report to central florida chapter lawrence p. farrell, jr. president january 28, 2011 ndia...
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REPORT TO CENTRAL FLORIDA CHAPTER
Lawrence P. Farrell, Jr.President
January 28, 2011
NDIA Proprietary/Confidential: For Internal Use Only by Staff, Directors, Chapter and Division Chairs. Not for release to third parties.
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OVERVIEW
• Aggregate NDIA Participation
• Financial Summary
• Business Centers & Affiliates
• NDIA Issues
• Summary
2010 HIGHLIGHTS
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• Excellent year for NDIA - Operating Net at All Time High- Membership at All Time High- Aggregate Participation UP- NDIA Reserves UP $8.2M, 24%- NTSA/WID/AFEI affiliates with Strong Performance
• Web Operations & Marketing- Membership growth & outreach UP--Automated - Event Success using --Tailored Social Networking- Industry – leading efforts Data-Mining- Business Intelligence--Dashboard incorporating financial data
0
10000
20000
30000
40000
50000
60000
70000
80000
GovernmentAttendees
IndustryAttendees
Exhibitors &VEOs
Total
NDIAAggregate Participation
Exhibits: Booth Equivalents
7.8%
3710 4891
‘09 ‘10
31.8% 4
FY 05 FY 06 FY 07 FY 08 FY 09 FY 010 B FY 09 FY 010 FY 011 B
Meetings 12.141 12.34 13.276 15.631 14.163 13.892 14.163 15.542 14.746762
Exhibits 7.32599999999998
8.252 6.924 7.02299999999999
8.243 8.909 8.243 9.497 9.8619
Sponsorships 0.325000000000003
0.622000000000005
1.093 1.26699999999999
1.236 1.03699999999999
1.236 1.22099999999999
1.1473
1.000
3.000
5.000
7.000
9.000
11.000
13.000
15.000
17.000
MeetingsExhibitsSponsorships
$M
MEETINGS, EXHIBITS AND SPONSORSHIP REVENUE TRENDS
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FY 05 FY 06 FY 07 FY 08 FY 09 FY 010 FY 011 B
Meetings/Exhibits/Spsrshp 19.792 21.43 21.023 23.922 23.642 26.26 25.755962
Dues 2.306 2.545 2.489 2.79 2.881 3.101 2.86643
Advertising 1.169 1.294 1.332 1.456 1.30099999999999
1.40399999999998
1.47
2.5
7.5
12.5
17.5
22.5
27.5
Meetings/Exhibits/Spsrshp
Dues
Advertising $M
PRIMARY REVENUE TRENDS
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FY 96 FY 97 FY 98 FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 010 F
FY 011 B
-5000000
0
5000000
10000000
15000000
20000000
25000000
30000000
35000000
Baseline
Actual
% Increase
OPERATING REVENUE – BASELINE TO ACTUAL
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Baseline W Potential "Adds"
Revenue $ 30.98M $33.98M
Net to NDIA* $1.23M $1.65M
*After 401K Profit Share Distribution
FY11 OPERATING PROGRAM
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Event Potential Direct Net
Global EOD $140,000CBRN Survivability $55,000DLA $200,000Live Fire & Test $45,000Navy Energy $90,000Special Mission $60,000Unmanned Undersea $80,000SLAAD $15,000Global Maritime Info $250,000Naval S&T $300,000
$1,235,000
Potential Revenue $2.4 - $3.0M
POTENTIAL EVENTS – NOT IN BASELINE
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FY 96
FY 97
FY 98
FY 99
FY 00
FY 01
FY 02
FY 03
FY 04
FY 05
FY 06
FY 07
FY 08
FY 09
FY 10 F
FY 11
0
5
10
15
20
25
30
35
-1
-0.5
0
0.5
1
1.5
2
2.5
3
Operating Revenue
Net to NDIA
Op
era
tin
g R
ev
en
ue
Net to NDIA
FY 010 Preliminary 11/12/010FY 011 Baseline.
FY 08 Adjustmentfor exhibits A/R
OPERATING REVENUE AND NET TO NDIA - $M
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FY 010 EXECUTION
#Events Planned Executed Add’l
Revenue Revenue Revenue
• Planned 162 $23,868,335 $25,063,064 $1,194,729
• Added 29 $1,581,236 $1,581,236
• Total 191 $23,868,335 $26,644,300 $2,775,965
Note : These are all events, large and small, all with a financial sheet.
Of the 162 Planned, 17 with a budgeted revenue of $776K did not execute. In the
Added , there were 3 new, not on the Potential list, that brought in revenue of $740K
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OPERATING & INVESTMENT RESERVES
FY 97 FY 98 FY 99 FY 00 FY 01 FY02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 100
5
10
15
20
25
30
35
40
45
9.53 9.5311.15
13.9712.25 11.63
14.5217.19
20.1322.6
26.824.27 25.2
27.67
0.9400000000000010.8600000000000010.93
1.571.59 2.78
3.51
4.85
4.4
4.5
5.687.54
8.22
13.92
Available Bank Balance
Investment Reserves
$ M
illio
ns
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NATIONAL DEFENSE MAGAZINE
• Positive reader feedback: ND content regarded as ‘timely,’ ‘relevant,’ ‘insightful’
• Increased online content. Growing web traffic. Greater presence on social networks.
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MEMBERSHIPCorporate Members – NDIA and Affiliates
0
200
400
600
800
1000
1200
1400
1600
1800
Members 844 976 1,109 1,119 1,234 1,365 1,382 1,478 1,564 1,751
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
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MEMBERSHIPIndividual Members – NDIA and Affiliates
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
Members 22,352 24,239 29,267 34,200 38,396 43,162 48,861 61,734 73,598 87,635
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
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MEMBERSHIPGovernment Members – NDIA and Affiliates
0
5,000
10,000
15,000
20,000
25,000
30,000
Members 1,457 1,961 4,227 8,673 11,587 12,579 11,869 16,722 21,049 25,734
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
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NATIONAL DEFENSE 6 Month Average BPA Qualified Readers
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Qualified Readers 21,499 23,354 24,630 27,117 29,600 31,933 33,423 34,216 35,262 36,840 38,957 43,693 50,246 55,928 58,981 65,150 67,503
Jun 2002
Dec 2002
Jun 2003
Dec 2003
Jun 2004
Dec 2004
Jun 2005
Dec 2005
Jun 2006
Dec 2006
Jun 2007
Dec 2007
Jun 2008
Dec 2008
Jun 2009
Dec 2009
Jun 2010
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NATIONAL DEFENSE Summary of Advertising Performance
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
Total Revenue 775,912 1,054,514 1,209,851 1,214,004 1,308,012 1,476,253 1,547,622 1,726,703 1,526,569 1,713,798
FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010
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FY00FY01
FY02FY03
FY04FY05
FY06FY07
FY08FY09
FY100
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
200000
Exhibit At-tendanceNet Square Feet
ExhibitAttendance
Net Square FeetExhibitAttendance
Net Square Feet
FY11 228,000 Sq. Ft.
FY12 240,000 Sq. Ft.
NTSAI/ITSEC Performance - Exhibits
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ASSOCIATION FOR ENTERPRISE INFORMATION
-100
0
100
200
300
400
FY05 FY06 FY07 FY08 FY09 FY 10
AFEI Net ($K)
FY11 Conferences:• DOD Agile Development – DISA, DoD CIO• Supply Chain Cyber Risk – Industry, DoD• IT for Disaster Response – NDU, FEMA, DHS, NORTHCOM• 5th annual DoD Enterprise Architecture Conference—DoD CIO, JFCOM• Emerging Information Platforms in DoD – DoD CIO, DISA• DoD SOA and Semantic Web - BTA, DCMO
Successes:• SOA Paper for OUSD (I) - DGCS Adv. Group• Report to DCMO:Industry Perspective-IT
Acq.• Cyber Security Roundtable Meetings • Penn State Enterprise Architecture Adv. Bd.
Challenges:• Pace of Emerging Technology • Cloud, Emergent Applications, IT Acquisition • Evolving CIO Role• IT Reorganization in DoD• Executing 3 to 4 Government events• Membership Growth
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PRECISION STRIKE ASSOCIATION
PSA CHALLENGES
• Retaining individual and Corporate memberships
• Attendance Down-Big weather impact
• Sponsorships/exhibition & meeting revenue decline
• Redefining Precision Strike
PSA SUCCESSES• Successful Precision Strike Technology
Symposium (PSTS) focusing on USCENTCOM’s needs in Afghanistan.
• Well attended –(first time event) Small Unmanned Aircraft Systems
Symposium-- joint event with JHU/APL & the PEO for Unmanned Aviation and Strike Weapons
• Presented the 14th Annual William J. Perry Award to THE SNIPER ADVANCED TARGETING POD TEAM.
• Presented the 2nd Annual Richard H. Johnson Technical Achievement Award to RICHARD J. WHALEN, President and CEO, Decision Sciences
FY06 FY07 FY08 FY09 FY10-25
0
25
50
75
100
PSA Net Performance FY06 – FY10 ($K)
Taking aggressive action to stop negative trend and return to profitability
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WOMEN IN DEFENSEMembers
0
500
1000
1500
2000
2500
3000
Members 389 305 603 775 921 1,097 1,405 1,514 1,971 2,913
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
WID Highlights for FY 2010• Big Membership Jump• 2 New Chapters: New England Shoreline, Hampton Roads• HORIZONS Scholarships totaled $25,000 • Donations to HORIZONS—$27,000—exceeded goal• 25th Anniversary Celebrations
OPERATIONSConference Attendance Trend
10121416182022242628303234
000's 29.4 25.5 26 25.4 33
FY06 FY 07 FY 08 FY 09 FY 10
23
‘SERIES’ MEETINGS TREND
0
20
40
60
80
100
Mtgs 72 64 74 80 86
FY 07 FY 08 FY 09 FY 10FY 11 PROJ
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AEROSPACE AND DEFENSE TRADE MISSION TO THE UAE
• October 2-7
• 56 Industry Delegates
• Partnership
- NDIA
- US-UAE Bus Council
- UAE Embassy in DC
• Well-Received by All
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SPECIAL OPERATIONS FORCES INDUSTRY CONFERENCE
• New Event • Co-sponsored by
NDIA and USSOCOM • 5600 Total Attendees• 850 Exhibit Booths
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2011 LEGISLATIVE AGENDA
• Repeal/Delay 3% Withholding Tax- Effective 1/1/12- Implementation begins now- NDIA Letters to present Congressional Leadership- NDIA Letters Planned for Incoming Leadership
• Permanent re-authorization of SBIR- Present Authorization expires 1/1/11- Senate Version of Authorization Act extends for 8 Years- No conference Action expected this year- NDIA Letters Planned for Incoming Leadership
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2011 LEGISLATIVE AGENDA (contin.)
• Promote Legislation for SDVOSB Parity
• Review/Monitor House/Senate Export Control reforms
• Track/Review/Comment/ on DoD AT&L Efficiency Initiatives
• Conduct informational briefings/visits with new Congress
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• ISSUE 1: Ensure an Ethical, and Agile Acquisition System Responsive to the DoD’s Needs
• ISSUE 2: The Defense Industrial Base – Now and in the Future
• ISSUE 3: Increase Government Contract Usage of All Small Businesses
• ISSUE 4: Sustaining Military Readiness While Providing For The Future
• ISSUE 5: Support Efficient and Transparent International Access For the US Defense Industrial Base
Full text of 2011 Top Issues available at: http://www.ndia.org/Advocacy/PolicyPublicationsResources/Pages
• Need to add Cyber Security and Energy Security
TOP ISSUES FOR 2011
AD HOCCYBER ENGAGEMENT COMMITTEE
• Integral to Defense No Substitutes• Problem
- Responsibility Highly Distributed- Acquisition Unfocused
• Cyber Elements- Capitalize Existing Investment- Encourage Migration/Reuse- Robust Government-Industry Partnership- Robust Understanding of Requirements- Clear Authorities
• Solution- Supportive FAR Guidance- Clear Legislative Focus- Cohesive Acquisition Strategy
• Legislation- Police up Battlefield- Encourage Partnership- Require End-to-End Requirements- Require Best Value Acquisition
EXPORT CONTROL MODERNIZATION
Convert Existing Momentum into Implementation
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DEFENSE INDUSTRY GOING FORWARD
• 2011 Authorization/Appropriations Bills: - Uncertain outcomes with new Congress
- Anticipate CR until Mar 4 – no new starts
• DoD Acquisition Reforms/Downsizing- Potential impact of doing business with DoD
- Possibility of additional downsizing
- In-sourcing continues in the military departments
• Fewer Platforms & Major Competitions- Increased interest in sustainment and life cycle initiatives- Army, Navy, Air Force, Marines
• Earned Value Management32
DoD View of EVM and Program Management
• Earned Value Management Systems (EVMS) not always working
- OSD feedback – contractor policy, processes, and procedures are generally good, but companies not following their own Policies
- Specific contractors fail to adequately implement EVM
- Lack of progress on “fixing” EVMS deficiencies at some contractors
- Pending DFARS on Business Systems will carry significant penalties for lack of implementation of EVM
• Companies need to focus on improving EVM implementation • Strengthening of Program Management focus/training needed
Issue - Program Management ownership of EVM - EVM is a program management discipline and tool, not a financial report
33
Industry Efforts to Improve the State of EVM • Acknowledged some deficiencies on industry’s part • Provided recommendations to DoD:
- Revitalized EVMS training and certification process- More focus on the Integrated Baseline Review - Stakeholder collaboration for common implementation- Recommends reciprocity-all government agencies
• Recommending collaboration in overhauling process• Continue to urge partnership w/government to improve tools/data• Implementation Improvement by some contractors has been noted,
although large problems at several contractors outweighing any positive message
Ombudsman established – However, function was moved to the PARCA organization which is not currently funded
34
NDIA-Recommended Improvement Plan• Companies focus resources to:
- Emphasize Program Management Leadership- Follow own internal policies/procedures
• Continue focus on people, processes, and tools• EVMS training and certification needed at major contractors• Best Practice - EVMS process excellence should be tied into annual
performance reviews, compensation structures, and competence/career models
• Promote program management participation in NDIA PMSC• Each company should measure progress against the above
Advocacy for improved EVM implementations must stem from the highest levels of the organization
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