The Department's PPBE Reform Implementation Plan , updated in January 2025, organizes 26 specific initiatives around four strategic objectives :
As of early 2026, the DoD is actively implementing major changes following the released in March 2024 . The Commission offered 28 recommendations to address long-standing issues like lack of agility and the slow pace of technology adoption .
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 . The Department's PPBE Reform Implementation Plan , updated
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 .
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 Components submit a Budget Estimate Submission (BES) ,
The process operates in four distinct but overlapping phases, each led by different senior officials within the Office of the Secretary of Defense (OSD) :
Led by the Under Secretary of Defense for Policy , this phase defines the strategic direction. It reviews top-level guidance like the National Security Strategy (NSS) and translates it into the Defense Planning Guidance (DPG) , which shapes investment priorities for the next five years . The process is the Department of Defense's (DoD)
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)