Updated by author April 2009
By Professor Raymond C. Sullivan
National Security Decision Making Department, U.S. Naval War College
U.S. Defense Resource Allocation is a series of integrated formal processes used by defense organizations to deliver a force structure that can execute the national security objectives assigned to the military. These processes are complex and include detailed coordination among numerous national security organizations. , Defense Resource Allocation is a contentious and competitive endeavor that is heavily influenced by the domestic political environment and the characteristics of organizational behavior. These influences insert an added dimension of complexity to the national security decision making environment.
The formal processes used in defense resource allocation by the Department of Defense are designed to efficiently and effectively dedicate national resources to the generation of military capabilities for the Armed Forces of the United States to accomplish the military responsibilities required in national strategies. Simply stated, it is about how the Department of Defense (DoD) answers these basic questions:
· What does the United States need to defend the nation's interests?
· What capabilities are necessary?
· How should the United States develop those capabilities?
and most importantly:
· How much should the nation spend to develop those capabilities?
Defense planning processes rely on continuous assessment and analysis. This process is designed to define and understand the security environment, technology, and potential scenarios where the military instrument will be employed. The process identifies capabilities that DoD can either allocate resources to in the development of programs that deliver these capabilities or determines where risk will be accepted. The process of translating the strategy into capabilities and developing a force structure is the product of several dynamic and interactive systems. Figure (1) depicts the systems of the U.S. Defense Resource Allocation Formal Processes.