The impact of the establishment of the Defense Health Program appropriation on the Planning, Programming, and Budgeting System within the Department of Defense.

150 Pages·1993·6.3 MB·en_US

by  Dahl, Peter E.;Doyle, Richard B.

SSSSs-

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REPORTDOCUMENTATION PAGE
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!iaNameofPerformingOrganization 6bOfficeSymbol 7aNameofMonitoringOrganization
iNJavalPostgraduateSchool (ifapplicable) 36 Naval PostgraduateSchool
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MontereyCA93943-5000 MontereyCA93943-5000
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1Title(includesecurityclassification)THEIMPACTOFTHEESTABLISHMENTOFTHEDEFENSEHEALTHPROGRAM
APPROPRIATIONONTHEPLANNING,PROGRAMMING,ANDBUDGETINGSYSTEM WITHINTHEDEPARTMENT
0¥DEFENSE
12PersonalAuthor(s)Dahl, PeterE.
13aTypeofReport 13bTimeCovered 14DateofReport(year,month,day) 15PageCount 138
Master'sThesis From To 1993June7
16SupplementaryNotation Theviewsexpressed inthisthesisarethoseoftheauthoranddonotreflecttheofficialpolicyorposition
)ftheDepartmentofDefenseortheU.S. Government.
[7CosatiCodes 18SubjectTerms(continueonreverseifnecessaryandidentifybyblocknumber)
Group Subgroup Planning, Programming, andBudgetingSystem; DefenseHealthProgram
Appropriation.
19Abstract(continueonreverseifnecessaryandidentifybyblocknumber)
ThisthesisexaminestheimpactoftheestablishmentoftheDefenseHealthProgram(DHP)Appropriationonthe
Planning,Programming, andBudgetingSystem(PPBS)withintheDepartmentofDefense. AbriefhistoryofthePPBS is
presentedtoexplainwhytheDepartmentofDefenseadoptedthesystemintheearly 1960's. ThePPBSprocess isthendescribed,
withthefocusontheProgrammingportionfromaDepartmentoftheNavyperspective. Theeventswhichledtothecreationof
theDHPAppropriationarerecounted, andtheprovisionsofProgramBudgetDecision742whichcreated theDHPareexamined.
HieeffectoftheDHPonthePPBSandspecificallyonpreparingtheProgramObjectivesMemoranda(POMs)forfiscal years
1994-1999and 1996-2001 arethendiscussed. Finally,problemswithusingthePPBS toestimatemedicalprogramcostsand
several proposedreformsareaddressed.
20Distribution/AvailabilityofAbstract 21 AbstractSecurityClassification
xxunclassified/unlimited sameasreport DTICusers Unclassified
22aNameofResponsibleIndividual 22bTelephone(includeAreaCode) 22cOfficeSymbol
Richard B. Doyle 408-656-3306 AS/DY
)DFORM 1473,84MAR 83APReditionmaybeuseduntilexhausted securityclassificationofthispage
Allothereditionsareobsolete Unclassified
^259800
Approvedforpublic release; distributionis unlimited.
The ImpactoftheEstablishmentofthe
DefenseHealth Program Appropriation onthe
Planning, Programming, andBudgeting System
WithintheDepartmentofDefense
by
PeterE.J)ahl
Lieutenant, UnitedStates Navy
B.A., North ParkCollege
Submitted inpartial fulfillment
oftherequirements forthedegreeof
MASTEROFSCIENCEIN MANAGEMENT
fromthe
NAVAL POSTGRADUATE SCHOOL
June 1993
ABSTRACT
This thesis examines the impact ofthe establishment ofthe Defense Health Program (DHP)
AppropriationonthePlanning, Programming, and BudgetingSystem (PPBS) withintheDepartment
of Defense. A brief history ofthe PPBS is presented to explain why the Department ofDefense
adopted thesystem in theearly 1960's. The PPBS process is then described, with the focus on the
Programming portion from a Department of the Navy perspective. The events which led to the
creationoftheDHPAppropriationarerecounted,andtheprovisionsofProgramBudgetDecision742
which created the DHP are examined. The effect of the DHP on the PPBS and specifically on
preparingtheProgram Objectives Memoranda(POMs)forfiscal years 1994-1999and 1996-2001 are
thendiscussed. Finally, problemswithusingthePPBS toestimatemedical programcostsandseveral
proposed reforms areaddressed.
TABLE OF CONTENTS
I. INTRODUCTION 1
.....
A. BACKGROUND 1
B. OBJECTIVES 4
C. RESEARCH QUESTIONS 4
D. SCOPE 5
E. METHODOLOGY 5
F. CHAPTER OUTLINE 6
II. PPBS AND THE DEFENSE BUDGET 8
A. HISTORY OF THE PRE-PPB SYSTEM EMPLOYED BY DoD . 8
B. THE CHANGING ENVIRONMENT OPENS THE DOOR FOR
PPBS 10
C. THE McNAMARA REVOLUTION 14
....
D. THE EVOLVING PPBS: 1962 TO THE PRESENT 19
E. SUMMARY 25
III. PPBS SEQUENCE OF EVENTS 29
A. OVERVIEW 29
B. PLANNING 31
1. National Security Strategy . 33
....
2. National Military Strategy Document 33
.........
3. Defense Planning Guidance 35