1. Doing Business With the Military Main Organizations Food Systems Key Players Strategies James Fagan, Executive Director Research and Development Associates Fall 2009 Meeting

2. Main Military Organizations The Military Services: Army, Marines, Navy, Air Force Air ForceNatick Defense Supply Center Philadelphia (DSCP) VETCOMUSDA

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

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

5. 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

6. DSCP Buying agents for DoD (all services) –Rations –Prime Vendor –Direct Buys (reducing) –Almost all contracting goes through DSCP Executive Agent for Food

7. 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

8. USDA Key player in rations –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

9. FOOD SYSTEMS RATIONS PRIME VENDOR COMMISSARYEXCHANGE DIRECT CONTRACTS

10. 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 DSCP contracts assembly Company delivers as DSCP instructs

11. 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 DSCP About $2 -4 Billion annually

12. COMMISSARIES Military retail food stores $8 Billion in sales Brand name items and bulk items HQ in Ft Lee, VA (DECA) Very specific in procedures Too expensive without broker

13. EXCHANGE SERVICES Military “Wal-mart type” operations Three Exchange services: AAFES/ Navy/ Marines Over $17 billion in sales Bureaucratic procedures and extremely competitive

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

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

16. 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.

17. 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.

18. Unitized Group Ration (UGR): Complete meal for 50! Army (ACES)& 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

19. 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

20. 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

21. 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!!!!

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

23. 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

24. KEY PLAYERS GOVERNMENTINDUSTRYASSOCIATIONS

25. Key Government Players Military Services –Navy: CDR Dailey717-605-7243 –USMC: LTC Sanabria703-695-7396 –Army: LTC Barnes 804-734-3007 CW5 Jack Van Zanten 804-734-3072 CW5 Jack Van Zanten 804-734-3072 Dave Sherriff804-734-4862 Rick Bryd804-734-3005 –Air Force: George Miller 210-652-2619

26. Key Players: VETCOM There will be a regional veterinary command in your area CW 2 Budd Dodge210-221-6510

27. Key Players: DSCP HQ:CAPT. Rackauskas 215-737-2900 HQ: Ray Miller 215-737-2952 & Rich Faso 215-737-2901 Rations: –Harry Streibich215-737-3820 –Jim Lecollier 215-737-3625

28. Prime Vendor Prime Vendor: –John Steenberge 215-737-7445 –Joe Hauser215-737-2951

29. Key Players: Natick HQ: Gerry Darsch 508-233-4402 Rations Program –Steve Moody 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: Ray Valvano 508-233-4259

30. Natick Continued Others: –Betty Davis 508-233-4509

31. INDUSTRY KEY PLAYERS MRE ASSEMBLERS: –AMERIQUAL 812-421-4876 –SOPAKCO 843-464-7851 –WORNICK 513-552-7400 UNITIZED GROUP RATIONS –LABATT FOOD SERVICE210-661-4216 –AMERIQUAL / WORNICK

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

33. ASSOCIATIONS R&DA 210-493-8024

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

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

36. 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