DoD Funds Management Guide - Platinum card Jan_2011[1]
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1. The document outlines the planning and budgeting process for Department of Defense acquisition programs. 2. It shows the timeline for the Planning Phase, which focuses on updating strategy and guidance, and the Program Review Phase, which focuses on compliance. 3. It also provides details on cost estimating requirements, parameters for reporting program cost and schedule breaches, and rules for below threshold reprogramming amounts.
DoD Funds Management Guide - Platinum card Jan_2011[1]
- 1. Defense Acquisition University (DAU) PPBE – Planning Phase Funds Management Platinum Card FEB/MAR APR/SEP CIA – Central Intelligence Agency January 2011 COCOM – Combatant Commander President CPR – Chairman’s Program Recommendation D, CAPE – Director, Cost Assessment & Program Eval National Security Council DIA – Defense Intelligence Agency CIA/DIA/JCS/OSD DPPG – Defense Planning & Programming Guidance FEAs – Front End Assessments Life Cycle Cost Composition JCS – Joint Chiefs of Staff NDS – National Defense Strategy Planning Phase focus: NMS – National Military Strategy NSS – National Security Strategy Life Cycle Cost • Threat vs. Capabilities OSD – Office of the Secretary of Defense • Update strategy QDR – Quadrennial Defense Review Program Acquisition Cost NSS • Guidance for programming & USD(P) – Undersecretary of Defense (Policy) budgeting VCJCS – Vice Chairman, Joint Chiefs of Staff Development Cost Every To DoD “Large FEAs Group”/Integrated 4 Years D, CAPE/VCJCS/ Program/Budget RDT & E RDT & E OSD USD(P) Submission & Review Development Costs of Development Costs of NDS QDR DPPG PME & Support Items MILCON Operations & Level PME & Support Items MILCON Operations & Systems Engineering Facilities Support Support Systems Engineering Facilities Program Management Program Management •O&M, MILPERS O&M, MILPERS Note: PPBE and Resource Allocation Process Test & Evaluation (or others as JCS Overlap charts based on DepSecDef 9 Apr 2010 Test & Evaluation Level Memo: “Procedures and Schedule for Fiscal Year appropriate) NMS (JCS, CPR (FY) 2012-2016 Integrated Program/Budget Review.” Further process revisions are anticipated during the Procurement Cost COCOMs, SERVICES) FY12-16 POM/BES summer/fall reviews. Weapon System Cost Flyaway Cost Disposal Disposal PPBE – Integrated Program/Budget Review •O&M (or others O&M (or others as appropriate) as appropriate) JUL DoD OCT NOV DEC JAN/FEB PROCUREMENT PROCUREMENT PROCUREMENT PROCUREMENT PROCUREMENT PROCUREMENT “Large Group” BES – Budget Estimate Submission Prime Mission Prime Equipment (PME) Support Items Support Items Initial Spares Initial Spares FEAs OSD/ 3-Star Group CAPE – Cost Assessment & Prgm Evaluation Equipment CAPE Issue COCOM – Combatant Commander CPA – Chairman’s Program Assessment Resolution CPM – Capability Portfolio Manager DAWG – Deputy’s Advisory Working Group SECDEF/DEPSECDEF POM FYDP – Future Years Defense Program SLRG* & DAWG* MBI – Major Budget Issues OMB – Office of Management and Budget JCS CPA CPMs PB – President’s Budget POM – Program Objectives Memorandum Components/ RMD – Resource Management Decision Defense Program Review focus: SLRG – Senior Leader Review Group • Compliance with DPPG Agencies RMDs Cost Estimating Requirements USD(C)/ ACAT IC & ID (MDAP) ACAT IA (MAIS) BES OMB Adv Questions/ MBI* PB POE Program initiation & all subsequent Program initiation & all subsequent OSD/OMB Budget Hearings milestones, including FRP DR milestones FYDP FYDP - Includes Economic Analysis Update Update CARD Program initiation & all subsequent milestones Program initiation & whenever Services / PEO / PM Budget Review focus: including FRP DR Economic Analysis is required Answer / Reclama* - Pricing - Phasing - Draft 180 days prior to OIPT/milestone - Draft 180 days prior to OIPT/milestone * TBD - Funding policies - Budget execution - Final 45 days prior to OIPT/milestone - Final 45 days prior to OIPT/milestone CCE MS A and all subsequent milestones MS A and whenever an Economic Analysis Resource Allocation Process Overlap including FRP DR is required CY10 CY11 CY12 ICE Required by law for all MDAP programs * J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D - Prepared by OSD CAPE for ACAT ID, and ACAT IC at discretion of USD (AT&L) FY10 Execution 2nd Yr 3rd Yr - Prepared by component cost agency (AFCAA, DASA-CE, NCCA) for ACAT IC (if no CAPE estimate) FY 10 and prior - In advance of any certification under Title 10, USC, Section 2366a (MS A) and Section 2366b (MS B) - In advance of any decision to enter low-rate initial production (LRIP) (MS C) or full-rate production (FRP DR) FY11 Enactment Execution 2nd Yr 3rd Yr - In advance of any certification of MDAPs that experience critical cost growth (Title 10, USC, Sec 2433a) FY 11 FY 11 and prior - In advance of any report of Critical Program Changes for MAIS (Title 10, USC, Sec 2445c(f)) PB *ICE statutory requirement (Title 10, US Code, Sec 2434) and P.L. 111-23, May 22, 2009 FY12 Planning Program/Budgeting Enactment Execution 2nd Source: DoDI 5000.02, December 2008 and Weapon Systems Acquisition Reform Act of 2009 FY 12-16 FY 12-16 POM PB FY 12 FY 12 and prior DPPG FY 12 BES ACAT II & ACAT III: POE (and, at MDA discretion, an independent cost estimate prepared by the component cost agency) at program initiation and all subsequent milestones FY13 Planning Program/Budgeting Enactment Exec AFCAA = Air Force Cost Analysis Agency DASA-CE = Dep Asst Sec of Army (Cost & Economics) NCCA = Naval Center for Cost Analysis CAE = Component Acquisition Executive FRP DR = Full Rate Production Decision Review OIPT = Overarching Integrated Product Team FY 13-17 DPPG FY 13-17 POM FY 13 FY13 & CAPE = Cost Assessment & Program Evaluation ICE = Independent Cost Estimate POE = Program Office Estimate FY 13 BES PB prior CARD = Cost Analysis Requirements Description MAIS = Major Automated Information System USD(AT&L) = Under Secretary of Defense CCE = Component Cost Estimate MDA = Milestone Decision Authority (Acquisition, Technology, & Logistics) MDAP = Major Defense Acquisition Program FY14 Planning Program/Budgeting FY 14-18 DPPG FY 14-18 POM BCEFM Acquisition Community Connection (ACC) Website: http://acc.dau.mil/bcefm FY 14 BES DPPG – Defense Planning & Programming Guidance PB – President’s Budget Platinum Card POC: [email protected], (256) 922-8041 POM – Program Objectives Memorandum BES – Budget Estimate Submission
- 2. Defense Acquisition University (DAU) Funds Management Platinum Card January 2011 Below Threshold Reprogramming Congressional Enactment Timetable Amounts are Cumulative Over Entire Period of Obligation Availability APPRN MAX INTO MAX OUT LEVEL OF CONTROL OBL AVAIL JAN FEB MAR APR MAY JUN JUL AUG SEP OCT Lesser of Lesser of ^ 15 15 RDT & E + $10 M or - $10 M or Program Element 2 Years PRES BUDGET + 20% - 20% “TARGET” COMMITTEE FISCAL INPUTS YEAR Lesser of Lesser of 3 Years FLOOR PROC + $20 M or - $20 M or Line Item HRNGS MARKS FLOOR SCN: 5 Years BUDGET HOUSE + 20% - 20% CONF RESOLUTION RESOLUTION SENATE HRNGS MARKS FLOOR ^ Budget Activity FLOOR (or Defense Agency) O&M + $15 M - $15 M 1 Year Some Sub-Activity Limitations on Decreases (see reference BILL / RPT below) HASC HRNGS MARK-UP FLOOR FLOOR HOUSE CONF No Specific AUTHORIZATION ACT /RPT MILPERS + $10 M Congressional Budget Activity 1 Year SENATE SASC HRNGS MARK-UP FLOOR FLOOR ^ BILL / RPT Restriction BILL / RPT Lesser of No Specific HAC HRNGS MARK-UP FLOOR FLOOR MILCON + $2 M Congressional Project 5 Years HOUSE CONF APPROPRIATION /RPT ACT + 25 % Restriction SENATE SAC HRNGS MARK-UP FLOOR FLOOR ^ BILL / RPT Reference Sources: DoDFMR 7000.14-R, Volume 3, Chapter 6 (Sep 2010) and Chapter 7 (Feb 2009) Program Cost and Schedule Breach Parameters Applicable to Major Defense Acquisition Programs (MDAPs) Appropriation Life SAR Unit Cost Report (UCR) APB (Title 10, US Code, Sec 2432) (Title 10, US Code, Sec 2433) (Nunn-McCurdy) (Title 10, US Code, Sec 2435) Years Schedule Milestones 6 Month Slip From Slip beyond threshold date N/A Previous SAR * Default threshold = objective 1 2 3 4 5 6 7 8 9 10 11 plus 6 mon; MDA discretion 15%/30% PAUC Growth Cost 15/30% PAUC Growth 15/30% PAUC Growth 15%/30% APUC Growth O&M (Current/Original) (Current/Original) (Current/Original) * RDT&E Growth RDT&E 15/30% APUC Growth 15/30% APUC Growth * Procurement Growth (Current/Original) (Current/Original) * MilCon or O&M Growth Procurement * 10% default; MDA discretion Reports Required Quarterly SAR Quarterly/Exception DAES Program Deviation Rpt If Breach Occurs Service notifies Congress(>15/30%) (PM notifies MDA) Ships SecDef Certification (>25/50%) MILCON ACAT II & III: 15%/30% PAUC/APUC APB breach parameters are N/A; actual breach parameters at MDA discretion MILPERS Legend : Critical Cost Growth (APB/SAR/UCR): PAUC or APUC APUC = Average Procurement Unit Cost APB = Acquisition Program Baseline PAUC = Program Acquisition Unit Cost SAR = Selected Acquisition Report increases of 25% of current baseline or 50% of original Current Period : Available for new obligations, obligation DAES = Defense Acquisition Executive Summary baseline requires Sec Def certification to Congress: -- Essential to National Defense adjustments, expenditures, and outlays Dir, CAPE = Director, Cost Assessment & Program Evaluation -- No acceptable alternative capability at less cost -- New estimates are reasonable per Dir, CAPE Expired Period : Available for obligation adjustments, Significant Cost Growth (APB/SAR/UCR): PAUC or APUC increases of 15% of current baseline or 30% of original baseline -- Program cost growth higher priority than programs expenditures, and outlays is “reportable” to Congress providing offsets -- Management structure adequate to control costs Cancelled : Unavailable for obligations, obligation adjustments, expenditures, and outlays