1. BOOT CAMP 101 What is this marketplace? Can my company play?
How does it work?
Can my company play?
What are the major elements?
Who are the key players?
John McNulty, Executive Director
Research and Development Associates
May 22, 2017

2. Marketplace Size Military: $ 7.0 billion Government: $ 10.0 billion
Resale: $ 20.0 billion
Large enough to look at!

3. Market Components Rations Dining Hall Food Service
Commissaries and Exchanges

4. Main Military Organizations
The Military Services: Army, Marines, Navy,
Air Force, Coast Guard
Natick
Defense Logistics Agency
US Army Public Health Command
USDA
DECA/AAFES/ etc

5. Rations and Feeding of Military
Rations are individual and group
Most military meals are served in cafeteria type settings
War Zone feeding is a special situation
US support to cafeterias is by a commercial food distributor (Subsistence Prime Vendor)
The military services are the CUSTOMER

6. Military Services Army, AF, USMC, Navy
Approve all food & services
Verify quality
Visit users to assess
Usually first place to start
Provide funding
NO ACTION IF THEY DISAPPROVE

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

8. Military Services US Air Force
US Air Force Services Agency Ft. Sam Houston, TX
US Navy
NAVSUP Mechanicsburg, VA

9. 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

10. NATICK
U.S. Army Natick Soldier RD&E Center Natick, MA

11. DLA Troop Support Buying agents for DoD (all services)
Rations
Prime Vendor
Direct Buys
Almost all contracting goes through DLA
Executive Agent for Food

12. Defense Logistics Agency-Troop Support
DLA Troop Support Philadelphia, PA

13. US Army Public Health Command
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

14. USAPHC
HQs US Army Public Health Command Aberdeen Proving Grounds, MD

15. 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

16. USDA
Agricultural Marketing Service/DCIS Washington, DC

17. FOOD SYSTEMS
RATIONS
SUBSISTENCE PRIME VENDOR
COMMISSARY
EXCHANGE

18. 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 contracts assembly
Company delivers as DLA instructs

19. RATIONS CONSIDERATIONS
Buy America Act
Berry Amendment
Government Inspection and/or approval
Fulfills military needs
Warrior tested and approved

20. Key Elements
MRE: 3 year shelf life/3,600 calories a day/limited space/ war stopper item
UGR: Family of rations/varying shelf life/ feeds 50 meals at a time
Other Rations: Ration for every situation
GET SPECIFICATIONS/WORK WITH GOVERNMENT AND AN ASSEMBLER

21. Summary of Rations See specifications
Menus and components approved by services
Assemblers are contract holders and can provide components from any supplier who has met specification as approved by the government.

22. SUBSISTENCE 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
About $4-5 Billion annually

23. KEY SPV ELEMENTS Items mutually approved by services and SPV
Cost/ quality/number of similar items/ relationship with SPV
Difficult to get NEW items into system
Concentrate on large installations
Consider a broker to reduce cost; but some SPV do not accept brokers

24. SUMMARY OF SPV Determine who has contracts (website)
Know services requirements: Cost per serving/ how selections are made
Meet with SPV
Remember that services are the real customer and best if services and SPV agree
You have no contract with the government

25. COMMISSARIES Military retail food stores $6 Billion in sales
Brand name items and bulk items
HQ in Ft Lee, VA (DECA)
Very specific in procedures
Too expensive without broker

26. Commissary Operations
15th largest food retailer
263 stores worldwide
Brand name products/ with documented sales history
Very specific procedures
Use of a broker is most effective method to get placed and operate

27. Commissary Summary Big business DECA: Fort Lee, VA Large order
Broker is needed

28. EXCHANGE SERVICES Military “Wal-Mart type” operations
Four Exchange services: AAFES/Navy/ Marines/CG
Over $ 15 billion in sales
Bureaucratic procedures and extremely competitive

29. Exchange Operations 530 Stores Demand pricing equal to best customers
Large volume of sales per outlet
CONUS & OCONUS operations
Broker is best method

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

31. 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

32. MRE: Continued
Items will be field tested and evaluated Three year shelf 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

33. 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

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

35. Food Service Feeding Items
Cookies
Pasta
Meat Items
Drink Items
Shortening
Vegetables

36. 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

37. Prime Vendor (Continued)
PV determines most items supplied but must meet needs of customers
Cost plus contract
Some set aside contracts

38. Selling To Dining Halls
Installation Food Advisor
Cost per serving
Comparison with current items
SPV coordination
Contract clauses

39. Commissaries & Exchanges
Types of items
Usual manufacturer requirements
Deliver daily
Stock shelves daily
Handle discrepancies

40. 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

41. THIS IS A GOOD TIME TO ASK QUESTIONS!!!

42. 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