ACAP Program and Budget Management

Question 1

What is the Planning, Programming, Budgeting, and Execution (PPBE) process and what role does cost analysis play in it?

Accepted 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

Answer

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.

Question 2

What is the 'Program Objective Memorandum (POM)' and how is it used in Army budgeting?

Accepted 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

Answer

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.

Question 3

What is an 'Acquisition Program Baseline (APB)' and what cost elements does it establish?

Accepted Answer

The APB establishes threshold and objective cost, schedule, and performance parameters that define a program's success criteria and require reporting if breached

Answer

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.

Question 4

What does the Nunn-McCurdy Act require when a major defense acquisition program (MDAP) breaches its cost thresholds?

Accepted 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

Answer

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.

Question 5

What is 'Earned Value Management (EVM)' and how does it help Army cost analysts?

Accepted Answer

EVM integrates scope, schedule, and cost to measure program performance and forecast the final cost at completion based on current efficiency rates

Answer

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).

ACAP - Army Cost Analysis Position Practice Test

ACAP - Army Cost Analysis Position Practice Test

ACAP Program and Budget Management