Attachment I DON Budget Formulation.docx

Attachment I

1.0 Introduction and Purpose

The DON is seeking information on modern, commercially available, cloud-based software solutions to enhance the DON’s Planning, Programming, Budgeting, and Execution (PPBE) processes, with a focus on modernizing the “Pre-PBIS” activities of the budget formulation phase. For the purposes of this initiative, “Pre-PBIS” is defined as the period following Program Objective Memorandum (POM) lock (unless otherwise specified herein) and concluding with the delivery of complete, validated budget exhibits and PBIS-ready load files for review by the Office of Budget (FMB). However, many of the solutions on the market support capability features such as advanced scenario analysis, consolidation, and the DON seeks a general understanding of solutions that support the core “Pre-PBIS” budget formulation phase while also highlighting opportunities to support transformation across the PPBE lifecycle.

The DON seeks to accomplish this modernization through the implementation of a modern, secure, Software-as-a-Service (SaaS) Enterprise Performance Management (EPM) platform that will drive standardization, automation, auditability, and user-centric enablement across all commands.

The goal is to identify potential solutions that can replace command-owned and -operated legacy systems with a single, integrated platform. This solution will support the entire DON in all pre-PBIS budget formulation activities.

The solution will establish a common, extensible budget formulation framework, with workflow automation, data integration, and consolidated reporting capabilities. It will also facilitate the automation of budget exhibit development, load file creation, and support for required DON and FMB compliance requirements.

2.0 Background

The Department of the Navy currently utilizes numerous disparate, locally developed systems and applications for budget formulation and analysis. This fragmented approach creates inefficiencies, data silos, and challenges in achieving a unified financial picture across commands.

The DON’s objective is to procure a single, comprehensive solution that standardizes and streamlines budget formulation and analysis for all subordinate commands, including acquisition commands, the Fleet, and headquarters commands. This new tool will serve as the authoritative platform for building, analyzing, and modeling budgetary scenarios before official submission to DON headquarters for consolidation and entry into PBIS.

3.0 Scope of Requirements

The Government is interested in a Software-as-a-Service (SaaS) solution with the following capabilities. Respondents should address their solution's ability to meet these requirements. Evaluation criteria will include innovative solutions to automate wherever possible, integrate with the DON’s system solutions in its target state, to include SAP S/4HANA and PBIS, and demonstrated ability to meet the requirements below.

Reconcile budget data across multiple tools, systems, and data sources ensuring consistency and accuracy. Normalize formats (e.g., fiscal year conventions, naming standards) and detect discrepancies. Provide recommendations for clarification or improved budget justification language when inconsistencies or anomalies are identified.

Provide robust workflow automation and process management to standardize and control the budget formulation lifecycle, from initial data input and consolidation through review, approval, and final submission.

Modernize budget input and schedule tools, including capabilities for line-item/program-element updates, global changes, and bulk submissions.

Support review, approval, and rejection cycles with full auditability and version control.

Provide scenario-based budget modeling, including the ability to model and execute budgets under specific scenarios, such as a Continuing Resolution (CR).

Provide workspaces to draft and manage budget inputs, pricing exhibits, and narrative justifications. Include standardized templates for issue papers, funding tables, program adjustments, and justification book narratives.

Generate narrative and decision-support products, including budget rollout materials, congressional narratives, and side-by-side funding tables aligned to leadership priorities.

Enable preparation and validation of apportionment requests using execution data (e.g., SF 133).

Support a multi-step apportionment workflow, from template generation through validation in external systems.

Provide linkages between formulation and execution data to improve accuracy, transparency, and timelines.

Unify collection and management of budget inputs post POM lock from multiple lower-level echelons into a single authoritative system.

Automate the preparation, development, and validation of Budget Exhibits in compliance with DON and FMB standards.

Generate, validate, and cross-check budget exhibits across appropriations and funds using rules-based formatting and direct data extraction from authoritative financial and budget systems.

Support classified and unclassified exhibit production through secure, multi-domain workflows.

Support the generation of the justification books (J-Books) required for the budget formulation process.

Enable automated creation and export of load files (e.g., PBIS, DONIBIS, BOCS, Ob Plans, OP8) for FMB submission.

Ability to capture budget and phasing plan details at the lowest level of detail and aggregate and load data into PBIS. Provide the ability meet the requirements of budget formulation at the lowest level of detail for the command community, with ability to then roll details up to PBIS and ‘FMB’ level of detail.

Ability to integrate command-level crosswalks and data mapping that enables budgeted controls to be monitored at the fund’s holder level of detail and process OP32 exhibits

Incorporate existing budget and cost models that can be updated inside the tool and used to automate the generation of required data outputs and budget exhibits.

Enable insights into budget changes over time as the budget progresses through the PPBE cycle

Automate the ability to assign undistributed marks within selected parameters and generate a PBIS load sheet. This should include the ability to perform scenario analysis on the mark within given parameters.

Capture of civilian labor budget detail to facilitate labor budgeting and reporting

Track year of execution control changes resulting from internal realignments and funding authorization documents

Capabilities for multi-scenario planning, decision support modeling, and trade-off analysis to support budget formulation development process.

Enable comparative and scenario analysis of draft, tentatively approved, and final versions of key documents (e.g., Program Budget Decision (PBD), Program Decision Memorandum (PDM), Congressional Request for Information (RFI)), highlighting material changes, risks, and impacts to programs and funding profiles.

Offer tools for detailed programming analysis to assess resource allocation, program costs across the department, and alignment with strategic priorities.

Artificial Intelligence (AI) capabilities to identify data anomalies and validate all required inputs are included in exhibit and load file submissions for specific business scenarios.

Provide automated reconciliation and error detection to identify, explain, and help resolve data inconsistencies across budget systems, schedules, and exhibits before formal submission.

Deliver smart formatting and standardization, automatically enforcing rules for fiscal year notation, naming conventions, exhibit structures, and other required formats.

Implementation of LLMs and AI Agents for automated narrative generation, document analysis, and exhibit creation.

Predictive analytics and forecasting capabilities to project future spending, execution trends, and financial needs under multiple scenarios.

Use AI to surface trends, anomalies, and crosscut insights across execution, exhibit, and program data to support leadership decision-making.

Support crosscut and specialty analyses, including R&D initiatives, character class, contract services, and other enterprise-wide reporting requirements.

Provide AI-enabled narrative generation and summarization to distill large, complex documents (e.g., appropriation bills, PBDs, PDMs) into concise, actionable summaries.

Generate draft narratives, justifications, and talking points aligned to leadership priorities and underlying budget data.

Support automated creation of side-by-side comparisons, funding tables, and decision-support materials for senior leaders.

Offer integrated financial and budget views by consolidating data from multiple authoritative systems (e.g., Enterprise Resource Planning (ERP), Defense Departmental Reporting System (DDRS), SF-133).

Enable users to generate a wide range of standard and ad-hoc reports, including Budget vs. Actuals, year-over-year comparisons, and program-level financial summaries.

Provide automated report generation for recurring products such as execution reports, obligation and expenditure reports, end-of-month summaries, crosscut reports, contract services, character class, and apportionment-related outputs.

Capability to export all reports and data to standard formats, including Microsoft Excel and PDF. Provide the solution's ability to export data and metadata in non-proprietary formats.

Provide the ability to track, analyze, and report budget formulation and execution across Organizational, Accounting, Program, and Resource Sponsor hierarchies.

Provide intuitive, user-friendly visualization tailored for senior leaders, enabling rapid understanding of financial posture and trends.

Provide drill down analysis from enterprise-level view to program, project, or line-item detail, including budgeted, allocated, unobligated, obligated, and expended funds.

Provide variance and threshold monitoring, include Below Threshold Reprogramming threshold available, percent-expended metrics, obligation rates, and other key performance indicators.

Enable early detection of at-risk funds by comparing execution against spend plans and surfacing anomalies or deviations. Deliver automatic notifications to portfolio owners when risks are identified.

Improve the Department’s ability to respond quickly to Congressional, leadership, or third-party queries through accessible, accurate, and consolidated reporting.

A robust and secure data import/export framework, to include manual data load capability.

Ability to ingest and properly map historical budget and execution information from legacy systems.

Built-in or extensible support for predictive analytics, machine learning, and AI-enabled insights.

Granular, role-based access control to manage user permissions across different commands and data sets.

Scalable architecture capable of supporting a wide range of users across the DON.

The solution must be accessible via standard browsers (Microsoft Edge, etc.) approved for use by Department of War and Department of Navy.

Clear data ownership and retention policies in line with Federal Government and financial audit standards.

Clear metadata management and master data governance capabilities. This also includes clear error handling, reconciliation, and data lineage tracking capabilities. Maintain comprehensive audit trails with transparent metadata layers and end-toend data traceability.

The solution must be cloud-hosted FED-RAMP Certified at the High authorization status ensuring it meets Federal standards of security and associated NIST standards.

The solution must be eligible to be authorized up to the Department of War (DOW) Impact Level 5 (IL5) for Controlled Unclassified Information (CUI) and potentially IL6 (Secret) requiring high-level protection.

The solution must be compliant with NIST 800-53 controls and be Section 508 accessibility compliant.

The solution should provide Zero Trust Architecture (ZTA) and data security in compliance with OMB Memorandum M-22-09 and NIST SP 800-207.

Provide current Authorities to Operate (ATO) within the Department of War and provide the ATO identifier to the DON. If the solution does not have a current ATO within the DOW, provide detailed plan and timeline for obtaining an ATO with the necessary security classification, data handling, and integration capabilities outlined.

The solution should have the ability to meet new Department of War (DoW) Continuous Authorization to Operate (cATO) requirements and maintain this authorization. Requirements include, but not limited to, continuous monitoring and assessment of Risk Management Framework (RMF) security controls and Active Cyber Defense (ACD), and the ability to respond to cyber threats in real-time or near real-time.

The solution shall comply with DoW DevSecOps requirements for speed, agility, security, and cloud capabilities.

Must demonstrate the ability to meet DoD and DON-specific security and data handling requirements.

4.0 Demonstration Requirements

Following the review of whitepaper submissions, the Government will invite selected respondents to provide a virtual demonstration of their software. The demonstration should last no more than 90 minutes and must showcase the solution's ability to handle the following Navy-unique scenarios:

1. Acquisition Command Scenario: Demonstrate the formulation of a complex procurement budget for a major defense acquisition program, including tracking of multi-year funding, obligations, and disbursements.

2. Fleet Scenario: Demonstrate the creation of an operational and maintenance (O&M) budget for a Fleet unit, including personnel costs, fuel, repairs, and supplies.

3. Headquarters Command Scenario: Demonstrate strategic-level portfolio analysis, showing how funding shifts between different programs would impact overall mission readiness and long-term strategic objectives.

4. Consolidated Scenario: Demonstrate the ability to consolidate budgets from the above scenarios into a single, department-wide view for senior leadership review and congressional submission.

5.0 Submission Instructions

Interested parties are requested to respond to this RFI with a whitepaper.

· Format: Whitepapers should be submitted in Microsoft Word or Adobe PDF format.

· Length: Responses shall be limited to 10 pages.

· Submission: Email responses to stephanie.m.murphy28.civ@us.navy.mil and daniel.engelberg.civ@us.navy.mil

· Deadline: All responses are due by 12:00 PM Eastern Time. (EST), on 9 June 2026 The whitepaper must contain the following sections:

1. Corporate Overview: Provide company name, address, point of contact, and business size (e.g., Large Business, Small Business, 8(a), Veteran-Owned, etc.).

2. Capability Narrative: A detailed response addressing each requirement listed in Section 3.0. Describe how your solution meets these needs and note any areas that would require customization.

3. Past Performance: Provide at least two (2) examples of projects of similar size and scope, preferably within the DoD or other federal agencies. Ensure quantitative outcomes are expressed.

4. Demonstration Approach: Briefly outline your plan to address the scenarios described in Section 4.0.

5. Rough Order of Magnitude (ROM) Cost Estimate: Provide a non-binding ROM for planning purposes. The ROM should include estimated costs for licensing/subscription, implementation, and annual maintenance/support for an enterprise of approximately 10,000 users.

6. Implementation Partners: Briefly provide recommended implementation partners suited to support a Navy implementation. Original Equipment Manufacturer (OEM) led implementation is preferred.

Whitepaper submissions will be reviewed, and vendors will be selected to provide a live demonstration of their software solution that meets the criteria outlined.