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

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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

Fall 2009 Meeting

main military organizations
Main Military Organizations
  • The Military Services: Army, Marines, Navy,

Air Force

  • Natick
  • Defense Supply Center Philadelphia (DSCP)
  • VETCOM
  • USDA
purpose of session

Purpose of Session

To provide you with an understanding of how the government does business in food, packaging, and

related areas

military services
Approve all food & services

Verify quality

Visit users to assess

Usually first place to start

Provide funding

NO ACTION IF THEY DISAPPROVE

Military Services
natick soldier systems center
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
slide6
DSCP
  • Buying agents for DoD (all services)
    • Rations
    • Prime Vendor
    • Direct Buys (reducing)
    • Almost all contracting goes through DSCP
  • Executive Agent for Food
vetcom
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
slide8
USDA
  • Key player in rations
    • Affects specifications
    • Required on-site at some locations
    • Accept or reject items offered to government in some situations
    • Keep historical data
    • Can shut down manufacturers
  • Ensures compliance with legal requirements
food systems
FOOD SYSTEMS
  • RATIONS
  • PRIME VENDOR
  • COMMISSARY
  • EXCHANGE
  • DIRECT CONTRACTS
rations
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
prime vendor
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 -4 Billion annually
commissaries
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
exchange services
EXCHANGE SERVICES
  • Military “Wal-mart type” operations
  • Three Exchange services: AAFES/ Navy/ Marines
  • Over $17 billion in sales
  • Bureaucratic procedures and extremely competitive
direct government contracts
Direct Government Contracts
  • USDA
  • Installations
  • Any government agency
  • Must get on bid list and comply with qualifications.
  • Every agency has ability to buy direct
system examples
SYSTEM EXAMPLES
  • MRE (meal, ready to eat)
  • UGR (unitized group ration)
  • PRIME VENDOR CONTRACTS
  • COMMISSARIES & EXCHANGES
meal ready to eat mre items
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.
mre continued
MRE: Continued
  • Items will be field tested and evaluated. Three year shelf life @ 80 F
  • If high enough scores (hedonic scale), tested by Natick in field
  • Time from beginning to end is 18 months
  • THERE IS NO GUARANTY THAT YOUR ITEM WILL BE PRODUCED BY YOU.
unitized group ration ugr complete meal for 50
Unitized Group Ration (UGR): Complete meal for 50!
  • 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
ugr continued
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
prime vendor operations
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
prime vendor continued
Prime Vendor (Continued)
  • PV determines most items supplied but must meet needs of customers
  • Cost plus contract
  • Some set aside contracts
  • MASTER PRICE AGREEMENTS: OCONUS CONTRACTS!!!!
commissaries exchanges
Commissaries & Exchanges
  • Types of items
  • Organizational Structure:
    • Headquarters
    • Regions
    • Individual stores
  • Usual manufacturer requirements
    • Deliver daily
    • Stock shelves daily
    • handle discrepancies
commissary exchanges continued
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
key players
KEY PLAYERS
  • GOVERNMENT
  • INDUSTRY
  • ASSOCIATIONS
key government players
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 Sherriff 804-734-4862
      • Rick Bryd 804-734-3005
    • Air Force: George Miller 210-652-2619
key players vetcom
Key Players: VETCOM
  • There will be a regional veterinary command in your area
  • CW 2 Budd Dodge 210-221-6510
key players dscp
Key Players: DSCP
  • HQ:CAPT. Rackauskas 215-737-2900
  • HQ: Ray Miller 215-737-2952 & Rich Faso 215-737-2901
  • Rations:
    • Harry Streibich 215-737-3820
    • Jim Lecollier 215-737-3625
prime vendor28
Prime Vendor
  • Prime Vendor:
    • John Steenberge 215-737-7445
    • Joe Hauser 215-737-2951
key players natick
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
natick continued
Natick Continued
  • Others:
    • Betty Davis 508-233-4509
industry key players
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
industry continued
INDUSTRY CONTINUED
  • PRIME VENDORS
    • LABATT FOOD SERVICE
    • US FOOD SERVICE
    • LANKFORD SYSCO
    • SYSCO
    • PYA MONARCH
    • ** SEE DSCP WEBSITE(WWW.DSCP.DLA.MIL)
associations
ASSOCIATIONS
  • R&DA 210-493-8024
questions
QUESTIONS ??????
  • THIS IS
  • A GOOD TIME TO ASK
  • QUESTIONS!!!
questions35

QUESTIONS

THIS IS THE BEST TIME TO ASK A QUESTION!!!

conclusions
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