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Updated January 27, 2020
Defense Primer: Planning, Programming, Budgeting and
Execution (PPBE) Process
Introduction
PPBE Phases
Planning, Programming, Budgeting, and Execution (PPBE)
The first three phases typically produce a specific product
is the Department of Defense (DOD) process for allocating
unique to that phase and year. The planning phase produces
resources. The annual process serves as the framework for
the Defense Planning Guidance (DPG), which details force
DOD civilian and military leaders to decide which
development priorities. The programming phase generates a
programs and force structure requirements to fund based on
Program Objective Memorandum (POM), a funding plan
strategic objectives.
for each military service and defense agency covering a
five-year period that adjusts programs in the FYDP. The
The department’s Defense Acquisition University (DAU)
budgeting phase results in a Budget Estimate Submission
defines PPBE in part as “a formal, systematic structure for
(BES), which covers the first year of the POM and converts
making decisions on policy, strategy, and the development
programs into budget terms for submission to Congress.
of forces and capabilities to accomplish anticipated
missions.” DOD Directive 7045.14 states the objective of
Figure 1. DOD Resource Allocation Process
PPBE “is to provide the DOD with the most effective mix
(by month and calendar year, and fiscal year)
of forces, equipment, manpower, and support attainable
within fiscal constraints.”
The process is designed to produce DOD’s portion of the
President’s annual budget request to Congress and updates
to the department’s five-year spending plan known as the
Future Years Defense Program, or FYDP (pronounced
“fiddip”). The process is also one leg of a triad of
acquisition-related decision support systems that includes
the Joint Capabilities Integration and Development System
(JCIDS) for developing requirements to address capability
gaps and the Defense Acquisition System (DAS) for
managing acquisition.

Source: CRS graphic based on DOD references.
Background
Notes: CY is calendar year; FY is fiscal year. Execution as shown is
In 1961, then-Secretary of Defense (SECDEF) Robert S.
based on appropriations available for one year.
McNamara created the Planning, Programming, and
Budgeting System (PPBS) to establish a framework for
Planning
connecting strategic objectives with resources. In 2003,
The Under Secretary of Defense for Policy leads the
DOD renamed the system PPBE in part to emphasize the
planning phase. The Chairman of the Joint Chiefs of Staff
need to better manage the execution of budget authority
(CJCS) also plays a significant role in the process, in
provided by Congress. The Deputy Secretary of Defense
accordance with responsibilities as the principal military
assists the SECDEF in the overall PPBE leadership role by
advisor to the SECDEF under 10 U.S.C. §151. The CJCS’s
managing the process on a day-to-day basis.
role is, in part, to advocate for solutions to department-wide
requirements. The phase involves reviewing the President’s
PPBE is a calendar-driven process that, for any fiscal year
National Security Strategy (NSS), the SECDEF’s National
cycle, typically begins more than two years before the
Defense Strategy (NDS), and the CJCS’s National Military
expected year of budget execution. PPBE is part of DOD’s
Strategy (NMS) to ensure the resulting Defense Planning
Resource Allocation Process, a timeline intended to show
Guidance (DPG) aligns with the Administration’s policy
when actions associated with a particular fiscal year cycle
goals and takes into account potential threats, force
are supposed to occur during a calendar year (see Figure
structure, readiness posture, and other factors. The DPG,
1). DOD makes a distinction between the execution phase
developed with input from the CJCS, military services, and
of PPBE, also known as execution review, and the
combatant commanders, contains guidance for the services
execution of congressional appropriations in the Resource
and helps inform their Program Objective Memorandums
Allocation Process figure. (For more information, see the
(POMs).
Execution section below.)
Programming
The programming phase is meant to analyze the anticipated
effects of present-day decisions on the future force. The
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Defense Primer: Planning, Programming, Budgeting and Execution (PPBE) Process
Director of the Cost Assessment and Program Evaluation
USD for Personnel and Readiness (P&R) advises on
(CAPE) Office leads this phase. The programming phase
all matters related to total force (active and reserve
begins with the heads of each military service and defense
military, civilian, and contract support), including
agency developing a Program Objective Memorandum
planning, requirements, readiness, workforce mix and
(POM), which describes proposed resource requirements
balance, applicable personnel policies, and healthcare
(forces, manpower, and funding) for programs over five
issues.
years. The POM prioritizes and adjusts programs in the
FYDP. The POM can also describe the risks associated with
Deputy Chief Management Officer provides
underfunded or unfunded programs. Once each service
administrative and managerial support to the deputy
submits a POM, CAPE leads the reviews of the programs,
secretary’s senior governance bodies; helps the Chief
forecasts the resource requirements for the next five years,
Management Officer (CMO) to organize the business
and updates the FYDP. As a result of this program review,
operations of the department.
the SECDEF can direct the services to make changes.
USD for Intelligence (I) advises on all matters related
Budgeting
to intelligence, counterintelligence, security, sensitive
The Under Secretary of Defense (Comptroller)/Chief
activities, and other intelligence-related matters. The
Financial Officer leads the budgeting phase, in which the
USD(I) is also a key player in the intelligence budget
military services complete a Budget Estimate Submission
process (IPPBE).
(BES) for the first year of the FYDP. Under guidance from
the Office of Management and Budget (OMB), the
DOD Chief Information Officer (CIO) advises on
Comptroller reviews the budget submissions to ensure
major cyber investments, information technology (IT)
appropriate funding and fiscal controls, phasing of the
resource allocations, and investment decisions,
efforts over the funding period, and feasibility of execution
including recommending whether to continue, modify,
within the budget year. During this phase, Comptroller
or terminate IT investments.
analysts work with service counterparts to review budget
requests and ensure they align with the unified defense
Relevant Statutes
budget. As a result of this budget review, the SECDEF can
direct the services to make changes. The military services
Title 10, U.S. Code, Section 151 – Joint Chiefs of Staff:
update their budgets to comply with the decision. The final
composition; functions
product is intended for submission to OMB each December
Title 10, U.S. Code, Chapter 9 – Defense Budget Matters
for inclusion in the President’s annual budget request to
Weapon Systems Acquisition Reform Act of 2009 (P.L. 111-
Congress, which is usually submitted in February.
23)
Execution

The final phase, execution, also known as execution review,
is intended to evaluate program results. The execution
review occurs at the same time as the program review (to
CRS Products
prioritize the programs that best meet strategic goals) and
CRS In Focus IF10831, Defense Primer: Future Years Defense
the budget review (to decide how much to spend on each
Program (FYDP)
program). Thus, execution review is intended to assess a
CRS In Focus IF10428, Intelligence Planning, Programming,
program’s actual performance compared to its planned
Budgeting, and Evaluation (IPPBE) Process, by Michael E. DeVine
performance.
Other Key Players

While each phase has a designated leader, that person and
their staff work in concert with many others during all
Other Resources
phases of the PPBE process. Examples of key players in the
DOD Directive 7045.14, The Planning, Programming, Budgeting,
process include:
and Execution (PPBE) Process

Chairman of the Joint Chiefs of Staff Instructions (CJCSI)
USD for Research and Engineering (R&E) advises
3100.01B and 8501.01B
SECDEF on all DOD research, engineering, and
Defense Acquisition University, Acquisition Encyclopedia,
technology development activities and programs; serves
Planning, Programming, Budgeting & Execution Process (PPBE)
as the DOD chief technology officer with the mission of
advancing technology and innovation for the military

services and DOD.
Acknowledgment: This primer was originally authored by
Lynn M. Williams, former CRS Specialist in Defense
USD for Acquisition and Sustainment (A&S)
Readiness and Infrastructure.
establishes policy for all DOD elements relating to
acquisition (including system design, development, and
Brendan W. McGarry, Analyst in US Defense Budget
production, and procurement of goods and services) and

sustainment.
IF10429
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Defense Primer: Planning, Programming, Budgeting and Execution (PPBE) Process


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