doing business with the military main organizations food systems key players strategies james fagan,...
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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
Military ServicesMilitary Services
Army:Army:
Joint Culinary Center Joint Culinary Center of Excellenceof Excellence
Fort Lee , VAFort Lee , VA
USMCUSMC
HQ USMCHQ USMC
PentagonPentagon
Washington, DCWashington, DC
Military ServicesMilitary Services
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
DLA Troop SupportDLA Troop Support
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)
DLA Troop SupportDLA Troop Support
DLA Troop SupportDLA Troop Support
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
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 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
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
Emails 2Emails 2
[email protected]@wornick.com
[email protected]@us.army.mil
[email protected]@dla.mil
[email protected]@wornick.com
[email protected]@us.army.mil
[email protected]@ameriqual.com
Emails 3Emails 3
[email protected]@dla.mil
[email protected]@us.army.mil
[email protected]@labattfood.com
[email protected]@dla.mil
[email protected]@us.army.mil
[email protected]@us.army.mil
[email protected]@us.army.mil