Zone 6 –8 - 9 Meeting
Operations Update
Mr. Bob Hayden
Director, Performance and Policy
Directorate of Performance
and Policy
CARTS Overview
Commissary
Advanced
Resale
Transaction
System
R
CARTS Overview
Mission
The CARTS program is a total
system replacement of DeCA’s
aging existing point-of-sale
(POS) systems , including all
commissaries, server centers,
and test beds
Acquisition Strategy
•
•
•
•
•
•
Single-step to full operational capability
One prime integrator of COTS/non-developmental
items
Performance-based contract with performance
incentives
Full and open competition
Indefinite delivery/indefinite quantity contract
10-year contract (5-year base and five 1-year options)
GOALS and OBJECTIVES
Improve customer service
- Keep pace with commercial industry
Lower cost of ownership
- Achieve high POS system availability
-Improve business functionality
Comply with DoD system mandates
- Enhance security
- Achieve flexible open system compliance
Strategic Partner
R
4
Benefits of Shelf Checkout
No interaction with a
checkout person
Greater accuracy than a
checkout operator
Privacy
Control
Having a choice on how
to checkout
Speed or faster
checkout
Shorter Lines
0
10
20
30
40
50
60
% of Shoppers
Survey conducted in 2006
by IDC Corp of 6,359
shoppers.
5
CARTS Solution Overview
Self-Checkout
6
CARTS Solution Overview
Non Checklane Hardware and Back Office Solution Components
Data Entry Terminal
Electronic Shelf Label
Hand-held Terminal
Hand Scanner
Pricer
Lenovo PC
CAC Enabled Keyboard
Portable Printer
Back Office Printer
Cash Management
PSC
QS6500
Symbol MC3000
Customer Price Check Station
Zebra
QL320
QL320
IBM InfoPrint
1532 Express
R
Cummins
JetScan 4068 Currency Counter
JetSort 1606 Coin Sorter
Symbol
MK1100
MK1100
7
CARTS Solution Overview
(Store Front) Checklane Hardware
Cash Register
Check Stands
Scanner / Scale
Hand-held
Scanner
SurePOS 742
Customer Display
R
Receipt Printer
4610-TG9
Cashier Entry Device
Customer Access
Terminal
4820-2GB
8
Deployment Schedule Criteria
•No installs on Federal holidays, paydays, peak
sales periods
•Installs on lower sales volume days as much as
possible (Mon/Tues/Wed)
•Commissaries open 7 days/wk will not close for
install
•BRAC sites or closure scheduled at end of
deployment
•No installs during holiday black-out period
Thanksgiving / Christmas peak sales period
•Will provide training to all employees in advance
of deployment
9
Recommendations for Success of SCO
 Properly train our employees and patrons for self
checkout
 Monitor and manage self-checkout as part of
front-end, use the registers in slow times
 Must have full management by-in
 Commit to using the self check outs as cashier
driven during busy periods
10
DeCA
Swell Allowance Program
Update
11
Swell Allowance Program
• 16 Companies in the program (listed on next
slide)
• Letters sent to companies not participating or
offers too low
• Will bring new companies on monthly as offers
are accepted
• CAO will soon be able to track vendor throwaways
along with store throwaways to validate
percentages used in the swell allowances
12
Swell Allowance Program
Companies Participating as of January 1, 2007
• Bavarian Meats
• Callard Bowser Suchard
Inc Durex
• Jack and Jill
• JC Potter
• Jelly Belly
• Johnson & Johnson
• JTM Provisions
• Kelloggs
• Nabisco Food Group
Planters Nuts
• Nestle
• Novartis
• Performance Seed
• Picsweet
• Rivianna
• Roger Wood Foods
• Seattle Fish
13
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, etc.
• Product Demonstrations
• Manufacturer Deletes
14
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
• Companies are still responsible for close-dated
merchandise
• Ensure store staff and vendor stockers are
handling product properly and watching for closedated items
15
INFRASTRUCTURE
UPDATE
16
Surcharge Funded SRM Programs
• Facility maintenance and repair includes
— Recurring M&R funds for projects > $150K
— Inter Service Support Agreement costs
— M&R for the overall sustainment and major construction
program including prior year contract M&R modifications,
and unprogrammed M&R requirements
• Refrigeration equipment maintenance and repair is the
refrigeration and heating, ventilation and air conditioning
contracts managed by the regions
• Refrigeration replacement includes:
— Contractor and Government furnished equipment costs
associated with current year sustainment projects
— Prior year contract equipment modifications and
unprogrammed equipment requirements
17
Surcharge Funded SRM Programs
Continued
• Minor construction includes projects under $750K and
include design and construction costs associated with
current year sustainment projects, prior year contract
modifications, and unprogrammed construction
requirements and future design
• The energy & environmental component includes
projects to improve energy consumption and reduce
environmental impacts
• Major construction includes costs of $750K or more and
require reporting to Congress. Costs include design,
construction, equipment, prior year contract modifications,
AETC salaries and PMAC contract costs
18
DeCA Surcharge Investment
Plan ($ In Millions)
400.0
300.0
200.0
100.0
0.0
FY 06
FY 07
FY 08
FY 09
FY 10
FY 11
FY 12
FY 13
Total
237.0
361.3
279.4
279.8
281.4
283.4
286.9
288.5
Store Equip
25.1
20.8
24.3
22.9
23.3
23.8
24.3
24.8
Information Technology
89.9
80.1
49.6
72.2
65.9
61.6
52.9
41.9
Repair & Maintenance
85.4
114.3
123.1
122.1
117.1
121.4
122.9
131.1
Major Construction
36.6
146.1
82.4
62.6
75.1
76.6
86.8
90.7
19
Surcharge Funded SRM Programs
Facility
Maintenance &
Repair
$34.1
33%
FY2006
Equipment
Equipment
Maintenance &
Maintenance &
Repair
Repair
Facility
$15.4
$14.5
Maintenance &
7%
14%
Repair
Equipment
$30.7
Replacement
13%
$14.3
14%
Energy &
Environmental
$2.7
3%
Major
Construction
$34.4
34%
Minor
Construction
$2.1
2%
$102M Obligated
Equipment
Maintenance &
Repair
$16.5
9%
Minor
Construction
$1.1
0%
FY2008
Equipment
Replacement
$42.9
18%
Energy &
Environmental
$2.7
1%
Major
Construction
$139.2
61%
$232M Programmed
Equipment
Replacement
$44.1
25%
Energy &
Environmental
$2.0
1%
Facility
Maintenance &
Repair
$32.4
18%
Minor
Construction
$1.2
1%
FY2007
Major
Construction
$80.0
46%
$176M Programmed
20
Management Challenges
• Funding
— Budget
• Shifting emphasis to sustainment reduces
number of major projects
• Non-construction programs competing for
Surcharge reduces available funding
• Info Technology Programs
• Operational Equipment Programs
• Lack of BRAC funding
— Higher construction cost trends
• Higher costs impact project approval
levels/execution timelines
• Reduces program
21
Management Challenges
• Planning/Programming/Execution
– Basing initiatives
• OIGPBS - 6 locations impacted; Ramstein,
Spangdahlem, Ansbach, Wiesbaden, Vilseck, Vicenza
– Total Cost $92.9 M
OIGPBS Impact $77.6 M
• BRAC - 10 locations impacted; Fort Bliss, Fort Riley,
China Lake, Fort Benning, Fort Carson, Fort Lee,
Norfolk, Fort Sam Houston, Moody AFB, Fort Belvoir
– Total Cost $189.2 M
BRAC Impact $143.9 M
• Lack of OIGPBS/BRAC funding disrupted the normal
prioritization process
• Requires a shift towards more facility sustainment
22
Ongoing HQ Projects
All Zones
• Roofs
– TREMCO is currently the contractor for this service with
one 800 phone number to call if a covered store has a
roof leak (1-800-5TREMCO). FY06 Major Maintenance
and Repair Projects (>$150K) Handled through HQ
DOF
• Maintenance and Repair Projects (<$150K)
– Handled through Field Engineers (FE) and re-occurring
work orders at store level
• Major Construction Project
– Handled through DeCA’s San Antonio Engineers
23
Major Construction Projects
Completed FY2006/FY2007
FY
03
04
04
04
04
04
05
05
06
Location
Osan AB/ CDC
Whiteman AFB
Randolph AFB
Bangor NSB
Fort Sill
Mayport NS
NS San Diego
Camp Zama
Ft McCoy
Total
Cost
Scope
$M
Upgrade
14.1
Upgrade
7.2
Upgrade
12.2
Upgrade
13.6
Upgrade
12.9
Upgrade
12.7
Replace
32.6
Conversion
3.9
Replace
5.2
114.4
Completed
Oct 05
Oct 05
Feb 06
Mar 06
Sep 06
Oct 06
Dec 06
Feb 07
Apr 07
24
Major Construction Projects
Under Construction
Scope
CWE
FY Location
M2
$M
04 Ft Detrick (Replace)
3,239
12.5
05 Peterson AFB (Replace/Joint) 9,506
22.1
05 Grafenwoehr (Replace/Joint)
5,162
16.1
05 Rota NAS (Replace/Joint)
5,098
12.8
06 Harrison Village (Replace/Joint) 4,366
8.0
06 Barksdale AFB (Upgrade)
8,770
21.5
06 Keesler AFB (Replace/Joint)
8,568
29.0
Total
44,709 $122.0
Expected
Completion
Jan 08
Mar 07
Jun 07
Sep 07
Apr 07
Apr 08
Jun 09
25
FY 2007
Major Construction Program
Location
Scope
M2
PA
$M
Robins AFB (Replace)1
7,036 16.6
Dyess AFB (Upgrade)1
6,619 10.6
Ft Drum (Upgrade)1
7,692 22.3
Richards- Gebaur (New)1
1,884
8.0
Keesler AFB (Replace/Joint)2 9,218 39.0
Willow Grove3 (New/Joint)
2,025
4.3
Saratoga Springs (Replace) 2,082
7.1
Livorno (Replace)
2,244
8.9
Chievres (Replace)
4,088 16.1
Eglin AFB (Upgrade)
10,852 15.6
Total
51,715 $144.2
1
2
3
CWE
$M
Scheduled
Award
16.6 May 2007
12.5 Jul 2007
22.3 Jun 2007
8.0 Jul 2007
29.0 Awarded
4.3 On Hold
7.1 Aug 2007
8.9 Sep 2007
16.1 Sep 2007
15.6 Jul 2007
$136.1
Approved in FY 2007 Construction Report for Cost Increase
Funded with Hurricane Katrina Recovery Funds
Funds withdrawn and reprogrammed. Placed on hold per Congressional guidance
26
FY 2008
Major Construction Program
Scope
CWE
Location
M2
$M
$M
New Orleans (Replace/Joint)
4,658
19.7
19.7
Ft Riley (Upgrade)1
10,152
23.5
23.5
Ft Bliss (Replace)
10,825
31.2
31.2
25,635
$74.4
$74.4
Total
1
PA
1
Requirement is 100% BRAC generated. No BRAC funding has been provided which will disrupt
normal construction priority process. Costs recently revised based on A/E cost estimates.
27
FY 2009
Major Construction Program
Location
Scope
M2
Initial
Estimate
$M
Ramstein AB (Upgrade)1
7,321
15.3
Spangdahlem (Replace/Joint)1
4,838
20.6
Ansbach (Replace/Joint)1
3,303
14.1
15,462
$50.0
Total
1 OIGSPBS
impacted
28
Ongoing Region Projects – Zone 6
• FY07 Region Construction Projects in
Design/Progress
– Randolph AFB
• Replace fir pump controller circuit board
– Dyess AFB
• Replace air conditioning system in the Admin
area
29
Ongoing Region Projects – Zone 8
• FY07 Region Construction Projects in
Design/Progress
– Tinker AFB
• Extend exterior storage and canopy
– Fort Bliss
• Replace main switchgear
• Misc. refrigeration repairs
30
Ongoing Region Projects – Zone 8
• FY07 Region Construction Projects in
Design/Progress
– Holloman AFB
• Replace air conditioning unit and warehouse
coolers
• Paint entry area, hallways, and replace floor
tile behind the meat cases
31
Ongoing Region Projects – Zone 9
• FY07 Region Construction Projects in
Design/Progress
– Buckley AFB
• Extend exterior storage and new canopy
(Increase in funds to complete project)
• Repair sidewalk where sinking and buckling
– F.E. Warren
• Replace traffic doors in frozen food/dairy
• Anti Terrorists Force Protection requires
relocation of dumpster
32
Ongoing Region Projects – Zone 9
• FY07 Region Construction Projects in
Design/Progress
– Fort Carson
• Replace meat processing floor (increase in funds
to complete the project)
• Unforeseen site conditions for meat processing
floor (modification)
– Fort Leavenworth
• Replace freezer door and repair case ventilation
• Install rotisserie oven and exhaust hood
33
Ongoing Region Projects – Zone 9
• FY07 Region Construction Projects in
Design/Progress
– Minot AFB
• Replace Sales floor
– Offutt AFB
• Replace 4 receiving doors and 2 dock levelers
34
Energy & Environmental Program
(FY 2006 Energy Profile)
35
Energy & Environmental Program
(Energy Cost Comparison)
36
Energy & Environmental Program
(Energy Cost Comparison)
37
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:
–
–
–
–
–
Policy
Planning
Implementation and Operation
Checking and
Management Review.
38
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 environment.
– Solid Waste Disposal Reduction and Recycling
Enhancement
– Energy and Water Conservation
– Affirmative Procurement/Supplier Environmental
Performance Packaging
– Pesticide/Rodenticide Contracts
– Sustainable Design in New Construction and Renovation
– Toxic Materials Management
– Refrigeration Maintenance
39
Energy & Environmental Program
(Environmental Management System)
• CY 2006 EMS Accomplishments:
– EMS Awareness Video Developed
– 7 Significant Environmental Aspects identified
– 6 of 7 Environmental Management Programs
adopted
– Legal Registry and Compliance Evaluation
– EMS News Release
– Secretary of Defense Environmental Award
– Federal Environmental Executive compliments
EMS
– EMS Audit shows improvement
40
Energy & Environmental Program
(Environmental Management System)
• EMS Scope of Work for 2007:
– Address 2006 EMS Audit Findings &
Recommendations
– Environmental Policy & EMS Awareness
– EMS Organizational Structure, Roles, and
Responsibilities
– EMPs – Competency and Training
– Revision & Implementation of Emergency
Response Procedure
– Revision and Implementation of Other DeCA
EMS Procedures
41
Equipment Branch Update
46
EQUIPMENT BRANCH
(BUYING)
• Minimize store involvement in the equipment
ordering process to the maximum extent possible
• DeCA WEST 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 site visits each 3 – 5
years
47
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
• Paging/Music system & CCTV system site survey
48
EQUIPMENT BRANCH (MAINT)
• DOLM is now active as the single point of contact
for maintenance issues for operational
equipment normally provided by this branch
• DOLM will review maintenance needs for cost
effectiveness and repair/replace decision.
Requirements will be input or passed for action
by DOLM
• DOLM now responsible for the $28,000,000
DeCA surcharge equipment maintenance budget.
Tasked to review all maintenance requirements
for cost effectiveness
49
EQUIPMENT BRANCH
(MAINT continued)
• Manage ACED, Automated Commissary
Equipment Description Web Site
• DOLM to update the 450+ Commissary
Equipment Descriptions (CEDs) in 2007
• DOLM coordinates GF/GI Equipment and
specifications for construction projects
50
Questions?
51