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Updated December 15, 2022
Defense Primer: Planning, Programming, Budgeting, and
Execution (PPBE) Process
Introduction
appropriations. (For more information, see the Execution
Planning, Programming, Budgeting, and Execution (PPBE)
section below.)
is the Department of Defense (DOD) system for allocating
resources among the armed services, defense agencies, and
PPBE Phases
other components. The annual process serves as the
The PPBE process typically produces internal documents
framework for DOD civilian and military leaders to decide
and materials for each phase. The planning phase produces
which programs and force management requirements to
the Defense Planning Guidance (DPG), which details force
fund based on strategic objectives. This product describes a
development priorities. The programming phase generates a
notional PPBE process from the perspective of the Office of
Program Objective Memorandum (POM), a funding plan
the Secretary of Defense (OSD). In practice, aspects of the
for each DOD component covering a five-year period that
process may differ based on current events or leadership
adjusts programs in the FYDP. The budgeting phase results
preferences.
in a Budget Estimate Submission (BES), which covers the
first year of the POM and converts programs into budget
DOD Directive 7045.14 states that PPBE serves as the
terms for submission to Congress.
annual resource allocation process for the department over a
multi-year planning cycle. According to the directive, the
Figure 1. DOD Resource Allocation Process (notional)
objective of the process is “to provide the DOD with the
(fiscal year cycle by calendar year and month)
most effective mix of forces, equipment, manpower, and
support attainable within fiscal constraints.” Chairman of
the Joint Chiefs of Staff Instruction 3100.01E 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, as well as
updates to the department’s five-year spending plan, known
as the Future Years Defense Program (FYDP). PPBE is one
of DOD’s three main acquisition-related decision support
systems, along with the Joint Capabilities Integration and
Development System (JCIDS) for developing requirements
Source: CRS graphic based on DOD references.
to address capability gaps and the Defense Acquisition
Notes: CY: calendar year; FY: fiscal year cycle; DPG: Defense
System (DAS) for managing acquisition programs.
Planning Guidance; POM: Program Objective Memorandum; BES:
Budget Estimate Submission.
Background
In 1961, then-Secretary of Defense (SECDEF) Robert S.
Planning
McNamara established the Planning, Programming, and
The Under Secretary of Defense (USD) for Policy leads the
Budgeting System (PPBS) as a framework for linking
planning phase. The Chairman of the Joint Chiefs of Staff
strategic objectives with resources. In 2003, DOD renamed
(CJCS) also plays a significant role in the process, in
the system PPBE in part to emphasize the need to better
accordance with responsibilities as the principal military
manage the execution of budget authority provided by
advisor to the SECDEF under Section 151 of Title 10,
Congress. The Deputy Secretary of Defense assists the
United States Code (U.S.C.). The CJCS’s role is, in part, to
SECDEF in the overall PPBE leadership role by managing
advocate for solutions to department-wide requirements.
the process on a day-to-day basis.
The phase involves reviewing the President’s National
Security Strategy (NSS), the SECDEF’s National Defense
PPBE is a calendar-driven process that, for any fiscal year
Strategy (NDS), and the CJCS’s National Military Strategy
cycle, typically begins more than two years before the
(NMS) to align the resulting Defense Planning Guidance
expected year of budget execution. Figure 1 shows when
with the Administration’s policy goals and potential threats,
actions associated with a particular fiscal year cycle may
force structure, readiness posture, and other factors.
occur during a calendar year. DOD sometimes makes a
Developed with input from the CJCS, armed services, and
distinction between the execution phase of PPBE, or
combatant commanders, the DPG typically contains
execution review, and the execution of congressional
guidance on investments and divestments for the
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Defense Primer: Planning, Programming, Budgeting, and Execution (PPBE) Process
components and is intended to inform a component’s
and services); ensures approved programs can be
Program Objective Memorandum.
executed within fiscal and technical resources.
Programming
USD for Personnel and Readiness (P&R). Advises on
The programming phase is meant to analyze anticipated
PPBE matters related to the total force (i.e., active and
effects of present-day decisions on the future force. The
reserve military, civilian, and contract support),
Director of the Cost Assessment and Program Evaluation
including planning, requirements, readiness, workforce
(CAPE) Office leads this phase. The programming phase
mix, personnel policies, and health care issues.
begins with the heads of each component developing a
POM, which describes proposed resource requirements
USD for Intelligence and Security (I&S). Advises on
(e.g., forces, manpower, and funding) for programs over
PPBE matters related to intelligence,
five years. Each POM prioritizes and adjusts programs in
counterintelligence, security, and other intelligence
the FYDP, and also describes risks associated with
activities; serves as the Director of Defense Intelligence
underfunded or unfunded programs. Once each component
(DDI) in the Office of the Director of National
submits a POM, CAPE leads the reviews of the programs,
Intelligence (ODNI) and a key player in the Intelligence
forecasts the resource requirements for the next five years,
Community’s Intelligence Planning, Programming,
and updates the FYDP. As a result of program reviews, the
Budgeting, and Evaluation (IPPBE) Process.
SECDEF may direct the components to make changes.
DOD Chief Information Officer (CIO). Participates in
Budgeting
the PPBE process by advising on major cyber
The USD Comptroller/Chief Financial Officer leads the
investments, information technology (IT) resource
budgeting phase, in which the components complete a
allocations, and investment decisions, including
Budget Estimate Submission for the first year of the FYDP.
recommending whether to continue, modify, or
Using guidance from the Office of Management and Budget
terminate IT investments.
(OMB), the Comptroller reviews the budget submissions
for funding and fiscal controls, phasing of the efforts over
Selected Laws
the funding period, and feasibility of execution within the
budget year. During this phase, Comptroller analysts
10 U.S.C. §§113, 134, 135, 139a, 151, 153
collaborate with component analysts to align budget
Weapon Systems Acquisition Reform Act of 2009 (P.L. 111-
requests with the overall defense budget. As a result of
23)
budget reviews, the SECDEF may direct the components to
make changes. The final product is typically submitted to
OMB in December for inclusion in the President’s annual
DOD Resources
budget request to Congress, which is usually submitted in
February.
DOD, Financial Management Regulation, 7000.14-R
DOD Directive 7045.14, The Planning, Programming, Budgeting,
Execution
and Execution (PPBE) Process
During the execution phase, OSD and the components
Chairman of the Joint Chiefs of Staff Instructions (CJCSI)
evaluate the obligation and expenditure of funds, as well as
3100.01E, 5123.01I, and 8501.01B
program results. The purpose of execution review is to
assess program objectives against outcomes. The
DOD Acquisition Encyclopedia (ACQuipedia), Planning,
components assess compliance with priorities and SECDEF
Programming, Budgeting & Execution Process (PPBE)
guidance, performance metrics, and program results. OSD
staff review the assessments and recommend changes, in
coordination with the CJCS and the Joint Staff.
CRS Products
Other Key Players
CRS Report R47178, DOD Planning, Programming, Budgeting,
and Execution (PPBE): Overview and Selected Issues for Congress,
While each phase has a designated leader, that person and
by Brendan W. McGarry
their staff collaborate with others during all phases of the
PPBE process. Examples of these players and their
CRS In Focus IF10831, Defense Primer: Future Years Defense
designated roles include
Program (FYDP)
CRS In Focus IF10428, Intelligence Planning, Programming,
USD for Research and Engineering (R&E). Advises
Budgeting, and Evaluation (IPPBE) Process
SECDEF on PPBE matters related to DOD research,
engineering, and technology development activities and
Acknowledgment: This primer was originally authored by
programs; ensures approved programs can be executed
Lynn M. Williams.
within fiscal and technical resources.
USD for Acquisition and Sustainment (A&S).
Brendan W. McGarry, Analyst in US Defense Budget
Advises on PPBE matters relating to acquisition and
sustainment in the DOD (including system design,
IF10429
development, and production, and procurement of goods
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Defense Primer: Planning, Programming, Budgeting, and Execution (PPBE) Process
Disclaimer
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