Quick answer
The Program Objective Memorandum is the primary planning document in DoD's budget process through which each military service proposes its program and funding requirements for the next five-year Future Years Defense Program period.
The Program Objective Memorandum is the document through which each DoD component proposes its prioritized program requirements and funding allocations to the Office of the Secretary of Defense as part of the Programming phase of the Planning, Programming, Budgeting, and Execution (PPBE) process.
What is a Program Objective Memorandum (POM)?
The Program Objective Memorandum (POM) is submitted annually by each military service (Army, Navy, Air Force, Marine Corps) and DoD components to the Office of the Secretary of Defense (OSD) as their proposed budget for the Future Years Defense Program (FYDP), which covers a five-year planning period (the current fiscal year plus four out-years).
The POM process:
- Guidance: OSD issues Strategic Planning Guidance and Fiscal Guidance establishing strategic priorities and fiscal constraints.
- Program build: Services and components build their programs within the given fiscal constraints, making tradeoffs between competing requirements.
- POM submission: Each component submits its POM to OSD in April/May, proposing how to allocate its resource constraint across all programs.
- Program review: OSD (CAPE - Cost Assessment and Program Evaluation) reviews POMs, identifies affordability concerns, and conducts Program Budget Reviews (PBRs).
- Budget: Approved programs become the basis for the budget request submitted to Congress in February.
Why the POM matters for contractors: Program inclusion in the POM is the first formal indication that a program will receive funding. Programs not in the POM are unlikely to receive appropriations. Major new programs (new weapons systems, large IT modernizations) must be included in the POM before they can be funded in the budget request and appropriated by Congress.
Why the POM matters for government contractors
Defense contractors tracking long-term program opportunities should monitor POM submission periods and congressional markups of the President's budget to understand which programs will receive funding in the next several fiscal years. Programs included in the POM with funded profiles are the most reliable pipeline indicators. Programs dropped from the POM should be deprioritized from BD pipelines.
Example
A defense electronics firm has developed a new radar system and wants to understand when DoD might fund production. The firm's Washington policy team monitors the Army's POM development process. They learn through industry day attendance and congressional testimony that the Army plans to include the radar system in its FY2027 POM with $50 million in RDT&E for system development and demonstration. The firm uses this intelligence to plan for a competitive development contract award in FY2027, two years away, and begins building its proposal infrastructure and teaming strategy accordingly.
Frequently Asked Questions
Is the POM classified?
The POM itself is typically classified because it reveals military priorities and resource tradeoffs that could provide adversaries with intelligence about defense planning. However, unclassified summaries, congressional budget justification documents (called R-Docs, P-Docs, and O-Docs), and public testimony reveal program funding at a level useful for industry planning.
How does a new program get into the POM?
New programs must be advocated for through the military's requirements process (Joint Requirements Oversight Council for major programs) before they can compete for funding in the POM. A program that has been through requirements validation, technology maturation, and analysis of alternatives is better positioned to compete for POM funding than one still in early concept exploration.
What is the relationship between the POM and the budget request?
The POM is an internal DoD planning document. The President's Budget Request (submitted to Congress in February) reflects the approved programs from the POM/PBR process, but at aggregate levels and with adjustments made by OMB and OSD. The budget request is public; the POM is not.
What is the FYDP?
The Future Years Defense Program (FYDP) is DoD's five-year financial and force structure plan. It captures all funded programs across all DoD components for the budget year and the following four out-years. The FYDP is updated annually with each budget submission and provides the financial baseline against which POMs are evaluated. New programs must fit within FYDP topline constraints.
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Related terms
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