ALA Public Policy Agenda

ALA is full partner in protecting benefit

Educate major public policy makers on importance of benefit

Industry has huge stake in commissary viability

Meetings, June 15th forum—Capitol HillAuthorizing and appropriations committees

Challenges

Deficit Reduction CommissionDoD Overhead ReductionsOMB/White House Budget GuidanceHASC Budget Review

DoD Budget Review and Overhead Reductions

2012-2017 – One percent real growthNeed 2-3 percent to maintain force structure,

combat capabilityDBB says 40 % of DoD is overheadTake out $100 billion in overhead$8 billion in 2012 ($2B per Service)$3 B then $4 B then $7 BAgencies $1 billion$2 B then $3 B then $7 BServices keep savingsPOM due July 31

“We were country when country wasn’t cool”

Cost cutting is not new to DeCATook out major costs: 1991 Consolidation—hundreds of millionsCommercial distribution--$600 million back to DoD for Stock

FundsOngoing cost saving measures Normal trajectory would have taken it to over $2 billionLean and meanDeCA has constantly been in cost cutting or no growth modeOther QoL areas realizing 30, 40, and often 100 & 200

percent increasesTalking about health care co-pays: We’ve always had co-pays

—it’s called surcharge

Commissary Benefit—Huge ROI to DoD

Reduces COLAsNon-pay compensationThousands of family members employed by

commissaries and industry$5 billion invested by patrons in bricks and mortar and

IT since DeCA createdUnderpins DoD’s overseas transportation system70 percent increase in food stamp redemptionSunk costs – buying the car but not putting gas in itSales imperative—increase share of AD who use benefitStore directors/regions critical

Surveys show citizens losing faith in institutions

GSEs such as Postal Service, Fannie Mae and Freddie Mac failing

DeCA is shining example of a Private Sector/public sector partnership that works

Top of the heap in Federal AccountabilityPatron satisfaction at all time highs

Consistent with FLOTUS goals

Support Military Quality of LifeSupport Health life style Support reducing child obesityQoL a National Security Council Imperative

Ingrained in the OSD fabric

Not inextricable without a major costAdapts for force structure (Brigade re-

stationing)BRACTraffic driver for ExchangesUnderpins transportation systemMaintains ties with installations

Commissary system’s Constitution is Title 10Our Foundation

Sets out who can shopSets out pricing (cost plus 5)Guidance on what can be soldThis Constitution only modified at high risk,

especially in a high threat

It’s a Wonderful Life

DeCA as George BaileyTBD as Mr. PotterWhat would the world look like if DeCA didn’t exist?Thousands of family members out of workHundreds of millions in increased COLAs and

military pay—more on food stampsSale of foreign products overseas—impact U.S.

manufacturing$5 billion patron surcharge investment wastedMilitary forced to make household tradeoffs Exchange sales drop, MWR dividends decrease

Influencing the Process

ALA meetings with key decision makers Networking with partners

National Military Family Association The Military Coalition Armed Forces Marketing Council Coalition of Military Distributors

Trade and Service Media ALA Annual ConventionSupport the system. Support the June 15 CaucusDavis, Wilson, Ortiz, Forbes, Jones, Public Policy

and Capitol Hill Reports, 3 % withholding.

ALA & DeCA

Protecting the Benefit