DRAFT Reporting Department of Defense Programs to OMB Improving PEO and Local Program Manager Use of Exhibit 300s to Show Business Value / Architecture Alignment December 2005 DRAFT

2 Briefing Overview Summary of Exhibit 300 Reporting Strategic Alignment Program Progress Program Impact Architecture Alignment Architecture Reporting Program Manager Assistance DRAFT

3 Summary of Exhibit 300 Reporting  OMB Circular A-11 Defines the Federal Budget Development and Reporting Process for all agencies.  The Exhibit 300 template is used for the annual reporting of major or mission critical information technology (IT) programs.  DOD submitted 171 Exhibit 300 reports in FY 2004 to document: - Strategic alignment with the PMA and DOD/Service goals. - Program progress using Earned Value Management metrics for cost, schedule, and performance. - Program impact using the Federal Enterprise Architecture (FEA) Performance Reference Model (PRM) outcome/output measures. - DOD architecture alignment using the DOD Architecture Framework (DODAF) and other FEA Reference Models (RMs)  OMB scores the 300 on a 1-5 scale – impacts funding / control.  DOD PEO and Local IT Program Manager understanding of Exhibit 300s and the FEA RMs needs to improve. DRAFT

4 Exhibit 300 Reporting Strategic Alignment DOD IT Programs need to show alignment with: 1. The President’s Management Agenda 2. OMB e-Government Initiatives 3. DOD Strategic Goals and Joint Vision Service-specific Strategic and Warfighting Goals 5. Local Command Goals for Readiness DRAFT

5 Exhibit 300 Reporting Program Progress DOD IT Programs need to show progress in the format of Earned Value Management (EVM) which has been a DOD best practice to reduce program risk for over 25 years. OMB requires EVM formatted measures of cost, schedule and performance… both the baseline and actual. 10% variance is allowed, beyond which a Corrective Action Plan is required to report and correct the variance. DRAFT OMB Exhibit 300 Annual Report

6 Exhibit 300 Reporting Program Impact DOD IT Programs need to show program impact using the Federal EA Performance Reference Model (PRM). The PRM requires the identification of inputs, outputs, and outcomes for each business process that the IT program is supporting. This is called a “Line-of-Sight.” DRAFT

7 Exhibit 300 Reporting Architecture Alignment DOD IT Programs need to show program alignment using the DODAF and the five Federal EA Reference Models (RMs) and integrated Security Profile. Operational Systems Technical DRAFT

8 Exhibit 300 Reporting Architecture Reporting DOD IT Program reporting and Exhibit 300 preparation is enhanced by using a “DODAF-FEA Reporting Framework” that maps the DODAF artifacts (AV, OV, SV, and TV) to DOD-enhanced FEA Reference Models. DRAFT

9 Exhibit 300 Reporting Architecture Reporting (continued) DOD-enhanced FEA Reference Models have incorporated DOD-specific information on line of business subfunctions (BRM), services and components (SRM) and technology standards (TRM). The PRM and DRM remain the same. DRAFT

10 Exhibit 300 Reporting Architecture Reporting (continued) The DOD Reference Model information will be useful for DOD planning, budgeting, and reporting, Exhibit 300 preparation, and DODAF-driven designs of IT systems. Exhibit 300 IT Program Reports DODAF Design Work DRAFT

11 DRAFT Exhibit 300 Reporting Architecture Reporting (continued) The DOD Reference Model information will also be useful in DODAF-driven IT systems design work.

12 Exhibit 300 Reporting Program Manager Assistance OMB’s scores of DOD Exhibit 300s can effect program funding and control. Low overall scores, or low scores in special interest areas (risk, EVM, security) can result in program funding being cut/withheld, or additional OMB reporting requirements being levied. DOD PEO’s and local PMs must therefore ensure that there is a good understanding of the purpose and design of the Exhibit 300 report in order to be able to accurately reflect program alignment, status, and impact, as well as to justify the associated outyear funding request. The DOD Office of the CIO/NII is preparing several PEO/PM workshops on Exhibit 300 preparation in January – April to ensure that DOD and the Services are ready for BY 2007 Exhibit 300 preparation in the May – July timeframe. DRAFT