’re only talking about those available years (01/02 for RDT&E, 00, 01, 02 for procurement). 03 is in prep for PBl. Moving money in the FYDP (03 & out) is called Zero Based Transfer (ZBT) TRANSITION: What happens to funds that are no longer available for obligation? To answer that we have to revisit appropriation life.

There are also funding policies associated with Product Improvements We have to ask some questions to determine what is the appropriate color of money to fund the Product Improvement activity we’re contemplating The 1st question is “Does the….?” If “Yes”, then If “No”, then… And so on Another point is that all aircraft engine improvement development and testing is an exception to the decision tree – they’re always funded with the RDT&E account Bottom line is that actual production and installation is accomplished with Procurement accounts I have not mentioned P3I – those efforts are considered concurrent efforts with the on-going project and are always funded with RDT&E

AFCAA = Air Force Cost Analysis Agency CAPE = Cost Assessment & Program Evaluation CARD = Cost Analysis Requirements Description CCA = Component Cost Analysis DASA-CE = Dep Asst Sec of Army (Cost & Economics) FRP DR = Full Rate Production Decision Review ICE = Independent Cost Estimate MDA = Milestone Decision Authority MDAP = Major Defense Acquisition Program NCCA = Naval Center for Cost Analysis OIPT = Overarching Integrated Product Team POE = Program Office Estimate USD(AT&L) = Under Secretary of Defense (Acquisition, Technology, & Logistics)