Army Regulation 1–1

Administration

Planning,
Programming,
Budgeting and
Execution
System

Headquarters
Department of the Army
Washington, DC
30 January 1994

UNCLASSIFIED
 SUMMARY of CHANGE
AR 1–1
Planning, Programming, Budgeting and Execution System

This revision describes an enhanced Army Planning, Programming, and Budgeting,

and Execution System (PPBES) that responds to the following--

o The new biennial cycle that began with the Program Objective Memorandum (POM)
for fiscal years (FY) 1990-1994 (para 1-5).

o Implementation of the DOD Reorganization Act of 1986 (Act of 1 October 1986,

Public Law 99-433, volume 100, US Statutes at Large, p.992), and later
organizational changes (para 1-5).

o Implementation of recommendations of the President’s Blue Ribbon Commission

on Defense Management adopted into law (section 2436, title 10, United States
Code) (para 1-5).

o A 1987 statutory requirement to submit to Congress the Future Years Defense

Program (FYDP) underlying the President’s Budget (section 221, Title 10,
United States Code) (para 1-5). (Beginning in 1990, the new 6-year Future
Years Defense Program replaced the former Five-Year Defense Program) (para 2-
2).

o Initial actions from the Defense Management Review directed by the President
in February 1989 (paras 2-3 through 2-6 and 3-2 through 3-6).

o Change in which:

--Army major commands (MACOMS) and other operating agencies (now including
program executive offices (PEOs)), submit operating requirements using field
POMs instead of Program Analysis and Resource Reviews (PARRS) used before the
FY 1992-1997 PPBES cycle (para 2-16 and chap 4).

--The Headquarters, Department of the Army (HQDA) staff uses appropriation-

based Program Evaluation Groups (PEGs) instead of functional panels to help
build the Army program (POM), which then, unlike the functional panels,
remain in operation throughout the PPBES cycle to track the program through
budget analysis, program and budget defense, and execution (paras 2-15, 4-8,
and 5-9).

--Commands and agencies submit a Command Budget Estimate (CBE) in the even
year and Resource Management Update (RMU) in the odd year replacing yearly
submission of a Command Operating Budget (COB) (para 6-7).
Headquarters *Army Regulation 1–1
Department of the Army
Washington, DC
30 January 1994 Effective 28 February 1994

Administration

Planning, Programming, Budgeting and Execution System

phase PPBES process. The regulation im- this regulation and establishment of com-
plements DODD 7045.14 and DODI mand and local forms are prohibited with-
7045.7, which cover the parent DOD out prior approval from HQDA
Planning, Programming, and Budgeting (DACS–DPD), WASH, DC 20310–0103.
System. (PPBS).
Interim changes. Interim changes to
Applicability. This regulation applies to this regulation are not official unless they
the Active Army, the Army National are authenticated by the Administrative
Guard, and the U.S. Army Reserve. Assistant to the Secretary of the Army.
Proponent and exception authority. Users will destroy interim changes on
The proponent of this regulation is the their expiration dates unless sooner super-
Director of the Army Staff (DAS). The seded or rescinded.
proponent has the authority to approve ex- Suggested improvements. Users are
ceptions to this regulation that are consis- invited to send comments and suggested
tent with controlling law and regulation. improvements on DA Form 2028 (Recom-
Proponents may delegate this approval au- mended Changes to Publications and
History. This UPDATE printing
thority, in writing, to a division chief Blank Forms) directly to HQDA
publishes a revision of this publication.
Because the publication has been under their supervision within the propo- (DACS–DPD), WASH DC 20310–0200.
extensively revised, the changed portions nent agency who holds the grade of colo-
have not been highlighted. nel or the civilian equivalent. Distribution. Distribution of this publi-
cation is made in accordance with DA
Summary. The regulation defines re- Army management control process.
Form 12–09–E, block number 2001, in-
sponsibilities for managing the Army This regulation is not subject to the re-
tended for command level D for Active
Planning, Programming, Budgeting, and quirements of AR 11–2. It does not con-
Execution System (PPBES) and perform- tain internal control provisions. Army, Army National Guard, and U.S.
ing its operational tasks. The regulation Army Reserve.
sets system policy, outlines the organiza- Supplementation. Supplementation of
tional framework within which the system
operates, and describes the phase-by-

Contents (Listed by paragraph and page number)

Chapter 1
Introduction, page 1

Section I
Overview, page 1
Purpose • 1–1, page 1
References • 1–2, page 1
Explanation of abbreviations and terms • 1–3, page 1
System and procedure • 1–4, page 1

Section II
System Responsibilities, page 1
Oversight and system management • 1–5, page 1
Secretarial oversight • 1–6, page 2

* This regulation supersedes AR 1–1, 9 July 1986, and DA Pam 5–9, 1 August 1986.

AR 1–1 • 30 January 1994 i

UNCLASSIFIED
Contents—Continued

System management • 1–7, page 2

Section III
Planning, Programming, Budgeting, and Execution Responsibilities, page 2
Deputy Chief of Staff for Operations and Plans • 1–8, page 2
Director of Program Analysis and Evaluation • 1–9, page 9
Assistant Secretary of the Army (Financial Management) • 1–10, page 9
Assistant Secretary of the Army (Manpower and Reserve Affairs) • 1–11, page 10
Assistant Secretary of the Army (Research, Development, and Acquisition) • 1–12, page 10
Deputy Chief of Staff for Intelligence • 1–13, page 10
Deputy Chief of Staff for Logistics • 1–14, page 10
Deputy Chief of Staff for Personnel • 1–15, page 10
Chief, National Guard Bureau (CNGB) • 1–16, page 10
Chief, Army Reserve (CAR) • 1–17, page 11
Other principal officials • 1–18, page 11
Commanders of major Army commands and other operating agencies • 1–19, page 11
Commanders of major Army commands serving as Army component commanders • 1–20, page 11
Staff managers and sponsors for congressional appropriations • 1–21, page 11

Chapter 2
System Description, page 13

Section I
The Department of Defense Planning, Programming, and Budgeting System, page 13
The DOD PPBS concept • 2–1, page 13
The Future Years Defense Program • 2–2, page 13
Roles of core DOD managers • 2–3, page 14
DOD Executive Committee • 2–4, page 14
Defense Resources Board • 2–5, page 14
Program Review Group • 2–6, page 15
Defense Acquisition Board and Joint Requirements Oversight Council • 2–7, page 15

Section II
The Army Planning, Programming, Budgeting, and Execution System, page 15
The PPBES: the Army’s primary resource management system • 2–8, page 15
The Army PPBES concept • 2–9, page 15
PPBES objectives • 2–10, page 16
Control of planning, programming, and budgeting documents • 2–11, page 16
Management Decision Packages • 2–12, page 16
Adjusting program and budget resources • 2–13, page 18
Principal PPBES committees • 2–14, page 18
Other committees • 2–15, page 19
Program Evaluation Groups • 2–16, page 19
Process and structure • 2–17, page 20

Chapter 3
Planning Phase, page 30

Section I
PPBS Planning, page 30
OSD and joint strategic planning • 3–1, page 30
Joint strategic planning • 3–2, page 30
Joint Strategy Review • 3–3, page 30
JSPS documents and plans • 3–4, page 30
Special assessments • 3–5, page 31

ii AR 1–1 • 30 January 1994

Contents—Continued

OSD planning products • 3–6, page 31

Section II
PPBES Planning, page 31
Army Planning • 3–7, page 31
Role of long-range planning • 3–8, page 31
Army Long-Range Planning Guidance • 3–9, page 31
Army Modernization Plan • 3–10, page 32
Enhanced Concept Based Requirements System • 3–11, page 32
Long-Range Research, Development, and Acquisition Plan • 3–12, page 32
The Army Plan (TAP) • 3–13, page 32
Force development and Total Army Analysis • 3–14, page 33
Force management • 3–15, page 33

Section III
Operational Planning Link to the PPBES, page 34
Operational planning • 3–16, page 34
Missions and tasks • 3–17, page 34
OPLAN development and review • 3–18, page 34

Chapter 4
Programming Phase, page 35
Army programming • 4–1, page 35
Defense Planning Guidance • 4–2, page 35
Army Program Guidance • 4–3, page 35
Program administrative instructions • 4–4, page 35
Program and Budget Guidance • 4–5, page 35
Transition from planning • 4–6, page 36
Program development • 4–7, page 36
Program development process • 4–8, page 37
Army program reviews • 4–9, page 37
POM preparation and submission • 4–10, page 37
OSD program review • 4–11, page 37
Program Decision Memorandum • 4–12, page 38

Chapter 5
Budgeting Phase, page 38

Section I
Army Budgeting, page 38
Budget process • 5–1, page 38
Budget guidance • 5–2, page 38
Defense Business Operations Fund: a recent managerial initiative • 5–3, page 39

Section II
Formulation, page 39
Command budget submissions • 5–4, page 39
Other budget submissions by MACOMs • 5–5, page 40
Acquisition reviews • 5–6, page 40
Final adjustments • 5–7, page 40
Review and approval • 5–8, page 40
OSD-OMB budget review • 5–9, page 40
President’s Budget • 5–10, page 40

Section III
Justification, page 41

AR 1–1 • 30 January 1994 iii

Contents—Continued

Budget hearings • 5–11, page 41

Legislative approval and enactment • 5–12, page 41
Continuing resolution authority • 5–13, page 41

Chapter 6
Execution Phase, page 41

Section I
Budget Execution, page 41
Execution • 6–1, page 41
Financial management • 6–2, page 41
Apportionment, allocation, and allotment • 6–3, page 41
Funds control • 6–4, page 42
Obligation and outlay plans • 6–5, page 42
Financing unbudgeted requirements • 6–6, page 42

Section II
Program Performance and Review, page 42
Program implementation • 6–7, page 42
Formal program performance evaluation • 6–8, page 42
OSD execution review • 6–9, page 42

Appendix A. References, page 44

Table List

Table 1–1: Army managers for manpower and force structure issues, page 3
Table 1–2: Army appropriation and fund managers, page 3
Table 1–3A: Budget activity management structure for operation and maintenance appropriations—Army, page 4
Table 1–3B: Budget activity management structure for operation and maintenance appropriations—Army National
Guard, page 6
Table 1–3C: Budget activity management structure for operation and maintenance appropriations—U.S. Army
Reserve, page 7
Table 1–4: Program Evaluation Groups listing proponent agency and areas of activity, page 7
Table 1–5: Composition of Program Evaluation Groups, page 8
Table 2–1: Major force programs, page 13

Figure List

Figure 2–1: Future Years Defense Program, page 13

Figure 2–2: Fiscal year structure of resources in a Management Decision Package (MDEP) reflecting the FY
1994–1999 Program Objective Memorandum (POM), page 17
Figure 2–3: Fiscal year structure of resources in a Management Decision Package (MDEP) reflecting the President’s
FY 94–95 budget, page 17
Figure 2–4: PPBES framework, page 23
Figure 2–5: PPBES Baseline Events I (Part 1), page 24
Figure 2–5: PPBES Baseline Events I (Part 2), page 27
Figure 2–6: PPBES Baseline Events II (Part 1), page 28
Figure 2–6: PPBES Baseline Events II (Part 2), page 29
Figure 5–1: Fiscal year structure of resources, page 39

Glossary

Index

iv AR 1–1 • 30 January 1994

Chapter 1
Introduction

Section I
Overview

1–1. Purpose
a. This regulation describes the Army Planning, Programming, Budgeting, and Execution System (PPBES). It
explains how an integrated Secretariat and Army Staff, with the full participation of major Army commands
(MACOMs), Program Executive Offices (PEOs), and other operating agencies—
(1) Plan, program, budget, and then allocate and manage approved resources.
(2) Provide the commanders in chief (CINCs) of United States unified and specified commands with the best mix of
Army forces, equipment, and support attainable within available resources.
b. The regulation assigns responsibilities and describes policy and procedures for using the PPBES to:
(1) Establish the Army long-range plan, midterm plan and program, and near-term budget.
(2) Identify resource requirements of the approved program.
(3) Request and justify resources from the Office of the Secretary of Defense (OSD) and Congress.
(4) Monitor the use of appropriated funds and authorized manpower to achieve intended purposes.

1–2. References
Required and related publications and prescribed and referenced forms are listed in appendix A.

1–3. Explanation of abbreviations and terms

Abbreviations and special terms used in this regulation are explained in the glossary.

1–4. System and procedure

Sections II ad III assign responsibilities for system oversight, management, and operation. Chapters 2 through 6
describe system policy and procedure.

Section II
System Responsibilities

1–5. Oversight and system management

The responsibilities assigned in sections II and III reflect new ways in which the Army oversees, manages, and
operates the PPBES in which—
a. The Department of Defense (DOD) now—
(1) Plans, programs, and budgets on a biennial cycle.
(2) Submits to Congress the 6-year Future Years Defense Program (FYDP) underlying the President’s Budget
(section 221, title 10, United States Code (10 USC 221)).
b. The CINCs now play a greater role in Service and DOD resource decisions affecting Service components
assigned to the CINC. Several new measures stress support of CINC warfighting capabilities:
(1) Each Army component command (ACC) integrates the CINC’s operational requirements with other missions of
the command.
(2) Headquarters, Department of the Army (HQDA) presents a formal briefing to each CINC on the resource status
of the CINC’s issues in the Army program submitted to OSD.
(3) HQDA coordinates directly with each CINC on major budget issues affecting the CINC’s resource requirements.
c. The Army Secretariat has assumed overall responsibility for executing selected functions formerly carried out by
the Army Staff. The Secretariat now exercises sole responsibility for auditing, inspector general functions, legislative
affairs, and public affairs. Concerning functions that figure prominently in the PPBES, the Secretariat now has sole
responsibility for acquisition, financial management, and information management. The Army Staff, meanwhile, retains
overall responsibility for determining requirements. Also, with functional cohorts from the Army Secretariat, the Staff
prepares The Army Plan (TAP), develops the Army program, and tracks Army program performance. Related to the
changes—
(1) A designated Army Acquisition Executive (AAE), PEOs, and program and project managers (PMs) now operate
under the policy of a designated Defense Acquisition Executive (DAE) (section 2436, title 10, United States Code (10
USC 2436).
(2) The Assistant Secretary of the Army (Financial Management) (ASA(FM)) now supervises and directs prepara-
tion of Army budget estimates and financial execution of the congressionally approved budget.

AR 1–1 • 30 January 1994 1

1–6. Secretarial oversight
a. PPBES oversight and Armywide policy development. The ASA(FM) will oversee—
(1) The PPBES and the development and promulgation of Armywide PPBES policy.
(2) All Army appropriations and will serve as the sponsor for all appropriations except Army National Guard
(ARNG) and U.S. Army Reserve (USAR) appropriations.
b. Functional oversight. Principal officials of the Office of the Secretary of the Army (OSA) will oversee operation
of the PPBES process within assigned functional areas and will provide related policy and direction.

1–7. System management

The ASA(FM), with the Director of Program Analysis and Evaluation (DPAE), will manage the overall PPBES. As
provided in a through d, below, the Deputy Chief of Staff for Operations and Plans (DCSOPS), DPAE, and ASA(FM)
will manage functional phases of the system, each establishing and supervising policies and procedures necessary to
carry out phase functions.
a. Planning. The DCSOPS will manage the PPBES planning phase and will—
(1) Administer the Army Planning System (APS) to meet and complement the demands of the Joint Strategic
Planning System (JSPS) and the Joint Operational Planning and Execution System (JOPES).
(2) Validate CINC requirements and provide CINC linkage to the U.S. Army Training and Doctrine Command
(TRADOC) to make sure CINC required warfighting capabilities receive consideration in developing Army doctrine.
(3) Integrate the views of HQDA principal officials on Army missions and capabilities consonant with national
security objectives and DOD guidance. Based on the integrated view, recommend Army priorities to the Chief of Staff,
U.S. Army (CSA) for approval by the Secretary of the Army (SA).
b. Programming. The DPAE will manage the PPBES programming phase and will—
(1) Provide the SA and CSA with independent assessments of program alternatives and priorities.
(2) Serve as the authoritative source of the FYDP resource position for the Army as a whole and, specifically, for
CINC issues.
(3) Exercise HQDA staff responsibility over the Program Objective Memorandum (POM) and the FYDP to include
interaction with OSD and the Joint Staff.
c. Budgeting. The ASA(FM) will manage the PPBES budgeting phase and will supervise and direct preparation of
Army budget estimates, as well as incorporating the budgets of the ARNG and USAR.
d. Execution.
(1) The ASA(FM) will manage the PPBES execution phase and will—
(a) Apply funds appropriated by Congress to carry out authorized programs to include apportioning, allocating, and
allotting funds, obligating and disbursing them.
(b) Track and report on budget execution and help in reviews of program performance.
(2) The DPAE will coordinate the evaluation of overall program performance to make sure that total resources are
applied to achieve approved objectives and to gain feedback for adjusting resource requirements.

Section III
Planning, Programming, Budgeting, and Execution Responsibilities

1–8. Deputy Chief of Staff for Operations and Plans

The DCSOPS will:
a. Determine force-related requirements of the Total Army— Active Army, ARNG, and USAR.
(1) Through TRADOC, integrate CINC requirements and those developed through the JSPS and JOPES into the
Enhanced Concept Based Requirements System (ECBRS).
(2) Integrate required capabilities identified through the ECBRS into Army planning.
(3) Develop near-, mid-, and long-term force requirements. Develop requirements for organization, force structure,
personnel, materiel, command and control, mobilization, facilities, and training devices.
b. Prepare Army Long Range Planning Guidance (ALRPG).
c. Document in the TAP policy set by the senior Army leadership and leadership priorities for force-related resource
requirements, midterm objectives for long term functional goals, and approved base force levels.
d. Develop the preliminary program force.
e. Exercise staff supervision of joint matters and assign, coordinate, and review Joint Staff actions.
f. Provide the operational link between HQDA, the Joint Staff, and, through ACCs, the CINCs.
g. Participate with DPAE in preparing—
(1) Army input to the OSD Program Projection and Army comments on the Defense Planning Guidance (DPG)
directed in 1–9 b, below.
(2) Briefings on resource status of CINC issues directed in 1–9 j, below.
h. Participate with ASA(FM) in coordinating CINC major budget issues directed in 1–10 d, below.

2 AR 1–1 • 30 January 1994

 i. Serve as Army manager for force structure issues (table 1–1), and perform programming and budgeting assign-
ments listed in tables 1–2, 1–3A, 1–3B, 1–3C, and 1–5.

Table 1–1
Army managers for manpower and force structure issues
Issue Manager

Force Structure DCSOPS

Active Military Manpower DCSPER
Army Reserve Manpower CAR
Army National Guard Manpower CNGB
Civilian Manpower DCSPER
Army Management Headquarters Activities (AMHA) ASA(MRA)
Joint and Defense Accounts DCSPER

Table 1–2
Army appropriation and fund managers
Resource Manager for Manager for
identification requirements program and
code Appropriation (fund)1 determination performance

Investment
RDTE Research, Development, Test, and Evaluation, Army DCSOPS ASA(RDA)
ACFT (APA) Aircraft Procurement, Army DCSOPS ASA(RDA)
MSLS (MIPA) Missile Procurement, Army DCSOPS ASA(RDA)
WTCV Procurement of Weapons and Tracked Combat Vehicles, Army DCSOPS ASA(RDA)
AMMO (PAA) Procurement of Ammunition, Army DCSOPS ASA(RDA)
OPA Other Procurement, Army DCSOPS ASA(RDA)
OPA 1 DCSOPS ASA(RDA)
OPA 2 DCSOPS ASA(RDA)
OPA 3 DCSOPS ASA(RDA)
MCA Military Construction, Army ACSIM ACSIM
MCNG Military Construction, Army National Guard CNGB CNGB
MCAR Military Construction, Army Reserve CAR CAR
AFHC Family Housing, Army (Construction) ACSIM ACSIM
Operations
OMA Operation and Maintenance, Army Table 1–3A Table 1–3A
OMNG Operation and Maintenance, Army National Guard2 CNGB CNGB
OMAR Operation and Maintenance, Army Reserve3 CAR CAR
MPA Military Personnel, Army DCSPER DCSPER
NGPA National Guard Personnel, Army CNGB CNGB
RPA Reserve Personnel, Army CAR CAR
AFHO Family Housing, Army (Operation) ACSIM ACSIM
NBRP National Board for the Promotion of Rifle Practice, Army DCSOPS DCSOPS
DBOF Business Operations Fund ASA(FM) ASA(FM)
DM Depot Maintenance DCSLOG ASA(FM)
SMA Supply Management, Army DCSLOG DCSLOG
CAWCF Army Conventional Ammunition Working Capital Fund ASA(RDA) ASA(RDA)
IMET International Military Education and Training Transfer Appropriation DCSLOG DCSLOG
FMF Foreign Military Financing Program DCSLOG DCSLOG
FMS Foreign Military Sales Program DCSLOG DCSLOG
HOA Home Owners Assistance Fund, Defense COE COE
ATF Department of the Army Trust Funds ASA(FM) ASA(FM)
Notes:
1 ASA(FM) serves as appropriation sponsor for all appropriations (funds) except ARNG and USAR appropriations, whose sponsors are the Chief, National

Guard Bureau and Chief, Army Reserve, respectively.

2 See table 1–3B.
3 See table 1–3C.

AR 1–1 • 30 January 1994 3

Table 1–3A
Budget activity management structure for operation and maintenance appropriations—Army
Operation and Maintenance, Army

I. Army manpower and total obligatory authority

nxx Budget activity (BA)

nnx 01 level
nnn Budget subactivity
Records resources for Army Management
Structure Code (AMSCO) nnnxxx, where nnn
designates budget subactivity.

Code Description Manager1

BA 1: Operation forces DCSOPS
11 Land forces
111 Combat units DCSOPS
112 Tactical support DCSOPS
113 Theatre defense DCSOPS
114 Force related training/special activities DCSOPS
115 Force communications DISC4
116 JCS exercises DCSOPS
117 Base support ACSIM
118 Depot maintenance DCSLOG

12 Land operations support

121 Combat developments DCSOPS
122 Unified commands DCSOPS

BA 2: Mobilization DCSOPS
21 Mobility operations
211 Strategic mobility DCSLOG
212 War reserves DCSLOG
213 Industrial preparedness DCSLOG
214 POMCUS DCSLOG

BA 3: Training and recruiting DCSOPS

31 Accession training
311 Officer acquisition DCSOPS
312 Recruit training DCSOPS
313 One station unit training DCSOPS
314 Reserve Officer’s Training Corps (ROTC) DCSOPS
315 Service academy base support ACSIM

32 Basic skill and advanced training

321 Specialized skill training DCSOPS
322 Flight training DCSOPS
323 Professional development education DCSOPS
324 Training support DCSOPS
325 Base support ACSIM

33 Recruiting, and other training and education

331 Recruiting and advertising DCSPER
332 Examining DCSPER
333 Off-duty and voluntary education DCSPER
334 Civilian education and training DCSPER
335 Junior ROTC DCSPER
336 Base support—recruiting & examining ACSIM

BA 4: Administration and servicewide activities

41 Security programs
411 Security programs DCSINT

42 Logistics operations
421 Servicewide transportation DCSLOG
422 Central supply activities DCSLOG
423 Logistic support activities DCSLOG
424 Ammunition management DCSLOG

4 AR 1–1 • 30 January 1994

Table 1–3A
Budget activity management structure for operation and maintenance appropriations—Army—Continued
Operation and Maintenance, Army

43 Servicewide support
431 Administration Shared2
432 Servicewide communications DISC4
433 Manpower management DCSPER
434 Other personnel support DCSPER
435 Other service support DCSOPS
436 Army claims activities TJAG
437 Real estate management DCSLOG
438 Base support ACSIM
439 Defense Environmental Restoration Account (DERA) ACSIM

44 Support of other nations

441 International military headquarters DCSOPS
442 Miscellaneous support of other nations DCSOPS

II. Manpower-only activity structure

PROBE generates categories 8 and 9 below to

meet manpower reporting requirements.

Category 8 records resources for AMSCO

84nxxx, where n=1, 6, 7, or 9 designates the
budget subactivity. Category 9 records re-
sources for AMSCO 9nxxx, where n=1, 2, 3, or
4 designates the 0-1 level structure.

Code Description Manager

Category 8: Medical activities, manpower only— DCSOPS
reimbursable labor
84 Medical manpower—reimbursable TSG
841 Examining activities
846 Training-medical spaces
847 Care in Army medical centers
849 Defense medical spaces

Category 9: Other—manpower only

91 Special operations forces manpower—reimbursable DCSOPS
92 Defense agency manpower (military only) DCSPER
93 Outside Department of Defense DCSPER
94 Transients, holdees, and operating strength deviation DCSPER

III. Base support

Provides installation support functions for

budget subactivities, 117, 315, 325, 336, and
438.

Includes former accounts for base operations

(BASOPS) (AMSCO xxxx96), real property
maintenance (RPM) (AMSCO xxxx78 in ac-
count L and AMSCO xxxx76 in account K), and
environmental compliance (AMSCO xxxx56).
Adds functions listed.

Account Manager
A. Real estate leases ACSIM
B. Installation supply operations DCSLOG
C. Direct and general support (DS/GS) maintenance of nontacti- DCSLOG
cal equipment
D. Transportation services DCSLOG
E. Laundry and dry cleaning services DCSLOG
F. The Army food services program DCSLOG
G. Personnel support DCSPER

AR 1–1 • 30 January 1994 5

Table 1–3A
Budget activity management structure for operation and maintenance appropriations—Army—Continued
Operation and Maintenance, Army

H. Unaccompanied personnel housing operation ACSIM

J. Operation of utilities ACSIM
K. Maintenance and repair of real property ACSIM
L. Minor construction ACSIM
M. Engineer support ACSIM
N. Command element, special staff, headquarters commandant ACSIM
P. Automation activities DISC4
Q. Reserve component support ACSIM
S. Community and morale support activities ACSIM
T. Preservation of order/counterintelligence operations DCSOPS
U. Resource management ASA(FM)
W. Contracting operations ASA(RDA)
Y. Records management, publications DISC4

Environmental compliance, pollution prevention, and conser- ACSIM

vation programs (summary account)

Added function Manager

Base communications DISC4
AMSCO xxxx95
Audio visual DISC4
AMSCO xxxx90
Youth services, family programs ACSIM
AMSCO 315819 and 315820 (for USMA resources) and
AMSCO xxx719 and xxx720 (where xxx is 117, 325, or 438
depending on the command owning the resources)
Notes:
1 Manager for requirements determination and for program and performance.
2 Manager responsibilities shared by various functional proponents.

Table 1–3B
Budget activity management structure for operation and maintenance appropriations—Army National Guard
Operation and Maintenance, Army National Guard

Army National Guard

Records resources for AMSCO 5nxxx, where

n=1 or 4 designates the 0-1 level structure.

Code Description Manager

BA 1: Operating forces CNGB
51 Mission operations
Training operations
Recruiting and retention
Medical support
Depot maintenance
Base support1

BA 4: Administration & servicewide activities CNGB

54 Administration & servicewide activities
Information management
Public affairs
Personnel administration
Staff management
Notes:
1 Follows support recording structure used for Operation and Maintenance, Army.

6 AR 1–1 • 30 January 1994

Table 1–3C
Budget activity management structure for operation and maintenance appropriations—U.S. Army Reserve
Operation and Maintenance, U.S. Army Reserve

U.S. Army Reserve

Records resources for AMSCO 5nxxx, where

n=1 or 4 designates the 0-1 level structure.

Code Description Manager

BA 1: Operating forces CAR
51 Mission operations
Training operations
Recruiting and retention
Medical support
Depot maintenance
Base support1

BA 4: Administration & servicewide activities CAR

54 Administration & servicewide activities
Information management
Public affairs
Personnel administration
Staff management
Notes:
1 Follows support recording structure used for Operation and Maintenance, Army.

Table 1–4
Program Evaluation Groups listing proponent agency and areas of activity
Title Proponent Area of activity

Manpower and Force Structure DCSOPS Active Army and reserve component modified table of organization and
equipment (MTOE) and table of distribution (TDA) units; Individuals Ac-
count (TTHS: trainees, transients, holdees, and students); force manning
decisions, civilian and military.1, 2

General Purpose Forces DCSOPS Program 2, General Purpose Forces; Program 10, Support of Other Na-
tions.

Information Management (Sustaining) DISC4 Servicewide Communications; Information Systems for Command and
Control, Communications, and Computers (C4); Automation MDEPs (in-
cluding MSxx, MUxx, and Information Management PEO MDEPs).

Intelligence DCSINT Program 3 (Intelligence) (Operation and Maintenance, Army (OMA),

Budget Subactivity 411—Security Programs).

Army National Guard (ARNG) CNGB Military Construction, Army National Guard (MCNG); Operation and Main-
tenance, Army National Guard (OMNG); National Guard Personnel, Army
(NGPA).

U.S. Army Reserve (USAR) CAR Military Construction, Army Reserve (MCAR); Operation and Maintenance,
Army Reserve (OMAR); Reserve Personnel, Army (RPA).

Modernization (Battlefield) DCSOPS Research, Development, Test, and Evaluation, Army (RDTE); procurement
ASA(RDA) appropriations; fielding support costs.1, 2

Supply and Maintenance DCSLOG OMA Budget Activity (BA) 1, Operating Forces (Depot Maintenance); BA 2,
Mobilization (War Reserves, Industrial Preparedness); BA 4, Administration
and Servicewide Activities (Servicewide Transportation, Central Supply Ac-
tivities, Logistic Support Activities, Ammunition Management, Miscellane-
ous Support of Other Nations); and Defense Business Operations Fund
(DBOF).

School and Institutional Training DCSOPS OMA BA 3, Training and Recruiting (Training).

AR 1–1 • 30 January 1994 7

Table 1–4
Program Evaluation Groups listing proponent agency and areas of activity—Continued
Title Proponent Area of activity

Medical TSG Army health care program.

Personnel activities DCSPER Personnel Activities, OMA Budget Subactivities 331–335, 433, and 434;
Military Personnel, Army (MPA).

Administrative AASA Program 9, Administration and Associated Activities and other sub-
programs within OMA.

Base Operations (BASOPS) ACSIM Base support functions in OMA Budget Subactivities 117, 315, 325, 336,
and 438. (See Base Support, table 1–3A.)

Construction and Housing ACSIM Military Construction, Army (MCA); Army Family Housing (AFH); Home
Owners Assistance (HOA)
Notes:
1 The Manpower and Force Structure PEG and Modernization PEG address fundamental, strategy driven operational requirements. Remaining PEGs ad-

dress functional requirements to sustain the force and to maintain readiness and the support base.
2 The Manpower and Force Structure PEG administers unit counts and end strength for the Active Army, without dollars. The Modernization PEG deals with

equipment quantities and dollars. Other PEGs deal with manpower and dollars.

Table 1–5
Composition of Program Evaluation Groups
Membership1, 2
Manager for Manager for
requirements program and Appropriation
Title and proponent determination performance sponsor OSA member

Manpower and Force Structure DCSOPS DCSPER ASA(FM)3 ASA(MRA)

CNGB, CAR

General Purpose Forces DCSOPS DCSOPS ASA(FM) ASA(MRA)

Information Management (Sustaining) DISC4 DISC4 ASA(FM) ASA(FM), DISC4

Intelligence DCSINT DCSINT ASA(FM) ASA(MRA)

Army National Guard (ARNG) CNGB CNGB CNGB CNGB, ASA(MRA)

U.S. Army Reserve (USAR) CAR CAR CAR CAR, ASA(MRA)

Modernization (Battlefield) DCSOPS ASA(RDA) ASA(FM) ASA(RDA)

DISC4

Supply and Maintenance DCSLOG DCSLOG ASA(FM) ASA(ILE)

School and Institutional Training DCSOPS DCSOPS ASA(FM) ASA(MRA)

Medical TSG TSG ASA(FM) ASA(MRA)

Personnel Activities DCSPER DCSPER ASA(FM) ASA(MRA)

Administrative AASA AASA ASA(FM) ASA(MRA)

Base Operations (BASOPS) ACSIM ACSIM ASA(FM) ASA(ILE)

Construction and Housing ACSIM ACSIM ASA(FM) ASA(ILE)

Notes:
1 A program integrator representing the director of Program Analysis and Evaluation (DPAE) serves as an additional core member of the Program Evalua-

tion Group (PEG). The manager for requirements determination chairs the PEG.
2 Other representatives from offices and agencies of the Secretariat and Army Staff may attend PEG meetings according to subjects considered. The addi-

tional representatives provide oversight or act in behalf of functional interests. For example, a DCSLOG member of the Information Management PEG might
represent DCSLOG’s proponency of tactical logistics systems. An open door policy invites attendance by major Army commands (MACOMs) and Program
Executive Offices (PEOs).
3 The Manpower and Force Structure PEG administers unit counts and end strength. It affects appropriations indirectly only.

8 AR 1–1 • 30 January 1994

1–9. Director of Program Analysis and Evaluation
The DPAE will—
a. With DCSOPS, develop programming guidance for incorporation in the TAP.
b. Develop guidance for, and with functional proponents, prepare responses to, OSD program guidance documents.
c. With functional proponents—
(1) Develop and defend the Army program, manage its codification in the POM, and monitor program execution.
(2) Review CINC integrated priority lists (IPLs) and MACOM-PEO POMs.
d. Serve as HQDA executive agent for OSD Execution Review of selected Army programs.
e. During the programming phase, guide and integrate the work of Program Evaluation Groups (PEGs) (tables 1–4
and 1–5 above). With the PEG chair, translate and recommend resource levels for the overall Army program.
f. Direct the review and analysis of Army programming actions, perform selected studies, and develop alternatives
for resource planning and programming.
g. Review Reserve component programming actions to make sure they are coordinated before interacting with the
Army Secretariat.
h. Manage the Management Decision Package (MDEP) architecture.
i. Make sure that the force structure and manpower information included in FYDP submissions to OSD matches the
positions in the force structure and accounting data bases for the Active Army, ARNG, USAR, and civilian work force.
(Data in the FYDP and in the force structure and manpower data bases must match before the FYDP can be provided
to OSD.)
j. With DCSOPS and ACCs, brief each CINC on the resource status of the CINC’s issues after the submission of
each POM.
k. With ASA(FM)—
(1) Maintain the data architecture of the Army Management Structure (AMS) to meet management needs for each
phase of the PPBES and to support FYDP submissions (including annexes).
(2) Maintain a resource management architecture to support the integration of PPBES processes and systems.
(3) Maintain the data base architecture for the PPBES Data Management System (PROBE), including managing data
entry into PROBE, making sure that PROBE data elements are consistent both internally and with AMS and FYDP
reporting requirements (including annexes).
(4) Maintain the official data base for submitting the Army portion of the FYDP.
(5) Produce the FYDP resource position in paper and machine-readable form for periodic issue of Program and
Budget Guidance (volume II).
(6) Generate machine-readable data in support of Army budget estimates.
l. With appropriate HQDA principal officials develop automated management systems, decision support systems,
and predictive models to support program development and management through program and budget execution.

1–10. Assistant Secretary of the Army (Financial Management)

The ASA(FM) will—
a. With functional proponents, prepare the Army budget from the approved Army program.
b. Review and consolidate the ARNG and USAR budgets with the Active Army budget for submission to OSD and
Congress.
c. During the budgeting phase, guide and integrate the work of designated PEGs (tables 1–4 and 1–5 above and para
2–16).
d. With DCSOPS, coordinate with each CINC on major budget issues affecting the CINC’s resource requirements.
e. Supervise and direct financial execution of the congressionally approved budget.
f. Develop and approve the Independent Cost Estimate (ICE) to check the reasonableness of the Baseline Cost
Estimate (BCE) for selected major weapon and information systems and establish the Army Cost Position (ACP) that
certifies or modifies the BCE as appropriate.
g. Validate economic analyses supporting new programs.
h. Maintain the HQDA Program Performance and Budget Execution Review System (PPBERS).
i. Oversee policy and guidance to account for and report on Army managed funds.
j. Oversee accounting for and reporting on use of Army managed funds to OSD and Congress by appropriation. As
applicable to each appropriation include FYDP program, program element (PE), project number, budget line item
number (BLIN), budget activity (BA), budget activity group (BAG), budget subactivity (BSA), element of resource
(EOR), and financing data. Also as applicable to an appropriation, account for and report on the use of manpower by
manpower category.
k. Develop and maintain nonstandard Army systems in support of financial review and analysis and implement
nonstandard Army systems in support of fund distribution, accounting, and reporting of funds. Oversee the develop-
ment and maintenance of standard Army systems, such as the Standard Army Financial Inventory Accounting and

AR 1–1 • 30 January 1994 9

Reporting System (STARFIARS) in support of financial analysis; and oversee implementation of the same standard
Army systems in support of distribution, accounting, and reporting of funds.
l. With DPAE, perform the system and data management functions directed in 1–9 k, above.
m. Issue before each PROBE update resource controls for authorized or projected levels of total obligation authority
(TOA), manpower, and force structure.
n. Perform budget and appropriation sponsor assignments listed in tables 1–2, 1–3A, 1–3B, 1–3C, and 1–5 above.

1–11. Assistant Secretary of the Army (Manpower and Reserve Affairs)

The Assistant Secretary of the Army (Manpower and Reserve Affairs) (ASA(MRA)) will—
a. Approve policy for, and oversee, manpower, force structure, and personnel activities conducted throughout the
Army.
b. Oversee development and promulgation of ARNG and USAR policy.
c. Perform PPBES functions and responsibilities outlined in AR 10–5 and related functions affecting manpower,
including review of proposed manpower levels before approval by the SA and CSA.
d. Serve as Army manager for Army Management Headquarters Activities (AMHA) (table 1–1, para 1–8, above),
and perform programming and budgeting assignments listed in table 1–5 (para 1–8, above).

1–12. Assistant Secretary of the Army (Research, Development, and Acquisition)

The Assistant Secretary of the Army (Research, Development, and Acquisition) (ASA(RDA)) will—
a. Perform Army acquisition management activities as the designated AAE and will—
(1) Represent the Army on the Defense Acquisition Board (DAB), The Nuclear Weapons Council Standing
Committee, and the Conventional Systems Committee.
(2) Advise the Secretary of the Army on matters of acquisition management.
(3) With the Vice Chief of Staff, Army, co-chair the Army Systems Acquisition Review Council (ASARC).
b. Manage the Army Baselining Program and make sure that baseline documentation reflects the current Army cost
position.
c. Integrate the development and acquisition of materiel into all phases of the PPBES process and will—
(1) Exercise responsibility for the research, development, and procurement (RDA) appropriations in formulating,
presenting, and executing the budget and in related data base areas as outlined in the Memorandum of Understanding
between ASA(FM) and ASA(RDA).
(2) With the ASA(FM), prepare and justify budget estimates for the RDA appropriations.
(3) Perform programming and budgeting assignments listed in tables 1–2, 1–3A, 1–3B, 1–3C, and 1–5 (see para
1–8i above).

1–13. Deputy Chief of Staff for Intelligence

The Deputy Chief of Staff for Intelligence (DCSINT) will—
a. Prepare, justify, and submit the program and budget for the Army portion of the National Foreign Intelligence
Program (NFIP) per the policy, resource, and administrative, guidance of the Director of Central Intelligence and DOD
NFIP Program Managers.
b. Perform programming and budgeting assignments listed in tables 1–2, 1–3A, 1–3B, 1–3C, and 1–5 (para 1–8i).

1–14. Deputy Chief of Staff for Logistics

The Deputy Chief of Staff for Logistics (DCSLOG) will—
a. Review the program and budget for its capability to sustain the force.
b. Perform programming and budgeting assignments listed in tables 1–2, 1–3A, 1–3B, 1–3C, and 1–5 (para 1–8i).

1–15. Deputy Chief of Staff for Personnel

The Deputy Chief of Staff for Personnel (DCSPER) will—
a. Manage the individuals’ account for Active Army military manpower not included in Army operating strength.
b. Allocate Active Army military and civilian end strength and civilian workyears to MACOMs, PEOs, and other
operating agencies.
c. Collect for reimbursable manpower allocated to revolving funds and non-Army agencies.
d. Serve as Army manager for manpower issues as assigned in table 1–1, paragraph 1–8i above, and perform
programming and budgeting assignments listed in tables 1–2, 1–3A, 1–3B, 1–3C, and 1–5 (para 1–8i).

1–16. Chief, National Guard Bureau (CNGB)

The Chief, National Guard Bureau (CNGB) will—
a. Prepare and justify the budget for ARNG appropriations and perform operational tasks listed in paragraph 1–21,
below.

10 AR 1–1 • 30 January 1994

 b. Serve as Army manager for ARNG manpower issues as listed in table 1–1, paragraph 1–8I above, and perform
programming and budgeting assignments listed in tables 1–2, 1–3A, 1–3B, 1–3C, and 1–5 (para 1–8i).

1–17. Chief, Army Reserve (CAR)

The Chief, Army Reserve (CAR) will—
a. Prepare and justify the budget for USAR appropriations.
b. Serve as Army manager for USAR manpower issues as listed in table 1–1, paragraph 1–8i above, and perform
programming and budgeting assignments listed in tables 1–2, 1–3A, 1–3B, 1–3C, and 1–5 (para 1–8i).

1–18. Other principal officials

Other HQDA principal officials, as assigned, will serve as Army managers for manpower issues (table 1–1, para 1–8i
above) and will perform programming and budgeting assignments listed in tables 1–2, 1–3A, 1–3B, 1–3C, and 1–5
(para 1–8i).

1–19. Commanders of major Army commands and other operating agencies

MACOM commanders, PEOs, and heads of other operating agencies will—
a. Plan, program, and budget for assigned missions, responsibilities, and functions.
b. Document manpower in their subordinate organizations per allocated manpower levels.
c. Execute the approved MACOM or agency program within allocated resources, applying the inherent flexibility
allowed by law and regulation.
d. Assess MACOM or agency program performance and budget execution and will—
(1) Account for and report on use of allocated funds by appropriation and MDEP. As applicable to each appropria-
tion, include FYDP program and subprogram, Army Management Structure Code (AMSCO), PE, project number,
BLIN, BAG, and EOR. Also account for and report on use of allocated manpower by unit identification code (UIC).
(2) Use manpower data (especially the Civilian Employment Level Plan (CELP)) and financial data from budget
execution in developing future requirements.

1–20. Commanders of major Army commands serving as Army component commanders

MACOM commanders serving as ACC commanders will identify and integrate with their other missions and opera-
tional requirements the requirements of the CINC.

1–21. Staff managers and sponsors for congressional appropriations

Separate resource allocation structures for congressional appropriations and the FYDP are essential to obtaining Army
resources. Table 1–1, above, assigns staff managers for manpower and force structure issues. Tables 1–2, 1–3A, 1–3B,
and 1–3C, assign staff managers and sponsors for Army appropriations and funds and 0–1 level budget activities of the
Operation and Maintenance appropriations. Table 1–5 shows PEG assignments for these managers and sponsors. The
responsibilities of the designated staff managers and sponsors are as outlined below:
a. Manager for manpower and force structure issues. The manager for manpower issues and the manager for force
structure issues will work together to maintain a continuous exchange of information and collaboration. As appropriate,
they will—
(1) Coordinate instructions to the field, and the processing of requests from the field, for manpower or force
changes.
(2) Align and balance manpower and unit information among the Structure and Manpower Allocation System
(SAMAS), The Army Authorization Documents System (TAADS), PROBE, and the FYDP.
(3) Provide lead support to the PEG chair on manpower issues
b. Manager for requirements determination. The manager for requirements determination will—
(1) Determine the scope, quantity, and qualitative nature of functional requirements for planning, programming, and
budgeting.
(2) Check how commands and agencies apply allocated manpower and dollars to be sure their use fulfills program
requirements.
(3) Review unresourced programs submitted by MACOMs, PEOs, and other operating agencies.
(4) Resolve conflicts involving unresourced requirements or decrements on which MACOMs, PEOs, and other
operating agencies fail to reach agreement in developing the program or budget.
(5) Recommend to the Program and Budget Committee (PBC) (para 2–14 c, below) the allocation of available
resources, unresourced programs, and offsetting decrements.
(6) During program and budget reviews, and throughout the process, coordinate resource changes with agencies
having proponency for affected MDEPs.
c. Manager for program and performance. The manager for program and performance will—
(1) Represent the functional program and monitor its performance.

AR 1–1 • 30 January 1994 11

 (2) As required, act with the appropriation sponsor or help the appropriation sponsor perform the duties listed in d
(1) through (5), below.
(3) Translate budget decisions and approved manpower and funding into program changes and make sure that data
transactions update affected MDEPs.
(4) Check budget execution from the functional perspective.
(5) For investment appropriations—
(a) Operate and maintain data bases in support of PROBE.
(b) During budget formulation, determine how changes in fiscal guidance affect budget estimates and review and
approve the documentation of budget justification.
(c) During review of the budget by OSD and Office of Management and Budget (OMB) and by Congress, serve as
appropriation advocate, help prepare the Army response to OSD program budget decisions (PBDs), and prepare
congressional appeals.
(d) During execution determine fund recipients, monitor execution, perform decrement reviews, plan reprogram-
mings, and control below threshold reprogrammings. On RDA matters and otherwise as required, testify before OSD
and Congress.
d. Appropriation sponsor. The appropriation sponsor will—
(1) Control the assigned appropriation or fund.
(2) Serve as Army spokesperson for appropriation resources.
(3) Help resource claimants solve manpower and funding deficiencies.
(4) Issue budget policy, instructions, and fiscal guidance.
(5) Prepare supplemental budgets.
(6) During budget formulation~
(a) Provide lead support to the PEG chair.
(b) Bear responsibility for PROBE updates.
(c) Prepare and justify budget estimates.
(7) During budget justification testify before Congress.
(8) During budget execution manage financial execution of the appropriation and reprogram allocated manpower
and funds to meet unforeseen contingencies.

12 AR 1–1 • 30 January 1994

Chapter 2
System Description

Section I
The Department of Defense Planning, Programming, and Budgeting System

2–1. The DOD PPBS concept

The DOD Planning, Programming, and Budgeting System (PPBS) is the primary system for managing the department’s
military functions. It is also the parent system of the Army’s PPBES. The purpose of the PPBS is to produce a plan, a
program, and finally the defense budget.

2–2. The Future Years Defense Program

a. The term Future Years Defense Program (FYDP) replaces the term Five-Year Defense Program used through the
FY 91 President’s Budget. The FYDP officially summarizes the programs developed within the PPBS and approved by
the Secretary of Defense (SECDEF). The FYDP exists in machine readable form, which lists resources by program
element (PE), resource identification code, fiscal year (FY), and value. The FYDP exists also in paper form, which
sums resource data in various management arrays.
b. The FYDP has two dimensions. Its first dimension specifies 11 major force programs (table 2–1). Constructed
from PE building blocks, the programs offer an output or mission-oriented structure, within which each PE represents
an organizational or functional entity and its associated resources. DOD uses the structure for internal program review.
In its second dimension, the FYDP records program decisions on dollars and manpower applying the input-oriented
appropriation structure of congressional budget requests (table 1–2). The FYDP includes separately published annexes
for procurement; construction; and research, development, test, and evaluation.

Table 2–1
Major force programs
Program Title

1 Strategic forces
2 General purpose forces
3 Intelligence and communications
4 Airlift and sealift
5 Guard and Reserve forces
6 Research and development
7 Central supply and maintenance
8 Training, medical, and other general personnel activities
9 Administration and associated activities
10 Support of other nations
11 Special operations forces

c. The FYDP identifies and accounts for the total of all resources programmed by DOD. Assigning resources to
specific major force programs, the FYDP shows fiscal year totals for forces, manpower, and dollars. For example, the
FYDP for the FY 1994–1995 Budget (fig 2–1) would—

Figure 2–1. Future Years Defense Program

AR 1–1 • 30 January 1994 13

 (1) Give totals for each resource group by prior year (PY), current year (CY), and the FY 1994–1995 budget years
(BYs).
(2) Extend TOA and manpower totals 4 years beyond the FY 1995 BY to FY 1999.
(3) Extend force totals 7 years beyond the FY 1995 BY to FY 2002.
d. The FYDP gets updated at least three times during the biennial PPBES cycle.
(1) In the even years, updates occur when defense components submit their POMs to OSD about 1 April and budget
estimates about 15 September.
(2) In the odd years (and, when appropriate, for an even year amendment) a FYDP update coincides with the
President’s Budget submitted to Congress in January.

2–3. Roles of core DOD managers

The SECDEF relies on a core of key DOD officials to help manage DOD. Those serving in that capacity are as
follows:
a. Deputy Secretary of Defense. The Deputy Secretary of Defense (DEPSECDEF) helps the SECDEF in overall
leadership of the department. He exercises authority delegated by the SECDEF and conducts the day-to-day operation
of DOD.
b. Chairman of the Joint Chiefs of Staff. Existing outside the military chain of command, the Chairman of the Joint
Chiefs of Staff (CJCS) functions within the chain to transmit communications from the President and the SECDEF to
the CINCs. The CJCS serves as the principal military advisor to the President and SECDEF. Shouldering responsibili-
ties for planning, advising, and policy formulation, the CJCS participates in DOD’s senior councils. There, the CJCS
speaks for the Joint Chiefs of Staff (JCS) and CINCs. The Vice Chairman of the JCS is the second ranking member of
the Armed Forces. He acts for the Chairman in the Chairman’s absence.
c. Service Secretaries. The SA and other Service Secretaries convey the Service perspective on defense matters to
the SECDEF and DEPSECDEF and, as key advisors, provide them with candid personal views.
d. Under Secretary of Defense for Acquisition. The Under Secretary of Defense for Acquisition (USD(A)) exercises
responsibility for acquisition matters DOD-wide and performs as the DAE.
e. Under Secretary of Defense for Policy. The Under Secretary of Defense for Policy (USD(P)) represents DOD on
foreign relations and arms control matters. The USD(P) also serves as primary advisor to the DEPSECDEF for the
PPBS planning phase.

2–4. DOD Executive Committee

The DOD Executive Committee (EXCOM), serves as the key, senior deliberative and decisionmaking body within
DOD for all major defense issues. The SECDEF and, in his absence, the DEPSECDEF chair the committee, whose
other members consist of the core group of managers just described. The DOD General Counsel serves the EXCOM as
legal advisor, and the Special Assistant to the SECDEF and DEPSECDEF serves as the executive secretary. Attendance
is limited to the members and the committee’s legal advisor and executive secretary except that the chairman may
invite others to attend a particular meeting. Convening at the call of the chair, the forum exists to allow the SECDEF to
receive in confidence and with candor the advice, opinions, and judgments of the Secretary’s senior advisors.

2–5. Defense Resources Board

The SECDEF uses a Defense Resources Board (DRB) to help manage the PPBS and make major program decisions.
a. The SECDEF and, in his absence, the DEPSEDEF, chair the DRB. Members include the CJCS, VCJCS, JCS, and
the Service Secretaries. Members from within OSD include the USD(A), ASD (Personnel and Readiness), and the
Comptroller, DOD. The chairman also invites other OSD principals to participate when necessary. The Director for
Program Analysis and Evaluation serves as the excutive secretary.
b. The DRB helps promote long-range planning and stability in the defense program. Among other functions, the
DRB—
(1) Considers broad policy and develops guidance on high-priority objectives.
(2) Reviews guidance for planning and programming.
(3) Examines high priority programs.
(4) Considers the effect of resource decisions on baseline cost, schedule, and performance of major acquisition
programs and aligns the programs with the PPBS.
(5) Helps tie the allocation of resources for specific programs and forces to national policies.
(6) Reviews the program and budget.
(7) Reviews execution of selected programs.
(8) Advises the SECDEF on policy, PPBS issues, and proposed decisions.

14 AR 1–1 • 30 January 1994

2–6. Program Review Group
The SECDEF uses a Program Review Group (PRG) to identify major issues, analyze them, and develop decision
options for presentation to the DRB. The USD(A) chairs the group, with the VCJCS serving as the vice chair.
Members include Military Departmment representatives, ASD (Strategy, Requirements, and Resources), ASD (Person-
nel and Readiness), ASD (Reserve Affairs), and Comptroller, DOD. The chairman also invites others to participate
when necessary. The Director for Program Analysis and Evaluation serves as the executive secretary.

2–7. Defense Acquisition Board and Joint Requirements Oversight Council

a. As chair and vice chair, respectively, the USD(A) and VCJCS direct the efforts of the Defense Acquisition Board
(DAB). The DAB oversees defense system acquisition, providing discipline through review of major programs. At each
milestone in the system life cycle, the Board assures that programs have met performance requirements, including
program-specific exit criteria.
b. Helping the DAB and USD(A) is the Joint Requirements Oversight Council (JROC) chaired by the VCJCS. The
JROC explains military needs and validates performance goals and program baselines at successive milestones for each
DAB program.
c. The USD(A), with the DAB and JROC, helps link the acquisition process to planning, programming, and
budgeting. Serving as a key advisor to the SECDEF and DEPSECDEF, the USD(A) participates in all resource
decisions affecting the baselines of major acquisition programs.

Section II
The Army Planning, Programming, Budgeting, and Execution System

2–8. The PPBES: the Army’s primary resource management system

The PPBES is the Army’s primary resource management system. A major decisionmaking process, the PPBES
interfaces with OSD and joint planning and links directly to OSD programming and budgeting. It develops and
maintains the Army portion of the defense program and budget. It supports Army planning, and it supports program
development and budget preparation at all levels of command. It supports execution of the approved program and
budget by both headquarters and field organizations. During execution, it provides feedback to the planning, program-
ming, and budgeting processes.

2–9. The Army PPBES concept

a. The PPBES ties strategy, program, and budget together. It helps build a comprehensive plan in which budgets
flow from programs, programs from requirements, requirements from missions, and missions from national security
objectives. The patterned flow from end purpose to resource cost defines requirements in progressively greater detail.
(1) Long range planning creates a vision of the Army 10 to 20 years into the future. In the 2- to 15-year midterm,
long range macro estimates give way to a specified size, composition, and quality of divisional and support forces.
Derived from joint strategic planning and intermediate objectives to achieve long range goals, this base force provides
the planning foundation for program requirements.
(2) Guided by base force requirements and still in the midterm, programming distributes available resources. It seeks
to support priorities and policies of the senior Army leadership while achieving balance among Army organizations,
systems, and functions.
(3) In the 0- to 2-year near term, budgeting converts program requirements into requests for manpower and dollars.
When enacted into appropriations and manpower authorizations, these resources become available to carry out
approved programs.
(4) Formally adding execution to traditional emphasis on planning, programming, and budgeting emphasizes Army
concern for how well program performance and financial execution apply allocated resources to meet requirements.
b. Documents produced within the PPBES support defense decisionmaking, and the review and discussion that
attend their development help shape the outcome. The following are examples.
(1) The Army helps prepare the DPG and planning documents produced by the JSPS. The participation influences
policy, strategy, and force objectives considered by the SECDEF and the JCS, including policies for development,
acquisition, and other resource allocation issues.
(2) MACOM commanders similarly influence positions and decisions taken by the SA and CSA. They develop and
submit force-structure, procurement, and construction requirements; command programs; and budget estimates. They
also make their views known through periodic commander’s conferences held by the CSA on the proposed plan,
program, and budget.
(3) The CINC’s influence Army positions and decisions through MACOM commanders serving as ACC command-
ers, who integrate CINC operational requirements into their POMs. They also highlight pressing requirements in an
integrated priorities list (IPL) that receives close review during program development.

AR 1–1 • 30 January 1994 15

2–10. PPBES objectives
The objectives of the PPBES are:
a. During all phases of the PPBES, to provide an essential focus on Departmental policy and priorities for Army
functional activities.
b. Through planning, to size, structure, man, equip, and train the Army force to support the national military
strategy.
c. Through programming, to distribute available manpower, dollars, and materiel among competing requirements per
Army resource allocation policy and priorities.
d. Through budgeting, to convert program decisions on dollars and manpower into requests for congressional
authorization and appropriations.
e. Through program execution, to—
(1) Apply resources to achieve approved program objectives.
(2) Adjust resource requirements based on execution feedback.
f. Through program and budget execution, to manage and account for funds to carry out approved programs.

2–11. Control of planning, programming, and budgeting documents

a. Papers and associated data sponsored by the DOD PPBS give details of proposed programs and plans. The
proposals state candidate positions and competing options that remain undecided until final approval.
(1) Access to the material by persons other than those directly involved in planning and allocating resources would
frustrate the candor and privacy of leadership deliberations.
(2) Access by private firms seeking DOD contracts would imperil competition and pose serious ethical, even
criminal, problems for those involved.
b. For reasons in a(1) and (2), above, DOD closely controls documents produced through the DOD PPBS and its
supporting data bases. Thus, OSD restricts access to DOD and other governmental agencies directly involved in
planning, programming, and budgeting defense resources, primarily OMB. The list that follows cites major documents
illustrative of but not limiting PPBS-sponsored material requiring restricted access.
(1) Planning phase. Defense Planning Guidance (DPG).
(2) Programming phase.
(a) Fiscal guidance.
(b) Program Objective Memorandum (POM).
(c) Future Years Defense Program (FYDP) documents for the POM, including procurement annex and RDT&E
annex.
(d) Program review proposals.
(e) Issue papers (for example, major issue papers, tier II issue papers, cover briefs).
(f) Proposed military department program reductions (or program offsets).
(g) Tentative issue decision memoranda.
(h) Program Decision Memorandum (PDM).
(3) Budgeting phase.
(a) Future Years Defense Program (FYDP) documents for the September budget estimates submission and Presi-
dent’s Budget, including procurement, RDT&E, and construction annexes classified P–l, R–l, and C–l.
(b) Program Budget Decisions (PBDs) and Defense Management Review (DMR) Decisions.
(c) Reports Generated by the Automated Budget Review System (BRS).
(d) DD 1414 Base for Reprogramming.
(e) DD 1416 Report of Programs.
(f) Congressional data sheets.
c. Exceptions to the limitation of b , above, require SECDEF approval. After coordination with the General Counsel,
an Army proponent may request an exception, but only for compelling need. The Select Committee (SELCOM) (para
2–14) will consider requests on a case-by-case basis. Statutes and other procedures govern disclosure of information to
Congress and the General Accounting Office (GAO).

2–12. Management Decision Packages

a. Early in the PPBES process, the resource management architecture distributes program and budget resources to
MDEPs by appropriation and program element. MDEPs serve as a resource management tool used internally by the
Army. Taken collectively, MDEPs account for all Army resources. They describe the capability of the Total Army—
Active, Guard, and Reserve. Individually, an MDEP describes a particular organization, program, or function. It also
records the resources associated with the intended output. An individual MDEP applies uniquely to one of the
following six management areas:
(1) Missions of MTOE units.

16 AR 1–1 • 30 January 1994

 (2) Missions of TDA units and Army-wide standard functions.
(3) Missions of standard installation organizations (SIOs).
(4) Acquisition, fielding, and sustainment of weapon and information systems. (Linkage to units exists through
HQDA decision support systems, such as Force Builder, Single Army Battlefield Requirements Evaluator, and
Logistics DSS.)
(5) Special visibility programs (SVPs).
(6) Short term projects (STPs).
b. Maintained in the PROBE data base, each MDEP records manpower and total obligation authority over 9 fiscal
years. (System MDEPs also show item quantities over the same period.) Resources recorded in the MDEP shift
forward each January as follows.
(1) A 2-year shift forward occurs in MDEP resources each even (or POM submission) year. PROBE drops the 2
earliest years from the data base and adds 2 new years. The MDEP then displays the 6 years of the new program and
the 3 preceding years (fig 2–2.). The first of the preceding years is the prior fiscal year (PY). It records resources spent
in executing the budget the year before the current fiscal year (CY). The CY shows resources in the budget being
executed. The last preceding year is called the budget year (BY). It lists resources requested in the President’s Budget
being reviewed by Congress.

Figure 2–2. Fiscal year structure of resources in a Management Decision Package (MDEP) reflecting the FY 1994–1999 Program
Objective Memorandum (POM)

(2) Another shift occurs in the odd year (the year in which the President submits the next 2-year defense budget).
The shift leaves each year’s resources intact but changes their relative position in the program or budget process as
shown in figure 2–3. Budget years 91 and 92 both become prior years; budget year 93 becomes the current year; and
the first 2 program years both become budget years 94 and 95. The last 4 years (years 96 through 99) remain program
years.
c. During programming, MDEPs provide useful visibility. They help Army managers, decisionmakers, and leaders
assess program worth, confirm compliance, and rank resource claimants. During budgeting, MDEPs help convey
approved programs and priorities into budget estimates. Providing the vehicle for data entry, MDEPs also help PEGs
post program changes caused by budget decisions and approved funding. During execution, the posted MDEPs help
HQDA principal officials, MACOM commanders, PEOs, and heads of other operating agencies track program and
financial performance. The financial data they get as feedback help determine future requirements.

Figure 2–3. Fiscal year structure of resources in a Management Decision Package (MDEP) reflecting the President’s FY 94–95
budget

AR 1–1 • 30 January 1994 17

2–13. Adjusting program and budget resources
a. Recurring changes.
(1) Changes in resources occur throughout the PPBES process. HQDA staff agencies update MDEPs through their
respective feeder systems to reflect the position of the last program or budget event. During programming, competition
may reduce programmed amounts originally recorded. Decisions during OSD POM and budget reviews will further
alter amounts initially approved. Sometimes the decisions affect requests in the President’s Budget already before
Congress, as do authorization and appropriation decisions by Congress. Budget execution often results in different rates
and quantities from those planned, and at times it results in different purposes.
(2) The changes require that resource managers continually weigh how the stream of program and budget actions—
(a) Change MDEP resource levels.
(b) Shift resources between years.
(c) Affect resources in related MDEPs.
b. Manpower and fund flexibility. Flexibility in managing Army manpower and funds differs depending on whether
the resources apply to the program or budget.
(1) In the program or POM years, manpower is restricted by total end strength for military and civilians rather than
by operation and maintenance appropriation or budget subactivity. Similarly program dollars are restricted by TOA
only, rather than by individual appropriations within TOA. The distinctions give the Army latitude in redistributing
previously programmed manpower and dollars to meet changing requirements. In later POM or budget submissions, for
example, the Army can, as needed, move program year resources between MDEPs, appropriations, and PEs.
(2) In contrast, tight controls govern the redesignation of manpower and funding once the President’s Budget has
gone to Congress.
(a) The Army can reallocate previously budgeted manpower and dollars between MDEPs or operating agencies but
not between 0–1 level budget activities or appropriations. Once the budget goes to Congress, the Army must leave
budget manpower and dollars unchanged until current year appropriations become law.
(b) Some flexibility during execution allows financing unbudgeted requirements to meet unforseen needs or changes
in operating conditions. Even so, congressional rules and specified dollar thresholds severely restrict spending for
purposes other than those originally justified and approved. Also during execution, military and civilian manpower
transfer within 0–1 level budget activities and appropriations may occur without a corresponding transfer of funds.
c. Investment accounts. For investment accounts (RDA and construction), managers first allocate program and
budget resources by AMSCO, PE, project number, and BLIN. They then distribute the resources to MDEPs within the
six management areas.

2–14. Principal PPBES committees

a. Select Committee.
(1) The SELCOM is co-chaired by the Vice Chief of Staff, Army (VCSA) and the Under Secretary of the Army.
The SELCOM convenes either as a full committee or an Executive SELCOM.
(2) Members of the full SELCOM consist of the following:
(a) From the Secretariat—Assistant Secretaries, the General Counsel, the Administrative Assistant, DISC4, Inspector
General, Deputy Under Secretary of the Army (Operations Research), Chief of Legislative Liaison, Chief of Public
Affairs, Comptroller of the Army, Military Deputy to ASA(RDA), and Deputy Assistant Secretary of the Army for
Army Budget (DAB).
(b) From the Army Staff—Director of the Army Staff; Deputy Chiefs of Staff; Assistant Chief of Staff for
Installation Management; Chief of Engineers; The Surgeon General; Chief, National Guard Bureau; Chief, Army
Reserve; The Judge Advocate General; Director of Management; and Director of Program Analysis and Evaluation.
(c) As required—representatives from other offices and agencies of the Army Secretariat and Staff, the Commander
of the U.S. Army Strategic Defense Command, and liaison and advisory representatives from other MACOMs and
PEOs.
(3) The SELCOM functions as HQDA’s senior committee. The forum helps the Army leadership review, coordinate,
and integrate PPBES actions. The SELCOM considers and interprets guidance from the SECDEF, SA, and CSA. It
reviews Army policy, plans, programs, and budgets. It reviews program performance and budget financial execution.
When possible, the SELCOM disposes of actions on its own. It refers issues of major importance or other special
management interest to the SA and CSA, presenting, as appropriate, alternatives and recommendations for decision.
(4) As needed, the chair convenes the Executive SELCOM as an ad hoc group to consider matters of narrow interest
inappropriate for a full session. SELCOM minutes inform the full membership on decisions and recommendations
made in executive sessions.
b. Strategy and Planning Committee.

18 AR 1–1 • 30 January 1994

 (1) The Strategy and Planning Committee (SPC) is chaired by the Assistant DCSOPS (ADCSOPS). Alternate chair
for international activities is the ADCSOPS (Joint Affairs). Members consist mainly of officials responsible for
planning in the various Army Staff agencies and offices of the Army Secretariat. Membership includes the DPAE and
DAB.
(2) The SPC provides an integrating forum for Army planning. It considers guidance and analyses related to strategy
and planning and makes recommendations to the SELCOM. The SPC—
(a) Recommends force structure guidance to SA and CSA for approval.
(b) Monitors force development to be sure the program force meets requirements identified through the ALRPG and
ECBRS and those related to CINC IPLs.
(c) Serves as coordinating body for TAP.
c. Program and Budget Committee.
(1) The Program and Budget Committee (PBC) is co-chaired by the DPAE and DAB. Either presides, depending on
the subject. PBC members consist mainly of officials responsible for programming or budgeting in the various offices
and agencies of the Army Secretariat and Staff.
(a) The PBC oversees the programming, budgeting, and execution phases of the PPBES, including information
feedback among the phases. The PBC serves in both a coordinating and executive-advisory role. It provides a
continuing forum in which program and budget managers review, adjust, and decide issues. An aim of the PBC is to
make sure of the internal consistency and support of Army policy.
(b) The PBC may return the results of committee deliberations to the Army Staff or Secretariat for action. It may
pass them to the SELCOM for review or approval and later presentation to the SA and CSA.
(2) The PBC may set up standing committees or working groups to resolve difficulties in managing the program or
budget. An example is the Transportation Working Group formed to develop priorities and controls for managing
transportation. An example of a standing committee is the PBC Systems Subcommittee. This subcommittee consists of
general officers and members of the Senior Executive Service (SES). It is co-chaired by representatives of the DPAE
and DAB. It broadly represents the Army Staff and Secretariat and includes appropriate representation from the field.
The subcommittee reviews program, budget, and cost estimates for the life cycle of major weapon and information
systems. It assigns agency responsibilities for issues needing further review and follows up on the action taken. As
appropriate, the subcommittee presents the results of its deliberations to the PBC.
d. Prioritization Steering Group.
(1) The Prioritization Steering Group (PSG) serves as another PPBES deliberating body. The DCSOPS chairs the
PSG. Members consist of the Director of the Army Staff and other primary Army Staff principals. Membership
includes the DPAE and DAB and, when requested by DCSOPS, extends to selected representatives of the Army
Secretariat.
(2) The PSG, as required—
(a) Reviews unresourced programs submitted by MACOMs and PEOs and proposed decrements recommended by
the PBC.
(b) Resolves differences involving unresourced requirements or decrements on which the PBC fails to reach
agreement during program or budget development.
(c) Reviews prioritized and integrated lists of unresourced programs and decrements against fiscal and manpower
constraints imposed by OSD.
(d) Makes recommendations on unresourced programs and proposes off-setting decrements to the SELCOM.

2–15. Other committees

The following additional committees meet as required to handle specific needs within their areas of responsibility.
a. Army System Acquisition Review Council (ASARC).
b. Materiel Acquisition Review Board (MARB).
c. Army Major Automated Information Systems Review Council (MAISRC).
d. Study Program Coordination Committee (SPCC).
e. Construction Requirements Review Committee (CRRC).
f. Stationing and Installations Planning Committee (SIPC).
g. Installation Management Steering Committee (IMSC).
h. Army Defense DBOF Board of Directors.

2–16. Program Evaluation Groups

a. HQDA supports planning, programming, and budgeting using PEGs sponsored by designated principal officials.
PEGs help build TAP and Army program and help convert the program into budget-level detail. The Modernization
PEG functions during the programming phase only, its core members being convened as required during other PPBES
phases by DCSOPS for planning, DAB for budgeting and financial execution, and DPAE for program execution. Other
PEGs remain in operation throughout the PPBES cycle.

AR 1–1 • 30 January 1994 19

 b. PEGs help maintain program consistency during planning and program review, and later during budget analysis
and defense. During execution, PEGs track program and budget performance. Typically, within assigned functional
areas, PEGs—
(1) Set the scope, quantity, and qualitative nature of functional requirements.
(2) Review CINC IPLs and MACOM-PEO POMs to develop the Army program for the assigned functional area and
incorporate the program in the POM, to include:
(a) Reconciling conflicts involving unresourced requirements or decrements on which commands fail to reach
agreement.
(b) Recommending the allocation of available resources and offsetting decrements to support approved unresourced
programs.
(3) Help prepare the Army budget from the approved program.
(4) During execution, check how commands apply allocated manpower and dollars to be sure their use fulfills
program requirements.
(5) During program and budget reviews, and throughout the planning, programming, and budgeting process,
coordinate resource changes with HQDA staff agencies having proponency for affected MDEPs. Translate budget
decisions and approved manpower and funding into program changes and make sure that data transactions update
affected MDEPs.
c. Tables 1–4 and 1–5 above list the PEGs and give their composition and focus.

2–17. Process and structure

a. Figure 2–4 shows the organizational framework within which the PPBES operates. Figures 2–5 and 2–6 show the
sequence and interrelationship of events of the biennial cycle, providing a doctrinal baseline typically subject to cycle-
specific changes. In citing the month of a baseline event, the discussion specifies whether the event occurs in an odd or
even calendar year. A larger display appears as DA Poster 1–1 receiving the same storage and distribution as this
publication.
b. The system has four formal phases. Three it shares with the DOD PPBS: planning, programming, and budgeting.
The fourth, execution, applies uniquely to the Army as a distinct system phase. PPBES cycles overlap as do the four
phases within each cycle. Chapters 3 through 6 explain the phases.

20 AR 1–1 • 30 January 1994

Legend for Figure 2–4;
AAE Army Acquisition Executive
AASA Administrative Assistant to the Secretary of the Army
Figure 2–4. PPBES framework

AR 1–1 • 30 January 1994 21

ACC Army component command
ACSIM Assistant Chief ot Staff for Installation Management
ADCSOPS Assistant DCSOPS
AMC U.S. Army Materiel Command
ASA Assistant Secretary of the Army
ASA(CW) ASA (Civil Works)
ASA(FM) ASA (Financial Management)
ASA(ILE) ASA (Installations, Logistics, and Environment)
ASA(MRA) ASA (Manpower and Reserve Affairs)
ASA(RDA) ASA (Research, Development and Acquisition)
BIP Battlefield Initiatives Program
CAR Chief, Army Reserve
CBE Command budget estimate
CBO Congressional Budget Office
CC Chief of Chaplains
CINC commander in chief, unified or specified command
CJCS Chairman, Joint Chiefs of Staff
CLL Chief, Legislative Liaison
CNGB Chief, National Guard Bureau
COE Chief of Engineers
CPA Chief of Public Affairs
CSA Chief of Staff, U.S. Army
DAB Defense Acquisition Board, Deputy Assistant Secretary of the Army for Army Budget
DAS Director of the Army Staff
DCS Deputy Chief of Staff
DCSINT DCS for Intelligence
DCSLOG DCS for Logistics
DCSOPS DCS for Operations and Plans
DCSPER DCS for Personnel
DEPSECDEF Deputy SECDEF
DISC4 Director of Information Systems for Command, Control, communications, and Computers
DM Director of Management
DPAE Director of Program Analysis and Evaluation
DRB Defense Resources Board
EXCOM Executive Committee
ECBRS Enhanced Concept Based Requirements System
FYDP Future Years Defense Program
GAO General Accounting Office
Gen general
HAC House Appropriation Committee
HASC House Armed Services Committee
HBC House Budget Committee
HQDA Headquarters Department of the Army
ISC U.S. Army Information Systems Command
ISR Infrastructure Support Requirements
JCS Joint Chiefs of Staff
JROC Joint Requirements Oversight Council
LRRDAP Long Range Research, Development, and Acquisition Plan
MACOM major Army command
MILCON military construction
OSA Office of the Secretary of the Army
OSD Office of the Secretary of Defense
PBC Program and Budget committee
PEO Program Executive Officer
PM project/product manager
POM Program Objective Memorandum
pri priority
PRG Program Review Group
PSG Prioritization Steering Group
Figure 2–4. PPBES framework—Continued

22 AR 1–1 • 30 January 1994

RDTE Research, Development, Test, and Evaluation, Army (appropriation)
SA Secretary of the Army
SAC Senate Appropriations Committee
SASC Senate Armed Services Committee
SBC Senate Budget Committee
SECDEF Secretary of Defense
SELCOM Select Committee
SPC Strategy and Planning Committee
TIG The Inspector General
TJAG The Judge Advocate General
TRADOC U.S. Army Training and Doctrine Command
TSG The Surgeon General
USA Under Secretary of the Army
USD(A) Under Secretary of Defense for Acquisition
VCSA Vice Chief of Staff, U.S. Army
Figure 2–4. PPBES framework—Continued

AR 1–1 • 30 January 1994 23

 Figure 2–5. PPBES Baseline Events I (Part 1)

24 AR 1–1 • 30 January 1994

Legend for Figure 2–5;
ACC Army component command
ALRPG Army Long Range Planning Guidance
Figure 2–5. PPBES Baseline Events I (Part 2)

AR 1–1 • 30 January 1994 25

AMC U.S. Army Materiel Command
amend amendment (to)
AMOPES Army Mobilization, Operations Planning, and Execution System
APG Army Program Guidance
APPI Army POM Preparation Instructions
appn appropriation
appor apportionment
AUTS Automatic Update Transaction System
bdgt budget
BES Budget Estimates Submission
BOIP Basis of Issue Plan
brfs briefings
CBE command budget estimate
CCA Chairman’s Contingency Capabilities Assessment
chgs CHANGES
CINC commander in chief, unified or specified command
CG Chairman’s Guidance
cmt comment
cncrrnt concurrent
comd command
conf conference
congr congressional
CPA Chairman’s Program Assessment
CPG Contingency Planning Guidance
CSPAR CINC’s Preparedness Assessment Report
DOD Department of Defense
DPG Defense Planning Guidance
DPRB Defense Planning and Resources Board
ECBRS Enhanced Concept Based Requirements System
eq equipment
FIA Force Integration Analysis
frc force(s)
FYDP Future Yers Defense Program
gd guidance
HQDA Headquarters Department of the Army
hrgs hearings
instr instructions
IPL integrated priority list
ISC U.S. Army Information Sytems Command
JMNA Joint Military Net Assessment
JPD Joint Planning Document
JSCP Joint Strategic Capabilities Plan
JSR Joint Strategy Review
jt joint
L/T logistics/transportation
log logistics
LOGSACS Logistics Structure and Composition System
LRP long range plan
LRRDAP Long Range Research, Development, and Acquisition Plan
LSA Logistics Sustainability Analysis
M-Force Master Force
MACOM major Army command
MARC Manpower Requirements Criteria
MILCON military construction
MOC management of change
MPDI MACOM POM Development Instructions
mpr manpower
NCA National Command Authorities
NMS national military strategy
Figure 2–5. PPBES Baseline Events I (Part 2)—Continued

26 AR 1–1 • 30 January 1994

OMB Office of Management and Budget
OSD Office of the Secretary of Defense
OPLAN operation plan(s)
PAR Chairman’s Preparedness Assessment Report
PBD Program Budget Decision
PBG Program and Budget Guidance
PDM Program Decision Memorandum
PEO program executive office(r)
PERSACS Personnel Structure and Composition System
plng planning
POM Program Objective Memorandum
PPBERS Program Performance and Execution Review System
PPBES Planning, Programming, Budgeting, and Execution System
PPI POM Preparation Instructions
prelim preliminary
prep preparation
Pres President
prog program
proj projection
quan quantity
remndtns recommendations
rev review
RMU resource management update
rqmts requirements
rsltn resolution
SACS Structure and Composition System
SAMAS Structure and Manpower Allocation System
SECDEF Secretary of Defense
SELCOM Select Committee
SISA Science and Infrastructure Support Analysis
svc service
TAA Total Army Analysis
TAADS The Army Authorization Document System
TAEDP Total Army Equipment Distribution Program
TAP The Army Plan
TOE Tables of Organization and Equipment System
TPFDD Time Phased Force Deployment Data
TRADOC U.S. Army Training and Doctrine Command
trans transportation
WFLA Warfighting Lens Analysis
1 The bold track highlights events that typically occur during the 4-year PPBES cycle. The names, relationships, and timing of events
constitute a system baseline. Relatively constant, the baseline remains a subject to cycle specific and evolutionary change.
2 Selected other events appear in regular line widths. These events reflect some but not all events of overlapping PPBES cycles. Some
of the selected events occur during one of the two preceding cycles. Some occur during the next, or following, cycle.
3 Baseline Events I differs from Baseline Events II (fig 2–6) in that Baseline Events I, for simplicity, shows fewer concurrent events form
other cycles.
Figure 2–5. PPBES Baseline Events I (Part 2)—Continued

AR 1–1 • 30 January 1994 27

 Figure 2–6. PPBES Baseline Events II (Part 1)

28 AR 1–1 • 30 January 1994

Legend for Figure 2–6;
Refer to legend that corresponds to figure 2–5.
Figure 2–6. PPBES Baseline Events II (Part 2)

AR 1–1 • 30 January 1994 29

Chapter 3
Planning Phase

Section I
PPBS Planning

3–1. OSD and joint strategic planning

a. OSD and joint strategic planning make up PPBS planning. The planning—
(1) Examines the military posture of the United States in comparison with national security objectives and resource
limitations.
(2) Develops the national military strategy.
(3) Identifies force levels to achieve the strategy.
b. OSD and joint strategic planning provides a framework of requirements, priorities, and risk. OSD uses the
framework to give each CINC the best mix of forces, equipment, and support attainable within defined fiscal
contraints.

3–2. Joint strategic planning

a. Joint strategic planning examines the global security situation. It develops national military strategy to achieve
national security objectives and sets related force requirements. It also prepares strategic and contingency plans,
prepares supporting joint logistic and mobility plans, and conducts capability assessments.
b. Joint strategic planning helps the CJCS discharge the functions prescribed by 10 USC 153 (a) and 10 USC 163
(b)(2). Specificlly, joint strategic planning underlies the military advice the Chairman gives to help the President and
SECDEF—
(1) Provide strategic direction to the armed forces.
(2) Form defense policy, programs, and budgets.
c. Led by the Joint Staff, joint strategic planning involves each of its directorates and the Defense Intelligence
Agency. Moreover, it entails close consultation with the combatant commands, Services, and other defense agencies.
d. Joint strategic planning takes place within the context of the Joint Strategic Planning System (JSPS). Featuring a
continuous review of the national military strategy (para 3–3), the JSPS yields four principal products (para 3–4). The
products help the joint community relate strategic planning to both the Joint Operation Planning and Execution System
(JOPES) and PPBS.

3–3. Joint Strategy Review

a. The Joint Strategy Review (JSR) lies at the core of JSPS. The review helps the Joint Staff integrate strategy,
operational planning, and program assessments. It covers the short-, mid-, and long-range periods: 0-2, 2-10, and 10-20
years in the future.
b. A continuous process, the JSR assesses the global strategic setting for issues affecting the national military
strategy.
(1) The Joint Staff, with the Services, combatant commands, and defense agencies develop issue papers highlighting
how changed conditions affect current strategy. Key judgments,if not earlier acted on, appear in the next JSR Annual
Report.
(2) Provided to the CJCS, Chiefs of Services, and CINCs, the report, when approved by the Chairman, becomes
guidance for maintaining or revising the NMS and other JSPS products.
c. As needed the JSR produces a long-range vision paper addressing plausible strategic settings 10-20 years in the
future.

3–4. JSPS documents and plans

As mentioned, the JSPS generates four products. Shown in figures 2–5 and 2–6, they are described below.
a. National Military Strategy. The CJCS approves and issues the National Military Strategy (NMS). The strategy
advises the SECDEF and, after SECDEF review, the President and National Security Council on the strategic direction
of the armed forces. A standing document changed when needed, the NMS applies to program years, 2–8 years in the
future. The NMS—
(1) Summarizes the global strategic setting from the JSR.
(2) Recommends military foundations and strategic principles to support national security objectives.
(3) Provides a strategy and force levels that conform with NCA Fiscal Guidance.
b. Joint Planning Document. The Joint Planning Document (JPD) derives from the NMS. Prepared by the Joint Staff
with the Service Chiefs and the CINCs, the document exists as seven stand-alone volumes. Each volume advises the

30 AR 1–1 • 30 January 1994

SECDEF on requirements and programming priorities in a specific functional area. Published in September in the odd
year, the JPD receives distribution in time to influence the biennial DPG (para 3–6 a).
c. Joint Strategic Capabilities Plan.
(1) The Joint Strategic Capabilities Plan (JSCP) underlies the capabilities-based military advice the CJCS gives the
President and SECDEF. Another standing document, the JSCP, undergoes revision as needed, receiving formal review
early each even year.
(2) Covering the 2-year, near term planning period, the JSCP—
(a) Gives strategic guidance to the CINCs, JCS members and heads of defense agencies.
(b) Apportions resources to the CINCs.
(c) Tasks the CINCs to develop major and lesser regional plans to employ the force resulting from completed
program and budget actions (para 3–16).
d. Chairman’s Program Assessment. The Chairman’s Program Assessment (CPA) checks the balance and capabili-
ties of composite force and support levels recommended by the Service POMs. It compares the recommended
capabilities and levels with priorities posed by U.S. strategic plans and requirements of the CINCs. Completed about 45
days after the Services submit their POMs, the document helps the SECDEF make program decisions.

3–5. Special assessments

a. Four related assessments shown in figure 2–5 support the JSPS documents and plans. One is the Joint Military
Net Assessment(JMNA). Closely involving the CINCs and other membeers of the JCS, the CJCS prepares the JMNA.
The document compares defense capabilities and programs of the United States and its Allies with those of potential
adversaries. The SECDEF reviews and approves the JMNA, then sends it to Congress with the defense budget per 10
USC 1139 (i)(1).
b. Included among three other assessments is the Logistics Sustainability Analysis (LSA). The analysis considers
logistics capabilities and limiting factors of individual OPLANs prepared by the CINCs. Another, the Chairman’s
Preparedness Assessment Report (PAR), checks the ability of the combatant commands to carry out assigned missions.
Still another, the Chairman’s Contingency Capabilities Assessment, considers the effect of critical deficiencies faced in
contingency planning.

3–6. OSD planning products

Two SECDEF documents influence products of the JSPS. One is Defense Planning Guidance (DPG), the other
Contingency Planning Guidance (CPG).
a. Defense Planning Guidance. The SECDEF places responsibility and authority for program execution with the
Services and other DOD components but maintains central direction. Serving this central purpose, the DPG presents the
SECDEF’s strategic plan for developing and employing future forces. Prepared by OSD and published by 1 October in
the odd year, the DPG is a principal product of OSD planning. It reflects—
(1) Military advice and information recommended by the CJCS.
(2) Service long-range plans and positions on policy and other matters advanced by Service Secretaries.
(3) CINC appraisals of major issues and problems bearing on command missions.
b. Contingency Planning Guidance. The CPG provides the CJCS written policy guidance for preparing and review-
ing contingency plans. Focusing NMS and DPG guidance on contingency planning, the CPG bears directly on the
JSCP. The SECDEF prepares the document annually in coordination with the Joint Staff. Then, on approval by the
President, the SECDEF provides guidance to the Chairman.

Section II
PPBES Planning

3–7. Army Planning

Army, or PPBES, planning responds to and complements OSD and joint strategic planning. PPBES planning—
a. Helps the senior Army leadership determine force requirements and objectives and set priorities.
b. Provides the basis for positions and comments supporting Army participation in OSD and joint processes.
c. Lays the planning basis for the Army program.

3–8. Role of long-range planning

Long-range planning looks 10-20 years ahead. In the process, the senior Army leadership creates a vision of the future
Army. Fleshing out the design, commands and agencies develop long-range plans in their respective mission and
functional areas. Long- range planning guides the midterm vision to develop the force and set program requirements.

3–9. Army Long-Range Planning Guidance

a. Distributed in October in the even year, the ALRPG records the vision of the senior Army leadership. The
ALRPG—

AR 1–1 • 30 January 1994 31

 (1) Describes a framework for defining future requirements.
(2) Examines national security objectives against a range of potential requirements.
(3) Lays out long-range planning assumptions and objectives.
(4) Lists underlying conditions likely to hold over the 10-20 year period.
b. The ALRPG goes on to examine political, military, economic, and technological events. Its examination—
(1) Identifies trends and determines a range of possible results that bound the future operating environment.
(2) Draws implications for future missions and for achieving required capabilities.
c. The biennial document helps commands and agencies translate leader vision into long-range plans. Command and
agency long-range plans, in turn, help fashion the midterm vision by setting goals and strategies to get the capabilities
to meet future requirements. Together, the ALRPG and command and agency long-range plans guide the preliminary
TAP (para 3–13). Released in December in the odd year, the preliminary TAP sets the course for requirements
determination and force development for the next PPBES cycle. For the draft and final TAP published in the base
cycle, the ALRPG updates guidance given the cycle before.

3–10. Army Modernization Plan

The Army Modernization Plan (AMP) outlines the vision for modernizing the future force and provides a strategy for
near- to midterm force development and long-term evolution. The AMP codifies required capabilities programmed
through the PPBES and assesses the impact of required capabilities remaining to be programmed. Its modernization
objectives guide program prioritization at HQDA. Interacting with the ALRPG, the AMP provides a starting point for
developing the Long Range Research, Development, and Acquisition Plan (LRRDAP) (para 3–12). It supports also the
approved POM (para 4–10). As does the ALRPG, the document receives distribution in October in the even year.

3–11. Enhanced Concept Based Requirements System

The ALRPG and AMP interact with TRADOC’s ECBRS. Through a biennial process known as Warfighting Lens
Analysis (WFLA), the ECBRS considers warfighting needs using insights from Louisiana Maneuvers and analyses
from Army branches, proponents, and TRADOC Battle Labs. Defined for the long-term, each capability required to
meet a warfighting need falls within one of several functional domains: doctrine, training, leader development,
organization, or materiel, all of which focus on the soldier. Two products emerge from the process. One is TRADOC’s
WFLA, the other, a corresponding Science and Infrastructure Support Analysis (SISA), prepared by the U.S. Army
Materiel Command (AMC). Prioritizing materiel solutions and optimizing dollars spent on modernization programs, the
WFLA and SISA provide the analytical underpinning for the LRRDAP. Required capabilities for all five ECBRS
domains receive consideration during program development and the next Total Army Analysis (TAA) (para 3–14).

3–12. Long-Range Research, Development, and Acquisition Plan

One of eight functional and special area long-range plans, the LRRDAP plays a key role. It maps the effort to develop
and produce technology and equipment for the Army’s modernization program. In the process it focuses research,
development, and acquisition programs on solving battlefield needs derived from warfighting requirements.
a. LRRDAP development begins with the AMP, followed by the LRRDAP Guidance document prepared by
DCSOPS and ASA(RDA) with TRADOC and AMC. HQDA issues the document in the spring of the odd year.
b. TRADOC and AMC with the PEOs and ISC consider LRRDAP Guidance and required capabilities identified
through the ECBRS. Jointly, these agencies prioritize required capabilities to get the best return for dollars spent under
the LRRDAP and record the results in the WFLA and SISA.
c. HQDA then reviews and integrates the WFLA and SISA. On approval by the senior Army leadership, the issues
recorded in the two documents, as amended, become the Army LRRDAP. Responding to force structure and sus-
tainability guidance, the LRRDAP informs the TAA process of RDA programs planned for the Army modernization
program. Information concerning the early planning years forms the basis of the RDA portion of the POM.

3–13. The Army Plan (TAP)

a. TAP documents policy of the senior Army leadership and gives resource guidance. TAP concurrently documents
force levels stabilized initially through force requirements planning and then refined through objectives planning that
features—
(1) TAA used to develop for each program year a proposed program force that:
(a) Meets projected mission requirements within expected end strength and equipment levels.
(b) Considers unalterable earlier decisions.
(2) Force Integration Analysis (FIA) (para 4–6b), used to make sure that the force is affordable and executable in
each program year.
b. TAP covers the midterm (or POM period). It distills Army missions and coalesces information from such sources
as the DPG, JSPS planning products, ALRPG, and other guidance, including HQDA and MACOM-PEO interaction.
TAP also captures long-range objectives from the long-range plans (LRPs) of Amy functional proponents. It links them
to supporting midterm objectives, which, to be achieved, require resources during program development.

32 AR 1–1 • 30 January 1994

 c. DCSOPS drafts TAP in coordination with the HQDA staff, MACOMs, and PEOs. Preparation occurs in three
stages:
(1) A preliminary TAP, in December of the odd year, guides the developing and updating of the TAA base force.
As a minimum, the preliminary TAP codifies planning assumptions and sets parameters for modeling and structuring
the program force.
(2) About 1 year later, in January of the next odd year, a draft TAP records the base force update and revises
planning assumptions given in the preliminary TAP as a basis for a following FIA. Published as the resource section of
TAP, draft Army Program Guidance (APG) (paras 4–3 a and 4–6) translates planning objectives into an initial plan of
what the Army hopes to achieve in the next POM. (3) TAP, in its final version, appears the following August, after the
FIA. The final TAP documents the preliminary program force approved by the SA and CSA. Together with its
included Army Program Guidance (paras 4–3 b and 4–6), TAP—
(a) Provides early direction to the programming, budgeting, and execution phases of the PPBES.
(b) Outlines national military strategy and security policy for the Army.
(c) Summarizes the existing view of the current force, the POM force at the end of the 6th program year, and the
projected force 10 years beyond.
(d) Introduces midrange planning objectives, derived from long-range plans, into the POM development and
prioritization process.
(e) Links programming guidance to midrange planning objectives.
(f) States the Army’s priorities within expected resource levels.

3–14. Force development and Total Army Analysis

a. The thrust of PPBES planning is to develop an achievable force structure for the Total Army that supports the
national military strategy. The approach centers on TAA, a computer-aided force development process that gets under
way about January of the even year.
b. Led by DCSOPS, TAA receives HQDA agency and MACOM-PEO participation. It draws guidance from the
TAP and other sources and generates requirements for manpower and equipment. The TAA helps assess force
capabilities and helps determine, verify, and justify Army requirements. For each program year, TAA develops a base
force that meets projected mission requirements within expected end strength and equipment levels.
c. A related FIA gets under way in January of the odd year. It determines executability of the TAA base force by
examining projected resources and developing force structure alternatives. The decision of the CSA, after reviewing the
alternatives, establishes a preliminary program force (para 4–6 b).
d. DCSOPS issues the final TAP in August of the odd year, documenting the decision and making the preliminary
program force the force structure basis for the Army program.

3–15. Force management

Detailed integration and documentation of the force centers on the management of change (MOC) window which
occurs the first and third quarter of each calendar year (fig 2–6). The Army uses the semiannual periods to create
MTOE and TDA documents. These documents officially record decisions on missions, organizational structure, and
requirements and authorizations for personnel and equipment. The updated MTOE and TDA apply for the current year
through the first program year.
a. The process begins with the Command Plan (CPLAN) Guidance message released by HQDA (DCSOPS) at the
start of the MOC window. CPLAN guidance directs MACOM reprogramming and provides force structure allowances
(FSA). MACOMs and other operating agencies then submit a proposed troop list at unit (UIC) level. Proposed
CPLANs incorporate force decisions reflected in HQDA guidance, including the program force approved in TAP and
the Troop Program Guidance. CPLANs reflect the current and projected force structure of each command and show
both military and civilian manpower. After HQDA review, DCSOPS publishes a Master Force (M-Force) reflecting the
approved CPLAN. The M-Force provides the basis for documenting personnel and equipment in MTOE and TDA.
b. The Army Authorization Document System (TAADS) applies to the Total Army—Active Army, Army National
Guard, Army Reserve, and civilian work force. The Army uses the system to record changes in requirements and
authorizations that result from changes in unit missions, organizational structure, and equipment.
(1) TAADS defines requirements for MTOE units at various levels of organization using data from the Tables of
Organization and Equipment System (TOE).
(2) TAADS uses data from the Basis of Issue Plan (BOIP) to identify quantitative and qualitative requirements for
new items of equipment, including the personnel requirements needed to accommodate them.
(3) Requirements for TDA derive from manpower surveys and a manpower standard application.
c. The Structure and Manpower Allocation System (SAMAS) serves as the force development database that records
the authorized level of manpower and force structure for the Army program and budget. SAMAS has two primary files.
One is a force file, which reflects the approved and documented force structure position. The force file produces the M-
Force. The second file is a budget file, which reflects the approved CPLAN force structure plus additional budgeting

AR 1–1 • 30 January 1994 33

assumptions. The budget file produces a Manpower Addendum to the Program and Budget Guidance (PBG) document
that provides resource guidance to MACOMs and other operating agencies.
(1) HQDA submits TAADS to OSD as the Army’s billet file, a file that must accord with the manpower and force
structure of the Army’s programmed and budgeted force by unit, PE, and military and civilian identity.
(2) Toward this end, the Automatic Update Transaction System (AUTS) compares the CPLAN M-Force against the
TAADS documents submitted by MACOMs and other operating agencies. When discrepancies are discovered, the
TAADS documents are corrected to reflect the approved CPLAN force structure. The comparison occurs within a
month of the close of each MOC window (31 March and 30 September). After matching the CPLAN M-Force and
TAADS documents, HQDA approves the TAADS documentation for use by the field and SACS (d, below). HQDA
also publishes a new M-Force showing which units have corresponding TAADS documents. This latest M-Force
provides the basis for updating the Personnel Management Authorization Document (PMAD) and Army Stationing and
Installation Plan (ASIP).
d. The Structure and Composition System (SACS) produces the Army’s time-phased demands for personnel and
equipment over the current, budget, and program years. SACS consists of a series of computational programs that
combine information from SAMAS, TOE, BOIP, and TAADS data.
(1) A key output is the Personnel Structure and Composition System (PERSACS). PERSACS summarizes time-
phased requirements and authorizations for personnel, specifying grade and branch as well as areas of concentration
(AOC) and military occupational specialty (MOS).
(2) Another key product is the Logistics Structure and Composition System (LOGSACS). LOGSACS summarizes
time-phased requirements and authorizations for equipment by line item number (LIN).
(3) PERSACS and LOGSACS form the requirements and authorizations base used by other personnel and logistics
systems. The Total Army Equipment Distribution Plan (TAEDP), for example, uses equipment requirements and
authorizations from LOGSACS to plan equipment distribution throughout the program years.

Section III
Operational Planning Link to the PPBES

3–16. Operational planning

a. Operational planning addresses the 0-2 year short-range planning period. It takes place under JOPES and the
counterpart Army Mobilization and Operations Planning and Execution System (AMOPES).
b. Through JOPES, the CINCs and their Service component commands develop concept plans (CONPLANs) and
operation plans (OPLANs).
c. Capabilities based, the plans employ the current force to carry out military tasks assigned in the JSCP (para 3–4
c). Plan preparation and review return information about shortfalls and limiting factors for consideration in current
planning, programming, and budgeting.

3–17. Missions and tasks

The JSCP carries out the NMS through unified command OPLANS. Its accompanying intelligence estimate assesses
potential threats and their impact on available U.S. forces. Based on the assessment, the document assigns missions and
planning tasks to the CINCs. It also apportions the combat forces expected to be available. Annexes amplify guidance,
capabilities, and tasks in specified functional areas.

3–18. OPLAN development and review

a. HQDA provides ACCs, supporting MACOMs, and reserve components additional guidance through AMOPES.
AMOPES provides planning assumptions, policy, and procedures. It applies both to mobilization and to military
operations before the involuntary call up of reserve component forces.
(1) AMOPES Annex A describes the availability of Army combat, combat support, and combat service support units
for developing Time-Phased Force and Deployment Data (TPFDD).
(2) AMOPES Annex S (will supersede AMOPS Volume V in early 1994) guides planning to—
(a) Survive a nuclear attack on the United States.
(b) Recover and reconstitute essential HQDA missions and functions.
b. ACC TPFDDs specify arrival priorities for force augmentation, resupply, and troop replacement. TPFDD review
and later logistics and transportation assessments help refine the priorities to accord with CINC OPLANs. Issues
remaining after negotiation become the subject of a force conference in December of the even year and logistics and
transportation conferences the following August. ACCs, supporting MACOMs, and HQDA agencies participate in
these deliberations. The participants bring information about current shortfalls and limitations to bear on future
requirements through the FIA and program development processes.
c. In July (odd year), the CINCs submit their OPLANs for final JCS review and approval. The OPLANs provide a

34 AR 1–1 • 30 January 1994

basis for CINC IPLs, which influence program development, their earlier drafts having influenced the ECBRS process
and MACOM POM development.

Chapter 4
Programming Phase
4–1. Army programming
a. Army programming helps the senior Army leadership distribute resources to support Army roles and missions.
Programming, translates planning decisions, OSD programming guidance, and congressional guidance into a compre-
hensive allocation of forces, manpower, and funds. In the process, the PPBES integrates and balances centrally
managed programs for manpower; operations; research, development, and acquisition; and stationing and construction.
Concurrently, the PPBES incorporates requirements stated by MACOMs and PEOs for manpower, operation and
maintenance, housing, and construction.
b. The result is the Army POM. The POM presents the Army’s proposal for a balanced allocation of its resources
within specified constraints. OSD reviews the POM and issues a Program Decision Memorandum (PDM) to reflect
SECDEF program decisions.
c. The program, as approved by the SECDEF, provides the basis for preparing Army Budget Estimates.
d. During execution (chap 6), program reviews help HQDA, MACOMs, PEOs, and other operating agencies make
sure that financial allocations support approved program objectives.

4–2. Defense Planning Guidance

The DPG (para 3–6 a) provides programming direction from the SECDEF.

4–3. Army Program Guidance

a. Army Program Guidance (APG) guides program development. HQDA issues a draft of the document (para 4–6 a)
with the draft TAP in January of the even year. It issues a final version para 4–7 a) the following August, also included
as part of TAP.
b. The format of the APG parallels that of the POM, whose standard topics are:
(1) Force structure.
(2) Force deployment and prepositioning.
(3) Modernization and investment.
(4) Force readiness and sustainability.
(5) Facilities, construction, and maintenance.
(6) Manpower.
(7) Information management.
(8) Reconstitution.
(9) Unified and specified commands.
(10) International agreements.

4–4. Program administrative instructions

a. MACOM POM Development Instructions. HQDA issues MACOM POM Development Instructions (MPDI) in
August of the odd year. The document gives administrative instructions to guide MACOMs and PEOs in preparing
their program submission and to MACOMs for submitting CINC high priority warfighting needs.
b. Army POM Preparation Instructions. HQDA issues the Army POM Preparation Instructions (APPI) in January of
the even year. For HQDA staff agencies, the document augments OSD’s PPI.

4–5. Program and Budget Guidance

a. The PBG provides resource guidance to MACOMs, PEOs, and other operating agencies. The document covers—
(1) The force structure and associated manpower.
(2) Appropriations of immediate MACOM and PEO interest, such as:
(a) Operation and Maintenance, Army (OMA) and Army Reserve (OMAR).
(b) Military Construction, Army (MCA) and Army Reserve (MCAR).
(c) Army Family Housing (Operation and Maintenance) (AFHO) and (Construction) (AFHC).
(3) Construction, using trust funds for commissary construction and nonappropriated funds (NAF) for morale,
welfare, and recreation (MWR) construction.
b. HQDA typically publishes a PBG five times during the biennial PPBES cycle.
(1) In the odd years it issues a PBG after the President’s Budget goes to Congress in January and after the draft

AR 1–1 • 30 January 1994 35

TAP and APG. The issue reflects the President’s Budget and preliminary program force and guides agency program
development. It also guides preparation of the Resource Management Update (RMU), refining the Command Budget
Estimate (CBE) submitted the previous even year. Later, a PBG update follows publication of the final TAP and APG
in August. The issue reflects the preliminary program force approved by the SA and CSA. It also records the result of
the July RMU submissions and publishes probable fiscal guidance for MACOM and PEO use in completing the field
POMs submitted in late November.
(2) In even years, the President usually submits an amended budget. When this occurs, soon after the budget goes to
Congress, HQDA will issue a PBG for the information of MACOMs and PEOs. A PBG follows submission of the
POM to OSD in April. Reflecting the new program, it guides preparation of CBEs. A PBG update in the fall reflects
Army Budget Estimates submitted to OSD in September.

4–6. Transition from planning

The new program cycle for the next POM begins in the fall of the even year. It occurs after OSD program review and
near the end of the even-year TAA process. In this early stage of the cycle, planning and programming at HQDA
centers on publishing the draft TAP which includes preliminary programming guidance. The activity continues at
HQDA with an FIA to establish the preliminary program force.
a. Army Program Guidance. HQDA publishes the draft APG in January of the odd year as the resource section of
the draft TAP. The draft APG translates planning objectives into an initial plan of what the Army hopes to achieve in
the POM. It conveys CSA directions for future programs. It applies constrained resources for building an integrated
and balanced Army program to achieve Army goals. The document whose guidance reflects the President’s Budget
applies to HQDA, MACOMs, PEOs, and other operating agencies.
(1) The draft APG reflects the base force updated through the TAA process and the planning goals and objectives
set in TAP. It considers positions taken by Congress in its review of near-year programs. It incorporates program
adjustments from the OSD PDM.
(2) The draft APG projects the availability of manpower and dollars as the resource base for developing the
program. Economic assumptions in the draft APG cover such issues as the rate of real growth, amount of a projected
pay raise, and estimates of foreign currency changes for each year of the new POM.
(3) The draft APG describes preliminary program guidance. It typically covers the following—
(a) Base force proposed for the program period.
(b) Military end strength.
(c) Force readiness goals.
(d) Equipment modernization.
(e) Secondary item levels.
(f) Base operations support levels.
(g) Unit training goals.
(h) Forces stationing.
(i) Other key program areas.
b. Force Integration Analysis. From January through the end of August, DCSOPS conducts an FIA of the TAA base
force. Serving as a link between midterm planning and projections for the availability of resources, the FIA develops
and costs major force alternatives. From these alternatives, the SA and CSA select and lock the preliminary program
force.
(1) The analysis examines the affordability of each alternative of the TAA base force, adjusting the force to reflect
applied resource constraints. It concurrently examines the capability of force units to perform assigned missions in
support of CINC operational requirements.
(2) The objective of the analysis is to answer such questions as: Can the force be equipped, manned, and trained?
Can the force be sustained and provided facilities? Mobilized and deployed?
(3) Considerations include the following—
(a) Effect of deliveries from earlier budget and execution cycles on the first 2 years of the program.
(b) Execution and current production rates.
(c) Program impacts resulting from OSD budget review.
(d) Fiscal guidance issued by OSD following submission of the President’s Budget to Congress.

4–7. Program development

Army program development formally gets under way when HQDA publishes the final TAP and its included APG in
August of the odd year, nearly 1 year before submitting the POM to OSD. Reflecting affordability analyses from the
FIA process, TAP and the APG lock in the preliminary program force and stabilize manpower and key equipment
requirements for program development. The provisions of the TAP and APG apply to HQDA, MACOMs, PEOs, and
other operating agencies.
a. Work in developing the APG section of TAP serves as the program baseline for the following—

36 AR 1–1 • 30 January 1994

 (1) An Army Force Posture Statement submitted earlier to SECDEF on 1 April.
(2) The LRRDAP POM years.
(3) ACC, other MACOM, and PEO POM requirements submitted to HQDA in late November.
b. The APG directs HQDA agencies to prepare alternative programs to support the preliminary program force. An
alternative, for example, might vary the distribution of resources to readiness and sustainability. Such alternatives
provide insights on various ways to apply resources to achieve Army goals and flexibility to adapt to variations in
resource levels (and since they are presented in MDEP structure, the alternatives readily convey to management
information system data bases.)

4–8. Program development process

Using the MDEP as a building block, program development applies information from the APG published in August of
the odd year to refine and extend the program of the previous PPBES cycle.
a. Program development by MACOMs, PEOs, and other operating agencies gets under way early in the odd year.
The resource position reflected in the FYDP for the President’s Budget and related PBG serve as the base for
developing program requirements. On publication of the APG in August, MACOMs, PEOs, and other operating
agencies adjust requirements to respond to its guidance and related PBG. They then prepare and present to HQDA—
(1) RMUs submitted in July, updating even-year CBEs.
(2) Command plans validating the latest force structure changes or requesting internal reprogramming to meet them.
(3) MACOM and PEO POMs submitted about 1 November.
(4) A validated economic analysis for the POM years when a program is first funded, prepared per AR 11–18 and
instructions in the PBG.
b. Information for the early years of the approved LRRDAP serves as the RDA program equivalent to MACOM and
PEO POMs.
c. HQDA agencies, guided by the APG, collect and review program information. They study the existing program
considering new requirements, determine program needs and, then, begin preparing their functional programs.
(1) Under DPAE lead, the agencies incorporate program requirements into POM alternatives directed by the APG
and constructed to achieve programmatic balance. Key considerations include—
(a) Resource assessments and new requirements submitted by MACOMs, PEOs, and other operating agencies.
(b) CINC IPLs and ACC-developed requirements supporting them.
(c) DPG.
(d) Final Army fiscal guidance provided by OSD on 30 November.
(2) Proponent agency PEGs guided by DPAE (paras 1–9 e and 2–16), build the Army program. Coordinating as
required with MDEP proponents, DPAE assigns each MDEP to a particular PEG based largely on the MDEP’s main
fiscal appropriation. PEGs review resources contained in assigned MDEPs from a functional or program perspective. In
building the PEG portion of the overall program, each PEG rank orders unresourced programs submitted by MACOM,
PEO, and other agency POMs. The PEG also reviews command and agency zero-sum realignments, which reallocate
programmed resources to meet existing shortfalls and changed requirements. The purpose of the review is to make sure
that proposed reallocations—
(a) Conform to legal restrictions and Army policy and priorities.
(b) Avoid imprudently high risk.
(c) Do not cause a mandatory program or subprogram to become inexecutable.

4–9. Army program reviews

The program undergoes review by the senior Army leadership in January and February of even years.
a. Army Commanders’ Conference. The Army Commanders’ Conference scheduled during this period provides field
commanders with the chance to review and influence program alternatives.
b. SELCOM. The SELCOM then reviews program alternatives, incorporating views expressed at the Army Com-
manders’ Conference. The SELCOM recommends program alternatives to the SA and CSA.
c. SA and CSA reviews. Throughout January and February, the SA and CSA hold a series of in-process reviews.
Then, after the joint SELCOM has completed its work, the SA and CSA decide on the Army program.

4–10. POM preparation and submission

HQDA prepares the POM in March each even year. The POM reflects program actions fleshed out by the HQDA staff
with DPAE. It also documents the program decision of the SA and CSA. Sent to OSD in April, the POM submits the
Army program for OSD review.

4–11. OSD program review

a. Also known as the summer issue cycle, the OSD program review begins early in April and continues until late
July.

AR 1–1 • 30 January 1994 37

 b. The review features Program Review Proposals (PRPs) that recommend alternatives to POM submitted programs.
PRPs are two- or three-page issue papers that fully describe the proposed alternative and give evidence for its adoption.
c. PRPs arise early in the process. They develop from review by members of the DRB and nonmember Assistant
Secretaries of Defense who manage specific programs. Each reviewer prepares a set of PRPs that offsets recommended
program additions with recommended reductions. Submitted to the DEPSECDEF, the balanced sets remain within
manpowerand fiscal levels originally programmed, thus leaving program costs unchanged. CINCs also may submit
PRPs but need not balance theirs.
d. PRPs divide into three tiers, which determine their treatment—
(1) Tier I—major issues Tier I topics and issues become major issues. The DRB deliberates these issues in a series
of meetings throughout May and August. Tier I major issues typically fall into one of the following groups:
(a) CINC issues.
(b) Policy and risk assessment.
(c) Nuclear forces.
(d) Conventional forces.
(e) Modernization and investment.
(f) Readiness and logistics.
(g) Manpower.
(h) Intelligence.
(i) Management.
(j) Special Defense agency issues.
(2) Tier II—issue papers. Tier II topics become individual issue papers. As a topic surfaces, ASD(PA&E) staffs it
within OSD and with the Services and defense agencies. In late June, members of the DRB review the topics along
with the results of staffing. Members then submit written comments and a recommended course of action for decision
by the DEPSECDEF. The DEPSECDEF entertains reclamas, provided reductions offset additions, and convenes the
DRB if required.
(3) Tier III—budget items. Tier III topics become items for later budget review sent to the Comptroller of the DOD
with possible options.
e. DPAE serves as executive agent for the OSD review, interacting primarily with the Joint Staff. As issues arise,
representatives of HQDA principal officials meet with their OSD counterparts. The Army representatives present the
Army position and try to clarify issues. If possible, they resolve the issue. An issue resolved outside the DRB becomes
known as an“ out-of-court” settlement. Such settlements require the signature of responsible officials, both Army and
OSD.
f. The principal official primarily responsible for the subject matter reviews each issue and helps DPAE prepare and
coordinate a recommended Army position.
(1) Recommended positions for unresolved Tier II issues go to the VCSA or the Under Secretary of the Army for
review. Following the review, the DPAE briefs the SA and CSA for their decision.
(2) A shorter response time for Tier I topics requires abbreviating the procedure. Normally, the DPAE and
proponent jointly draft the Army position for decision by the SA and CSA without intermediate review.
(3) Approved positions become the basis for Army participation in DRB discussions, if required.

4–12. Program Decision Memorandum

In mid- to late-July, after the DRB has debated all outstanding issues, the DEPSECDEF signs the PDM. The PDM
approves the POM with specific changes as the program basis for Army Budget Estimates submitted to OSD.

Chapter 5
Budgeting Phase

Section I
Army Budgeting

5–1. Budget process

Army budgeting proceeds in three stages: formulation, justification, and execution. Budget formulation converts into
Army Budget Estimates the first 2 years of the program approved by the DEPSECDEF’s PDM. Budget justification,
presents the estimates to Congress and defends them before that body. Budget execution applies congressionally
approved resources consisting of authorized manpower and appropriated funds to carry out approved programs.

5–2. Budget guidance

Adding to a DOD budget guidance manual and OSD budget call memorandum, ASA(FM) administrative instructions

38 AR 1–1 • 30 January 1994

guide HQDA in preparing Army Budget Estimates. The President’s Budget and POM PBG guide MACOMs and PEOs
in preparing their CBEs.

5–3. Defense Business Operations Fund: a recent managerial initiative

a. Two initiatives by OSD change the way DOD components program and budget for designated support functions.
To increase cost visibility, in August 1989 DOD adopted a financial management system based on cost per output or
unit cost. Then, beginning at the outset of fiscal year 1992, DOD instituted the Defense Business Operations Fund
(DBOF), to further improve tools available to managers of DOD support functions.
b. DBOF expands the current revolving fund concept to finance the business operations of defense industrial,
commercial, and support activities. It provides a structure for each included business area to identify the products or
services produced and the total cost of operations. DBOF incorporates the Army Industrial Fund; Army Stock Fund;
Surcharge Collections, Sales of Commissary Stores, Army; and other selected DOD funds.
(1) DBOF is essentially a business-type financial system. For each activity providing support through the fund,
DBOF captures the total costs of doing business, accounting for both operating and capital costs.
(a) Operating costs include the usual administrative, supply, and material expenses. They also include personnel
costs associated with operating and maintaining a support activity. Moreover, depreciation costs for plant and equip-
ment are included in the operating budget.
(b) Capital costs include the cost of minor construction over $15,000 with a life expectancy greater than 2 years.
They also include the costs of developing information systems and procuring equipment.
(2) DBOF recovers the support activity’s cost of operations through stabilized prices that it charges customers
receiving support. Fixed prices remaining throughout the year protect customers from unforeseen inflationary pressures
and other cost uncertainties. The fund shows the true cost implication of management decisions to both the providers of
support and supported operating forces.

Section II
Formulation

5–4. Command budget submissions

a. In the even years, MACOMs and PEOs develop their CBEs based on the latest PBG, which reflects fiscal levels
approved for the POM. MACOMs and PEOs submit their CBEs to HQDA in July. Projected for the coming budget,
fiscal years of the CBE typically cover the current (or execution) year through the 4 program outyears (fig 5–1).

Figure 5–1. Fiscal year structure of resources

b. A major aim during budgeting and execution is to maintain consistency with the program. Acceptance of any
change to program levels in the approved POM requires determining program tradeoffs to achieve a zero-sum change.
That is, adjustments during budget formulation must remain within the levels approved for Army TOA. Proposed
program changes submitted in the CBE receive review from functional proponents and appropriation sponsors. Changes
accepted by the PBC and SELCOM make their way into the budget.
c. Used in support of the Army budget submission to OSD, CBE schedules have the most impact on the 2 budget
years. This is because CBE changes make a difference in the request that will go to Congress as the President’s
Budget. (Changes in the coming execution year must be met within the limits of the congressional appropriation or
manpower authorization, essentially by reprogramming either within the MACOM and PEO or at DA level.)

AR 1–1 • 30 January 1994 39

 d. In July in the odd years, MACOMs and PEOs forward RMUs to HQDA. The RMUs refine budget estimates and
selected schedules of the CBE submitted the previous year.

5–5. Other budget submissions by MACOMs

Certain other budget submissions and processes parallel those for the CBE. They apply to appropriate MACOMs for
RDTE, procurement, and military construction resources as well as for National Guard and Reserve resources.

5–6. Acquisition reviews

Materiel development and procurement programs undergo evaluation during acquisition reviews held in the spring and
summer. The reviews consider recent execution experience in pricing and projected program changes by PE, project
number, and BLIN. Major issues failing to receive required resources at these levels go to the PBC and SELCOM for
review. If necessary, they go to the SA and CSA for decision.

5–7. Final adjustments

On receipt of the PDM, the DPAE, with the Army Staff and Secretariat, adjusts the program. The DPAE then forwards
the result to the DAB. The DAB, through appropriation sponsors—
a. Develops budget estimates from POM dollar and manpower levels as adjusted by the PDM.
b. Revises the estimates to incorporate changes determined through review of CBEs and centralized programs for
the RDTE, procurement, construction, and military personnel appropriations.
c. Adjusts budget estimates to conform to changes required by pending authorization and appropriation legislation.

5–8. Review and approval

a. Appropriation sponsors (table 1–2) present their proposed revisions to the PBC and SELCOM.
b. After the SELCOM review, the ASA(FM) presents the budget to the SA and CSA for approval. Once proposed
estimates receive approval, appropriation sponsors, aided by managers for program and performance, prepare detailed
justification books and furnish update tapes reflecting the CBE. The DAB prepares the executive summary of the
budget and a forwarding letter from the SA to the SECDEF. Separately, the DAB submits the justification books by
appropriation to OSD, and the DPAE submits an update tape for the FYDP.

5–9. OSD-OMB budget review

a. Members of OSD and OMB jointly review Army Budget Estimates. Also called the fall review, the joint review
focuses on proper pricing, reasonableness, and executability.
b. Recommendations developed during the review usually include alternative courses of action. The DEPSECDEF
reviews recommended adjustments and forwards approved alternatives to the Army as PBDs. The DAB incorporates
PBD changes in the developing budget estimate while the DPAE uses the PBDs to adjust or revalidate the program.
c. During the PBD cycle, each Service identifies certain pending decrements as major budget issues (MBIs). Army
MBIs center on decrements to specific initiatives that would significantly impair ability to achieve program intentions.
An MBI addresses the adverse impact that would occur if the decrement were to prevail. An MBI affecting a
combatant command undergoes coordination to get CINC comments and, if appropriate, CINC support. At the end of
the PBD process, the SA and CSA meet with the SECDEF and DEPSECDEF on major unresolved issues. The
SECDEF decides whether a meeting with the President to request fund restoration or recommend other action is
necessary.
d. The DAB supervises the PBD and MBI processes. The DAB also:
(1) Maintains coordination between the Comptroller of the DOD and HQDA.
(2) Makes sure that adjustments to fiscal and manpower controls are correct on all records for each PBD.
(3) Gives special attention to any PBD under appeal, since the DEPSECDEF may revise the pending adjustments on
review.

5–10. President’s Budget

a. In late November or early December, at the end of the PBD cycle, OSD issues a final PBD incorporating any
changes from MBI deliberations.
b. Completing the review phase, OSD-OMB and the Military Departments submit required budget information in
the form of the President’s Budget. The budget covers prior year obligations and updated resource estimates for the
current year. It also covers estimates of total obligation authority for the budget year and budget year plus 1.
c. The DPAE uses these controls to update the FYDP to reflect the President’s Budget submission. (As mentioned, a
1987 statutory change (10 USC 221) requires DOD each year to submit to Congress the FYDP coinciding with the
President’s Budget.)
d. Managers for program and performance and appropriation sponsors update their internal systems and the PROBE

40 AR 1–1 • 30 January 1994

data base. Their action reflects changes resulting from budget review and approval. Under the guidance and direction
of DPAE, PEGs translate the changes into program changes, posting MDEPs as required.

Section III
Justification

5–11. Budget hearings

a. During budget justification, the Army presents and defends its portion of the President’s program before
Congress. The process proceeds formally and informally under the staff supervision of the Chief of Legislative Liaison
and ASA(FM).
b. After the President formally submits the budget, the Army provides detailed budget justification to the authorizing
and appropriations committees. First, however, appropriation sponsors will have prepared material in Army justification
books to conform with decisions of the President and SECDEF and congressional requirements for formats and
supporting information. Justification books undergo internal Army review under ASA(FM) and are then sent to OSD
for final review.
c. The authorizing and appropriation committees hold formal hearings to discuss the issues in the budget request.
The SA and the CSA normally testify first. ASA(FM) and Chief of Legislative Liaison help appropriation managers in
presenting and defending the details of the budget.
d. The Omnibus Budget Reconciliation Act of 1990, as codified in section 901, title 2, United States Code (2USC
901) significantly changed the congressional budget process of the preceding 5 years. The Act—
(1) Replaced the automatic spending cuts under the Gramm-Rudman antideficit law by three discrete sequesters.
(2) Set discretionary spending caps for defense and also for foreign aid and domestic spending for fiscal years 1992
and 1993.
(3) Provided for triggering the first sequester only if the discretionary spending caps are exceeded.

5–12. Legislative approval and enactment

Budget justification ends when the President signs the authorization and appropriation bills for the coming fiscal year.
Enacted into law, Army appropriations provide the legal authority to incur obligations and make payments.

5–13. Continuing resolution authority

When Congress fails to pass an appropriation by 30 September, it may pass a continuing resolution. Continuing
resolution authority (CRA) derives from emergency legislation that authorizes the funding of Government operations in
the absence of appropriations. A temporary measure, the CRA usually restricts funding to the prior year level and
prohibits new initiatives. HQDA separately publishes specific policy on how the Army will operate under the CRA.

Chapter 6
Execution Phase

Section I
Budget Execution

6–1. Execution
a. During execution the Army—
(1) Manages and accounts for funds and manpower to carry out approved programs.
(2) Checks how well HQDA, MACOMs, PEOs, and other operating agencies use allocated resources to carry out
approved programs.
(3) Adjusts resource requirements based on execution feedback.
b. This section describes budget execution. Section II, below, addresses program performance and review.

6–2. Financial management

Budget execution applies the funds appropriated by Congress to carry out approved programs. The procedure entails:
a. Apportioning, allocating, and allotting funds; obligating and disbursing them; and associated reporting and
review.
b. Financing unbudgeted requirements caused by changed conditions unforeseen when submitting the budget and
having higher priority than the requirements from which funds have been diverted.

6–3. Apportionment, allocation, and allotment

a. An apportionment distributes funds by making specified amounts available for obligation. Appropriation sponsors

AR 1–1 • 30 January 1994 41

request apportionment from OMB by submitting justification through the DAB and OSD at the time of budget review.
OMB approves the requests, returning apportionments through OSD.
b. Guided by appropriation (and fund) sponsors at HQDA, the Defense Finance and Accounting Services Center
(DFAS) allocates apportioned funds to operating agencies. Operating agencies, in turn, make funds available to
subordinate commands and installations by an allotment. Allotments authorize users to place orders and award
contracts for products and services to carry out approved programs. Installations obligate funds as orders are placed and
contracts awarded. They make payments as materiel is delivered or as service are performed.

6–4. Funds control

a. The Army must receive OSD program authorizations and provide them to executing agencies before any funds
can be obligated.
b. OSD controls procurement accounts through program releases that specify the quantity of an authorized item that
may be bought. Similarly, program releases control the obligation and expenditure of RDTE funds by program
elements and construction funds by construction project.
c. Authorization controls for OMA apply quarterly. However, they impose few restrictions on budget programs and
activities funded by operating accounts. Instead, OSD sets dollar thresholds that govern rates of expenditure. Within
these thresholds, execution focuses on meeting changes in pricing and in adjusting command priorities.

6–5. Obligation and outlay plans

a. Early in the fiscal year, DAB prepares initial obligation and outlay plans. The obligation plans address unexpired
funds for all Army appropriations. The outlay plans address unexpired, and expired funds. After an appropriation act
passes, DAB and appropriation sponsors revise the plans based on MACOM and PEO estimates of annual obligations.
b. The ASA(FM) sends completed obligation and outlay plans to the Comptroller of the DOD. The plans are tied to
obligations and outlays as defined in President’s Budget.

6–6. Financing unbudgeted requirements

Congress recognizes the need for flexibility during budget execution to meet unforeseen requirements or changes in
operating conditions. Congress accepts that rigid adherence to program purposes and amounts originally budgeted and
approved would jeopardize businesslike performance. Thus, within stated restrictions and specified dollar thresholds,
Congress allows Federal agencies to reprogram existing funds to finance unbudgeted requirements.

Section II
Program Performance and Review

6–7. Program implementation

MACOMs, PEOs, and other operating agencies carry out the approved program within manpower and funds provided.
They review budget execution, account for, and report on use of allocated funds by appropriation and MDEP. As
applicable to each appropriation they include the 0–1 level budget activity, AMSCO, PE, project number, BLIN, BAG,
and EOR. They also account for use of allocated manpower by UIC. The manpower and financial data obtained help
MACOMs and agencies develop future requirements.

6–8. Formal program performance evaluation

a. Selected Army programs.
(1) HQDA conducts a quarterly management review of selected Army programs under the Program Performance
and Budget Execution Review System (PPBERS). The review compares actual program performance with objectives
set by the SA and CSA at the beginning of the fiscal year. It then takes corrective action to improve goal
accomplishment.
(2) The PBC receives the quarterly PPBERS presentations, from which it selects topics for further presentation to
the SELCOM.
b. Reviews of selected Army systems. Means for checking system program performance include the following—
(1) Milestone reviews of designated acquisition programs by the Army Systems Acquisition and Review Council
conducted by ASA(RDA).
(2) Milestone and in-process reviews (IPRs) of designated automated information systems by the MAISRC con-
ducted by DISC4.

6–9. OSD execution review

a. OSD has introduced a biennial execution review of selected programs as a scheduled event in the DOD PPBS
process. The measure focuses exclusively on execution of the defense program. It gives the senior leadership a chance
to assess the effect of program and policy initiatives.
b. The review considers subjects selected by the DEPSECDEF from candidates nominated by OSD principals, the

42 AR 1–1 • 30 January 1994

Services, and CINCs. OSD uses review findings to influence future DOD policy and the Defense program. For
example, the findings help decide DPG content, topics for OSD summer program review, and need for special studies.
The findings also lead to new guidance for conducting current efforts.

AR 1–1 • 30 January 1994 43

Appendix A
References

Section I
Required Publications

AR 10–5
Headquarters, Department of the Army. (Cited in para 1–11.)

AR 10–87
Major Army Commands in the Continental United States

AR 11–18
The Cost and Economic Analysis Program. (Cited in para 4–8.)

Section II
Related Publications

AR 37–1
Army Accounting and Fund Control.

Section III
Prescribed Forms
This section contains no entries.

Section IV
Referenced Forms
This section contains no entries.

44 AR 1–1 • 30 January 1994

Glossary
Section I
Abbreviations

AAE
Army Acquisition Executive

AASA
Administrative Assistant to the Secretary of the Army

ACC
Army component command

ACFT
Aircraft Procurement, Army (appropriation)

ACP
Army Cost Position

ACSIM
Assistant Chief of Staff for Installation Management

ADCSOPS
Assistant Deputy Chief of Staff for Operations and Plans

AFH
Army Family Housing

AFHC
Army Family Housing (Construction)

AFHO
Army Family Housing (Operations)

ALRPG
Army Long Range Planning Guidance

AMC
U.S. Army Materiel Command

AMHA
Army Management Headquarters Activities

AMMO
Procurementof Ammunition, Army (appropriation)

AMOPES
Army Mobilization, Operations Planning, and Execution System

AMOPS
Army Mobilization and Operations Planning System

AMP
Army Modernization Plan

AMP
Army Modernization Plan

AMS
Army Management Structure

AR 1–1 • 30 January 1994 45

AMSCO
Army Management Structure Code

AOC
area of concentration

AOL
authorized organization level

APA
See ACFT

APG
Army Program Guidance

APPI
Army POM Preparation Instructions

APS
Army Planning System

AR
Army Regulation

ARNG
Army National Guard

ASA(CW)
Assistant Secretary of the Army (Civil Works)

ASA(FM)
Assistant Secretary of the Army (Financial Management)

ASA(ILE)
Assistant Secretary of the Army (Installations, Logistics, and Environment)

ASA(MRA)
Assistant Secretary of the Army (Manpower and Reserve Affairs)

ASA(RDA)
Assistant Secretary of the Army (Research, Development, and Acquisition)

ASARC
Army Systems Acquisition Review Council

ASD(PA&E)
Assistant Secretary of Defense (Program Analysis and Evaluation)

ASIP
Army Stationing andInstallation Plan

ATF
Department of the Army Trust Funds

AUTS
Automatic Update Transaction System

BA
budget activity

46 AR 1–1 • 30 January 1994

BAG
budget activity group

BASOPS
base operations

BCE
Baseline Cost Estimate

BES
Budget Estimates Submission

BLIN
budget line item number

BOIP
Basis of Issue Plan

BRS
automated budget review system

BSA
budget subactivity

BY
budget year

C4
command and control, communications, and computers

CAR
Chief, Army Reserve

CAWCF
Army Conventional Ammunition Working Capital Fund

CBE
Command Budget Estimate

CBO
Congressional Budget Office

CC
Chief of Chaplains

CCA
Chairman’s Contingency Capabilities Assessment

CELP
Civilian Employment Level Plan

CG
Chairman’s Guidance

CIDC
U.S. Army Criminal Investigation Command

CINC
commander in chief, unified or specified command

AR 1–1 • 30 January 1994 47

CINCSOC
Commander in Chief, U.S. Special Operations Command

CJCS
Chairman of the Joint Chiefs of Staff

CLL
Chief, Legislative Liaison

CNGB
Chief, National Guard Bureau

COE
Chief of Engineers

CPA
Chief of Public Affairs; Chairman’s Program Assessment

CPG
Contingency Planning Guidance

CPLAN
command plan

CRA
continuing resolution authority

CRRC
Construction Requirements Review Committee

CSA
Chief of Staff, U.S. Army

CSPAR
CINC’s Preparedness Assessment Report

CY
current year

DA
Department of the Army

DAB
Deputy Assistant Secretary of the Army for Army Budget; Defense Acquisition Board

DAE
Defense Acquisition Executive

DARNG
Director of Army National Guard

DAS
Director of the Army Staff

DBOF
Defense Business Operations Fund

DCSINT
Deputy Chief of Staff for Intelligence

48 AR 1–1 • 30 January 1994

DCSLOG
Deputy Chief of Staff for Logistics

DCSOPS
Deputy Chief of Staff for Operations and Plans

DCSPER
Deputy Chief of Staff for Personnel

DEPSECDEF
Deputy Secretary of Defense

DERA
Defense Environmental Restoration Account

DFAS
Defense Finance and Accounting Service

DISC4
Director of Information Systems for Command, Control, Communications, and Computers

DM
Depot Maintenance (Ordnance) (Other); Director of Management

DMR
Defense Management Review

DOD
Department of Defense

DODD
Department of Defense Directive

DODI
Department of Defense Instruction

DPAE
Director, Program Analysis and Evaluation

DPG
Defense Planning Guidance

DRB
Defense Resources Board

DS
direct support

DSADBU
Director, Office of Small and Disadvantaged Business Utilization

DSS
decision support system

ECAP
Environmental Compliance Achievement Program

ECBRS
Enhanced Concept Based Requirements System

AR 1–1 • 30 January 1994 49

EOR
element of resource

EUSA
Eighth U.S.Army

EXCOM
DOD Executive Committee

FAS
Force Accounting System

FIA
Force Integration Analysis

FMF
Foreign Military Financing Program

FMS
Foreign Military Sales Program

FORSCOM
Forces Command, a specified command

FY
fiscal year

FYDP
Future Years Defense Program

GAO
General Accounting Office

GS
general support

HAC
House Appropriations Committee

HASC
House Armed Services Committee

HBC
House Budget Committee

HOA
Home Owners Assistance

HQDA
Headquarters, Department of the Army

HSC
U.S. Army Health Services Command

ICE
Independent Cost Estimate

IMET
International Military Education and Training Program

50 AR 1–1 • 30 January 1994

IMSC
Installation Management Steering Committee

INSCOM
U.S. Army Intelligence & Security Command

IPL
integrated priority list

IPR
in process review

ISC
U.S. Army Information Systems Command

JCS
Joint Chiefs of Staff

JMNA
Joint Military Net Assessment Planning

JOPES
Joint Opeations Planning and Execution System

JPD
Joint Planning Document

JPD
Joint Planning Document

JSCP
Joint Strategic Capabilities Plan

JSPS
Joint Strategic Planning System

JSR
Joint Strategy Review

LIN
line item number

LOGSACS
Logistics Structure and Composition System

LRP
long-range plan

LRRDAP
Long Range Research, Development, and Acquisition Plan

LSA
Logistic Sustainability Analysis

LSA
Logistics Sustainability Analysis

M-Force
Master Force

AR 1–1 • 30 January 1994 51

MACOM
major Army command

MAISRC
Army Major Automated Information Review Committee

MARB
Materiel Acquisition Review Board

MARC
Manpower Requirements Criteria

MBI
major budget issue

MCA
Military Construction, Army (appropriation)

MCAR
Military Construction, Army Reserve (appropriation)

MCNG
Military Construction, Army National Guard (appropriation)

MDEP
Management Decision Package

MDW
U.S. Army Military District of Washington

MILCON
military construction

MIPA
See MSLS

MOC
management of change

MOS
military occupational specialty

MPA
Military Personnel, Army (appropriation)

MPDI
MACOM POM Development Instructions

MS-3
Manpower Staffing Standards System

MSA
Manpower Standards Application

MSLS
Missiles Procurement, Army (appropriation)

MTMC
Military Traffic Management Command

52 AR 1–1 • 30 January 1994

MTOE
modified table of organization and equipment

MWR
morale, welfare, and recreation

NAF
nonappropriated fund

NBRP
National Board for the Promotion of Rifle Practice

NCA
national command authorities

NFIP
National Foreign Intelligence Program

NGB
National Guard Bureau

NGPA
National Guard Personnel, Army (appropriation)

NMS
national military strategy

OMA
Operation and Maintenance, Army (appropriation)

OMAR
Operation and Maintenance, Army Reserve (appropriation)

OMB
Office of Management and Budget

OMNG
Operation and Maintenance, Army National Guard (appropriation)

OPA
Other Procurement, Army (appropriation)

OPLAN
operation plan

OSA
Office of the Secretary of the Army

OSD
Office of the Secretary of Defense

PAA
Procurement of Ammunition, Army (appropriation)

PAR
Chairman’s Preparedness Assessment Report

PBC
Program and Budget Committee

AR 1–1 • 30 January 1994 53

PBD
Program Budget Decision

PBG
Program and Budget Guidance

P/BS
Program/Budget System

PDM
Program Decision Memorandum

PE
program element

PEG
Program evaluation group

PEO
Program executive officer; program executive office

PERSACS
Personnel Structure and Composition System

PM
Project/product manager

PMAD
Personnel Management Authorization Document

POC
point of contact

POM
Program Objective Memorandum

PPBERS
Program Performance and Budget Execution Review System

PPBES
Planning, Programming, Budgeting, and Execution System

PPBS
Planning, Programming, and Budgeting System

PPI
POM Preparation Instructions

PRG
Program Review Group

PROBE
PPBES Data Management System

PRP
Program review proposal

PSG
Prioritization Steering Group

54 AR 1–1 • 30 January 1994

PY
prior year

RDA
research, development, and acquisition

RDT&E
Research, Development, Test and Evaluation

RDTE
Research, Development, Test and Evaluation, Army (appropriation)

RMU
resource management update

ROTC
Reserve Officers’ Training Corps

RPA
Reserve Personnel, Army (appropriation)

RPM
Real Property Maintenance

SA
Secretary of the Army

SAC
Senate Appropriations Committee

SACS
Structure and Composition System

SAMAS
Structure and Manpower Allocation System

SASC
Senate Armed Services Committee

SBC
Senate Budget Committee

SECDEF
Secretary of Defense

SELCOM
Select Committee

SES
senior executive service

SIO
standard installation organization

SIPC
Stationing and Installations Planning Committee

SISA
Science and Infrastructure Support Analysis

AR 1–1 • 30 January 1994 55

SMA
Supply Management, Army (business area)

SPC
Strategy and Planning Committee

SPCC
Study Program Coordination Committee

STP
short term project

STARFIARS
Standard Army Financial Inventory Accounting and Reporting System

SVP
special visibility program

SSN
standard study number

TAA
Total Army Analysis

TAADS
The Army Authorization Documents System

TAEDP
Total Army Equipment Distribution Program

TAP
The Army Plan

TDA
table of distribution and allowances

TIG
The Inspector General

TJAG
The Judge Advocate General

TOA
total obligational authority

TOE
table(s) of organization and equipment, Tables of Organization and Equipment System

TPFDD
Time-Phased Force Deployment Data

TRADOC
U.S. Army Training and Doctrine Command

TSG
The Surgeon General

TTHS
trainees, transients, holdees, and students

56 AR 1–1 • 30 January 1994

TUSA
Third U.S. Army

UIC
unit identification code

USA
Under Secretary of the Army

USACE
U.S. Army Corps of Engineers

USAISC
U.S. Army Information Systems Command

USAR
U.S. Army Reserve

USAREUR
U.S. Army Europe

USARLANT
U.S. Army Atlantic

USARPAC
U.S. Army Pacific

USARSO
U.S. Army South

USARSPACECOM
U.S. Army Space and Strategic Defense Command

USASOC
U.S. Army Special Operations Command

USCENTCOM
U.S. Central Command

USD(A)
Under Secretary of Defense for Acquisition

USD(P)
Under Secretary of Defense for Policy

USEUCOM
U.S. European Command

USFJ
U.S. Forces Japan

USFK
U.S. Forces Korea

USLANTCOM
U.S. Atlantic Command

USPCACOM
U.S. Pacific Command

AR 1–1 • 30 January 1994 57

USSOCOM
U.S. Special Operations Command

USSOUTHCOM
U.S. Southern Command

USSPACECOM
U.S. Space Command

USTRANSCOM
U.S. Transportation Command

VCSA
Vice Chief of Staff, U.S. Army

WFLA
Warfighting Lens Analysis

WTCV
Procurement of Weapons and Tracked Combat Vehicles, Army (appropriation)

Section II
Terms

Army leadership
See senior Army leadership.

HQDA
The executive part of the Department of the Army at the seat of Government. Consists of the Office of the Secretary of
the Army and the Army Staff.

HQDA principal officials

A designated member of the Army Secretariat or Army Staff.

Major Army commands

Major Army commands (MACOMs) consist of the command organizations of Army Forces in the continental United
States (other than HQDA), the Army components of unified commands, and one Army specified command.

Military Traffic Management Command (MTMC), assigned to U.S. Transportation Command

(USTRANSCOM)

National command authorities

The President and Secretary of Defense or their duly authorized alternates or successors.

Operating agency
A command, headquarters, or agency assigned a code designation for consolidating fiscal data for budgetary analysis.
(See AR 37–1, paragraph 3–9.

Principal official
See HQDA principal official.

Program (budget) execution

Act of carrying out the approved program (budget).

Program planning
Act of working out beforehand how to develop the program.

Senior Army leadership

The Secretary of the Army; Chief of Staff, Army; Undersecretary of the Army; and Vice Chief of Staff, Army.

58 AR 1–1 • 30 January 1994

Section III
Special Abbreviations and Terms
This section contains no entries.

AR 1–1 • 30 January 1994 59

Index
This index is organized alphabetically by topic and subtopic. Topics and subtopics are identified by paragraph number.
Acquisition reviews, 2–7, 5–6, 6–8
Appeals of Program Budget Decisions (PBDs), 5–9
Allocation, 6–2, 6–3
Allotment, 6–2, 6–3
Apportionment, 6–2, 6–3
Appropriation(s)
And funds, list of, 1–8i
As representing program requirements, 2–10
Bills, 5–12
For Reserve Components, responsibility for, 1–8i
Included in Program and Budget Guidance, 4–5
Justification books for, 5–8, 5–11
Management latitude in changing, 2–13
Manager assignments for, 1–8i
Manager for program and performance, 1–21c
Manager for requirements determination, 1–21b
Of immediate interest to major Army commands, 4–5
Sponsor assignments for, 1–8i
Appropriation sponsor, 1–21d
Army Acquisition Executive (AAE), 1–5c, 1–12
Army Budget Estimates
Cover first 2 years of Army program, 5–1
Administrative instructions for preparing, 5–2
Army Long Range Planning Guidance (ALRPG)
Considered by Strategy and Planning Committee, 2–14
Described, 3–9
Use of, by The Army Plan, 3–13
Army Major Automated Information Systems Review Council (MAISRC), 2–15, 6–8
Army Modernization Plan (AMP), 3–10
Army Plan, See The Army Plan (TAP)
Army planning, See PPBES planning
Army Program Guidance (APG), 3–13, 4–3, 4–6, 4–7
Army POM Preparation Instructions (APPI), 4–4
Army PPBES, See PPBES
Army Systems Acquisition and Review Council (ASARC), 2–15, 6–8
Authorization
Bill, 5–12
Controls, 6–4
Automatic Update Transaction System (AUTS), 3–15
Basis of Issue Plan (BOIP), 3–15
Budget execution, See funding.
Described, 6–1
Financing unbudgeted requirements, 6–6
Program Performance and Budget Execution Review System (PPBERS), 6–8
Use of obligation and outlay plans, 6–5
Budget formulation, See budget preparation; budget review.
Budget justification
Budget hearings, 5–11
Legislative approval and enactment, 5–12
Budget preparation
Guidance for, 5–2
Incorporates final adjustments, 5–7
President’s Budget, 5–10

60 AR 1–1 • 30 January 1994

 Program and Budget Guidance, 5–2
Reviewed by PBC and SELCOM, 5–8
Budget process as budget formulation, justification, and execution, 5–1
Budget review
By HQDA, 5–8
By OSD–OMB, 5–9
Candor and privacy of leadership deliberations during PPBES process, 2–11
Chairman’s Guidance (CG), 3–3b
Chairman’s Program Assessment (CPA), 3–4d
CINC requirements
Briefings on status of, 1–9j
Influence program development as integrated priority lists (IPLs), 3–18c
Integration of, into programs of major Army commands, 1–20
Linkage of, to U.S. Training and Doctrine Command (TRADOC), 1–7a(2)
Validated by Deputy Chief of Staff for Operations and Plans, 1–7a(2)
Command plan, 3–15
Continuing resolution authority, 5–13
Control of planning, programming, and budgeting documents, 2–11
DBOF, See Defense Business Operations Fund.
Defense Acquisition Board (DAB), 2–7
Defense Business Operations Fund (DBOF), 1–8i, 5–3
Defense Resources Board (DRB), 2–5
Defense Planning Guidance (DPG), 3–6a
DOD
Core managers of, 2–3
Executive Committee (EXCOM) of, 2–4
DOD PPBS
Concept of, 2–1
Role of Defense Resources Board (DRB) in, 2–5
Enhanced Concept Based Requirements System (ECBRS), 3–11
Fall budget review, See budget review.
Financing unbudgeted requirements, 2–13b, 6–6
Force development, 3–14, See PPBES planning.
Force documentation, 3–15
Force Integration Analysis (FIA), 3–13, 3–14, 4–6b, 4–7
Funding, See appropriations; authorization; funding authority.
Controls, 2–13, 6–4
Through allocation, 6–3
Through allotment, 6–3
Through apportionment, 6–3
Of unbudgeted requirements, 6–6
Funding authority, continuing resolution, 5–13
Future Years Defense Program (FYDP)
Data for, must match data in force structure and manpower databases, 1–9i
Described, 2–2
Director of Program Analysis and Evaluation point of contact for, 1–7b
Submitted to Congress, 1–5, 2–2, 5–10
FYDP, See Future Years Defense Program (FYDP).
Gramm–Rudman–Hollings (GRH) anti deficit law, 5–11
Hearings
Congressional, 5–11
OSD–OMB, 5–9
HQDA principal officials
Functional oversight by, 1–6

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 Functional tasks of, 1–8 thru 1–18
Views of, considered in assessing Army missions and capabilities, 1–7a
Integrated priority lists (IPLs), See CINC requirements.
Issue papers, 4–11, 5–9
Joint Military Net Assessment (JMNA), 3–5a
Joint Requirements Oversight Council (JROC), 2–7c
Joint Strategic Capabilities Plan (JSPS), 3–4c, 3–17
Joint Strategic Planning System (JSPS)
Products produced by, 3–4
Supported by PPBES planning, 3–7
Joint Strategy Review (JSR), 3–3
Logistics Structure and Composition System (LOGSACS), 3–15
Long–Range Research, Development, and Acquisition Plan (LRRDAP), 3–12, 4–7, 4–8
MACOM POM Development Instructions (MPDI), 4–4
Major defense programs, 2–2
Major issues, 4–11, 5–9
Management Decision Package (MDEP)
Described, 2–12
Each assigned to a specific Program Evaluation Group, 4–8
Posted by Program Evaluation Groups (PEGs) to reflect budget decisions and approved funding, 5–10d
Use of, required by commanders to track and report on program and financial performance, 1–19d, 6–7
Use of, as building block in developing Army program, 4–8
Management of change (MOC) window, 3–15
Manager for manpower and force structure issues, 1–8i
Manpower standard application, 3–15
Materiel acquisition reviews, See acquisition reviews.
National Military Strategy (NMS), 3–4a
Objectives of PPBES, 2–10
Obligation and outlay plans, 6–5
Omnibus Budget Reconciliation Act of 1990, 5–11
Operational planning
Described, 3–16
Guided by Joint Strategic Capabilities Plan (JSCP), 3–17
Operation plans (OPLANs), a product of, 3–16, 3–18
OSD–OMB budget review, 5–9
OSD program authorizations, 6–4
OSD program review, 4–11
Out–of–court settlements, 4–11
PBC, See Program and Budget Committee (PBC).
PBC Systems Subcommittee, 2–14
Personnel Structure and Composition System (PERSACS), 3–15
Planning, Programming, and Budgeting System (PPBS), See DOD PPBS.
POM, See Program Objective Memorandum (POM).
POM Preparation Instructions (PPI), 4–4
PPBES, See DOD PPBS.
Baseline events of, 2–17
Changes in, 1–5
Concept of, 2–9
How used, 1–1
Objectives of, 2–10
Organizational framework for, 2–17
Phases of, 2–17
Principal committees for, 2–14

62 AR 1–1 • 30 January 1994

 Related committees, 2–15
Responsibilities for managing operation of, 1–7
Responsibilities for performing functional tasks of, 1–8 thru 1–21
Serves as Army’s primary resource management system, 2–8
PPBES planning, 3–7, See PPBS planning.
PPBS planning, 3–1, See PPBES planning.
President’s Budget, 5–10
Principal officials, See HQDA principal officials.
Prioritization Steering Group, 2–14
Privacy and candor, preserving during leadership deliberations, 2–11
Program and Budget Committee (PBC)
Described, 2–14
Review of budget, 5–8
Review of performance of selected Army programs, 6–8
Review of program, 4–9
Review of program changes proposed by command budget estimates, 5–4
Systems Subcommittee of, 2–14
Program and Budget Guidance (PBG)
As budget guidance, 5–2
As program guidance, 4–5
Program Budget Decision (PBD), 5–9
Program Decision Memorandum (PDM), 4–12
Program development
Guidance for, 4–2 thru 4–7
Described, 4–7 thru 4–12
Latitude in adjusting resources during, 2–13
Use of Program Evaluation Groups (PEGs) in, 2–16, 4–8
Program Evaluation Groups (PEGs)
Composition and focus of, 1–8i, 2–16
Role of, in program development, 4–8
Use of, to translate adjustments from budget review and approval into program change, 5–10
Program Objective Memorandum (POM)
Approved by Program Decision Memorandum (PDM), 4–12
Format of, 4–3
Preparation of, 4–10
Product of Army programming, 4–1
Review of, by OSD, 4–12
Submits Army program for OSD review, 4–10
Program Performance and Budget Execution
Review System (PPBERS), 6–8
Program review by Army, 4–9
Program review by OSD
Classifies issues in three tiers, 4–11
Out–of–court settlements during, 4–11
Program Decision Memorandum (PDM) issued at completion of, 4–12
Program Review Group, 2–6
Program Review Proposals, 4–11
Reprogramming, See financing unbudgeted requirements.
Requirements for manpower and equipment considered during Total Army Analysis, 3–14
Resources, changes in during programming and budgeting, 2–13
Resource management architecture, 2–12
Responsibilities
For Armywide policy development and oversight of the PPBES, 1–6
For functional oversight of the PPBES, 1–6
For managing the PPBES, 1–7

AR 1–1 • 30 January 1994 63

 For PPBES functional tasks, 1–8 thru 1–21
Science and Infrastructure Support Analysis (SISA), 3–11, 3–12
SELCOM, See Select Committee.
Select Committee (SELCOM)
Described, 2–14
Review of acquisition issues during budgeting, 5–6
Review of program, 4–9
Review of program changes proposed by Command Budget Estimates, 5–4
Review of budget, 5–8, 5–9, 5–11
Review of performance of selected Army programs, 6–8
Strategy and Planning Committee (SPC), 2–14
Structure and Composition System (SACS), 3–15
Structure and Manpower Allocation System (SAMAS), 3–15
Summer issue cycle, See program review.
Systems Subcommittee of PBC, 2–14
Table of Organization and Equipment System (TOE), 3–15
The Army Authorization Document System (TAADS), 3–15
The Army Plan (TAP), 3–13, 4–6, 4–7
Total Army Analysis (TAA), 3–14
Warfighting Lens Analysis (WFLA), 3–11, 3–12

64 AR 1–1 • 30 January 1994

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