Direct Attack Division
War-Winning Capabilities…On Time, On Cost
A Day in the Life of a PEM
&
A Materiel Leader’s
Perspective
Lt Col Tom Bierly
Materiel Leader, Hard Target Munition Branch
Integrity  Service  Excellence
1
Purpose

Day in the Life of a PEM
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Provide general understanding
 How you can help your PEM
 How your PEM can help you
 Reviews / O&Es

Materiel Leader’s perspective

Be an expert in your field
 Know the battle rhythm in DC
 Have a good attitude / have fun
 Stay focused on the warfighter
2
Headquarters U.S. Air Force
Integrity - Service - Excellence
PEM 101: A Day in the
Life of a PEM
2014
The Critical Piece…The PEM
Program Element Monitor
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HQ USAF focal point
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HQ USAF acquisition “expert” on Program
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Provides oversight for a specific Program Element (PE) or
group of related PEs
Closely monitors financial requirements (funded and unfunded)
and financial execution (obligations and expenditures)
Information broker – “honest broker”
Knowledgeable of program requirements and status
In-depth understanding of acquisition strategy and status
Guides program through acquisition reviews and coordination
Liaison to Congress
Critical to program success
The PEM is the program’s FACE & VOICE in Wash DC
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PEM
Broker of Info to Many Organizations,
Internal and External
OSD
AT&L
Other
Services
NII
USD(I)
USD(C)
DOT&E
USAF
Other
SAF/LL &
FMBL
A5
A3
A8
AQP
Media
AQI
IA
Joint
Staff
A10
PEM
Unified &
Combatant
Commands
A4/7
FM
SPOs
Contractors
PEOs
MAJCOMs
Congress
FOIA
RFIs
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The PEM and the SPO
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Regular interaction between the PEM and SPO is critical
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Daily e-mail, phone, and frequent VTCs and/or TDYs
Attend program reviews with contractor or SPO as available
PEM should be able to bring issues to program director--good
relationship is key
The SPO is the primary conduit of information for the PEM
The PEM works for SAF/AQ, not the Program Director or PEO
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The PEM provides unbiased assessments
 The PEM is NOT here to help the SPO hide money or problems
 Losses/gains in funding do not necessarily reflect on the PEM
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AQX, FMB, Panels/Corp AF perform “cut drills” to pay bills
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PEM-SPO engagement key—accuracy, impacts, quick turns…BUT in
today’s environment, many POM and PB drills are “CLOSE HOLD” for
HQ Air Force only---that’s why knowing your programs is critical so
you can answer the taskers yourself!
Be aware of when you can and cannot discuss issues with the SPO
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How the SPO can help PEM
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Give continuous insight into programmatic efforts
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Funding Changes
 Obligation and Expenditures (Spend plans by month)
 Slips/Accelerations
 Contractual Actions
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Help answer tasking that will have impacts to your program
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Whether positive or negative
 Provide him/her the facts
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Provide good contact numbers -- Questions come at all times
Give responses that answer the question and take into account
second and third order effects
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Eliminate the need to come back with follow on questions
Decisions will be made with/without SPO input.
You need to create the relationship to get the information for any
and all decisions being made on your program.
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How the PEM can help the SPO?
Provide Insight to what’s Hot in the bldg & Congress!
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Are you or AQX questioning MAR inputs?
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Tell SPO where area of concern is; recommend ways to fix
Is AF facing a shortfall and looking for funding?
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May be looking at your programs to source; critical that MARs are
correct and you understand O&Es and obs plan
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Where are we in the PPBE cycle? Provide a heads-up on
where we are, what’s coming shortly, and how the SPO can
start preparing
 Inform them of status of Omnibus, Congressional marks,
QFRs and what they could mean, execution status and how
A8, AQX, OSD, Congress will view it; recommendations on
offering sources prior to SPR
The more insight the SPO has on what is important and why,
the more they will understand why you need what you’re asking
for & the more prepared you will be!
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OSD Goals
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% goals used by many to determine how programs are executing (see next page)
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End of Fiscal Year percentage established (divided by 12 to get a monthly %
goal)
 Both Obligation AND Expenditures are CLOSELY monitored by SAF/AQ,
SAF/FM, OSD and Congress
 RDTE focus is Expenditures; Procurement focus is Obligations
 No official Procurement expenditures (staffers have occasionally
requested)
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Little chance of receiving BTR if not meeting OSD goals; little chance if
obligation plan shows funds carrying over into next FY
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Often told to use current funds first and then BTR funds when actually
needed
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Direction will be to manage your program within the PE. If a PE consists of
several efforts, they should realign funding to cover shortfalls
PEMs will scrutinize the data and question O&E projections
Obligations and Expenditures:
Traditional Execution Reviews
Jan
Feb
Mar
Apr
May Jun
Jul
Wing / PEO
Staffer days
SPR / IBR
Aug Sep
Oct
Nov Dec
OSD hearings
Expiring Yr
Expiring Yr
Type of Review
Purpose
Acquisition Wing / PEO
Continuous tracking (Wing) / periodic reviews
(PEO) to find problems
SAF/AQX Spring Program Review
(SPR)*
Review RDT&E AF, APAF, MPAF for current
year bill-payer sources
SAF/FM Investment Budget Review
(IBR)*
Review investment accounts to identify
execution issues and FYDP adjustments
OSD(C) Budget Hearings
Find sources for adjustments to service POM
submissions
Congressional Staffer Days
Review prior year O&E to help determine if PB
requests for new funds are justified
Air Force Panels and Capability
Directorates
May do intermittent reviews to inform outyear
budget decisions or source bills
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DETAILED PEM BATTLE RHYTHM
JAN
FEB
MAR
APR
MAY
JUN
JUL AUG
POM
MAJCOMs/
CFLIs
deliver
POM to
Pentagon
CONGRESS
PEM Parades to A8
Finalize
Docs for
Congress
PB to
Congress
Build & Dry-Run
Staffer Briefs
Answer A8
Questions
Validate ABIDES runs &
IDECS correctly loaded
POM Deliberations (AF Corp
Structure)/Answer A8 questions
NOV
DEC
Build PEM
Parade
Brief (next
cycle)
Answer OSD Issue Team Questions
Finalize
FY14 Docs
Work closely with SPO
to Build Docs for OSD-C
OCT
PBR
BES
PB
EXECUTION
SEP
Answer AF/A8 Warchest Questions
Build OSD-C &
OMB Briefs
Briefs to
OSD-C & OMB
RMDs
Work closely
with SPO to
Build Docs for
Congress
Skull up SecDef, SecAF, CSAF, SAF/AQ, SAF/FM for
Hearings/Congressional Testimonies
Congressional Staffer
Briefs
Congressional/Conference Marks
BPFPs/Appeals
Possible Continuing Resolution (CR)
Answer Congressional QFRs (i.e. Follow-up QFRs from Staffer briefs, impact of marks, update program status)
Work Omnibus
Spring Program Reviews
OSD
Submits
Omnibus to
Congress
Work SPR decisions
Answer Omnibus Questions
to Congress
AF Top Down
CR Impacts (if applicable)
OCO Focus
ATRs case-by-case starting in March)
BTRs (60+ days after Appropriations Law signed)
Expiring Year Focus (unexecuteable; additional that can be executed)
Key Event/Deliverables
Outside Pentagon Key Events
PEM Working Level Focus/Events
1. Staffer Days
 The Purpose of Staffer Day Briefings…..
 Staffers use the briefings to…
 Augment R Doc information
 Understand changes since previous budget submission
 Prepare committee members for hearings
 Prepare members and staff for committee markup negotiations
 Execute program oversight/identify cuts
 The Air Force uses the briefings to…
 Tell our story – Why should Congress support this program?
 Introduce new programs/initiatives
 Highlight progress made since last year
 “Good-news stories” – DABs, start of flight testing, deployment,
etc.
 Communicate problems
 Staffers strongly emphasize open lines of communications
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Documentation
So what is the impact of poor J-books?
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Loss of Air Force spending power!!!!
Loss of Credibility!!!!
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No confidence in our program plans combined with our
past performance (expiring funds)—it all works against us
Quotes from Congressional Language as to why funding
was adjusted:
AF identified excess
Poor execution
Request ahead of need
Program reduction
Pricing adjustment
Program restructure
Unjustified program
Program underexecution
Excess funding
Contract/Program delay
PEM Action: Spend time on your J-books and develop executable and
realistic (not hopeful) program plans
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PEM Key Takeaways
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Keep your PEM informed; help your PEM help you
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Coordinate info/documents before you send them to Air Staff
 Easy to understand info
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Understand the battle rhythm
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Know when the reviews are
 Know what they’re for
 Build your spend plans accordingly (if possible)
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O&Es matter
“USCYBERCOM had 1/3 of their FY14 AF Total Obligation Authority pulled (by
AQX) for bad O&Es. The G.O. was not happy but couldn't get the funds back. It
was $30M in RDT&E.”
 “If your O&Es are bad, you are at risk no matter how important your program is.”
 “A8 also just rephased 10% of total funding out of our OCO and RCA lines in
FY16. That was done about 2 months ago as FY14 was under-executing.”
 “Spring Program Reviews are occurring now and they are looking to pull
funds. AQX pulls CCARS and puts under-executing programs on the list
automatically. I've seen the list it's pretty big and there will be some withholds
on some programs. ”
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Materiel Leader’s Perspective
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Be an expert in your field!
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Know the rules/regs on the types of funding you have
 Know your flex in/flex out, language in R/P-Docs, etc
 Know the process to execute funds (Approval level, timelines,
vehicles, etc)
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Know the battle rhythm in DC
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Keep your team informed of upcoming events/reviews
Build your spend plans according
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Ex: Plan major contract awards BEFORE spring program review
Help posture your program to execute late in the year
Know your program
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Why it is important / What the priority is
How loss of funding will impact the program
Cost drivers / opportunities
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Materiel Leader’s Perspective
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Be proactive
“What If” drills
 Raise problems as you see them
 UFRs
 Do your research
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Have a good attitude
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Attitude is everything
 Be grateful
 Have fun
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It’s all about relationships!
Don’t forget why we do this
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Summary

Day in the Life of a PEM

Provide general understanding
 How you can help your PEM
 How your PEM can help you
 Reviews / O&Es

Materiel Leader’s perspective

Be an expert in your field
 Know the battle rhythm in DC
 Have a good attitude / have fun
Stay Focused on Delivering Capability to the Warfighter
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