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PPBE Process

Execution Phase

 

The Execution phase is the real-world application of the Planning, Programming, Budgeting, and Execution (PPBE) Process.

 

The execution review occurs simultaneously with program and budget reviews. The execution review provides feedback to the senior leadership concerning the effectiveness of current and prior resource allocations. Over time, metrics are being developed to support the execution review that will measure actual output versus planned performance for defense programs. To the extent performance goals of an existing program are not being met, the execution review may lead to recommendations to adjust resources and/or restructure programs to achieve desired performance goals. [1]

 

Several events must take place before the DoD can execute its program:

Figure: PPBE Process

 

Budget Preparation Schedule

 

AcqTips:

AcqLinks and References:

Updated: 9/230/2020

Program Management

Configuration Management

 

The Program Manager (PM) is responsible for Configuration Management (CM) on their project or program. CM is the application of sound program practices to establish and maintain consistency of a product’s or system’s attributes with its requirements and evolving technical baseline over its life. It involves interaction among government and contractor program functions such as systems engineering, hardware/software engineering, specialty engineering, logistics, contracting, and production in an integrated product team (IPT) environment. The program manager should use configuration management to establish and mature the technical, functional and acquisition program baseline throughout the acquisition and system life cycle. [1]

 

The Program Manager shall assume control of the initial product baseline at the Critical Design Review (CDR) for all Class 1 configuration changes.

 

CM was first developed by the United States Air Force for the Department of Defense in the 1950s as a technical management discipline of hardware. The concepts of this discipline have been widely adopted by numerous technical management functions, including Systems Engineering (SE), Integrated Logistics Support (ILS), Capability Maturity Model Integration (CMMI), ISO 9000, Prince2 project management methodology, COBIT, Information Technology Infrastructure Library (ITIL), product lifecycle management, and application lifecycle management. [1]

 

CM activities include:

  • Identifying, defining, and baselining configuration items
  • Controlling modifications and releases of configuration items
  • Reporting and recording status of configuration items and any requested modifications
  • Ensuring completeness, consistency, and correctness of configuration items
  • Controlling storage, handling, and delivery of the configuration

 

Effective CM provides the following essential benefits to a project:

  • Reduces confusion and establishes order
  • Organizes the activities necessary to maintain product integrity
  • Ensures correct product configurations
  • Limits legal liability by providing a record of actions
  • Reduces lifecycle costs
  • Enables consistent conformance with requirements
  • Enhances compliance with standards

DoD Configuration Management Process Model Overview

 

AcqLinks and References:

Updated: 6/12/2018

Technology Development

Technology Development Strategy (TDS)

 

Note: The Technology Development Strategy (TDS) is no longer required for DoD Programs according to DoD Instruction 5000.02. A programs technology development approach is now detailed in a programs Acquisition Strategy.


The Technology Development Strategy (TDS) describes the acquisition approach that will be undertaken to mature key technologies and maturation efforts to Initial Operational Capability (IOC).  This approach discusses business strategies, developmental strategies, support strategies, and Critical Program Information (CPI) to manage program risks and meet program objectives while balancing cost, schedule, and performance.

 

Template: Technology Development Strategy (TDS)

 

The TDS guides the efforts of the TD Phase and serves as a baseline for efforts that continually evolve throughout a program. The TDS allows the program manager to track program goals against a baseline.  This tracking will alert the program manager to any potential problems that might arise and perform corrective actions to keep a program within its cost, schedule, and performance goals.

 

The content of the TDS should include:

 

AcqTips:

  • Remember the TDS is not a Technology Development Plan; it’s an overall program technology strategy to address technology maturation in terms of cost, schedule, and performance. The TDS should contain a preliminary description of how the potential acquisition program will be divided into increments based on mature technologies.

AcqLinks and References:

Updated: 6/25/2018

Production, Quality & Manufacturing

Defense Contract Management Agency (DCMA)

DCMA Logo 2

The Defense Contract Management Agency (DCMA) performs contract oversight for the DoD.  DCMA ensures that DoD, Federal, and allied government supplies and services are delivered on time, at projected cost, and meet all performance requirements set forth in a contract. It provides Systems Engineering, Auditing, Earn Value Management (EVM), and Quality Assurance (QA) oversight of DoD contractors.

 

Website: Defense Contract Management Agency (DCMA)

 

Many large Aerospace companies with Acquisition Category (ACAT) 1 contracts have DCMA Contract Management Offices (CMO) located at their production site. This makes it easy for DCMA to provide contract oversight and attend major reviews.

 

AcqTips:

  • If you are a contractor, make sure you now the role DCMA plays on your contract. DCMA approval is usually required for payment receipt.

AcqLinks and References:

Updated: 6/26/2018

Production, Quality & Manufacturing

Production Qualification Tests

 

Production Qualification Tests (PQT) are conducted post Milestone C to ensure the effectiveness of the manufacturing process, equipment, and procedures. It provides data for the independent evaluation required for materiel release so that the evaluator can address the adequacy of the materiel with respect to the stated requirements. These tests are conducted on a number of samples taken at random from the first production lot. It’s repeated if the process or design is changed significantly and when a second or alternative source is brought online.

 

The independent evaluation is normally conducted by the program office or the Defense Contract Management Agency (DCMA). It’s used to ensure the contractor has met all stated requirements before proceeding into full-rate production.

 

The purpose of the qualification is to ensure continued product performance, quality, and reliability and provide for the completion of long or highly complex evaluations and tests prior to and independent of any acquisition or contract. Qualification comprises the entire process by which a manufacturer’s products (as shown on QPLs) or processes and materials (as shown on QMLs) are proven to be in conformance with the requirements set forth in the governing specification. A qualification program reduces acquisition costs by reducing or eliminating repetitive surveillance audits, first article tests, or qualification tests for each individual product procurement and contract. Qualification also reduces unit product costs and improves readiness through ensured continuous availability of products with requisite quality, reliability, performance, and safety.

 

AcqLinks and References:

Updated: 7/21/2017

Proposal Development

Proposal Development Process

 

A Proposal Development Process helps organizations respond to buyer Request for Proposals (RFP). Having an established proposal development process should help ensure organizations develop the best proposal possible that satisfies all the buyer’s needs and requirements. Organizations that understand the customer’s procurement process, proposal evaluation methodology, governing regulations, standards, and laws have an inherent advantage over their competitors.

 

    Notional Steps in a Proposal Development Process

 

Step 1: Form Your Team
The most important step is gathering the most knowledgeable and effective team members to write the proposal. The key players include the Program Manager (PM), who runs the actual project if awarded, and the Proposal Manager who is responsible for executing the proposal development process.

 

Step 2: Plan
A plan should address how the Proposal Content should be developed and the main proposal requirements to achieve. The plan should list these proposal requirements in a Compliance Matrix. An effective plan that gives a timeline on when items are due and roles and responsibilities to all proposal team members.

 

Step 3: Develop the Outline
Each volume team leader is responsible for developing a Proposal Outline for the assigned proposal volume.  This outline adds details to the High-Level Outline such as customer requirements, specific descriptions, Work Breakdown Structure (WBS), and administrative approach to each volume and section.

 

Step 4: Hold Formal Kickoff Meeting
The kickoff meeting is where the Program Manager and Proposal Manager officially start proposal development efforts with all team members. This is the best opportunity to make sure all team members are informed of their responsibilities and the overall goals of the proposal.

 

Step 5: Prepare Story Board
Proposal storyboards should be developed using brainstorming and storyboarding techniques.  The volume team leader should be responsible for planning and holding a brainstorming session with the volume technical writers.  Together, each section of the proposal volume should be divided into sub-sections.  For each sub-section, supporting themes, key selling points, and visuals should be developed.

 

With the information obtained through the brainstorming session, technical writers should then complete a storyboard for each assigned section of the volume.  The volume team leader should be responsible for deciding the storyboard walk-through schedules with the team.  The volume team leader must approve the storyboards before passing them to the proposal project manager for final approval.  Once the storyboards are complete and approved by the proposal project manager, the volume team leader must ensure that the information is added to the annotated proposal outline on the server.

 

Step 6: Pink Review
Each volume leader should brief their storyboard to the Proposal Manager.  It’s the responsibility of the proposal manager to ensure that story board satisfies the requirements in the RFP and complements the overall story of the proposal

 

Step 7: Prepare the First Draft
The first rough draft is prepared by team members and reviewed by each volume manager.

 

Step 8: Prepare the Second Draft
The second rough draft is prepared by team members and reviewed by the Project Manager.

 

Step 9: Red Team Review
The proposal project manager should arrange to have a Red Team Review of the technical, management, and cost volumes.  This review should be scheduled towards the end of the proposal writing but should still provide sufficient time for the Red Team Review comments and recommendations to be evaluated and incorporated into the proposal.    Details for the review should be forwarded when complete  Every volume team leader should be responsible for having the volume material ready for review should be prepared to make presentations on the assigned volume.

 

Step 10: Submit Final Draft
Make sure the proposal is submitted to the exact submittal terms in the RFP. Always have a backup plan for submitting just in case something goes wrong or missing.

 

AcqLinks and References:

Updated: 6/13/2018

PPBE Process

Budgeting Phase

 

The Budgeting Phase of the PPBE Process includes formulation, justification, execution, and control of an organization’s or program’s budget. The primary purpose of the Budgeting phase is to scrutinize the first one or two years of a program’s budget to ensure efficient use of resources and to produce a DoD budget request that can be effectively defended before Congress. The budget is a comprehensive financial plan that encompassing the totality of federal receipts and outlays (expenditures).

 

The Budgeting Phase is the process for convincing OSD and Congress to provide the necessary resources and then balancing the checkbook to ensure the resources are spent in accordance with the law

 

The budgeting phase of PPBE occurs concurrently with the programming phase; each DoD Component submits its proposed budget estimate simultaneously with its Program Objective Memorandum (POM). The budget converts the programmatic view into the format of the congressional appropriation structure, along with associated budget justification documents. The budget projects resources only two years into the future, but with considerably more financial details than the POM.

 

Upon submission, each budget estimate is reviewed by analysts from the office of the Under Secretary of Defense (Comptroller) and the Office of Management and Budget (OMB). Their review ensures that programs are funded in accordance with current financial policies, and are properly and reasonably priced. The review also ensures that the budget documentation is adequate to justify the programs presented to Congress. Typically, the analysts provide the DoD Components with written questions in advance of formal hearings where the analysts review and discuss the budget details. After the hearings, each analyst prepares a decision document (known as a Resource Management Decision (RMD) for the programs and/or appropriations under his or her area of responsibility. The RMD proposes financial adjustments to address any issues or problems identified during the associated budget hearing. The RMDs are staffed for comment and forwarded to the Deputy Secretary of Defense for decisions. These decisions are then reflected in an updated budget submission provided to the OMB. After that, the overall DoD budget is provided as part of the President’s Budget Request to Congress. [1]

 

See Budgeting Process Overview for more information.

Figure: PPBE Process

Budget Preparation Schedule

 

AcqTips:

AcqLinks and References:

Updated: 9/23/2020

PPBE Process

Planning Phase

 

The Planning Phase of the PPBE Process is the definition and examination of alternative strategies, the analysis of changing conditions and trends, threat, technology, and economic assessments in conjunction with efforts to understand both change and the long-term implications of current choices. It examines and determines the needs for the DoD for the next 5, 10, and 20+ years into the future from strategic guidance.

 

The Planning Phase is the process for determining what capabilities are needed for the future from strategic guidance

 

The Planning phase of PPBE is a collaborative effort by the Office of the Secretary of Defense and the Joint Staff, in coordination with DoD components. It begins with a resource-informed articulation of national defense policies and ends military strategy known as the Defense/Joint Planning Guidance (DPG).  The DPG is used to lead the overall planning process. This process results in fiscally constrained guidance and priorities – for military forces, modernization, readiness and sustainability, and supports business processes and infrastructure activities. The DPG is the link between planning and programming phase and provides guidance to the DoD Components (military departments and defense agencies) for the development of their program proposals, known as the Program Objective Memorandum (POM). [1]

 

Strategic guidance that is used during the Planning phase include: 

Figure: PPBE Process

Budget Preparation Schedule

 

AcqLinks and References:

Updated: 9/23/2020

Acquisition Process

Technology Development Strategy (TDS)

 

Note: The Technology Development Strategy (TDS) is no longer required for DoD Programs according to DoD Instruction 5000.02. A program’s technology development approach is now detailed in a programs Acquisition Strategy.

 

The Technology Development Strategy (TDS) describes the acquisition approach that will be undertaken to mature key technologies and maturation efforts to Initial Operational Capability (IOC).  This approach discusses business strategies, developmental strategies, support strategies, and Critical Program Information (CPI) to manage program risks and meet program objectives while balancing cost, schedule, and performance.

 

Template: Technology Development Strategy (TDS)

 

The TDS guides the efforts of the TD Phase and serves as a baseline for efforts that continually evolve throughout a program. The TDS allows the program manager to track program goals against a baseline.  This tracking will alert the program manager to any potential problems that might arise and perform corrective actions to keep a program within its cost, schedule, and performance goals.

The content of the TDS should include:

AcqTips:

  • Remember the TDS is not a Technology Development Plan; it’s an overall program technology strategy to address technology maturation in terms of cost, schedule and performance. The TDS should contain a preliminary description of how the potential acquisition program will be divided into increments based on mature technologies.
  • I believe its always a good approach to develop a comprehensive TDS prior to going into the Technology Maturation and Risk Reduction Phase (TMRR). Especially if a program is developing critical technology with current low TRL.

AcqLinks and References:

Updated: 2/1/2017

Risk & Safety Management

Risk Reporting Matrix

 

The Risk Reporting Matrix is used to determine the level of risks identified within a program. The level of risk for each root cause is reported as low (green), moderate (yellow), or high (red). There are three (3) steps associated with the Risk Reporting Matrix that are: [1]

 

Step One
Determine the level of likelihood of a risk occurring by using established criteria.  These criteria should be detailed in the Risk Management Plan. Example criteria are below. [1]

 

Level Likelihood Probability of Occurrence
1 Not Likely 10%
2 Low Likely 30%
3 Likely 50%
4 High Likely 70%
5 Near Certain 90%

 

Step Two
Determine the level and types of consequences of each risk using established criteria; Risk Confidence & Probability. These criteria should be detailed in the Risk Management Plan.  Example criteria are below. [1]

 

Level Technical Performance Schedule Cost
1 Minimal or no consequence to technical performance Minimal or no impact Minimal or no impact
2 Minor reduction in technical performance or Supportability, can be tolerated with little or no impact on the program Able to meet key dates.
Slip < * month(s)
Budget increase or
unit production cost
increases.
< ** (1% of
3 Moderate reduction in technical performance or
supportability with limited impact on program objectives
Minor schedule slip. Able to meet key milestones with no schedule float.
Slip < * month(s)
Sub-system slip > *
month(s) plus available
Budget increase or
unit production cost
increase
< ** (5% of
Budget)
4 Significant degradation in technical performance or major shortfall in supportability; may jeopardize program success Program critical path
affected.
Slip < * months
Budget increase or
unit production cost
increase
< ** (10% of
Budget)
5 Severe degradation in technical performance; Cannot meet KPP or key technical/supportability threshold; will jeopardize program success Cannot meet key program milestones.
Slip > * months
Exceeds APB
threshold
> ** (10% of
Budget)

 

Step Three
Plot the results for each risk in the corresponding single square (as pointed to by the arrow) on the Risk Reporting Matrix. [1]

 

Risk Matrix Plot

 

AcqLinks and References:

Updated: 6/19/2018