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Major Budget Issue (MBI)

ABUS 044

DAU GLOSSARY DEFINITION

A top-level Service appeal of an Office of the Secretary of Defense (OSD) Resource Management Decision (RMD) affecting a Service program, or programs, from the Service Secretary directly to the Secretary of Defense (SECDEF). The Service is usually required to provide funding offsets from other programs within the Service to “buy back” programs cited as MBIs.

General Information

Major budget issues (MBIs) are efforts occur during the DoD's Planning, Programming, Budgeting, and Execution (PPBE) Process.  Specifically, MBIs take place during the Budgeting Phase.  These efforts involve the Service/Component/Agency where funding is impacted, the Office of the Secretary of Defense (OSD), and the Secretary of Defense (SECDEF).
MBIs typically occur after Resource Management Decisions (RMDs) have been made and before the President's Budget (PB) is submitted to Congress.  As a result, these efforts are usually a Program's last opportunity to defend its budget before the PB is submitted to Congress and the Congressional Enactment process begins.

Since MBIs have high visibility and require Programs to provide timely responses, it is critical that input from personnel across the Program acquisition functional areas be considered prior to the final response.  MBIs not only impact funding, but they also can impact program requirements and schedules.

Reference FRM Volume 2A, Chapter 1-3