ALA Briefing

February 28, 2007

Mr. Patrick B. Nixon

Director & CEO 1 1

 

DeCA

• Regional offices • Commissaries • Country locations • Central distribution

centers (CDC)

FY 2005

• Central Meat Processing Plant

4 268 14 10 1

DeCA workforce FY 2005

• Military • End strength 

Family members



Local nationals

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CIV FTEs executed

10 18,023 38% 2,094 15,058

FY 2006

3 263 13 10 1

FY 2006

5 17,817 38% 2,119 14,904

2 2

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FY 2007

• • • •

$5.5M reduction per OSD for efficiencies $25.5M reduction per OSD for Defense-wide offset $4.4M COB approved reductions $17.1M foreign currency fluctuation

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FY 2008 - FY 2013

•

BRAC, overseas restationing, reengineering, and other cost savings initiatives are reflected in the current budget

3 3

Facilities & Improvements Equipment Information Technology** Total FY 2006 $122M $25M $90M FY 2007 $260M * $21M $80M FY 2008 $205M $24M $50M $237M $361M $279M * 4 major construction projects rolled over into FY 2007 ** Commissary Advanced Resale Transaction System (CARTS) begins deployment in February 2007 – completion date 2008

4 4



Revised OMB Circular A-123, Appendix A requires agencies to report on the effectiveness of their internal controls over financial reporting

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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

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Internal Control efforts contributed significantly to the fifth consecutive “clean” audit opinion on financial statement

5 5

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Increasing the value of the benefit without increasing the cost

• Implemented Health & Wellness 

Dietitian onboard to promote Health and Wellness initiatives

• Expanded Natural & Organic food • Expanded Virtual Commissary 

Improved product availability

• Assumed produce procurement mission 6 6

 

Commissary gift certificates

• Nearly $11M gift certificates purchased to date 

More than $200K donated by Industry, military, and general public to charities assisting military families including

•

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 7 7

    

Program coordinated with Industry and DSC-P Contracts awarded for all CONUS locations, plus Alaska, Hawaii, Puerto Rico, and Cuba Solicitations to follow for coverage in Pacific and European locations Initiative slowed by protests DSC-P support will continue until conversion completed

• Results extremely positive   

Improved quality Increased savings Increased organics

8 8

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Impact of closing locations: (BRAC 2005)

• Commissaries affected: 6 Stores 

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 9 9



BRAC legislation approves a building addition to DeCA HQ, Fort Lee

• Project contract award 1

st 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 

Business processes



Funding

Facility Impacts

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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

   

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