1. Zones 21,23,24,25,26, & 27 Meeting Operations Update Bob Hayden Performance and Policy Operations Update Bob Hayden Performance and Policy

2. Directorate of Performance and Policy

3. Commissary Advanced Resale Transaction System Commissary Advanced Resale Transaction System CARTS Overview

4. 4 Recommendations for Success of SCO Must have full management buy-inMust have full management buy-in Properly train employees and patrons on self checkoutProperly train employees and patrons on self checkout Keep SCO open throughout the business dayKeep SCO open throughout the business day Mandatory use of mobile manager allows attendant to scan large items, increasesMandatory use of mobile manager allows attendant to scan large items, increases throughput of SCOs throughput of SCOs Only limit two SCOs to expressOnly limit two SCOs to express

5. 5 Management Checklist Store DirectorStore Director Front-end ManagerFront-end Manager Daily System ChecklistDaily System Checklist

6. 6 INFRASTRUCTURE UPDATE

7. 7 Surcharge Funded SRM Programs Facility Maintenance and Repair (M&R) Includes: – –Refrigeration Equipment Maintenance and Repair is the refrigeration and heating, ventilation and air conditioning contracts – –The Energy & Environmental component includes projects to improve energy consumption and reduce environmental impacts Minor Construction – –Refrigeration replacement – –Includes projects under $750K Major Construction includes costs of $750K or more and requires reporting to the Congress. Costs include design, construction, equipment, prior year contract modifications, AETC salaries, and PMAC contract costs Facility Maintenance and Repair (M&R) Includes: – –Refrigeration Equipment Maintenance and Repair is the refrigeration and heating, ventilation and air conditioning contracts – –The Energy & Environmental component includes projects to improve energy consumption and reduce environmental impacts Minor Construction – –Refrigeration replacement – –Includes projects under $750K Major Construction includes costs of $750K or more and requires reporting to the Congress. Costs include design, construction, equipment, prior year contract modifications, AETC salaries, and PMAC contract costs

8. 8 Surcharge Funded SRM Programs $102M Obligated FY 2006FY 2007 $232M Programmed FY 2008 $176M Programmed

9. 9 TYPES OF PROJECTS WHO & WHAT IS INVOLVED New Store Construction DOP, DOC, and DOF Planning, Programming, Equipment, Layout, Design, Construction Major Renovations -Addition or Alterations DOP, DOC, and DOF Planning, Programming, Equipment, Layout, Design, Construction Sustainment Projects -Refrigeration, HVAC Change Out Out -Maintenance and Repair -New Construction ($750k) DOP, DOF Planning, Programming, Equipment, Layout, Design, Construction Roof Repairs/Replacement DOC, DOFM Planning, Field Engineering Region Projects -Equipment, M&R, Construction ($150K) Construction ($150K)DOFM Planning, Construction

10. 10 Management Challenges Funding — — Budget Shifting emphasis to sustainment reduces number of major projects Non-construction programs competing for Surcharge reduces available funding Information technology programs Operational equipment programs Lack of BRAC funding — — Higher Construction Cost Trends Higher costs impact project approval levels/execution timelines Reduces program Funding — — Budget Shifting emphasis to sustainment reduces number of major projects Non-construction programs competing for Surcharge reduces available funding Information technology programs Operational equipment programs Lack of BRAC funding — — Higher Construction Cost Trends Higher costs impact project approval levels/execution timelines Reduces program

11. 11 Ongoing HQ Projects All Zones Roofs – –TREMCO is currently the contractor for this service with an 800 phone number to call if a covered store has a roof leak (1-800-5TREMCO) Maintenance and Repair Projects (<$150K) – –Handled through field engineers (FE) – –Recurring work orders at store level Major Construction Project – –Handled through DeCA’s San Antonio engineers Roofs – –TREMCO is currently the contractor for this service with an 800 phone number to call if a covered store has a roof leak (1-800-5TREMCO) Maintenance and Repair Projects (<$150K) – –Handled through field engineers (FE) – –Recurring work orders at store level Major Construction Project – –Handled through DeCA’s San Antonio engineers

12. 12 Major Construction Projects Under Construction Scope CWE Expected FYLocation M $M Completion 04Ft Detrick (Replace) 3,239 13.5Feb 08 06Barksdale AFB (Upgrade) 8,770 23.7Apr 08 06Keesler AFB (Replace/Joint) 8,568 28.4Jun 09 05Robins AFB (Replace) 7,036 18.7Oct 08 06Ft Drum (Upgrade) 7,69219.3Mar 09 06Dyess AFB (Upgrade)6,61913.6Jan 09 04Richards-Gebaur (New)1,8848.0Sept 08 07Saratoga Springs (New)2,0848.0Jan 09 07Livorno (Replace)2,2449.8Apr 09 07Chievres (Replace)4,08820.6Mar 09 Total 52,224 $163.6

13. 13 FY 2008 Major Construction Program Scope PA CWE Scheduled Scope PA CWE Scheduled Location M 2 $M $M Award Eglin AFB (Upgrade)10,85215.6 15.6 TBD New Orleans (Replace/Joint) 4,658 19.7 19.7Apr 08 Ramstein AB (Upgrade) Ramstein AB (Upgrade) 7,321 20.3 20.3TBD

14. 14 FY 2010 Major Construction Program PA CWE PA CWE LocationScopeM 2 $M $M Quantico MCBUpgrade10,26524.6 24.6 Moody AFBUpgrade4,37012.2 12.2 Fort CampbellReplace10,16635.2 35.2 Total24,801 72.0 72.0

15. 15 Projects In Hold Status Location Scope PA Location Scope PA Willow Grove (New/Joint) 2,025 4.3 Willow Grove (New/Joint) 2,025 4.3 Ft Riley (MILCON $ Being Sought) 10,152 23.2 Ft Riley (MILCON $ Being Sought) 10,152 23.2 Ft Bliss (BRAC $ Being Sought) 10,825 35.2 Ft Bliss (BRAC $ Being Sought) 10,825 35.2

16. 16 Facility Maintenance Changes How Maintenance is Provided to Your Stores Will Change: How Maintenance is Provided to Your Stores Will Change: Contract administration has migrated to GSA in DenverContract administration has migrated to GSA in Denver Existing HVAC/refrigeration contracts will be replacedExisting HVAC/refrigeration contracts will be replaced New contracts will be for “Total Facility” maintenanceNew contracts will be for “Total Facility” maintenance

17. 17 What is “Total Facility” maintenance? One central contractor will provide all your supportOne central contractor will provide all your support HVAC, refrigeration, most equipment, and virtually all facility repairs within the 5’ line of the commissary building will be provided by a single sourceHVAC, refrigeration, most equipment, and virtually all facility repairs within the 5’ line of the commissary building will be provided by a single source Installation continues to maintain everything outside the 5’ line of the commissary (this is an installation expense)Installation continues to maintain everything outside the 5’ line of the commissary (this is an installation expense)

18. 18 How will the new contracts work? Fixed price for monthly and annual preventive maintenance such as filter changes, system cleaning, and inspectionsFixed price for monthly and annual preventive maintenance such as filter changes, system cleaning, and inspections All repairs including emergency ref. and HVAC calls are pay as you go. If you call for repairs, your store will be charged for the work against the contract and will count toward unit costAll repairs including emergency ref. and HVAC calls are pay as you go. If you call for repairs, your store will be charged for the work against the contract and will count toward unit cost One phone number to call for all repairs 24/7One phone number to call for all repairs 24/7 Store can request repairs up to $2,500 limit per call. Work over $2,500 requires field engineer approval and contracting officer directionStore can request repairs up to $2,500 limit per call. Work over $2,500 requires field engineer approval and contracting officer direction

19. 19 How will the new contracts work? Field engineers can also use this contract for: Minor constructionMinor construction Large scale repairsLarge scale repairs Group re-lamping of lightingGroup re-lamping of lighting Replacement of obsolete building equipmentReplacement of obsolete building equipment Energy upgradesEnergy upgrades

20. 20 What is the timeline? DeCA and GSA signed support agreementDeCA and GSA signed support agreement March 21, 2008 March 21, 2008 HVAC & refrigeration contracts transferred to GSA for admin effective May 1, 2008HVAC & refrigeration contracts transferred to GSA for admin effective May 1, 2008 HQ ISSA coordinator began notification of installations May 21 that DeCA will provide facility maintenance with our own contractorsHQ ISSA coordinator began notification of installations May 21 that DeCA will provide facility maintenance with our own contractors Pilot contract for 41 stores from Florida to Texas is in solicitation. Award is projected by June 30Pilot contract for 41 stores from Florida to Texas is in solicitation. Award is projected by June 30 Contracts for other US stores will be awarded in FY 2009Contracts for other US stores will be awarded in FY 2009

21. 21 Ongoing Region Projects – Zone 21 FY 2008 Region Construction Projects in Design/Progress – –Bangor, Maine Sustainment project includes replacement of refrigeration and HVAC. Currently unfunded Replace lighting bollards Painting the rear exterior – –Hanscom AFB Replace traffic impact door Remove deli displays with Corian countertops FY 2008 Region Construction Projects in Design/Progress – –Bangor, Maine Sustainment project includes replacement of refrigeration and HVAC. Currently unfunded Replace lighting bollards Painting the rear exterior – –Hanscom AFB Replace traffic impact door Remove deli displays with Corian countertops

22. 22 Ongoing Region Projects – Zone 21 FY 2008 Region Construction Projects in Design/Progress – –New London Paint warehouse ventilation ducts Main heating and cooling by base public works. Replace sales floor tiles – –Portsmoth, NH New shopping carts staging area New commissary sign New electric outlets for new displays FY 2008 Region Construction Projects in Design/Progress – –New London Paint warehouse ventilation ducts Main heating and cooling by base public works. Replace sales floor tiles – –Portsmoth, NH New shopping carts staging area New commissary sign New electric outlets for new displays

23. 23 Ongoing Region Projects – Zone 23 FY 2008 Region Construction Projects in Design/Progress – –West Point FY 2008 Sustainment Project – refrigeration, HVAC, maintenance & repair and upgrade Store front concrete pavement by DPW – –Charles E. Kelly Repair concrete platform, canopy over compressors and replace generator switch FY 2008 Region Construction Projects in Design/Progress – –West Point FY 2008 Sustainment Project – refrigeration, HVAC, maintenance & repair and upgrade Store front concrete pavement by DPW – –Charles E. Kelly Repair concrete platform, canopy over compressors and replace generator switch

24. 24 Ongoing Region Projects – Zone 23 FY 2008 Region Construction Projects in Design/Progress – –Fort Hamilton Remove end cases to make room for Sushi Bar by a base contract – –Fort Monmouth Replace refrigeration compressor – –Lakehurst Construct administration office Replace heating coil – –McGuire AFB Replace alcove self contained cases FY 2008 Region Construction Projects in Design/Progress – –Fort Hamilton Remove end cases to make room for Sushi Bar by a base contract – –Fort Monmouth Replace refrigeration compressor – –Lakehurst Construct administration office Replace heating coil – –McGuire AFB Replace alcove self contained cases

25. 25 Ongoing Region Projects – Zone 24 FY 2008 Region Construction Projects in Design/Progress – –Dahlgren Paint back receiving area – – Fort Belvoir Electrical wiring to new cardboard balers Repair customer entrance floor Replace chair lift Replace refrigeration compressor Purge refrigeration system FY 2008 Region Construction Projects in Design/Progress – –Dahlgren Paint back receiving area – – Fort Belvoir Electrical wiring to new cardboard balers Repair customer entrance floor Replace chair lift Replace refrigeration compressor Purge refrigeration system

26. 26 FY 2008 Region Construction Projects in Design/Progress – –Fort Buchanan Refurbish employee restroom Base support HVAC – –Fort Myer Replaced heating boiler Replace air conditioning chiller Replace frozen food and ice cream displays and compressor racks Install trash chute Relocate battery charging station FY 2008 Region Construction Projects in Design/Progress – –Fort Buchanan Refurbish employee restroom Base support HVAC – –Fort Myer Replaced heating boiler Replace air conditioning chiller Replace frozen food and ice cream displays and compressor racks Install trash chute Relocate battery charging station Ongoing Region Projects – Zone 24

27. 27 FY 2008 Region Construction Projects in Design/Progress – –Fort Myer (Continued) Replace walk-in cooler doors Repair warehouse doors Install track lighting in HBC area Replace floor tiles in sales area and rest rooms Replace rest room dividers Install protective diamond plates Replace 6 roll-up doors Replace refrigeration compressor FY 2008 Region Construction Projects in Design/Progress – –Fort Myer (Continued) Replace walk-in cooler doors Repair warehouse doors Install track lighting in HBC area Replace floor tiles in sales area and rest rooms Replace rest room dividers Install protective diamond plates Replace 6 roll-up doors Replace refrigeration compressor Ongoing Region Projects – Zone 24

28. 28 Ongoing Region Projects – Zone 24 FY 2008 Region Construction Projects in Design/Progress – –Patuxent River Replace two frozen food walk-in doors Replace refrigeration compressor Electrical hook up of bakery equipment – –Quantico Hook up and ventilate bakery equipment Mold remediation in storage rooms Install new heaters in receiving area FY 2008 Region Construction Projects in Design/Progress – –Patuxent River Replace two frozen food walk-in doors Replace refrigeration compressor Electrical hook up of bakery equipment – –Quantico Hook up and ventilate bakery equipment Mold remediation in storage rooms Install new heaters in receiving area

29. 29 Ongoing Region Projects – Zone 25 FY 2008 Region Construction Projects in Design/Progress – –Andrews AFB Replace glass doors in freezer displays – –Annapolis Replace refrigeration compressors – –Bolling AFB Replace meat room floor with SMAP Remove wooden deck in front FY 2008 Region Construction Projects in Design/Progress – –Andrews AFB Replace glass doors in freezer displays – –Annapolis Replace refrigeration compressors – –Bolling AFB Replace meat room floor with SMAP Remove wooden deck in front

30. 30 Ongoing Region Projects – Zone 25 FY 2008 Region Construction Projects in Design/Progress – –Dover AFB Replace refrigeration and HVAC Replace sales floor tiles Replace deli/bakery displays Replace refrigeration compressor – –Fort Meade Replace refrigeration compressors Replace skylights Take down décor canopies and upgrade lighting Replace floor in deli/bakery department FY 2008 Region Construction Projects in Design/Progress – –Dover AFB Replace refrigeration and HVAC Replace sales floor tiles Replace deli/bakery displays Replace refrigeration compressor – –Fort Meade Replace refrigeration compressors Replace skylights Take down décor canopies and upgrade lighting Replace floor in deli/bakery department

31. 31 Ongoing Region Projects – Zone 25 FY 2008 Region Construction Projects in Design/Progress – –Fort Meade (Continued) Spot floor repairs Replaced dock levelers Replace exterior column stainless steel covers. Employee rest/break room upgrade – –Walter Reed Replaced/enlarged freezer walk-in Upgraded patron rest rooms for ADA compliance Relocated salvage area to area previously frozen food walk-in FY 2008 Region Construction Projects in Design/Progress – –Fort Meade (Continued) Spot floor repairs Replaced dock levelers Replace exterior column stainless steel covers. Employee rest/break room upgrade – –Walter Reed Replaced/enlarged freezer walk-in Upgraded patron rest rooms for ADA compliance Relocated salvage area to area previously frozen food walk-in

32. 32 Ongoing Region Projects – Zone 26 FY 2008 Region Construction Projects in Design/Progress – –Fort Leonard Wood Mold remediation in admin office Replaced traffic impact doors Repair roof top condensing units Replace automatic transfer switch – –Little Rock AFB Deli/bakery upgrade with reconfiguration, added ventilation and rotisserie oven Replace dock levelers Cart storage canopy FY 2008 Region Construction Projects in Design/Progress – –Fort Leonard Wood Mold remediation in admin office Replaced traffic impact doors Repair roof top condensing units Replace automatic transfer switch – –Little Rock AFB Deli/bakery upgrade with reconfiguration, added ventilation and rotisserie oven Replace dock levelers Cart storage canopy

33. 33 Ongoing Region Projects – Zone 26 FY 2008 Region Construction Projects in Design/Progress – –Memphis Upgrade employee break room Replace refrigeration/HVAC – –Rock Island Paint warehouse and seal windows Repair ceiling in sales floor FY 2008 Region Construction Projects in Design/Progress – –Memphis Upgrade employee break room Replace refrigeration/HVAC – –Rock Island Paint warehouse and seal windows Repair ceiling in sales floor

34. 34 Ongoing Region Projects – Zone 26 FY 2008 Region Construction Projects in Design/Progress – –Scott AFB Replaced overhead doors Security systems upgrade – –Whiteman AFB Meat storage room ceiling replacement Replace dock leveler, 2 each HVAC system controls upgrade FY 2008 Region Construction Projects in Design/Progress – –Scott AFB Replaced overhead doors Security systems upgrade – –Whiteman AFB Meat storage room ceiling replacement Replace dock leveler, 2 each HVAC system controls upgrade

35. 35 Ongoing Region Projects – Zone 27 FY 2008 Region Construction Projects in Design/Progress – –Arnold AFB Upgrade employee break room – –Crane Replace sales floor tiles Replace all exterior doors FY 2008 Region Construction Projects in Design/Progress – –Arnold AFB Upgrade employee break room – –Crane Replace sales floor tiles Replace all exterior doors

36. 36 Ongoing Region Projects – Zone 27 FY 2008 Region Construction Projects in Design/Progress – –Fort Campbell Convert DSD warehouse to sales Correct roof drain problems Rebuild/expand frozen food walk-in Replace floor covering in offices – –Redstone Arsenal Sustainment project included HVAC and refrigeration upgrade and other repairs and improvements. FY 2008 Region Construction Projects in Design/Progress – –Fort Campbell Convert DSD warehouse to sales Correct roof drain problems Rebuild/expand frozen food walk-in Replace floor covering in offices – –Redstone Arsenal Sustainment project included HVAC and refrigeration upgrade and other repairs and improvements.

37. 37 Ongoing Region Projects – Zone 27 FY 2008 Region Construction Projects in Design/Progress – –Selfridge Sustainment project includes HVAC and refrigeration upgrade at final design review phase Replace awning – –Wright Patterson AFB Replaced chiller compressor Replaced entrance sliding doors Repair/replace produce storage floor Repair/replace meat department floor FY 2008 Region Construction Projects in Design/Progress – –Selfridge Sustainment project includes HVAC and refrigeration upgrade at final design review phase Replace awning – –Wright Patterson AFB Replaced chiller compressor Replaced entrance sliding doors Repair/replace produce storage floor Repair/replace meat department floor

38. 38 Energy & Environmental Program

39. 39 DeCA Energy Goals Set by Executive Order 13423 and the Energy Independence and Security Act of 2007 (P.L. 110-140)Set by Executive Order 13423 and the Energy Independence and Security Act of 2007 (P.L. 110-140) Reduce energy consumption per square foot by 9% of the FY 2003 baseline by the end of FY 2008 with a reduction of 30% by the end of FY 2015Reduce energy consumption per square foot by 9% of the FY 2003 baseline by the end of FY 2008 with a reduction of 30% by the end of FY 2015

40. 40 Minimizing the Impact Aggressively evaluating DeCA standards to reduce energy consumptionAggressively evaluating DeCA standards to reduce energy consumption –Evaluating lighting criteria –Evaluating HVAC and refrigeration control requirements Evaluating and possibly adjusting AgencyEvaluating and possibly adjusting Agency FY 2003 baseline with approval from OSD FY 2003 baseline with approval from OSD Validating facility square footagesValidating facility square footages Increased energy auditsIncreased energy audits Increase requests for ECIP fundsIncrease requests for ECIP funds –FY2009 ECIP funding doubled compared to prior years.

41. 41 Energy & Environmental Program (FY 2007 Commissaries Only Energy Profile)

42. 42 FY 2007 DeCA Energy Profile DeCA is currently not meeting Energy Reduction Goal

43. 43 New Stores New stores are currently not meeting the 30% energy reduction per square foot goal of 2015.New stores are currently not meeting the 30% energy reduction per square foot goal of 2015. –Designed prior to FY 2005 –New stores are increasing relative sales area, and adding additional refrigerated displays –Sales area has much higher energy usage per square foot compared to other areas Higher heating and cooling energy requirementsHigher heating and cooling energy requirements Twice the lighting energy per square footTwice the lighting energy per square foot More refrigerated displaysMore refrigerated displays

44. Cost Versus Consumption Electric rates ($/kWh) have increased 7.3% with an overall energy rate ($/ MBtu ) increase of 5%. Electric rates ($/kWh) have increased 7.3% with an overall energy rate ($/ MBtu ) increase of 5%. 1 st quarter FY 2008 energy analysis projects an annual consumption per square foot increase of 0.8% from FY 2007. 1 st quarter FY 2008 energy analysis projects an annual consumption per square foot increase of 0.8% from FY 2007.

45. 45 Energy & Environmental Program (Energy Cost Comparison)

46. 46 Energy & Environmental Program (Energy Consumption Comparison)

47. 47 Energy & Environmental Program (Environmental Management System) DeCA’s EMS is a managed process that controls our response to environmental issues to improve DeCA’s use of funds and environmental footprint at each of our facilities. It consists of five elements:DeCA’s EMS is a managed process that controls our response to environmental issues to improve DeCA’s use of funds and environmental footprint at each of our facilities. It consists of five elements: –Policy –Planning –Implementation and Operation –Checking –Management Review

48. 48 Energy & Environmental Program (DeCA's’ Significant Environmental Aspects) Environmental Aspect - An element of an organization’s activities, products, or services that can interact with the environmentEnvironmental Aspect - An element of an organization’s activities, products, or services that can interact with the environment –Solid waste disposal reduction and recycling enhancement –Energy and water conservation –Affirmative procurement/supplier environmental performance packaging –Pesticide/rodent contracts –Sustainable design in new construction and renovation –Toxic materials management –Refrigerant management –Electronic stewardship

49. 49 Energy & Environmental Program (Environmental Management System) CY 2007 EMS Accomplishments:CY 2007 EMS Accomplishments: –EMS Awareness Video distributed –Effective waste management plan Approved by CGB; 38,442 tons of cardboard recycled; $3.26 million in revenue generatedApproved by CGB; 38,442 tons of cardboard recycled; $3.26 million in revenue generated –Water management plans, 156 of 260 completed –27 pesticide/rodent contracts revised –Sustainable design process codified –Refrigerant compliance manual developed –EMS audit shows improvement

50. 50 Energy & Environmental Program

51. 51 Energy & Environmental Program

52. 52 Energy & Environmental Program

53. 53 Energy & Environmental Program

54. 54 Equipment Branch Update

55. 55 EQUIPMENT BRANCH (BUYING) Ten stores per year for replacement by departments: gondola shelving, bakery, furniture, warehouse, etc. DeCA DOLM will budget for equipment DOLM is responsible for the DeCA vehicle and Voyager Fuel Card programs Ten stores per year for replacement by departments: gondola shelving, bakery, furniture, warehouse, etc. DeCA DOLM will budget for equipment DOLM is responsible for the DeCA vehicle and Voyager Fuel Card programs

56. 56 Minimize store involvement in the equipment ordering process to the maximum extent possible DeCA EAST Push Package Completed 12-Year equipment purchase schedule, based on store class, workload, and equipment life cycle Push Plan is a Living Document: Out of cycles, annual store review, DOLM second site visits between FY 2008 – FY 2010 Minimize store involvement in the equipment ordering process to the maximum extent possible DeCA EAST Push Package Completed 12-Year equipment purchase schedule, based on store class, workload, and equipment life cycle Push Plan is a Living Document: Out of cycles, annual store review, DOLM second site visits between FY 2008 – FY 2010 EQUIPMENT BRANCH (BUYING)

57. 57 EQUIPMENT BRANCH DOLM is the single point of contact for maintenance issues for operational equipment Manage Automated Commissary Equipment Description (ACED) Web site DOLM is updating the 450+ Commissary Equipment Descriptions (CEDs) in 2008 DOLM coordinates GF/GI Equipment and Specifications for construction projects DOLM is the single point of contact for maintenance issues for operational equipment Manage Automated Commissary Equipment Description (ACED) Web site DOLM is updating the 450+ Commissary Equipment Descriptions (CEDs) in 2008 DOLM coordinates GF/GI Equipment and Specifications for construction projects

58. 58 Property Accountability DPAS/DERMAS requirements are finalized! – –Enables HQ to receive/archive documentation in a paperless environment - links store to HQ Property Branch will centralize all stores’ DPAS data input after “Tech Refresh” deployment in July 2008 Stores must still properly receive, bar-code, and inventory, but a ll data entry will be at HQ Eliminates DPAS training and retraining requirement at store level – saves time and resources A simplified desk-top Property Manual is in development DPAS/DERMAS requirements are finalized! – –Enables HQ to receive/archive documentation in a paperless environment - links store to HQ Property Branch will centralize all stores’ DPAS data input after “Tech Refresh” deployment in July 2008 Stores must still properly receive, bar-code, and inventory, but a ll data entry will be at HQ Eliminates DPAS training and retraining requirement at store level – saves time and resources A simplified desk-top Property Manual is in development

59. Swell Allowance Program

60. 60 Swell Allowance Program What is it?What is it? –A negotiated % for unsaleables that is deducted from each payment by PIIN –% is input into SAVES and deducted from each payment and applied to the store’s inventory as a credit –OCONUS – table built to distribute the dollars to stores based on an ACV algorithm

61. 61 Swell Allowance Program BenefitsBenefits –Reduces workload for Store, RAD and Industry by reducing unsaleable VCMS –Provides an audit trail systematically –WIN-WIN for DeCA and Industry –Commercial trend

62. 62 Swell Allowance Program Companies Participating Bavarian MeatsCallard Bowser Suchard Inc DurexJack and Jill JC PotterJelly Belly Johnson & JohnsonJTM Provisions KelloggsNabisco Food Group (Planters Nuts) NestleNovartis Performance SeedPic Sweet RiviannaRoger Wood Foods

63. 63 Swell Allowance Program Exclusions to the program: –Price Reductions – items reduced voluntarily by the vendor in order to promote the sale of products or short dated items reduced for quick sale –Returned Merchandise – products in good condition voluntarily returned to the vendor at their request and/or items donated by a vendor to other organizations on military installations –Guaranteed Sale Items – items that do not sell and are not unsaleable; items that do not sell within a specific period of time, such as holiday or seasonal items and promotional items, and items that are under a specific buy-back agreement –Voluntary Recall/ALFOODACT – medical recalls –Distributor VCMs – shortages, mis-picks, damages, etc. –Product Demonstrations –Manufacturer Deletes –Distributor shortages, damages, mispicks, and etc.

64. 64 Swell Allowance Program Ensure DeCA Form 70-10, Vendor Credit Memorandum (VCM) types are annotated correctly on each VCM Errors could have a negative impact during negotiations for swell allowances

65. 65 Swell Allowance Program Stores still have latitude to flush out deleted items, close dated items or agreed upon distressed purchases from manufacturers with manual VCMs under mutual agreements or requests from the manufacturer.Stores still have latitude to flush out deleted items, close dated items or agreed upon distressed purchases from manufacturers with manual VCMs under mutual agreements or requests from the manufacturer. Companies are still responsible for close dated merchandise.Companies are still responsible for close dated merchandise. Ensure store staff and vendor stockers are handling product properly and watching for close dated items.Ensure store staff and vendor stockers are handling product properly and watching for close dated items.

66. 66 Swell Allowance Program Neither DeCA deletes or manufacturer deletes are part of the Swell Allowance ProgramNeither DeCA deletes or manufacturer deletes are part of the Swell Allowance Program –Use the phase out process for DeCA deletes –Manufacturer deletes will be credited with a VCM

67. 67 Questions?