1. The Planning, Programming, Budgeting and Execution (PPBE) Process
Jim Dominy
Department of Defense
Director, Program & Financial Control
Office of the Under Secretary of Defense (Comptroller)

2. MID 913 (2003) Biennial budgets within a 4 year time period
QDR released in the second year
Even years are “on” years
Full planning, programming and budgeting
Full-up POM and BES submissions
Odd years are “off” years
Limited changes to guidance
Adjustments to second year of biennial budget
Focus of program and budget review is on execution and performance

3. FY 2008 Budget Submission Full-up POMs and BESs Milestones:
Fiscal guidance released April 3
Full POMs/BESs electronic submissions due August 15
All justification material due September 1
Major issues resolved before Thanksgiving
Budget lock December 18
President’s Budget released February 5, 2007
Requirements for the FY 2007 Supplemental will be due at the same time as the BES

4. Program & Budget Review
Review of Component Submissions
Are programs properly priced and executable?
Do the submissions comply with guidance?
Does OSD agree with the tradeoff decisions made in the submissions?
QDR Implementation
Do component submissions require adjustment to implement the QDR recommendations?
Fiscal Constraints
Where should we take additional risks in order to balance the program and/or fund program enhancements?

5. Department of Defense Topline (Discretionary budget authority $ in billions)
FY 06 FY Change
DoD Budget
FY 2007 Budget provides:
7 percent increase over FY 2006 enacted budget
Capabilities for future challenges
Advanced technology for greater operational capability and combat power
Robust pay & incentives for recruitment and retention
Superior health care coverage
So, what does the budget look like in dollars and cents?
Resources requested represents a 7.0 percent increase over FY 2006,
Continues the strong growth begun in 2001.
Of the $439.3 billion requested,
25.4 % or $111.8 billion goes to the Army
5.2% or $110.6 billion goes to the Navy
29.7% or $130.4 billion goes to the Air Force, and
3.8% or $69.7 billion goes to other programs Defense-wide.
That breaks out into:
$131.5 billion for military pay and health care
$133.7 billion for readiness and support
$157.5 billion for PRDT&E
$16.7 billion for military construction and family housing.

6. FY 2007 – 2011 DoD Budget (Discretionary Budget Authority, $ Billions)
FY 07 Pres Bud
439.3
462.4
481.9
492.0
502.3
Procurement & RDT&E
157.4
174.2
183.7
191.9
188.3

7. Total Federal Deficit/Surplus (FY 2007 President’s Budget)
Projected
$ Billions
Actual

8. Cost Pressures Military Pay & Allowances Health Care Inflation Fuel
Recruitment & Retention
Health Care
Inflation
Fuel
GWOT
Reconstitution
Weapon System Cost Growth

9. Process Pressures QDR during a war Year-round decision process
Budget, Budget Amendment, GWOT Supplementals, Natural Disaster Supplementals, etc.
Cash flowing
Reprogrammings – war and non-war

10. Future PPBE Changes? Quadrennial Defense Review
Capabilities-based resource allocation
Capital budgeting
Appropriation Structure
Performance Management & Program Evaluation

11. Strategic Resource Decision System
QDR called for “increased transparency” in the PPBE process
Strategic Resource Decision System is a proposal to provide a “common operational picture”
Single, authoritative PPBE database
Unified programming and budgeting data structure
Advantages:
Single data inputs
Greater flexibility to view the Department’s resources from different perspectives
Single data source eliminates reconciliation
SARs, Justification Material, Budget
Ultimate solution may involve changes to the programming and/or appropriation budget structure

12. Performance Management
The “E” was added to PPBE to emphasize the need for an effective performance feedback loop
The requirement was discussed extensively in QDR sessions
How do we get there?
Currently we require Components to have performance measures covering 100% of budget resources
Performance measures are used to review programs and budgets
Enterprise Architectures are emphasizing designs that provide effective feedback
Budget & Performance Integration Initiative one of five on President’s Management Agenda

13. Performance Evaluation
PART = Program Assessment Rating Tool
OMB program to evaluate all programs in the federal government for effectiveness and efficiency
Graded from Effective to Ineffective
PART reports required to be integrated with budget justification material
Once a program is PARTed, the performance measures live on
When the FY 08 PARTs are completed, we will have covered 86 % of DoD resources

14. Procurement (current $ in billions)
1985
$96.8B
2007
$84.2B
“Procurement
Holiday”
2001
$62.6B
Buildup
1996
$42.6B
2011