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Updated December 11, 2020
Defense Primer: Planning, Programming, Budgeting and
Execution (PPBE) Process
Introduction
Allocation Process figure. (For more information, see the
Planning, Programming, Budgeting, and Execution (PPBE)
Execution section below.)
is the Department of Defense (DOD) process for allocating
resources. The annual process serves as the framework for
PPBE Phases
DOD civilian and military leaders to decide which
The first three phases typically produce a specific product
programs and force structure requirements to fund based on
unique to that phase and year. The planning phase produces
strategic objectives. This product describes the notional
the Defense Planning Guidance (DPG), which details force
process from the perspective of the Office of the Secretary
development priorities. The programming phase generates a
of Defense. In practice, aspects of the process can change
Program Objective Memorandum (POM), a funding plan
based on current events or leadership preferences.
for each military service and defense agency covering a
five-year period that adjusts programs in the FYDP. The
DOD policy states that PPBE serves as the annual resource
budgeting phase results in a Budget Estimate Submission
allocation process for the department over a multi-year
(BES), which covers the first year of the POM and converts
planning cycle. According to DOD policy, the objective of
programs into budget terms for submission to Congress.
the process is “to provide the DOD with the most effective
mix of forces, equipment, manpower, and support attainable
Figure 1. DOD Resource Allocation Process (notional)
within fiscal constraints.” Chairman of the Joint Chiefs of
(fiscal year cycle by calendar year and month)
Staff Instruction describes the process as “the Secretary of
Defense’s institutional strategic planning system” and the
“primary decision-making process for translating strategic
guidance into resource allocation decisions.”
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 (sometimes
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
Source: CRS graphic based on DOD references.
managing acquisition programs.
Notes: CY is calendar year; FY is fiscal year. Execution as shown is
based on appropriations available for one year.
Background
In 1961, then-Secretary of Defense (SECDEF) Robert S.
Planning
McNamara created the Planning, Programming, and
The Under Secretary of Defense for Policy leads the
Budgeting System (PPBS) to establish a framework for
planning phase. The Chairman of the Joint Chiefs of Staff
connecting strategic objectives with resources. In 2003,
(CJCS) also plays a significant role in the process, in
DOD renamed the system PPBE in part to emphasize the
accordance with responsibilities as the principal military
need to better manage the execution of budget authority
advisor to the SECDEF under 10 U.S.C. §151. The CJCS’s
provided by Congress. The Deputy Secretary of Defense
role is, in part, to advocate for solutions to department-wide
assists the SECDEF in the overall PPBE leadership role by
requirements. The phase involves reviewing the President’s
managing the process on a day-to-day basis.
National Security Strategy (NSS), the SECDEF’s National
Defense Strategy (NDS), and the CJCS’s National Military
PPBE is a calendar-driven process that, for any fiscal year
Strategy (NMS) to ensure the resulting Defense Planning
cycle, typically begins more than two years before the
Guidance (DPG) aligns with the Administration’s policy
expected year of budget execution. PPBE is part of DOD’s
goals and takes into account potential threats, force
Resource Allocation Process, a timeline intended to show
structure, readiness posture, and other factors. The DPG,
when actions associated with a particular fiscal year cycle
developed with input from the CJCS, military services, and
are supposed to occur during a calendar year (see Figure
combatant commanders, typically contains guidance on
1). DOD makes a distinction between the execution phase
investments and divestments for the services and helps
of PPBE, also known as execution review, and the
inform their Program Objective Memorandum (POM).
execution of congressional appropriations in the Resource
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Defense Primer: Planning, Programming, Budgeting and Execution (PPBE) Process
Programming
production, and procurement of goods and services) and
The programming phase is meant to analyze the anticipated
sustainment.
effects of present-day decisions on the future force. The
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 the total force (i.e., active and
begins with the heads of each military service and defense
reserve military, civilian, and contract support),
agency developing a Program Objective Memorandum
including planning, requirements, readiness, workforce
(POM), which describes proposed resource requirements
mix and balance, applicable personnel policies, and
(forces, manpower, and funding) for programs over five
healthcare issues.
years. The POM prioritizes and adjusts programs in the
FYDP. The POM can also describe the risks associated with
 Deputy Chief Management Officer (CMO) provides
underfunded or unfunded programs. Once each service
administrative and managerial support to senior
submits a POM, CAPE leads the reviews of the programs,
governance bodies; helps organize the business
forecasts the resource requirements for the next five years,
operations of the department.
and updates the FYDP. As a result of this program review,
the SECDEF can direct the services to make changes.
 USD for Intelligence (I) advises on all matters related
to intelligence, counterintelligence, security, sensitive
Budgeting
activities, and other intelligence-related matters. The
The Under Secretary of Defense (Comptroller)/Chief
USD(I) is also a key player in the intelligence budget
Financial Officer leads the budgeting phase, in which the
process (IPPBE).
military services complete a Budget Estimate Submission
(BES) for the first year of the FYDP. Under guidance from
 DOD Chief Information Officer (CIO) advises on
the Office of Management and Budget (OMB), the
major cyber investments, information technology (IT)
Comptroller reviews the budget submissions to ensure
resource allocations, and investment decisions,
appropriate funding and fiscal controls, phasing of the
including recommending whether to continue, modify,
efforts over the funding period, and feasibility of execution
or terminate IT investments.
within the budget year. During this phase, Comptroller
analysts work with service counterparts to review budget
Relevant Statutes
requests and ensure they align with the unified defense
budget. As a result of this budget review, the SECDEF can
Title 10, U.S. Code, Section 151 – Joint Chiefs of Staff:
direct the services to make changes. The final product is
composition; functions
intended for submission to OMB each December for
Title 10, U.S. Code, Chapter 9 – Defense Budget Matters
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
CRS Products
review occurs at the same time as the program review (to
CRS In Focus IF10831, Defense Primer: Future Years Defense
prioritize the programs that best meet strategic goals) and
Program (FYDP)
the budget review (to decide how much to spend on each
CRS In Focus IF10428, Intelligence Planning, Programming,
program). Thus, execution review is intended to assess a
Budgeting, and Evaluation (IPPBE) Process, by Michael E. DeVine
program’s actual performance compared to its planned
performance.

Other Key Players
Other Resources
While each phase has a designated leader, that person and
DOD Directive 7045.14, The Planning, Programming, Budgeting,
their staff work in concert with many others during all
and Execution (PPBE) Process
phases of the PPBE process. Examples of key players in the
Chairman of the Joint Chiefs of Staff Instructions (CJCSI)
process include:
3100.01B and 8501.01B


Defense Acquisition University, Acquisition Encyclopedia,
USD for Research and Engineering (R&E) advises
Planning, Programming, Budgeting & Execution Process (PPBE)
SECDEF on all DOD research, engineering, and
technology development activities and programs; serves

as the DOD chief technology officer with the mission of
Acknowledgment: This primer was originally authored by
advancing technology and innovation for the military
Lynn M. Williams, former CRS Specialist in Defense
services and DOD.
Readiness and Infrastructure.
 USD for Acquisition and Sustainment (A&S)
Brendan W. McGarry, Analyst in US Defense Budget
establishes policy for all DOD elements relating to

acquisition (including system design, development, and
IF10429
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Defense Primer: Planning, Programming, Budgeting and Execution (PPBE) Process

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