Doing Business With the Military Main Organizations Food Systems Key Players Strategies James Fagan,...

Doing Business With the MilitaryDoing Business With the Military

Main OrganizationsMain OrganizationsFood SystemsFood SystemsKey PlayersKey PlayersStrategiesStrategies

James Fagan, Executive DirectorJames Fagan, Executive DirectorResearch and Development AssociatesResearch and Development Associates

Fall 2010 MeetingFall 2010 Meeting

Value R&DA MeetingsValue R&DA Meetings

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

Main Military OrganizationsMain Military Organizations

The Military Services: Army, Marines, Navy,The Military Services: Army, Marines, Navy,

Air ForceAir Force

NatickNatick

DLA Troop SupportDLA Troop Support

VETCOMVETCOM

USDAUSDA

Purpose of SessionPurpose of Session

To provide you with an To provide you with an understanding of how the understanding of how the

government does business in government does business in food, packaging, andfood, packaging, and

related areasrelated areas

Military ServicesMilitary Services

Approve all food & Approve all food & servicesservices

Verify qualityVerify quality

Visit users to assessVisit users to assess

Usually first place to Usually first place to startstart

Provide fundingProvide funding

NO ACTION IF THEY NO ACTION IF THEY DISAPPROVEDISAPPROVE


Army:Army:

Joint Culinary Center Joint Culinary Center of Excellenceof Excellence

Fort Lee , VAFort Lee , VA

USMCUSMC

HQ USMCHQ USMC

PentagonPentagon

Washington, DCWashington, DC


US Air ForceUS Air Force

US Air Force Services US Air Force Services AgencyAgency

San Antonio, TXSan Antonio, TX

US NavyUS Navy

NAVSUPNAVSUP

Mechanicsburg, VAMechanicsburg, VA

Natick: Soldier Systems CenterNatick: Soldier Systems Center

Conducts scientific studiesConducts scientific studies

Verify contents of foodVerify contents of food

Establish many specificationsEstablish many specifications

Technical experts for servicesTechnical experts for services

Program managersProgram managers

THEIR CONCURRENCE IS ESSENTIAL THEIR CONCURRENCE IS ESSENTIAL ON MOST ITEMSON MOST ITEMS

NATICKNATICK

Natick Research and Development CenterNatick Research and Development Center

Natick, MANatick, MA


Buying agents for DoD (all services)Buying agents for DoD (all services)– RationsRations– Prime VendorPrime Vendor– Direct Buys (reducing)Direct Buys (reducing)– Almost all contracting goes through DSCPAlmost all contracting goes through DSCP

Executive Agent for Food (supports all Executive Agent for Food (supports all military in a war zone)military in a war zone)



Philadelphia, PAPhiladelphia, PA

VETCOMVETCOM

Quality is their main purpose in foodQuality is their main purpose in food– Inspect on siteInspect on site– Operate evaluation laboratoriesOperate evaluation laboratories– Check items against specificationsCheck items against specifications– On site at ration producersOn site at ration producers

Keep detailed records of all key food itemsKeep detailed records of all key food items

Inspect establishments to supply DoDInspect establishments to supply DoD

RECOMMEND ONLYRECOMMEND ONLY

VETCOMVETCOM

HQs VETCOMHQs VETCOM

Fort Sam HoustonFort Sam Houston

San Antonio, TXSan Antonio, TX

USDAUSDA

Key player in rationsKey player in rations– Affects specificationsAffects specifications– Required on-site at some locationsRequired on-site at some locations– Accept or reject items offered to government in Accept or reject items offered to government in

some situationssome situations– Keep historical dataKeep historical data– Can shut down manufacturersCan shut down manufacturers

Ensures compliance with legal requirementsEnsures compliance with legal requirements

USDAUSDA

Defense Contract Inspection ServiceDefense Contract Inspection Service

Washington, DCWashington, DC

FOOD SYSTEMSFOOD SYSTEMS

RATIONSRATIONS

PRIME VENDORPRIME VENDOR

COMMISSARYCOMMISSARY

EXCHANGEEXCHANGE

DIRECT CONTRACTSDIRECT CONTRACTS

RATIONSRATIONS

MREs, UGRs, HDR, etc.MREs, UGRs, HDR, etc.

Services indicate component itemsServices indicate component items

Natick ensures items are compliant Natick ensures items are compliant

Specifications are developedSpecifications are developed

Items are tested in lab and with militaryItems are tested in lab and with military

DLA-TS contracts assemblyDLA-TS contracts assembly

Company delivers as DLA-TS instructsCompany delivers as DLA-TS instructs

RationsRations

MRE : 3 yr shelf life/3,600 calories for MRE : 3 yr shelf life/3,600 calories for three meals/limited space/war stopperthree meals/limited space/war stopper

UGR: Family of rations/all different shelf UGR: Family of rations/all different shelf life/see specs/feeds 50 militarylife/see specs/feeds 50 military

Special Rations: There is a ration for Special Rations: There is a ration for every situationevery situation

THESE ARE DISCUSSED IN THESE ARE DISCUSSED IN WORKGROUPWORKGROUP

PRIME VENDORPRIME VENDOR

BackgroundBackground

Dining Halls get almost every item from Dining Halls get almost every item from company who wins an exclusive company who wins an exclusive geographical contract with option yearsgeographical contract with option years

Stocked items of the contract winner is Stocked items of the contract winner is basis of supportbasis of support

Contractor evaluated annually by DLA-TSContractor evaluated annually by DLA-TS

About $3-5 Billion annuallyAbout $3-5 Billion annually

COMMISSARIESCOMMISSARIES

Military retail food storesMilitary retail food stores

$12 billion in sales$12 billion in sales

Brand name items and bulk itemsBrand name items and bulk items

HQ in Ft Lee, VA (DECA)HQ in Ft Lee, VA (DECA)

Very specific in proceduresVery specific in procedures

Too expensive without brokerToo expensive without broker

EXCHANGE SERVICESEXCHANGE SERVICES

Military “Wal-Mart type” operationsMilitary “Wal-Mart type” operations

Three Exchange services: AAFES/Navy/ Three Exchange services: AAFES/Navy/ MarinesMarines

Over $21 billion in salesOver $21 billion in sales

Bureaucratic procedures and extremely Bureaucratic procedures and extremely competitive competitive

Direct Government ContractsDirect Government Contracts

USDAUSDA

InstallationsInstallations

Any government agencyAny government agency

Must get on bid list and comply with Must get on bid list and comply with qualificationsqualifications

Every agency has ability to buy directEvery agency has ability to buy direct

SYSTEM EXAMPLESSYSTEM EXAMPLES

MRE (meal, ready to eat)MRE (meal, ready to eat)

UGR (unitized group ration)UGR (unitized group ration)

PRIME VENDOR CONTRACTSPRIME VENDOR CONTRACTS

COMMISSARIES & EXCHANGESCOMMISSARIES & EXCHANGES

Meal, Ready to Eat(MRE) ItemsMeal, Ready to Eat(MRE) Items

Start with services and Natick (program Start with services and Natick (program manager)manager)

Understand shelf life, nutrition, and Understand shelf life, nutrition, and packaging requirementspackaging requirements

Submit for consideration: Give reasons in Submit for consideration: Give reasons in writing and do so repeatedlywriting and do so repeatedly

Submit exactly what you are to provide for Submit exactly what you are to provide for evaluationevaluation

MRE: ContinuedMRE: Continued

Items will be field tested and evaluated Items will be field tested and evaluated Three-year shelf life @ 80 FThree-year shelf life @ 80 F

If high enough scores (hedonic scale), If high enough scores (hedonic scale), tested by Natick in fieldtested by Natick in field

Time from beginning to end is 18 monthsTime from beginning to end is 18 months

THERE IS NO GUARANTY THAT YOUR THERE IS NO GUARANTY THAT YOUR ITEM WILL BE PRODUCED BY YOU ITEM WILL BE PRODUCED BY YOU

Unitized Group Ration (UGR): Unitized Group Ration (UGR): Complete Meal for 50!Complete Meal for 50!

Army (JCCoE) & Natick are first stepsArmy (JCCoE) & Natick are first steps

New menu/new item/alternate supplierNew menu/new item/alternate supplier

Calories/protein/cost/weight & cubeCalories/protein/cost/weight & cube

Shelf lifeShelf life

Samples essential for evaluationSamples essential for evaluation

Should partner with an assemblerShould partner with an assembler

UGR: ContinuedUGR: Continued

Evaluations by Natick requiredEvaluations by Natick required

May need new national stock numberMay need new national stock number– Can use an existing generic description Can use an existing generic description

(DSCP)(DSCP)

Must negotiate with assemblersMust negotiate with assemblers– Price competitionPrice competition– Delivery on timeDelivery on time– Large quantities in short time frameLarge quantities in short time frame

Prime Vendor OperationsPrime Vendor Operations

Annual contract with up to five one-year Annual contract with up to five one-year optionsoptions

Successful bidder gets exclusive contract Successful bidder gets exclusive contract for a geographical regionfor a geographical region

PV must discuss support with customersPV must discuss support with customers

Prime Vendor (Continued)Prime Vendor (Continued)

PV determines most items supplied but PV determines most items supplied but must meet needs of customersmust meet needs of customers

Cost plus contractCost plus contract

Some set aside contractsSome set aside contracts

MASTER PRICE AGREEMENTS: MASTER PRICE AGREEMENTS: OCONUS CONTRACTS!!!!OCONUS CONTRACTS!!!!

Commissaries & ExchangesCommissaries & Exchanges

Types of itemsTypes of items

Organizational structure:Organizational structure:– HeadquartersHeadquarters– RegionsRegions– Individual storesIndividual stores

Usual manufacturer requirementsUsual manufacturer requirements– Deliver dailyDeliver daily– Stock shelves dailyStock shelves daily– handle discrepancieshandle discrepancies

Commissary/Exchanges Commissary/Exchanges ContinuedContinued

Brokers are best methodBrokers are best method– Already know structure and all key folksAlready know structure and all key folks– Have ability to:Have ability to:

handle ordershandle orders

stock shelvesstock shelves

process payment to DFASprocess payment to DFAS

do it alldo it all

KEY PLAYERSKEY PLAYERS

GOVERNMENTGOVERNMENT

INDUSTRYINDUSTRY

ASSOCIATIONSASSOCIATIONS

Key Government PlayersKey Government Players

Military ServicesMilitary Services– Navy: CDR DaileyNavy: CDR Dailey 717-605-717-605-

72437243– USMC: LTC RogersUSMC: LTC Rogers 703-695-7396703-695-7396– Army: LTC JohnsonArmy: LTC Johnson 804-734-3007 804-734-3007

CW4 Georgene DavisCW4 Georgene Davis 804-734-3072804-734-3072

Dave SherriffDave Sherriff 804-734-4862804-734-4862

Rick ByrdRick Byrd 804-734-3366804-734-3366

– Air Force: George Miller Air Force: George Miller 210-652-2619210-652-2619

Key Players: VETCOMKey Players: VETCOM

There will be a regional veterinary There will be a regional veterinary command in your areacommand in your area

CW 3 William Warren CW 3 William Warren 210-221-210-221-65106510

Key Players: DSCPKey Players: DSCP

HQ:HQ: CAPT. Hansen 215-737-2900CAPT. Hansen 215-737-2900

HQ: HQ: Ray Miller 215-737-2952 & Ray Miller 215-737-2952 & Rich Faso 215-737-2901Rich Faso 215-737-2901

Rations:Rations:– Harry StreibichHarry Streibich 215-737-3820215-737-3820– Jim Lecollier Jim Lecollier 215-737-3625215-737-3625

Prime VendorPrime Vendor

Prime Vendor:Prime Vendor:

– John Steenberge John Steenberge 215-737-7445215-737-7445– Joe HauserJoe Hauser 215-737-2951215-737-2951

Key Players: NatickKey Players: NatickHQ: Gerry Darsch HQ: Gerry Darsch 508-233-4402508-233-4402

Rations Program Rations Program – Jeannette KennedyJeannette Kennedy 508-233-4909508-233-4909– Judy Aylward Judy Aylward 508-233-4448508-233-4448– Sue Harrington Sue Harrington 508-233-4502508-233-4502

Poly Tray: Bob Trottier Poly Tray: Bob Trottier 508-233-5053508-233-5053

Packaging: Peter Sherman Packaging: Peter Sherman 508-233-4062508-233-4062

Science: Dr. Pat Dunne Science: Dr. Pat Dunne 508-233-5514508-233-5514

Specifications: Mary Caniff Specifications: Mary Caniff 508-233-4259508-233-4259

Natick ContinuedNatick Continued

Others:Others:– Betty Davis Betty Davis 508-233-508-233-

45094509

INDUSTRY KEY PLAYERSINDUSTRY KEY PLAYERS

MRE ASSEMBLERS:MRE ASSEMBLERS:– AMERIQUAL AMERIQUAL 812-421-4876812-421-4876– SOPAKCO SOPAKCO 843-464-843-464-

78517851– WORNICK WORNICK 513-552-513-552-

74007400

UNITIZED GROUP RATIONSUNITIZED GROUP RATIONS– LABATT FOOD SERVICELABATT FOOD SERVICE 210-661-4216210-661-4216– AMERIQUAL / WORNICKAMERIQUAL / WORNICK

INDUSTRY CONTINUEDINDUSTRY CONTINUED

PRIME VENDORSPRIME VENDORS– LABATT FOOD SERVICE LABATT FOOD SERVICE – US FOOD SERVICEUS FOOD SERVICE– LANKFORD SYSCO LANKFORD SYSCO – SYSCO SYSCO – PYA MONARCH PYA MONARCH

– ** SEE DLA-TS WEBSITE ** SEE DLA-TS WEBSITE (WWW.DSCP.DLA.MIL)(WWW.DSCP.DLA.MIL)

ASSOCIATIONSASSOCIATIONS

R&DA R&DA 210-493-8024210-493-8024

WEBSITE: WEBSITE: MILITARYFOOD.ORGMILITARYFOOD.ORG

QUESTIONS ??????QUESTIONS ??????

THIS IS THIS IS

A GOOD TIME TO ASK A GOOD TIME TO ASK

QUESTIONS!!!QUESTIONS!!!

QUESTIONSQUESTIONS

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

CONCLUSIONSCONCLUSIONS

The government marketplace is different The government marketplace is different but understandablebut understandable

Get to know where your products fitGet to know where your products fit

Get to the right peopleGet to the right people

Ask questionsAsk questions

NetworkNetwork

When in doubt: AskWhen in doubt: Ask

Email AddressesEmail Addresses

[email protected]

[email protected]

[email protected]

[email protected]

[email protected]

[email protected]

[email protected]

[email protected]

Emails 2Emails 2

[email protected]

[email protected]

[email protected]@wornick.com

[email protected]@us.army.mil

[email protected]@dla.mil

[email protected]@wornick.com


[email protected]@ameriqual.com

Emails 3Emails 3



[email protected]@labattfood.com





Doing Business With the Military Main Organizations Food Systems Key Players Strategies James Fagan,...

Documents

Transcript of Doing Business With the Military Main Organizations Food Systems Key Players Strategies James Fagan,...