Capital Budgeting Analysis Assignment
2. In order to accomplish this task, one must first understand the background, nomenclature and terms used to describe the Air Force, the Department of Defense (DoD) and the Planning, Programming, Budgeting and Execution (PPBE) process that is used to request, allocate and expend money.
a. In 1962, former Secretary of Defense Robert McNamara created the DoD Planning, Programming and Budgeting System in order to …show more content…
The Programming stages deals with the different “colors of money” that are: Military Personnel, Operations and Maintenance, Procurement, Research, Development, Test & Evaluation, Military Construction and “Other” (which includes the health program, explosives, chemical agent protection and others). It also endeavors to translate the goals and objectives of the requirements into finite actions with resources applied in order to successfully plan for future financial needs. This takes into account the alternatives and tradeoffs while also integrating all requirements into a balanced program. In the acquisition environment of the Air Force, countless pieces of equipment, airframes and their support are acquired and sustained. Generally, we deal with the Research, Development, Test & Evaluation and the Operations and Maintenance “colors” of money to create and sustain those