Operations Report Neal J. Couture, CPCM Executive Director Board of Directors Meeting Arlington, Virginia December 11, 2010

Action Items from BOD Meetings 1.Send top three priorities of what association should focus on this program year, along with goals to measure success. (July 2010) Assigned to: BODStatus: Done.

Chief Knowledge Officer Search continues – 100 applications received, 10 candidates interviewed. Re-advertised position as Federal Acquisition Analyst – 10 applications to date, 1 candidate interviewed. In negotiations with CKO candidate – senior defense acquisition professional with 25 years experience, teaching experience, human capital programs. Challenge is location – Ashburn.

ISM Executive Director Neal Couture met with Paul Novak, Chief Executive Officer of the Institute for Supply Management (ISM) on October 14, ISM lukewarm to discussion of alliance. Unsure of risks vs. rewards. Possible interest in shared operations. Agreed to meet again on date undetermined to review operations to look for possible opportunities.

NIGP Investigated opportunity for NCMA to produce NIGP’s periodical magazine. –NIGP would provide content –NCMA would edit, design, produce and distribute magazine –Network Media would sell advertising in magazine Provided preliminary data to NIGP for discussion. –CEO presently discussing with NIGP board and staff Next steps: –Await NIGP response –finalize business case to assess risks vs. benefits –draft agreements

Collaboration with Education Partners Researching for possible business case. Goal is to increase NCMA's presence in educational programming. Motivated by expectations and demands of members as articulated in annual membership survey. Meeting with educational partners Thursday to gauge interest in participating in a new education collaboration. The approach we are considering is to bring partner educational programs to NCMA members under the NCMA brand. NCMA's role would be to market, sell and provide logistics. Partners’ role would be to provide the course content, materials, and speakers.

Finance Favorable YTD variance in net revenue: $488.9 K Reserves are $2.147 million, which is 32.6% of operating budget ($6.581 million). YTD investment gains: $155K $100,000 contribution to reserves from operations in November 2010 Positive audit results. Caution! Advertising sales revenue slowing.

Financial Report Update Through November 30, 2010 YTD 2011* YTD 2010 YTD BUDGET Revenue Membership 822,487861,904877,080 Education 263,643316,108278,637 Advertising 586,787650,461616,665 Certification 81,32944,38944,650 Meetings 1,487,265729,3141,333,000 Total Revenue 3,245,2312,605,4763,153, % positive variance over budget.

Financial Report Update Through November 30, 2010 YTD 2011* YTD 2010 YTD BUDGET Summary Revenues 3,245,2312,605,4733,153,782 Expenses 2,756,3262,230,3192,956,039 Net from Operations 488,905375,157197, % positive variance in expenses from budget * World Congress timing change

Financial Report Update Through November 30, 2010 YTD 2011* YTD 2010 YTD BUDGET Summary Net from Operations 488,905375,157197,743 Net Investment Revenue 155,152208, Income Taxes 25,000 Net gain (loss) 619,057559,103172,918 $446,000 positive variance in net gain year to date (5 months)! * World Congress timing change

Membership 19,961 members as of 12/1/2010. Negligible change from beginning of year. Revenue down in Q1-Q2 FY2011 due to pre-paid dues from last dues increase. Project that revenue will return to budget profile in Q3FY2011. Retention rate: 80.6% remains consistent.

Goals are based on FY Budget

Chapter Relations Annual Chapter Feedback report completed –Overall satisfied with support from NCMA Virtual chapter chartered and operating –200 members –Executive Briefing Series –Meet-up at GCMC Chapter grants awarded Caution! Tax reporting liabilities.

Conferences GCMC 2010 exceeded attendance and revenue goals! –600 “paid” –980 in attendance (badged) –85 exhibitors –30 career fair exhibitors, ~200 participants Risk Factor: GCMC size and configuration creating site selection challenges. FY2011 sites under review.

Conferences (cont.) Planning for ADC 2011 in Glendale, AZ in March 2011 in process. –Karl Bird, JPL Acquisition Director, Chair –Forecast to meet budget. World Congress 2011 in Denver, CO in July 2011 in process. –Elliott Branch, U.S. Navy Executive Director for Acquisition, Chair –Presentation proposals being submitted through 12/31/2010. –Forecast to meet budget.

Education Risk factor: Conducted fewer webinars than planned due to topic and speaker selection, workload issues. –Mitigation plan: new CKO/analyst hire will significantly contribute in this area. CFCM Online Preparatory Program –25 students –Volunteer instructors: Beverly Arviso, Tom Reid, Michelle Currier, Neal Couture –Offered only to candidates already admitted for CFCM examination. –Next class starts 1/2010: sold out in 1 week. –Considering adding sessions using paid instructors.

Certification Transactions and revenues exceed budget year to date. –Applications up 56%; –Certifications awarded up 74%7. Increasing size of exams from 110 to 150 questions in January. Proposal to major aerospace company to provide certification to up to 1,000 employees.

Advertising Sales and Creative Services Journal published on schedule in September Website page views up 65% Website redesign project: launch late winter Caution! Advertising sales at risk due to extended economic recession.

Standards Risk factor: schedule delays, resource allocation; mitigated by impending hire of CKO/analyst CMBOK project: Job analysis report complete, CMBOK draft through review, Wiki to launch January. –Community validation and comment on draft CMBOK Placement study: research plan modified to incorporate interviews and focus groups at World Congress 2011 in Denver. CM2 project: to be assigned to CKO/analyst Annual salary survey: as scheduled

Core Operations - Facility Couture re-elected to Cape Court Condo Association for 3 year term. –Cambria Tidwell is appointed Secretary; Sam Smith is financial advisor. –Significant reserves issue caused by developer’s malfeasance. Researched opportunity to acquire neighboring suite. –Have now fully occupied the existing space. –Acquisition and build-out costs do not justify purchase at this time.

Core Operations - Staff Wyatt Miedema, IT Manager serving active duty Army in Bahrain until April. –Hired contractor to provide services –Trained employee to cover routine tasks Revised plan for communities: implementing spring Turnover: 4% YTD