ACQ 1010 Flashcards
Four activities of the resource allocation process
1) Planning, Programming, Budgeting, and Execution (PPBE)
2) Enactment
3) Apportionment
4) Execution
PPBE
Unique to DoD; Focused on the financial management and resource allocation processes for current and future DoD acquisition programs
Annual process that produces the DoDs portion of the President’s national budget and is established by the SecDef.
Goal is to provide the warfighter with the best mix of equipment, personnel, and support attainable within established fiscal constraints.
Four Phases of PPBE
1) Planning Phase
2) Programming Phase
3.) Budgeting Phase
4) Execution Phase
PPBE Phase 1
Planning Phase : how much defense is enough? Produces Defense Planning Guidance by reviewing treats, assessing capabilities, and developing budget planning guidance.
PPBE Phase 2
Programming Phase : how much defense can we afford? Turning the guidance into achievable and affordable programs. Final PROGRAMMING decisions are documented in Program Objective Memorandum (P.O.M.) which is submitted for review - final DOD programming decisions are documented in the Program Decision Memorandum (P.D.M.).
PPBE Phase 3
Budgeting Phase : Have we properly priced the Defense program?
Done by preparing defensible budget and detailed budget estimate submission (BES) ; Issue Program Budget Decisions (PBD) or Resource Management Decision (RMD); Consider Major Budget Issues (MBI); and submit President’s Budget
PPBE Phase 4
Execution Phase: How are we doing with our Resource Allocation?
Programs are evaluated and measured against pre-established performance metrics, including rates of funding obligations and expenditures to make assessments and measure performance.
DMSMS
Diminishing Manufacturing Sources and Material Shortages
Enactment
Congress reviews President’s Budget (PB), conducts hearings, and signs legislation
After the PB is submitted what activities must be completed?
1) Budget Resolution
2) Authorization Bill
3) Appropriations Bill
What is the Budget Resolution
Sets spending ceilings for major government functions. Must be completed first before the new FY begins
Passed by both Houses of Congress but does not require President signature
What is the Authorizations Bill
Provides permission for Federal programs or activities to begin or continue year to year.
Sets staffing levels, system quantities, and program funding limits
Does NOT grant funding - just authorizes the program to exist
What is the Appropriations Bill
Establishes Budget Authority and limits the amount agencies may obligate during a timeframe.
Requires both houses of Congress pass it, and signed by President before obligations can be incurred.
Apportionment
The process of distributing Budget Authority (BA) to DoD and other federal agencies.
Office of Management and Budget (O.M.B.) does this on a quarterly, annually, or other periodic basis depending on the appropriation.
Has a time limit
How does Apportionment work
DoD allocates funds within the Department through action by the U.S.D. Comptroller and their counterparts in the Services and defense agencies.
Once allocated, they are available for obligation
Misappropriation Act
Title 31, U.S. Code, Section 1301. requires that funds appropriated by Congress be used only for the programs and purposes for which the appropriation is made
Anti Deficiency Act
Title 31, U.S. Code, Sections 1341, 1342, and 1517
Prohibits an obligation in excess of the appropriated amount permitted by agency regulations. Forbids contract or obligation in advance of appropriation.
Requires agency regulations to monitor and fix responsibility for violations of the act
Bona Fide Need Rule
Requires appropriated funds be used only for goods and services for which a need arises during the period of that appropriation’s availability for obligation. Gov’t agencies may not purchase goods or services they do not require until a need accrues.
Execution Phase
The process of obligating funds, expending funds - > done by obligating funds or awarding contracts, and then expending them by writing checks
DoD Budget is reviewed and adjusted ; what do review involve
Defending the program before diff groups on an ongoing basis
Achieving a balanced and yet sufficient budget
Meeting national security objectives while operating within a fiscally constrained environment
