OSD(PA&E) RESOURCE PROCESS PERSPECTIVE

1. OSD(PA&E) RESOURCE PROCESS PERSPECTIVE Commander Rob Birmingham Director, Force and Infrastructure Division OSD(PA&E) January 2005

2. Agenda • INTRODUCTION: OSD PA&E-Who We Are? • PPBE Process-What We Do? • Analytical Operation Displays-Why You Care? • CONCLUSION

3. Secretary of Defense Director, Program Analysis & Evaluation Office of the Secretary of Defense (with Defense Agencies)as of July 2003 Deputy Secretary of Defense ASD (Legis Affairs) ASD (Public Affairs) Inspector General ATSD (Intel Oversight) Dir, Admin & Mgmt General Council USD (Policy) USD (Personnel & Readiness) USD (Acquisition Technology & Logistics) USD (Comptroller) PDUSD (Policy) ASD (Health Affairs) Defense Contract Audit Agency DUSD (Acq & Tech) Defense Finance & Accounting Service ASD (International Security Policy) Dir, Def Research & Engineering ASD (Reserve Affairs) Defense Threat Reduction Agency ASD (Special Ops/ Low Intensity Conflict & Homeland Defense Policy) Defense Advanced Research Proj Agency ASD (Force Mgmt Policy) Defense Contract Management Agency DUSD (Logistics & Materiel Readiness) Defense Commissary Agency ASD (International Security Affairs) Missile Defense Agency Defense Logistics Agency Director, Operational Test & Evaluation Defense Security Cooperation Agency acquisition matters ASD(Networks & Information Integration) USD( Intelligence)

4. Resource Analysis and CAIG Tasks D, PA&E Theater Assessments Strategic & Space General Purpose Resource Analysis & Planning Programs Programs PA&E Tasks CAIG Tasks Economics & Manpower Analysis • Administer Program Review • Cost Support to PA&E • Staff Program Review • Projects – O&M program balance – FYDP Improvement – TRICARE MCS modeling – Agency Performance Plans • Milestone Reviews • DAB Program Reviews • Special Studies – Spectrum reallocation • On-going Efforts – CCDR/SRDR – VAMOSC – Cost Growth Weapon Systems Cost Analysis Force and Infrastructure Cost Analysis Operations Analysis & Procurement Planning Programming & Fiscal Economics

5. Program Execution & Performance Reporting The New Process - SECDEF decision points -Iterative SECDEF engagement Enhanced Planning Execution and Accountability Resourcing Strategy NOV (As Required) JUN DEC APR JUL Operational Planning SECDEF SECDEF Defense Strategic Joint Capabilities Planning Resourcing Planning Programming Process Guidance Guidance (Resource informed) Enterprise Planning (Fiscally constrained) (Continuous process) (Continuous process) Component Feedback during next cycle Program / Budget Process HOW WELL WHAT HOW TO DO IT? DID WE DO? TO DO?

6. Typical PPBE Biennial Cycle(First Year – Even Fiscal Years: FY06, FY08 etc.) Planning • COCOM Integrated Priority Lists (IPL) • Produce Guidance (SPG/JPG) JPG SPG Enhanced Planning (EPP) Programming / Budgeting • Service’s Develop Program/Budget POM / BES • OSD/JS Issue Development Issue Papers • Program Review Decision Process PDM Parallel Processes • Program Budget Decisions (PBDs) PBDs • Major Budget Issues (MBI) • Budget Submission to OMB Execution • Execution Review Legend COCOM/ OSD / Joint Staff Process Component Process

7. Planning • COCOM Integrated Priority Lists (IPL) • Planning Guidance (Optional) Prior Year SPG/JPG Programming PCPs • Program Change Proposals (PCPs) PCP Resolution • PCP Disposition • Program Review Decision Process PDM Budgeting BCPs • Budget Hearings PBDs • Budget Submission to OMB Execution • Execution Review Typical PPBE Biennial Cycle(2nd Year: Odd Fiscal Year FY05, FY07, FY09 etc.) • Budget Change Proposals (BCPs) Legend COCOM/ OSD / Joint Staff Process Component Process

8. OPERATIONAL DISPLAYS • Weapons Systems Readiness Displays • OP-20 FLYING HOURS • OP-25 GROUND VEHICLE DISPLAY • OP 41 STEAMING HOURS • Maintenance Display • OP-30 DEPOT MAINTENANCE

9. OP-30 Depot Maintenance

10. CONCLUSION • Success of materiel readiness initiatives at the senior level of DoD, in our view, is dependent upon the ability to link to the resourcing process.