DSMC POC: Funds Management Department; (703) 805-2451
Government Budget Plan: The generic title for an internal government document that plans the long-range budgeting strategy for the life of a given program.
Planning, Programming and Budgeting System (PPBS): The PPBS is a time-driven resource allocation process within DoD to request funding for all operations, including weapon system development and acquisition. It is essential to convert each program's event-driven acquisition strategy and phasing into the PPBS's calendar-driven funding profiles to assure the appropriate amount and type of funds are available to execute the desired program.
Planning Phase - The
Defense Planning Guidance (DPG) is a document which sets forth broad policy
objectives and military strategy. The DPG guides the development of the
Program Objectives Memorandum (POM).
Programming Phase - The POM and the Program Decision Memorandum (PDM) are the
keystone documents completed in this phase. The POM provides strategies for
the Services to meet DoD objectives outlined in the DPG. The POM is reviewed
by staff officers of the Secretary of Defense, the Commanders in Chief of
unified and specified commands, and the Joint Chiefs of Staff. The reviews
highlight major program issues and alternatives. The Deputy Secretary of
Defense reviews the POM and the issues and decides on the appropriate course
of action. The decisions are documented in the PDM.
Budgeting Phase - The completion of the Budget
Estimate Submission (BES). The BES is the POM documentation updated for the
decisions outlined in the PDM. The BES is reviewed by the Under Secretary of
Defense Comptroller, and the Office of Management and Budget (OMB) for
execution feasibility. Funding changes that are due to execution issues are
identified in Program Budget Decisions (PBDs). The updated BES is forwarded to OMB and incorporated into the President's Budget. The President's Budget is due to the Congress no later than the first Monday in February.
Enactment - The process that the Congress uses to develop and pass the Authorization and Appropriations Bills. In the enactment process, the DoD has an opportunity to work with the Congress and defend the President's Budget.
Funding Appropriation Types:
Budget Activity 1, Basic
Research, includes all efforts and experimentation directed toward
increasing fundamental knowledge and understanding in those fields of the
physical, engineering, environmental, and life sciences related to long-term
national security needs.
Budget Activity 2, Applied Research, translates promising basic research into solutions for
broadly defined military needs, short of development projects. This type of
effort may vary from systematic mission-directed research, which is beyond
that in Budget Activity 1, to sophisticated breadboard hardware, study,
programming, and planning efforts that establish the initial feasibility and
practicality of proposed solutions to technological challenges.
Budget Activity 3, Advanced Technology Development, includes all efforts that have moved into the development and
integration of hardware for field experiments and tests. The results of this
type of effort are proof of technological feasibility and assessment of
operability and producibility rather than the development of hardware for
Budget Activity 4, Demonstration and Validation, includes all efforts necessary to evaluate integrated
technologies in as realistic an operating environment as possible to assess
the performance or cost reduction potential of advanced technology.
Budget Activity 5, Engineering and Manufacturing Development, includes those projects in engineering and manufacturing
development that are for Service use but have not received approval for
Procurement is used to finance investment items, and it
should cover all costs integral and necessary to deliver a useful end item
intended for operational use or inventory.
Military Construction (MILCON) funds the cost of major construction projects such as bases, facilities, military schools, etc. Project costs include architecture and engineering services, construction design, real property acquisition costs, and land acquisition costs necessary to complete the construction project.
Military Personnel (MILPERS) funds the costs of salaries and
compensation for active military and National Guard personnel as well as
personnel-related expenses such as costs associated with permanent change of
duty station (PCS), training in conjunction with PCS moves, subsistence,
temporary lodging, bonuses, and retired pay accrual.
Operation and Maintenance (O&M) traditionally finances
those things that derive benefits for a limited period of time, i.e.,
expenses, rather than investments. Examples of costs financed are
Headquarters operations, civilian salaries and awards, travel, fuel, minor
construction projects of $500K or less, expenses of operational military forces,
training and education, recruiting, depot maintenance, purchases from Defense
Working Capital Funds (e.g., spare parts), base operations support, and assets with a
system unit-cost less than the current procurement threshold ($100K).
Cost Estimating is a realistic appraisal of the level of cost most
likely to be realized. The main estimation methods are analogy, parametric,
engineering, and extrapolation from actual costs.
Life Cycle Cost (LCC) is the total cost to the government
of acquisition and ownership of the system over its full life. It includes
the cost of development, acquisition, support, and (where applicable)
disposal. The USD (AT&L) has defined Defense System Total Ownership Cost (TOC) as
Life Cycle Cost.