Doing Business With the Military Main Organizations Food Systems Key Players Strategies James Fagan, Executive Director Research and Development Associates Fall 2010 Meeting

Value R&DA Meetings Cost to visit all key government agencies two times and once to commercial firms: Travel and labor: $61,710 Cost to attend 2 R&DA meetings annually: Travel , lodging , fees, labor: $9,380 Net Savings: $ 52,330 Face time with decision makers: priceless

Main Military Organizations The Military Services: Army, Marines, Navy, Air Force Natick DLA Troop Support VETCOM USDA

Purpose of Session To provide you with an understanding of how the government does business in food, packaging, and related areas

Military Services Approve all food & services Verify quality Visit users to assess Usually first place to start Provide funding NO ACTION IF THEY DISAPPROVE

Military Services Army: Joint Culinary Center of Excellence Fort Lee , VA USMC HQ USMC Pentagon Washington, DC

Military Services US Air Force US Air Force Services Agency San Antonio, TX US Navy NAVSUP Mechanicsburg, VA

Natick: Soldier Systems Center Conducts scientific studies Verify contents of food Establish many specifications Technical experts for services Program managers THEIR CONCURRENCE IS ESSENTIAL ON MOST ITEMS

NATICK Natick Research and Development Center Natick, MA

DLA Troop Support Buying agents for DoD (all services) Rations Prime Vendor Direct Buys (reducing) Almost all contracting goes through DSCP Executive Agent for Food (supports all military in a war zone)

DLA Troop Support DLA Troop Support Philadelphia, PA

VETCOM Quality is their main purpose in food Inspect on site Operate evaluation laboratories Check items against specifications On site at ration producers Keep detailed records of all key food items Inspect establishments to supply DoD RECOMMEND ONLY

VETCOM HQs VETCOM Fort Sam Houston San Antonio, TX

USDA Key player in rations Ensures compliance with legal requirements Affects specifications Required on-site at some locations Accept or reject items offered to government in some situations Keep historical data Can shut down manufacturers Ensures compliance with legal requirements

USDA Defense Contract Inspection Service Washington, DC

FOOD SYSTEMS RATIONS PRIME VENDOR COMMISSARY EXCHANGE DIRECT CONTRACTS

RATIONS MREs, UGRs, HDR, etc. Services indicate component items Natick ensures items are compliant Specifications are developed Items are tested in lab and with military DLA-TS contracts assembly Company delivers as DLA-TS instructs

Rations MRE : 3 yr shelf life/3,600 calories for three meals/limited space/war stopper UGR: Family of rations/all different shelf life/see specs/feeds 50 military Special Rations: There is a ration for every situation THESE ARE DISCUSSED IN WORKGROUP

PRIME VENDOR Background Dining Halls get almost every item from company who wins an exclusive geographical contract with option years Stocked items of the contract winner is basis of support Contractor evaluated annually by DLA-TS About $3-5 Billion annually

COMMISSARIES Military retail food stores $12 billion in sales Brand name items and bulk items HQ in Ft Lee, VA (DECA) Very specific in procedures Too expensive without broker

EXCHANGE SERVICES Military “Wal-Mart type” operations Three Exchange services: AAFES/Navy/ Marines Over $21 billion in sales Bureaucratic procedures and extremely competitive

Direct Government Contracts USDA Installations Any government agency Must get on bid list and comply with qualifications Every agency has ability to buy direct

SYSTEM EXAMPLES MRE (meal, ready to eat) UGR (unitized group ration) PRIME VENDOR CONTRACTS COMMISSARIES & EXCHANGES

Meal, Ready to Eat(MRE) Items Start with services and Natick (program manager) Understand shelf life, nutrition, and packaging requirements Submit for consideration: Give reasons in writing and do so repeatedly Submit exactly what you are to provide for evaluation

MRE: Continued Items will be field tested and evaluated Three-year shelf life @ 80 F If high enough scores (hedonic scale), tested by Natick in field Time from beginning to end is 18 months THERE IS NO GUARANTY THAT YOUR ITEM WILL BE PRODUCED BY YOU

Unitized Group Ration (UGR): Complete Meal for 50! Army (JCCoE) & Natick are first steps New menu/new item/alternate supplier Calories/protein/cost/weight & cube Shelf life Samples essential for evaluation Should partner with an assembler

UGR: Continued Evaluations by Natick required May need new national stock number Can use an existing generic description (DSCP) Must negotiate with assemblers Price competition Delivery on time Large quantities in short time frame

Prime Vendor Operations Annual contract with up to five one-year options Successful bidder gets exclusive contract for a geographical region PV must discuss support with customers

Prime Vendor (Continued) PV determines most items supplied but must meet needs of customers Cost plus contract Some set aside contracts MASTER PRICE AGREEMENTS: OCONUS CONTRACTS!!!!

Commissaries & Exchanges Types of items Organizational structure: Headquarters Regions Individual stores Usual manufacturer requirements Deliver daily Stock shelves daily handle discrepancies

Commissary/Exchanges Continued Brokers are best method Already know structure and all key folks Have ability to: handle orders stock shelves process payment to DFAS do it all

KEY PLAYERS GOVERNMENT INDUSTRY ASSOCIATIONS

Key Government Players Military Services Navy: CDR Dailey 717-605-7243 USMC: LTC Rogers 703-695-7396 Army: LTC Johnson 804-734-3007 CW4 Georgene Davis 804-734-3072 Dave Sherriff 804-734-4862 Rick Byrd 804-734-3366 Air Force: George Miller 210-652-2619

Key Players: VETCOM There will be a regional veterinary command in your area CW 3 William Warren 210-221-6510

Key Players: DSCP HQ: CAPT. Hansen 215-737-2900 HQ: Ray Miller 215-737-2952 & Rich Faso 215-737-2901 Rations: Harry Streibich 215-737-3820 Jim Lecollier 215-737-3625

Prime Vendor Prime Vendor: John Steenberge 215-737-7445 Joe Hauser 215-737-2951

Key Players: Natick HQ: Gerry Darsch 508-233-4402 Rations Program Jeannette Kennedy 508-233-4909 Judy Aylward 508-233-4448 Sue Harrington 508-233-4502 Poly Tray: Bob Trottier 508-233-5053 Packaging: Peter Sherman 508-233-4062 Science: Dr. Pat Dunne 508-233-5514 Specifications: Mary Caniff 508-233-4259

Natick Continued Others: Betty Davis 508-233-4509

INDUSTRY KEY PLAYERS MRE ASSEMBLERS: UNITIZED GROUP RATIONS AMERIQUAL 812-421-4876 SOPAKCO 843-464-7851 WORNICK 513-552-7400 UNITIZED GROUP RATIONS LABATT FOOD SERVICE 210-661-4216 AMERIQUAL / WORNICK

INDUSTRY CONTINUED PRIME VENDORS LABATT FOOD SERVICE US FOOD SERVICE LANKFORD SYSCO SYSCO PYA MONARCH ** SEE DLA-TS WEBSITE (WWW.DSCP.DLA.MIL)

ASSOCIATIONS R&DA 210-493-8024 WEBSITE: MILITARYFOOD.ORG

QUESTIONS ?????? THIS IS A GOOD TIME TO ASK QUESTIONS!!!

THIS IS THE BEST TIME TO ASK A QUESTION!!! QUESTIONS THIS IS THE BEST TIME TO ASK A QUESTION!!!

CONCLUSIONS The government marketplace is different but understandable Get to know where your products fit Get to the right people Ask questions Network When in doubt: Ask

Email Addresses judith.marie.aylward@us.army.mil rossie.Johnson@us.army.mil tracey.l.brown@dla.mil alphonzo.bryd@us.army.mil mary.canniff@us.army.mil thomas.daley@dla.mil gerald.darsch@us.army.mil betty.davis@us.army.mil

Emails 2 ddubose@sopakco.com c.patrick.dunne@us.army.mil jon.geisler@wornick.com susan.harrington@us.army.mil joseph.hauser@dla.mil michael.hyche@wornick.com jeannette.kennedy@us.army.mil jknapp@ameriqual.com

Emails 3 james.lecollier@dla.mil john.mcnulty@us.army.mil tmacdonald@labattfood.com richard.faso@dla.mil michelle.j.richardson@us.army.mil peter.sherman@us.army.mil robert.trottier@us.army.mil