Feature - PPBE Process
Planning, Programming, Budgeting, and Execution (PPBE) Process
What is PPBE? The Planning, Programming, Budgeting, and Execution (PPBE) process is how the Department of Defense (DoD) "allocates its resources". It's how DoD, and their contractors, manage to stay within their fiscal budget while they follow the Secretary of Defense's policy, strategy, and goals.
What does PPBE mean to me? Program managers and their staff need to know what's supposed to happen with their program and budget, and when; because that information could make or break their program. So, DoD put in place a process to manage "resource allocation" in four (sometimes overlapping) phases:
- Planning
- Programming
- Budgeting
- Execution
The Planning PPBE Phase
The planning phase of PPBE begins with OSD and the Joint Staff collaboratively articulating resource-informed national defense policies and military strategy known as the Strategic Planning Guidance (SPG). The SPG then leads the "Enhanced" Planning Process (EPP). The result of EPP is a set of budget-conscious priorities for program development (military force modernization, readiness, and sustainability; and supporting business processes and infrastructure), and is written-up in the Joint Programming Guidance (JPG).
The JPG links the planning and programming phases, when it helps DoD departments and agencies write a Program Objective Memorandum (POM).
- Planning
- Programming
- Budgeting
- Execution
The Programming PPBE Phase
The programming phase begins with each DoD department and agency writing a POM. All the POM balance program budgets as set down in the JPG. When complete, each POM describes, in detail, the proposed budget (forces, manpower, and funding) for the next six years. A POM may also describe what is not fully funded, and the risks associated with the budget shortfall. The senior leaders of the OSD and Joint Staff review each POM and integrate them all into an overall coherent Defense program. For any shortfalls or any other issues with any portion of any POM, the OSD and Joint Staff can propose alternatives and marginally adjust budgets. The Secretary of Defense settles any unresolved issues and writes them up in a Program Decision Memorandum (PDM).
- Planning
- Programming
- Budgeting
- Execution
The Budgeting PPBE Phase
The budgeting phase happens at the same time as the programming phase. Each DoD departement and agency submits its budget estimate with its POM. They convert their program budget into the Congressional appropriation structure format, and submit it along with justification. The budget forecasts only the next two years, but with more detail than the POM. USD(Comptroller) and OMB analysts review the submissions. They review it to ensure that program funding matches current policy, that they are priced right, and justified to Congress. Typically, the analysts write-up their questions during formal budget review hearings. After the hearings, each analyst prepares a Program Budget Decision (PBD) for each program that proposes financial adjustments to address any issues or problems identified during the hearing. The PBD then go to the DEPSECDEF for a decision. The decision goes in an updated budget submission to the OMB. After that, the overall DoD budget is provided as part of the President�s Budget request to Congress.
- Planning
- Programming
- Budgeting
- Execution
The Execution PPBE Phase
The execution review occurs at the same time as the program and budget reviews. The execution review provides feedback to OSD senior leadership about the effectiveness of the budget. During this last phase of PPBE, program metrics developed throughout the process now help measure actual output versus expected performance. If the program misses its metrics, then the execution review may lead to recommendations to adjust the budget or program so it does make those goals.
- Planning
- Programming
- Budgeting
- Execution
PPBE Biennial Cycles: On-Year
In 2003, the Department adjusted its planning, programming and budgeting procedures to support a two-year cycle that results in two-year budgets. The revised process is described in Management Initiative Decision (MID) 913, dated May 22, 2003. The concept in MID 913 is consistent with submission of a biennial DoD budget that is part of the President�s Budget request to Congress for even-numbered fiscal years (FY) (e.g., the FY 2004 President's Budget, submitted to Congress in March 2003, contained justification material for both FY 2004 and FY 2005). In this cycle, the even-numbered years are called on-years, while the odd-numbered years are called off-years.
PPBE Biennial Cycles: Off-Year
In practice, Congress does not actually provide the Department with biennial appropriations. An amended budget justification must be submitted for the second year of the original biennial request so that Congress will appropriate funds for that second year. The Department uses a restricted process in the off-year to develop an amended budget that allows for only modest program or budget adjustments.
PPBE Biennial Cycles (continued)
From a larger perspective, the biennial PPBE cycle is designed to support and implement policy and strategy initiatives for each new four-year Presidential administration. This image depicts alignment of the biennial PPBE cycle over a four-year term.
Program Elements
| Narrow PE |
|---|
0101224N | SSBN security program |
0305126F | R-2508 ATC enhancement |
0702826M | Norway geo-prepositioning |
0211703A | Javelin |
| Broad PE |
|---|
0101815F | Advanced strategic programs |
0202096A | Base operations |
0301011N | Cryptologic sctivities |
0801714M | Personnel processing activities |
A Program Element (PE) is the smallest resource aggregation controlled by OSD. A PE can be narrow or broad. There are over 3600 active PE.
A program element is identified by a seven-digit number followed by an alphabetical suffix. The two-number prefix of the PE number identifies the Major Force Program (MFP) and the suffix letter identifies the DoD department or agency that own the PE. For example, 0203610A is a general purpose MFP element (prefix 02) and the Army controls it (suffix A).
A single PE may encompass funding from several appropriations. For example, a PE covering a particular aircraft system (fifth digit is 2) may include procurement funds to purchase new aircraft and O&M funds to operate fielded systems.
Over the course of its lifecycle, an acquisition program typically uses several PE. For example, during System Development and Demonstration a program might use primarily R&D funds: prefix 06.
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