Subordinate activities within each Military Department (e.g. Army Commands, numbered Air Forces and Fleets, acquisition program offices) begin developing their individual budgets as a prelude to the Service Secretary's call for budget estimates. This development action may begin as early as mid-fall prior to submitting their budget estimates to the Service Headquarters in early spring.
In August of each year, each DOD component (Military Department and Defense Agency) submits a combined Program Objective Memorandum (POM)/Budget Estimate Submission (BES) to the Office of the Secretary of Defense.
The POM/BES covers the 5-year Future Years Defense Program (FYDP) and presents the Component's proposal for a balanced allocation of available resources within specified constraints to satisfy the Defense Planning Guidance (DPG). Significant force structure and end-strength changes, as well as major system new starts, must be identified. Program imbalances and shortfalls in meeting DPG, combatant commander objectives and other Defense directives must also be highlighted. The FYDP is updated at the time of POM/BES submission to OSD.