Department of the Navy
Office of the Assistant Secretary of the Navy
(Financial Management & Comptroller)
FY 2012 Program/Budget Review
Outline
• DON Overview
DON FY 2012 Focus Areas
• DON PPBE Overview
• Programming vs. Budgeting
• Integrated Calendar
Leadership Updates / Decision-making
• Navy Program Development
Navy FY 2012 Priorities
• Marine Corps Program Development
MC FY 2012 Priorities
• FMB Budget Review
• OSD Concurrent Process
• Questions
Department of the Navy (DON)
SECNAV
Secretariat
Services
CNO
CMC
N8
P&R
Program
Program
DHAN
RPN
DHANR
OMN
MILCON
NDSF
NWCF
ERN
OMNR
FH
MPMC
DHAMC
RPMC
PMC
FH
APN WPN SCN OPN
RDTEN MPN PANMC
OMMC
OMMCR
DNAMCR
MILCON
AAUSN
ASN (FM&C)
FMB
Program
BRAC
MPN
RPN
OMN
OPN
RDTEN
Budget
Appropriated Funds Distribution (FY 2010)
CMC 16.8%
FY 2010
$156.0B
(WCF not included)
CNO 81.8%
AAUSN 1.3%
FY 2012 DON Focus Areas
Zero real growth across the FYDP
Energy Initiatives
Unmanned Aerial Systems
Baseline Readiness Assumptions
Human Capital
Ground Equipment Modernization
Shipbuilding and Strike-Fighter Management
Quadrennial Defense Review (QDR) and Nuclear Posture Review (NPR)
Overseas Contingency Operation (OCO) funds to Baseline
Uncover FY 2016
DON PPBE Overview
“ … the best mix of forces, equipment, and support attainable within fiscal constraints”
Define/Assess Capability
Develop Strategy
PLANNING
OPNAV/N8/N81
HQMC/P&R/PA&E
ONGOING
Navy/MC
Capability Plans
DPPG
IPL
PDM/RMD
Obs Phasing
Contracts
ATR/BTR
Appropriation + Language
Protests
BES
Real World
Issues
SECNAV Prgm Guidance
CNO/CMC Guidance
SPP
PVT
POMs
Issues
Presbud
BES Controls
PBD/RMD
OMB Passback
OVERLAPPING
PROGRAMMING
ASN(FM&C)
FMO/FMB/BSO/DFAS
ASN (RDA)/PEO/DRPM
SPG
QDR
DON Strategic
Guidance
OPNAV/N8/N80
HQMC/P&R/PB&E
Allocate Resources
Perform the Plan
Adjustments
EXECUTION
NMS
NSS
NPR
CYCLIC
Define Requirements
(Material Solutions)
Balance Priorities
Fiscal Guidance
Prgm Controls
Justification
Material
UFR
ITERATIVE
ASN (FM&C)/FMB
BSO
BUDGETING
Justification
Refine Resource Needs
Programming vs. Budgeting
Program
Budget
Priorities, Risk and Balance
Pricing, Schedule and Consistency
Provide Capability Solutions
Provide defendable/executable Budget
Total Program Funding
Precise pricing and phasing
FYDP perspective
Budget Year perspective
Iterative
Analyst driven
POM
BES, President’s Budget
Although Programming and Budgeting have different
perspectives they have become increasingly concurrent,
improving timeliness and enhancing the quality of decisions
DON Program/Budget Review 2012 Timeline
Feb

Mar
Apr
May

SRB Deputies Brief
DON FEA Take-aways








Pricing Validation Team Outbrief

Leadership Updates (7/15-29)

DON LG Service POM preview
Defense Plan/Program Guidance

 Program Review
 Budget Review
 Budget Exhibits Due (6/15)
 Service Database to FMB (6/18)
 POM Brief to SG
 POM Brief to SG
 Sponsor Program Proposals
 N80 Snapshot
Fiscal Guidance (4/2)

Nov
PBCGs (7/6-16)
Issue Controls (5/11)
ITPVT
IPVT
Oct
SRB SECNAV Brief

PWG Integration


 
Sep
SRB ASNs/GC Brief

RFPVT
Aug
Jul
PEB to MROC
MPVT


Jun
DON LG/SG Assessment/PEB Issues

Service POM Briefs to DAWG (8/2-8/13)

Budget Lock

Service issue nominations (8/30)


Final Decisions 
(11/22)
OSD issue dispositions (9/10)
Submit to OSD / Issue Controls (7/30)

OSD Budget Justification Books Submit (9/3)
Legend
 AAUSN
 Marine Corps
 Navy
 DON
 OSD/OMB Review
12 Apr 10
Leadership Updates and Decision-making
Pricing Validation Team (PVT): Validate Revolving Fund, IT, Investment, and Model Pricing. Led
by FMB Divisions (1, 2, 4) with appropriate representation from Resource Sponsors, Budget
Submitting Offices (BSO), OPNAV, HQMC, and Assistant Secretaries of the Navy (ASN).
Secretariat Review Board (SRB): ASNs, General Counsel, and Deputy Under Secretaries of the
Navy (DUSN).
Review the complete financial posture of the Secretariat and make resourcing recommendations to
the Under Secretary of the Navy (USN) and Secretary of the Navy (SECNAV).
Program Budget Coordination Group (PBCG): Chaired by FMB with appropriate representation
by stakeholders. Review/resolve program/budget issues not resolved at the FMB Division level.
Unresolved issues forwarded to DON leadership.
Large Group (LG): USN, Vice Chief of Naval Operations (VCNO), Assistant Commandant of the
Marine Corps (ACMC), ASNs, General Counsel, DUSNs, and Director, Office of Program
Appraisal (OPA).
Resolve or forward to the Small Group, with recommendations, major program/budget issues.
Small Group (SG): SECNAV, USN, Chief of Naval Operations (CNO), and Commandant of the
Marine Corps (CMC).
Make decisions on program/budget issues, provide more specific guidance, or consider viability of
other innovative initiatives.
Programming - Navy
Chg 2 POM 12 Planord
(20 Jan 2010)
Navy Priorities
•Balanced Navy Program that wins our
Nation's wars and deters future conflicts
POM 12
PLANORDS/FRAGORDS
•Shipbuilding and Aviation Plans
•Information Dominance and
FLEETCYBERCOM/10th Fleet
•Quality of life / quality of service for sailors
•Current operations and platform maintenance
readiness
•Total Ownership Cost Reduction
•Energy Efficiency
Programming – Marine Corps
Oct
Nov
Dec
Jan
Feb
OSD FY11 FY11 PresBud
GDF
and N8F Ship Plan if used
Budget
Closeout to Congress
N80 Initial
N8 POM-12
N80 InitialPOM12
Fiscal Guidance
Guid
PLANORD
OSD POM-11 Program / Budget
Review – RMDs
CNO Guidance
N3/5
NSP
Don Guidance
BIG 8
Defense
QDR
Defense
PolicyPolicy
Review
Impact
Initiative
Integrated Program Assessments
Resource
Gaps
Guidance
Gaps
Redlines
Redlines
Redlines
Aug
Sep
OSD PAE
PR Review
SECNAV
R3B
Manning
Aviation
AVI
MROC
Training
BISOG
Investment
(Warfighting)
202K Resource Assessments
Jul
DON
POM12
Submit
Build
FY12
Budget
BIG 8
Ships
USMC AVI & Ship Assessments
Total Program Affordability
Jun
N81
T-POM10
T-POM12
CNO
Integrated totoCNO
CNO CMC
Program
Assessment
SECNAV
USMC Staff Updates
PR09 Program
POM-11
Program
Review
Review
May
N1/N2/N4/N6/
N8F, etc.
SPP’s
CMC
CNO
Apr
JPG
for POM12
N Code Program Assessments / Plans
SECNAV
CMC Guidance
Mar
Review
Sustainment
Installations
MROC
Support
OFHQ
Readiness
PEB
Program
Review
Integration
Program
Integration
Program
P&R
Sep
DoN
FY12
BES
USD(Comp)
Bud Review
MROC
CMC
MROC
HQ Support
3 Star Program
Evaluation Boards
FMB FY12 Bud
Summer Review
P&R Total
Program Integration
Marine Corps Priorities
•Maintain 202K Force
•Fund Energy Transformation:
- Facilities - DON & Statutory mandates (Including Executive Orders and
Congressional Mandates)
•Sustain Quality of Life:
- Maintain 2+0 Bachelor Enlisted Quarters by FY14
- Staff and Equip New Child Development Centers
•Fund Key Training Initiatives:
- Fund small unit training (Combat Hunter/Infantry Immersive Trainer/
Squad Immersive Training Environment (SITE)
•Preserve OSD Mandates:
- OCO-to-Base (Depot Maintenance/CREW)
- Guam Training
CMC Guidance Pillars
Achieve Victory in the Current Fight
Enhance and Modernize Equipment
Capability
Train and Educate the Force
Maintain 202K End Strength and Support
Quality of Life
FMB Budget Review
Apr
May
Jun

 Functional Transfers (4/16)
Jul
Aug
Sep
 Issue Paper Submission (5/11 – 7/16)

 FMB Division Level Reviews (6/21 - 7/09)
  Pricing Validation Team Outbriefs (4/12-16)
PBCGs ( 7/6-16)

 SPP Briefs
 Leadership Updates (7/15–29)

 SRB Deputies brief
  Final Leadership Decisions (7/23-29)
 Issue Controls to BSOs based on SPPs(5/11)  FMB Submit to OSD (7/30)
 POM-12 Preview to LG
 FMB Issue BES Controls to BSOs (7/30)
 POM-12 Preview to LG
 Service POM briefs to OSD (8/2-8/13)
 SRB ASNs/GC brief
 Fiscal Guidance (4/2)
 BSOs submit BES
J-Books to FMB
 Issue noms to OSD (8/30)
 FMB submit BES
J-Books to OSD (9/3)
 Service Data Base transmit to FMB (6/18)
 OSD issue
disposition (9/10)
 SRB 12 Brief to SN (nlt 6/11)
 Budget Exhibits Due (6/15)
 POM-12 Brief to SG (nlt 6/16)
 POM-12 Brief to SG (nlt 6/16)
 DPPG
FY10 Midyear / Omnibus
Authorization Appeals
Ongoing Budget Issue Review
Appropriators Appeals
Legend
 AAUSN
 Marine Corps
 Navy
 DON
 OSD/OMB Review
12 Apr 10
OSD Program-Budget Review (PBR) Process
Services
Defense Agencies
Joint Staff
COCOM’s
Issues Papers
Rejected
Issues
POM
CAPE
POM analysis
Issue disposition
Services
Defense Agencies
Joint Staff
Issues to Budget Review
BES
Services
Defense Agencies
Joint Staff
OUSD (C)
Budget analysis
Issue review
Accepted Issues
Issue teams study
proposal
Results
OUSD (C)
Analyst Review
Recommendations
3-Star Programmers
President’s
Budget
Coordination
Recommendation
DAWG/SLRG
Approval
Database
Reconciled
Major Budget Issues (MBI)
Reclamas
Signed
RMD
Adjustments (?)
Summary
• FY 2012 Program/Budget build is a POM year. Single-year budget and
five years FYDP.
• DON Programmers – OPNAV, HQMC, AAUSN
• DON Budget Review – FMB
• DON PPBE process is iterative, ongoing and aligned with OSD process
• DON Program/Budget reviews overlap to improve timeliness and
enhance decisions
• DON decisions are made at the lowest appropriate level, and generally
in a teaming forum
Questions