Program and Budget Management Flashcards
6 cards from real ACAP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Program and Budget Management flashcards as text
What is the Planning, Programming, Budgeting, and Execution (PPBE) process and what role does cost analysis play in it?
Answer: PPBE is the DoD resource allocation process; cost analysis informs each phase by providing estimates that support planning decisions, program justifications, and budget requests
Cost analysts provide estimates that feed the Army's POM submission in the programming phase and budget exhibits in the budgeting phase, directly shaping how resources are allocated across programs.
What is the 'Program Objective Memorandum (POM)' and how is it used in Army budgeting?
Answer: The POM is the Army's six-year resource plan submitted to OSD, identifying funding requirements for all programs based on cost estimates and priorities
The POM covers a six-year Future Years Defense Program (FYDP) and is the Army's primary vehicle for requesting resources from OSD during the programming phase of PPBE.
What is an 'Acquisition Program Baseline (APB)' and what cost elements does it establish?
Answer: The APB establishes threshold and objective cost, schedule, and performance parameters that define a program's success criteria and require reporting if breached
The APB captures DoD leadership's agreement on acceptable program outcomes; breaching the cost or schedule threshold triggers a formal program breach report to Congress.
What does the Nunn-McCurdy Act require when a major defense acquisition program (MDAP) breaches its cost thresholds?
Answer: The program must be certified to Congress as still essential to national security and that no less costly alternative exists, or it must be terminated
Nunn-McCurdy requires Congress to be notified of significant cost growth and, for critical breaches, the program must be recertified or terminated, ensuring congressional oversight of cost overruns.
What is 'Earned Value Management (EVM)' and how does it help Army cost analysts?
Answer: EVM integrates scope, schedule, and cost to measure program performance and forecast the final cost at completion based on current efficiency rates
EVM metrics like CPI and SPI allow analysts to objectively measure whether work is being accomplished for the planned cost and to project the estimate at completion (EAC).
What is the 'Cost Performance Index (CPI)' in EVM and how is it interpreted?
Answer: CPI = Earned Value / Actual Cost; a CPI below 1.0 means the program is spending more than planned for the work accomplished
A CPI of 0.90 means the program is getting only $0.90 of work done for every $1.00 spent, and historical data shows early CPI tends to persist, making it a reliable predictor of final cost.