Concurrent Program/Budget Review Cost Estimating Requirements

()

Life Cycle Cost Composition

Life Cycle Cost Program Acquisition Cost Development Cost

Development Costs of PME & Support Items Systems Engineering Program Management

Test & Evaluation

Procurement Cost

Weapon System Cost Flyaway Cost

Facilities

Prime Mission Equipment (PME)

Support Items

Initial Spares

Operating & Support

O&M, MILPERS (or others as appropriate)

O&M (or others as appropriate)

Year 1 FEB/MAR

PPBE--Planning Phase--Lead by USD (P)

Elapsed Time: 15-16 Months

Year 2 APR/MAY

National Security Council DNI/JCS/OSD

NSS

Planning Phase focus: ? Threat vs. Capabilities ? Update strategy ? Guidance for Programming & Budgeting

OSD Level

NDS

New NDS at least every 4 years to Congress (absorbed QDR content). Intervening years require annual assessment of current NDS.

DPG

CCDR ? Combatant Commander CPR ? Chairman's Program Recommendation DNI - Director of National Intelligence DPG ? Defense Planning Guidance JCS ? Joint Chiefs of Sta NDS ? National Defense Strategy (absorbed QDR) NMS ? National Military Strategy NSS ? National Security Strategy OSD ? O ce of the Secretary of Defense USD(P) ? Undersecretary of Defense (Policy)

Guidance for POM/BES submission and OSD Program and Budget Review

JCS Level

(JCS, CCDR, SERVICES)

NMS

CPR

Cost Estimating Requirements

(

)

POE Program initiation & all subsequent milestones, including FRP DR

Program initiation & all subsequent milestones - Includes Economic Analysis

CARD

MS A & all subsequent milestones including FRP DR - Draft 180 days prior to OIPT/milestone - Final 45 days prior to OIPT/milestone

MS A & whenever Economic Analysis is required - Draft 180 days prior to OIPT/milestone - Final 45 days prior to OIPT/milestone

CCE MS A and all subsequent milestones including FRP DR

MS A and whenever an Economic Analysis is required

ICE Required by law for all MDAP programs * - Prepared by OSD CAPE for ACAT ID, and ACAT IC at discretion of USD(A&S) - Prepared by component cost agency (AFCAA, DASA-CE, NCCA) for ACAT IC and ACAT IB (if no CAPE estimate) - In advance of any certi cation under Title 10, USC, Section 2366a (MS A) and Section 2366b (MS B) - In advance of any decision to enter low-rate initial production (LRIP) (MS C) or full-rate production (FRP DR) - In advance of any certi cation of MDAPs that experience critical cost growth (Title 10, USC, Sec 2433a)

*ICE statutory requirement (Title 10, US Code, Section 2434) and P.L. 111-23, May 22, 2009 Source: DoDI 5000.02 January 7, 2015, Incorporating Change 3, August 10, 2017 and Weapon Systems Acquisition Reform Act of 2009

( )

AFCAA = Air Force Cost Analysis Agency

DASA-CE = Deputy Assistant Secretary of

NCCA = Naval Center for Cost Analysis

ACAT = Acquisition Category

Army (Cost & Economics)

OIPT = Overarching Integrated Product Team

CAPE = Cost Assessment & Program Evaluation FRP DR = Full Rate Production Decision Review POE = Program O ce Estimate

CARD = Cost Analysis Requirements Description ICE = Independent Cost Estimate

USD(A&S) = Under Secretary of Defense

CCE = Component Cost Estimate

MDA = Milestone Decision Authority

(Acquisition and Sustainment)

MDAP = Major Defense Acquisition Program

Platinum Card POC: james.krott@dau.edu

Concurrent Program/Budget Review

Sep POM

Oct

OSD/

CAPE Issue Resolution

Nov

3-Star Group

SECDEF SLRG & DMAG (4-Star Group)

PDM (RMD)

Services PEO/PM, SVC HQs

CCDR

JCS

OSD(C) & OMB

BES

CPA

Adv Ques/ Hearings

PBD (RMD)

Dec

Jan/Feb

BES ? Budget Estimate Submission CCDR ? Combatant Commander CPA ? Chairman's Program Assessment DMAG ? Deputy's Management Action Group FYDP ? Future Years Defense Program OMB - O ce of Management and Budget MBI ? Major Budget Issues PB ? President's Budget PBD- Program Budget Decision PDM - Program Decision Memo POM ? Program Objectives Memorandum RMD - Resource Management Decision SLRG ? Senior Leadership Review Group

Updates FYDP

MBI

PB

Updates FYDP

Services/PEO/PM Answer/Reclama

?

?

?

?

? ? Ensures the "program" has all the resources

necessary to make it executable

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Below Threshold Reprogramming

Amounts are cumulative over Entire Period of Obligation Availability

APPRN RDT&E PROC

O&M

MAX INTO Lesser of + $10 M

or + 20% Lesser of + $10 M

or + 20%

+ $10 M

MAX OUT Lesser of - $10 M

or - 20% Lesser of - $10 M

or - 20%

- $10 M

LEVEL OF CONTROL

Program Element

Line Item

Budget Activity (or Defense Agency)

Some Sub-Activity Limitations on Decreases (see reference below)

OBL AVAIL 2 Years 3 years

SCN: 5 Years

1 Year

MILPERS

+ $10 M

- $10 M

Budget Activity

1 Year

MILCON

Lesser of + $2 M + 25%

Congressional Restriction

Project

5 Years

Reference Sources: DoDFMR 7000.14-R, Volume 3, Chapter 6 (Sept 2015) and Chapter 7 (Mar 2011) USD(C) Policy Memo Subject: DD1414 Base for Reprograming Action, Submission date 9 Jan 2020

Resource Allocation Process

Congressional Enactment Timetable

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT

^

15

15

"

"

^ /

/

^

/ /

/

^

/

Funding for Product Improvements

Funding Decision Tree

IF...

THEN... Fund development, design, and test (including Mod Kit

MOD PURPOSE TO INCREASE PERFORMANCE?

YES

RDT&E

NO YES

DT OR OT REQUIRED?

NO

SYSTEM IN PRODUCTION?

testing) with...

YES

NO

AND... Fund purchase & installation of Mod Kits for end Items with...

PROCUREMENT PROCUREMENT

O&M

Purchase of Mod Kits and installation of mod kits often happen in different fiscal years.

Source: DoD 7000.14-R Vol 2A, Ch 1, para 010213.C.7

Appropriation Life Cycle

/

/

()

/ /

Available for new obligations, obligation adjustments, expenditures, and outlays

: Available for obligation adjustments, expenditures, and outlays : Unavailable for obligations, obligation adjustments, expenditures, and outlays

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