R 182128Z OCT 16








RMKS/1.  Effective 1 October 2016, the Navy headquarters staff
(OPNAV) realigned to develop a Program Objective Memorandum (POM) process 
that advances the Navy's strategic warfighting priorities through a balanced 
and executable program.  The Chief of Naval Operations' (CNO) intent for POM-
19 (and beyond) is to establish a transparent, collaborative and efficient 
culture of decision making.
POM-19 will institute a three-phased POM development approach that will 
ensure a Strategy-driven POM within budget constraints vice a budget-driven 
POM.  This new process and organizational realignment will improve internal 
and external communication, and provide the responsiveness required for 
improved decision making in the Planning, Programming, Budgeting and 
Execution (PPBE) process associated with POM development.  The realignment 
will also form the OPNAV Staff baseline from which to meet the Congress-
mandated 25 percent Major Headquarters Activity (MHA) reductions by FY20.

2.  The CNO Guidance for Development of POM-19 (CNOG-19) will provide early 
strategic guidance, priorities and issues for further analysis (including 
force structure, modernization, readiness and manpower resource 
strategy/priorities) to drive resourcing decisions and priorities early in 
the POM cycle.  The delivery of higher authority guidance and identification 
of trade-space opportunities to begin the POM process should also lead to 
workload reduction for the OPNAV staff as issues and opportunities are 
identified and resolved earlier in the process.

3.  The three overlapping phases of this new POM process are characterized by 
the following defined supported and supporting
    a.  A Strategy Phase, which starts the cycle, in which the Deputy Chief 
of Naval Operations (DCNO) for Operations, Plans and Strategy
(N3/N5) is the supported DCNO and all other DCNOs, the Fleets, and Budget 
Submission Offices (BSOs) are supporting;
    b.  A Requirements-Program Integration Phase, led by DCNO for Warfare 
Systems (N9) as the supported DCNO, with all other DCNOs, the Fleets and BSOs 
    c.  A Resources Integration Phase, led by DCNO for Integration of 
Capabilities and Resources (N8) as the supported DCNO, all other DCNOs, the 
Fleets and BSOs supporting.

4.  Under this new process, POM-19 and subsequent POMs begin three months 
earlier than historical POMs.  Sponsors will use prior year POMs as submitted 
to Office of Secretary of Defense (OSD) as the baselines (in this case for 
POM-19) until such time as Budget Estimate Submission for Fiscal Years 2019-
2023 (BES-19) and President's Budget for Fiscal Year 2019 (PB-19) are 
In addition, the POM will be developed collaboratively and transparently with 
no separate Resource Sponsor Program Proposals (SPP).  Sponsors will present 
their initial positons much earlier, and will be assessed in strategy 

5.  The end product of the POM development process will be a strategy-based, 
fiscally balanced and defendable Navy Program for submission to OSD, which 
appropriately implements OSD fiscal and programming guidance, addresses 
SECNAV and CNO priorities, and achieves the best balance of strategic 
guidance as provided in the CNOG.

6.  To better align to the POM process and optimize staff expertise, the 
following manpower and organizational adjustments have been made for 
military, civilian and contractor personnel:
    a.  Functional consolidation
        (1) OPNAV Legislative Affairs personnel remain in-place and perform 
additional duty (ADDU) to Chief of Legislative Affairs (CLA; N09L).
    (2) Portions of N43 Readiness Reporting have been moved to
N3/N5 (N31) with follow-on coordination between N8, N3/N5 and USFF.
    (3) Portions of N43 Readiness Modeling and Assessment have been moved to 
N8's Warfighting Assessment Division (N81) and Fleet Readiness Division 
    (4) N803 Navy, Joint, and Urgent Needs requirements management have been 
moved to N9 as N9IJ.
    (5) N84 moved to N9 as N94 for Science and Technology (S&T) Synergy.
    b.  Functional realignment
    (1) N89 Special Programs moved to N9 as N9SP with follow-on coordination 
with DoD SAPCO.
    (2) N81 QDR and N00K moved to N3/N5 to establish a new Strategy Division 
    (3) N9 Ship Construction, Navy (SCN) Manager moved to N805.
    c.  Process and governance.
    (1) Revised manpower planning and programming process (aligned with 
revised POM process) for better alignment between N1 and the warfare resource 
    d.  Functional realignment and consolidation
    (1) All resource sponsor POM programmers and fiscal assessment 
information and services remain in-place and realign under
N80 in the new code of N804.
    (2) Moved selected N2/N6 platforms and systems to N98.
    (3) Moved portions of N43 Training Ranges and Targets to N9I.
    (4) Moved N2/N6 and N9 Military Sealift Command platform sponsorship to 

7.  Intent is that MHA reductions will occur through normal attrition with no 
requirement for mandated/forced civilian personnel reductions.  Some OPNAV 
civilian personnel will be directed to conduct intra-OPNAV reassignments with 
no change in pay or grade, and no one will be required to move out of the 
National Capital Region due to the realignment.  Military personnel may be 
assigned a different billet within the same N-code. In limited situations, 
military personnel may be re-assigned into a different N-code or could 
potentially negotiate orders to another geographical area earlier than PRD.

8.  Any POM process change, staff realignment and/or phased 25 percent 
manpower reduction presents both challenges and opportunities.  As the OPNAV 
staff realignment matures, we will identify efficiencies and determine what 
current Echelon 1 functions can be eliminated or are more appropriately 
performed by lower echelon staffs.

9.  Central in our "Design for Maintaining Maritime Superiority" is ensuring 
we are well positioned to deal with the challenges of today and tomorrow.  
The changes approved by SECNAV and CNO are designed to prepare our team to be 
more agile, and adapt quickly and confidently to emerging challenges and 
events.  Our goal is to minimize the impact on the staff and external 
relationships while better organizing ourselves to strategically plan and 
program more efficiently, collaboratively and transparently.

10.  Released by Admiral William Moran, Vice Chief of Naval Operations.//