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DoD Budget

DAU GLOSSARY DEFINITION

1.) A comprehensive financial plan for the federal government encompassing total federal receipts and outlays (expenditures). Budget documents routinely include the on-budget and off-budget amounts and combine them to derive a total of federal fiscal activity, with a focus on combined totals. 2.) A plan of operations for a fiscal period in terms of estimated costs, obligations, and expenditures; source of funds for financing, including anticipated reimbursements and other resources; and history and workload data for the projected program and activities.

Alternate Definition

The Department of Defense’s portion of the President’s annual budget submitted to Congress for approval. The DoD budget is prepared using the Planning, Programming, Budgeting and Execution (PPBE) process. The President’s Budget is ultimately submitted through the Office of Management and Budget (OMB) and includes the DoD Budget.
(Source: DoD Directive 7045.14 (Jan 2013)).

General Information

The Federal Government’s budget is transmitted no later than the first Monday in February to the Congress by the President in accordance with the Budget and Accounting Act of 1921, as amended. This Federal budget includes all agencies and activities of the executive, legislative, and judicial branches.

 

The Department uses an annual cycle to produce the DoD Budget using the Planning, Programming, Budgeting and Execution (PPBE) process. DoD budget formulation includes a five-year Program Objective Memorandum (POM) and a one-year Budget Estimate Submission (BES).

As part of the justification for the DoD budget request contained in the President’s Budget submitted to Congress, the Services provide budget exhibits to USD (Comptroller) and to the DoD oversight committees of Congress. Some of the exhibits of interest to acquisition program personnel include:

  • The R-1 document, which provides a breakout of all RDT&E appropriations by PE. The R-1 displays each program’s title, budget activity, and dollars for the prior, current, and budget year(s). The R-1 also includes DoD component summaries by appropriation, budget activity, and MFP.
  • Additional R-Forms greatly expand on the narrative and numerical detail in the R-1 document. Various R-forms include: a mission description and justification; program accomplishments and plans; an eight-year funding profile, and cost to completion; funding changes since the last PB; funding from other appropriations; a schedule of major acquisition and testing milestones; program cost detail by work breakdown structure (WBS); and contracting data for development, support, and testing.
  • The P-1 document, which provides a breakout of all procurement appropriations by line item. The P-1 shows each program’s title, unit cost, quantities and dollars for the prior, current, and budget year(s). The P-1 also includes DoD component summaries by appropriation and budget activity.
  • P-Forms, or procurement exhibits, are prepared to support the transition from the Service POM to the Service budget for all procurement programs. P-forms provide detailed program information reflected in the FYDP.

 

The exhibits described above reflect the overall status of a weapon system program. They inform OSD and the Congress of the progress and problems in program execution, schedule, and cost projections. DoD Regulation 7000.14-R, Financial Management Regulation, Volume 2, provides the basic guidance for the documentation. Program managers should also consult Service-specific instructions and guidance for preparing these documents.