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Biennial DoD Budget Requirement - PPBE Process

ABUS 012

DAU GLOSSARY DEFINITION

The primary Resource Allocation Process (RAP) of DoD. It is one of three major decision support systems for defense acquisition along with Joint Capabilities Integration and Development System (JCIDS) and the Defense Acquisition System. It is a formal, systematic structure for making decisions on policy, strategy, and the development of forces and capabilities to accomplish anticipated missions. PPBE is an annual process which produces the Secretary's Defense Planning Guidance (DPG), five year approved Program Objectives Memoranda (POMs), and one year Budget Estimate Submissions (BES) for the military departments and defense agencies, and the DoD portion of the President's Budget (PB).

Alternate Definition

PPBE: A cyclic process containing four distinct, but interrelated phases: planning, programing, budgeting, and execution. In addition to establishing the framework and process for decision making on future programs, the process permits prior decisions to be examined and analyzed from the viewpoint of the current environment (threat, political, economic, technological, and resources) and for the time period being addressed. The ultimate objective of PPBE is to provide operational commanders the best mix of forces, equipment, and support attainable within fiscal constraints.

General Information

Biennial Budget: The FY1986 National Defense Authorization Act (NDAA) (Section 1405) required DoD and related agencies to submit a biennial budget (i.e., for two fiscal years) beginning with the FY1988/FY1989 submission. In order to comply with this requirement, the Planning, Programming, and Budgeting process during calendar year 1986 was modified to focus on two fiscal years (FY1988 and FY1989) rather than only FY1988. That two-year DoD budget was submitted to Congress in early calendar year 1987 as part of the President’s Budget for FY1988, which began 1 October 1988. During calendar year 1987, the FY 1989 budget previously submitted to Congress was modified only to the extent necessary for significant high priority “fact of life” changes. Thereafter, DoD submitted a two fiscal year budget each two years and a single fiscal year budget in the “off” year. Each fiscal year budget requirement remained separate and distinct from each other. In all cases, Congress continued to appropriate Budget Authority (BA) for DoD on an annual basis as had been previously done.

The FY 2008 NDAA (Section 1001) repealed that portion of FY 1986 NDAA (Section 1405) that required DoD and related agencies to submit biennial budgets. Subsequently, DoD reverted to the annual programming and budgeting cycle effective with the FY 2010 budget request.