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Doing Business With the Military

Doing Business With the Military. Main Organizations Food Systems Key Players Strategies James Fagan, Executive Director Research and Development Associates Spring 2009 Meeting. Main Military Organizations. The Military Services: Army, Marines, Navy, Air Force

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Doing Business With the Military

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  1. Doing Business With the Military • Main Organizations • Food Systems • Key Players • Strategies James Fagan, Executive Director Research and Development Associates Spring 2009 Meeting

  2. Main Military Organizations • The Military Services: Army, Marines, Navy, Air Force • Natick • Defense Supply Center Philadelphia (DSCP) • VETCOM • USDA

  3. Purpose of Session To provide you with an understanding of how the government does business in food, packaging, and related areas

  4. Approve all food & services Verify quality Visit users to assess Usually first place to start Provide funding NO ACTION IF THEY DISAPPROVE Military Services

  5. Natick: Soldier Systems Center • Conducts scientific studies • Verify contents of food • Establish many specifications • Technical experts for services • Program managers • THEIR CONCURRENCE IS ESSENTIAL ON MOST ITEMS

  6. DSCP • Buying agents for DoD (all services) • Rations • Prime Vendor • Direct Buys (reducing) • Almost all contracting goes through DSCP • Executive Agent for Food

  7. VETCOM • Quality is their main purpose in food • Inspect on site • Operate evaluation laboratories • Check items against specifications • On site at ration producers • Keep detailed records of all key food items • Inspect establishments to supply DoD • RECOMMEND ONLY

  8. USDA • Key player in rations • Affects specifications • Required on-site at some locations • Accept or reject items offered to government in some situations • Can shut down manufacturers • Ensures compliance with legal requirements

  9. FOOD SYSTEMS • RATIONS • PRIME VENDOR • COMMISSARY • EXCHANGE • DIRECT CONTRACTS

  10. RATIONS • MREs, UGRs, HDR, etc. • Services indicate component items • Natick ensures items are compliant • Specifications are developed • Items are tested in lab and with military • DSCP contracts assembly • Company delivers as DSCP instructs

  11. PRIME VENDOR • Background • Dining Halls get almost every item from company who wins an exclusive geographical contract with option years • Stocked items of the contract winner is basis of support. • Contractor evaluated annually by DSCP • About $2 -3 Billion annually

  12. COMMISSARIES • Military retail food stores • $8 Billion in sales • Brand name items and bulk items • HQ in Ft Lee, VA (DECA) • Very specific in procedures • Too expensive without broker

  13. EXCHANGE SERVICES • Military “Wal-mart type” operations • Three Exchange services: AAFES/ Navy/ Marines • Over $17 billion in sales • Bureaucratic procedures and extremely competitive

  14. Direct Government Contracts • USDA • Installations • Any government agency • Must get on bid list and comply with qualifications. • Every agency has ability to buy direct

  15. SYSTEM EXAMPLES • MRE (meal, ready to eat) • UGR (unitized group ration) • PRIME VENDOR CONTRACTS • COMMISSARIES & EXCHANGES

  16. Meal, Ready to Eat(MRE) Items • Start with services and Natick (program manager) • Understand shelf life , nutrition, and packaging requirements • Submit for consideration: Give reasons in writing and do so repeatedly • Submit exactly what you are to provide for evaluation.

  17. MRE: Continued • Items will be field tested and evaluated. Three year shelf life @ 80@F • If high enough scores (hedonic scale), item may need revisions • Time from beginning to end is 18 months • THERE IS NO GUARANTY THAT YOUR ITEM WILL BE PRODUCED BY YOU.

  18. Unitized Group Ration (UGR) • Army (ACES)& Natick are first steps • New menu/ new item/ alternate supplier • Calories/protein/cost/weight & cube • Shelf life • Samples essential for evaluation • Should partner with an assembler

  19. UGR: Continued • Evaluations by Natick required • May need new national stock number • Can use an existing generic description (DSCP) • Must negotiate with assemblers • Price competition • Delivery on time • Large quantities in short time frame

  20. Prime Vendor Operations • Annual contract with up to five one year options • Successful bidder gets exclusive contract for a geographical region • PV must discuss support with customers

  21. Prime Vendor (Continued) • PV determines most items supplied but must meet needs of customers • Cost plus contract • Some set aside contracts • DSCP now developing Master Price Agreements with OCONUS suppliers • Session on SPV Tuesday

  22. Commissaries & Exchanges • Types of items • Organizational Structure: • Headquarters • Regions • Individual stores • Usual manufacturer requirements • Deliver daily • Stock shelves daily • handle discrepancies

  23. Commissary/Exchanges Continued • Brokers are best method • Already know structure and all key folks • Have ability to: • handle orders • stock shelves • process payment to DFAS • do it all

  24. Key Government Players • Military Services • Navy: CDR Dailey 717-605-7243 • USMC: LTC Sanabria 703-695-7396 • Army: LTC Barnes 804-734-3007 • CW5 Jack Van Zanten 804-734-3072 • Dave Sheriff 804-734-4862 • Rick Bryd 804-734-3005 • Air Force: George Miller 210-652-2619

  25. Key Players: VETCOM • There will be a regional veterinary command in your area • CW5 L. Raigosa 210-221-7937 • CW 2 Bud Dodge 210-221-6510

  26. Key Players: DSCP • HQ:CAPT. Rackauskas 215-737-2900 • HQ: Ray Miller 215-737-2952 • Rations: • Butch Houston 215-737-3834 • Harry Streibich 215-737-3820 • Jim Lecollier 215-737-3625

  27. Prime Vendor • Prime Vendor • Tom Daley 215-737-2901 • Gary Shifton 215-737-3621 • Tom Lydon 215-737-2999 • John Steenberge 215-737-7445 • Joe Hauser 215-737-2951

  28. Key Players: Natick • HQ: Gerry Darsch 508-233-4402 • Rations Program • Steve Moody 508-233-4909 • Judy Aylward 508-233-4448 • Sue Harrington 508-233-4502 • Poly Tray: Bob Trottier 508-233-5053 • Packaging: Peter Sherman 508-233-4062 • Science: Dr. Pat Dunne 508-233-5514 • Specifications: Ray Valvano 508-233-4259

  29. Natick Continued • Others: • Betty Davis 508-233-4509 • Vicki Loveridge 508-233-5035

  30. INDUSTRY KEY PLAYERS • MRE ASSEMBLERS: • AMERIQUAL 812-421-4876 • SOPAKCO 843-464-7851 • WORNICK 513-552-7400 • UNITIZED GROUP RATIONS • LABATT FOOD SERVICE 210-661-4216 • AMERIQUAL / WORNICK

  31. INDUSTRY CONTINUED • PRIME VENDORS • LABATT FOOD SERVICE • US FOOD SERVICE • LANKFORD SYSCO • SYSCO • PYA MONARCH • ** SEE DSCP WEBSITE(WWW.DSCP.DLA.MIL)

  32. ASSOCIATIONS • R&DA 210-493-8024

  33. QUESTIONS ?????? • THIS IS • A GOOD TIME TO ASK • QUESTIONS!!!

  34. QUESTIONS THIS IS THE BEST TIME TO ASK A QUESTION!!!

  35. CONCLUSIONS • The government marketplace is different but understandable • Get to know where your products fit • Get to the right people • Ask questions • Network • When in doubt: Ask

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