Transcript Slide 1

February 14, 2007
Mr. Patrick B. Nixon
Director & CEO
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 DeCA
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•
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FY 2005
FY 2006
4
268
14
3
263
13
10
1
10
Regional offices
Commissaries
Country locations
Central distribution
centers (CDC)
• Central Meat Processing Plant
 DeCA workforce
• Military
• End strength
 Family members
 Local nationals
 CIV FTEs executed
FY 2005
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FY 2006
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18,023
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17,817
38%
2,094
15,058
38%
2,119
14,904
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 FY 2007
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$5.5M reduction per OSD for efficiencies
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$25.5M reduction per OSD for Defense-wide offset
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$4.4M COB approved reductions
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$17.1M foreign currency fluctuation
 FY 2008 - FY 2013
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BRAC, overseas restationing, reengineering, and other
cost savings initiatives are reflected in the current
budget
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FY 2006
FY 2007
FY 2008
$122M
$260M*
$205M
Equipment
$25M
$21M
$24M
Information Technology**
$90M
$80M
$50M
$237M
$361M
$279M
Facilities & Improvements
Total
* 4 major construction projects rolled over into FY 2007
** Commissary Advanced Resale Transaction System (CARTS) begins deployment in February 2007 –
completion date 2008
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 Revised OMB Circular A-123, Appendix A requires
agencies to report on the effectiveness of their internal
controls over financial reporting
 Accomplishments
• Highest score in DoD on the FY 2006 Annual Statement of
Assurance Scorecard
• OSD(C) referring DoD Components to DeCA as the model for
implementation
 Internal Control efforts contributed significantly to the
fifth consecutive “clean” audit opinion on financial
statement
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 Increasing the value of the benefit without
increasing the cost
• Implemented Health & Wellness
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Dietitian onboard to promote Health and Wellness
initiatives
• Expanded Natural & Organic food
• Expanded Virtual Commissary
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Improved product availability
• Assumed produce procurement mission
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 Commissary gift certificates
• Nearly $11M gift certificates purchased to date
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More than $200K donated by Industry, military, and general
public to charities assisting military families including
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Operation Homefront, USO, Air Force Aid Society
and Fisher House Foundation
 Scholarships for Military Children
• Nearly 3,000 students assisted
• More than $5M since 2001
• Increased public donations seen in FY 2006
• FY 2007 scholarships close February 21, 2007
• Pre-deployment and welcome back activities for troops
• Commissaries/vendors actively participate locally
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 Program coordinated with Industry and DSC-P
 Contracts awarded for all CONUS locations, plus Alaska,
Hawaii, Puerto Rico, and Cuba
• NE protest has delayed performance by contractor
 Solicitations to follow for coverage in Pacific and European
locations
 DSC-P support will continue until conversion completed
• Results extremely positive
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Improved quality
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Increased savings
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Increased organics
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 Impact of closing locations: (BRAC 2005)
• Commissaries affected: 6 Stores
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Fort Monmouth, NJ
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Fort McPherson, GA
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Fort Gillem, GA
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CE Kelly Support Center, PA
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NSCS Athens, GA
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NAS Brunswick, ME
• FY 2006 Sales: $65.5M
• FY 2006 Surcharge: $3.3M
• Depreciated value of assets: $9.1M
• Employee authorizations: 195
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 BRAC legislation approves a building addition to
DeCA HQ, Fort Lee
• Project contract award 1st qtr FY 2008
• Eliminates leased facilities
• Complies with DoD’s Force Protection Standards
 Transfer DeCA’s Human Resources Operations Division
(HROD) to DLA in FY 2008-2009
• Dependent on conversion date to NSPS
• Challenges
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Business processes
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Funding
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Facility Impacts
 Overseas Integrated Global Presence Basing Strategy
(OIGPBS) Gaining Location
• 6 locations impacted: Ramstein, Spangdahlem, Ansbach,
Wiesbaden, Vilseck, Vicenza
• Total cost $92.9M
 Base Realignment and Closure (BRAC) Gaining Location
• 10 locations impacted: Ft Bliss, Ft Riley, China Lake,
Ft Benning, Ft Carson, Ft Lee, NS Norfolk, Ft Sam Houston,
Moody AFB, Ft Belvoir
• Total cost $178.9M
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 If you want to complicate your life…
• Don’t read or follow the Collective Bargaining
Agreement
• Don’t call the Labor Specialist (Chateara Seymour) for
advice when faced with a labor issue
• Don’t invite the union to participate in formal
discussions with bargaining unit employees
• Don’t return the Union reps phone calls—keep them in
the dark and close off all lines of communication
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 Past efforts focused on combining processes
• Most successful – Joint construction program & implementation of open
architecture/IT standards.
• Most problematic – differing APF vs. NAF rules
 Current efforts focused on exploring opportunities that could
strengthen the military resale system
• Many would require OSD approval or Congressional notification/action
 Key charters
• Joint sales events
• Brand named concessions within commissaries (e.g., Starbucks)
• Selling exchange items in commissaries
• Shared contracting opportunities
• Universal gift card
• Sharing distribution systems
• Use of on-line mediums, catalog, and direct mailing to communicate benefit
information and advertise promotional events
 Homestead
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