1. Operations Report Neal J. Couture, CPCM Executive Director Board of Directors Meeting Bethesda, MD November 13, 2011

2. Action Items from BOD Meetings 1.Address how to establish NCMA as the neutral forum that should be listened to; kinds of proactive outreach NCMA can participate in; how to find success stories and publicize to members and constituents. Assigned to : Larry Trowel, Chair, Professional Advocacy Council Status: Update to be briefed today. 2.Review NCMA’s committee structure; consider whether the committees are aligned to our strategy, and if charters are aligned with the practice. To propose structure at November 13 Board meeting. Assigned to: Penny White, Chair, Governance Committee Status: Recommendations to be presented today. 3.Ad hoc committee to research how to identify and prepare individuals for future Board leadership. Assigned to: Karen Wilson, Chair, Committee on Leadership Development Status: Recommendations to be presented today.

3. Finance Independent audit for period ended June 30, 2011 successfully completed on schedule. Revenue: $2.943 million vs. $3.087 million budgeted –4.6% negative variance from budget –2.8% positive variance from last year Net gain: $403.6k vs. $319.8k budgeted –26% positive variance from budget –17.5% negative variance from last year Reserves are $2.433 million, which is 37% of operating budget ($6.581 million). YTD investment loss: $54.8k

4. Finance (cont.) Concerns: –Revenue in advertising accounts is down across the board Advertising (print and digital) revenue has started to decline Jobs revenue decline –Education revenue behind budget, but growth from last year –Conference registration revenue down from budget and last year –Investments volatility Expense reduction plan being developed: –Infrastructure investments postponed –Travel expenses reduced/limited –Labor reduction through attrition, slow-down of hiring

5. Membership October 31, 2011October 31, 2010 Members21,00520,062 4.7% increase Membership Growth attributable to increases in new members and renewing members. Increased “new professionals”, decreased “student members”.

7. Chapter Relations Leadership Summit was held in Boston in August 2011 –Outstanding evaluations – 100% rated “excellent” or “very good”. Up from 84.4% last year. –Attendance down 25% from last year – stand-alone event, no students. –Sessions recorded, re-packaged for use by all volunteers online. Mid-Year Leadership Conference January 20-21 in Las Vegas –No governance meetings; request prior approval for expense reimbursement, if necessary. Chapter grants: –All chapter grants for PY 2010 – 11 were accounted for. $7,600 in unused funds were returned to NCMA. –For PY 2011-12, 35 chapters submitted 86 grant requests totaling over $187,000. $50,000 was budgeted for distribution.

8. Chapter Relations (cont.) Policy decision by University Relations Committee and Chapter Development Committee to not charter “student-only” chapters - unsustainable. –Existing student chapters will remain for as long as they are sustained. Virtual chapter: 311 members, 155 international –Meet-up at GCMC on November 14, 5-5:30pm, at the NCMA booth in the Exhibit Hall. New automated workflow process for chapter volunteers.

10. Conferences Two consecutive programs revenue less than budget. –World Congress July 2011 in Denver, Colorado: Revenue down 6.5% from budget and 7.6% from prior year –Aerospace and Defense Contracting March 2011 in Glendale, Arizona Revenue down 10.7% from budget and 19.6% from prior year GCMC November 2011 forecast close to budget, down 5-10% from prior year. Declines in registration/attendance, but exhibit revenue seems to be holding. Focus on expense reduction to meet net margin objectives. New presentation abstract submission management system.

12. Education Increased revenue and net gain over last year, but not as much as planned/budgeted. E-learning growing quickly – 100% over last year. NES revenue behind budget, cancelled sessions. Risk factor: average attendance at webinars less than planned; topic selection?

13. Certification Transactions and revenues exceed last year’s actuals. –Applications up 39% over last year; –Certifications awarded up 18% over last year. Preparatory materials improved, expanded: –Updated CPCM study guide. –Revised CPCM exam: scenario-based format. –Online CFCM Preparatory Course: increased frequency. –Online CPCM Preparatory Course: in design for launch in January. Concepts for micro-credential programs under consideration, but new launches unlikely this fiscal year.

15. To…The Value Proposition NCMA Provides needed service and value to the contract management profession. Supports the professionalization & capability of a blended workforce. Effectively utilizes Educational Partners for high-yield initiative. Contract Management Profession Provides incentive for self-development. Builds on current NCMA certifications and provides an additional metric of professionalism for quality and opportunities for advancement. Government Supports “best-value” strategies, quality and potential of DAWIA and FAC-C certified vendors. Provides trained resource for greater productivity. Industry Provides greater incentive for companies to invest in the professional development of their employees. Provides opportunities for increased support of contract requirements via DAWIA or FAC-C certified employees. Industry Certification Initiative (I-Cert) Purpose: Enhance the value and professionalism of the contract management workforce to better support government requirements by offering opportunities for industry members to obtain certification pursuant to DAWIA and FAC-C requirements.

16. Advertising Sales and Creative Services Advertising revenue slumping: negative variance 30% from budget and 20% from prior year. Declines across the board (ie. Jobs, digital ads, print ads, sponsorships). Journal 2011 published digitally in September. Call for 2012 Macfarlan papers issued, due January 15, 2012. Contract Management Resource Guide 2012 published in November.

22. Standards Position Standards for the CM Field to be published in August as insert to CM magazine. Organizational Alignment study: analyzing results of focus groups. CM2: draft competency model and self-assessment questionnaire being reviewed.

23. Levels 1 – 3 are competencies needed in any work environment.

24. Level 4 are “profession-wide” technical competencies. Contract management competencies.

25. Level 5 are “sector” technical competencies. Federal - civilian Federal – defense Commercial - healthcare

26. Level 6 are “content-specific” knowledge areas. Service contracting Construction contracting Weapons systems contracting

27. Level 7-8 are “role-specific” technical competencies. Prime contract management Subcontract management Pricing and estimating Cost and price analysis

28. Level 9 are “management and supervision” competencies. Planning Organizing Staffing Directing Controlling

29. Core Operations: Staffing changes Karen Reuter, director of standards, retired July 15, 2011. –Duties absorbed by CLO Boykin Madison McElmurray hired as a Customer Service Representative effective September 6, 2011. Susan Esprella Colon, director of education, returned from maternity leave 0n September 19, 2011. Greg Olson resigned as customer service representative on October 20, 2011 – citing difficult commute. –Leaving position open until February 2012 Facility: at capacity!

30. Governance Items Independent audit support. Governance Committee support – researched committee structures. Board Leadership Development Ad Hoc committee support – researched association practices for board development. Strategic Planning Committee support – organized and conducted two ‘concept mapping’ sessions in October. Elections marketing plan developed. New Board and Committee websites.

31. The new URL is: http://resources.ncmahq.org

32. The Governance website and most committees will remain accessible to all visitors.

33. Outreach activities Chartered Institute of Purchasing and Supply (CIPS) –Facilitated by NIGP; interest in collaborating in some fashion Connecting U.K. and U.S. leaders in public procurement –Speakers at NCMA conference –CIPS President as possible speaker Aerospace and Defense Conference –March 2012 in London Certification/Accreditation of organizational procurement systems –Non-disclosure agreement executed –CIPS interested in licensing NCMA to conduct certification reviews in U.S.

34. Outreach activities (cont.) International Federation for Purchasing and Supply Management (IFPSM) –NIGP, ISM and CPPC are North American members –NCMA is former member, being invited to return –September 2011 conference in Sweden –Multi-country interest in U.S. Government procurement practices Korea Small Business Institute –Understand U.S. socio-economic contracting programs Australian Embassy –Connect company that developed contract writing tool to U.S. markets

35. Outreach activities (cont.) National Institute of Governmental Purchasers (NIGP) –Interest in shared “back-office” services; accounting National Coalition of Public Procurement and Contracting (NCPPC) –Standards of practice –3% tax withhold

36. Outreach activities (cont.) VIP visits completed –MGen Wendy Masiello, Deputy Assistant Secretary for Contracting, USAF –Mr. Shay Assad, Director of Defense Pricing, DoD –Ms. Katrina McFarland, President, DAU –Mr. Patrick Fitzgerald, Director, DCAA –Ms. Joanie Newhart, Associate Administrator for Acquisition Workforce Programs, OFPP –Ms. Donna Jenkins, Director, Federal Acquisition Institute Scheduled/planned –Mr. Charlie E. Williams Jr., Director, Defense Contract Management Agency –Rear Admiral (Select) Althea H. "Allie" Coetzee, Executive Director, Deputy Assistant Secretary of the Navy, for Acquisition and Procurement –Dr. Carol Lowman, Executive Director, Army Contracting Command –Dr. Mindy Connolly, Chief Acquisition Officer, General Services Administration