The Department's PPBE Reform Implementation Plan , updated in January 2025, organizes 26 specific initiatives around four strategic objectives :
The process operates in four distinct but overlapping phases, each led by different senior officials within the Office of the Secretary of Defense (OSD) : The Department's PPBE Reform Implementation Plan , updated
Led by the USD Comptroller/Chief Financial Officer , this phase focuses on the immediate upcoming fiscal year. Components submit a Budget Estimate Submission (BES) , which undergoes a technical review for pricing accuracy and legal compliance before being included in the President's Budget request to Congress . Each DoD component develops a Program Objective Memorandum
Managed by the Director of Cost Assessment and Program Evaluation (CAPE) , this phase translates planning decisions into detailed five-year resource allocations. Each DoD component develops a Program Objective Memorandum (POM) to balance mission requirements within fiscal constraints . Current Reform Initiatives (2024–2025) The process is the
This phase tracks how funds are spent compared to planned objectives. It assesses program performance and allows for adjustments through reprogramming actions , which often require congressional notification or approval . Current Reform Initiatives (2024–2025)
The process is the Department of Defense's (DoD) primary framework for allocating financial resources . Established in the early 1960s by Secretary of Defense Robert McNamara, it serves to align national security objectives with the Department’s multi-billion dollar annual budget . The Four Phases of PPBE