Operations Report
Al Boykin, CPCM, CFCM
CLO & Interim Executive Director
Sam Smith, CPA
CFO & Interim Chief Operating Officer
Board of Directors Meeting
Austin, TX
March 24, 2012
Action Items from BOD Meetings
1.
Review NCMA’s committee structure; consider whether the committees are
aligned to our strategy, and if charters are aligned with the practice. Following
discussion at November 13 Board meeting, present revised recommendations
at March 24 Board meeting.
Assigned to : Penny White, Chair, Governance Committee
Status: Revised recommendations briefed today.
2.
Provide the concept maps (output from mind mapping sessions) to the CMLDP
for review and comment to gain further insight on the future of the profession
and the association.
Assigned to: Michelle Currier, Chair, CMLDP Oversight Committee
Status: Complete, feedback from CMLDP directed to Michelle Currier.
Finance
• Year to Date numbers as of close of February 2012
• Revenue: $5,269 million vs. $5.316 million budgeted
– 0.9% negative variance from FY 12 budget
– 1.2% positive variance from last year
• Net operating gain: $597K vs. $404K budgeted
– 48% positive variance from FY 12 budget
Higher contribution from Membership, Meetings; lower Marketing
expenditure partially offset by lower Advertising contribution.
– 33% negative variance from last year
Lower contribution from Advertising and higher Administration costs
(2 additional staff CLO and Jr Accountant, and legal costs) partially
offset by higher Membership contribution
Finance
• Reserves are $2.56 million, which represents 4.5 months of
budgeted operating expenses - ($6.826 million).
• YTD investment gain: $71K
Finance (cont.)
• Concerns:
– Advertising:
– Revenue is down on budget and history – particularly CMJobs.com.
Expected to continue to be weak – in both CMJobs.com and Print.
– Meetings:
– ADC – Expected paid registration for current conference is 115, FY 12
Budget 185 (revised during EAC to 150), FY 11 Phoenix 147, FY 10 San
Diego 234. Trend is downward – Discussion of conference included
under new business.
Salaries and benefits as % of revenue
ASAE Operating Ratio Report – 2009 Data (Latest Available)
NCMA
FY12
Budget
FY12 EAC
FY11
FY10
FY09
35.8%
38.0%
31.0%
32.3%
32.7%
Increase in FY 12 EAC percentage is as
a result of projected lower sales –
Salaries and Benefits remain
unchanged at $2.5 million for both
Budget and EAC
$5m to $10m
Average
36.0%
Median
37.3%
6
Number of employees
ASAE Operating Ratio Report – 2009 Data –(Latest Available)
NCMA
FY12
Budget
FY12 EAC
FY11
FY10
FY09
27.25
26.70
25.25
21.0
26.5
$5m to $10m
Average
46.4
Median
37.0
7
Revenue per employee
ASAE Operating Ratio Report – 2009 Data (Latest Available)
NCMA
FY12
Budget
FY12 EAC
FY11
FY10
FY09
$262,016
$252,561
$276,156
$273,226
$227,280
$5m to $10m
Average
$251,247
Median
$175,447
8
Operating Profit %
ASAE Operating Ratio Report – 2009 Data (Latest Available)
NCMA
FY12
Budget
FY12 EAC
FY11
FY10
FY09
4.4%
1.7%
12.5%
12.8%
0.0%
$5m to $10m
Average
1.2%
Median
1.6%
9
Membership
Membership
Members
February 29, 2012
February 28, 2011
21,679
20,317
1.75% increase
• New member benefits – complimentary webinars based on
membership type.
Chapter Relations
• Mid-Year Leadership Conference was held in January 2012 in
Las Vegas
– Evaluations – similar overall results as 2011
• 80.3% rated excellent or very good overall
• 84.3% would recommend to their colleagues
– Attendance exceeded budget – 163 paid (137 reg/26 student) vs. 155 paid.
– Breakout sessions were a success, will add addl breakout sessions in 2013.
• Leadership Summit tied to World Congress in Boston on July
28
– Based on history, moved from stand-alone event to smaller event tied to
WC2012.
– Addl training via webinars on demand will be added for use by all volunteers.
Chapter Relations (cont.)
4-4:30pm
Intro of NCMA
New ED
Mary Beth Lech, Chapter Relations Manager
4:30-5pm
Strategic Vision for NCMA & the Duties
of Chapter Leaders
Elliott Branch, President
New ED
5-5:15pm
Break
5:15-5:45pm
Calendar of Events & Chapter Resources
Mike Wright, Chapter Relations Specialist
5:45-6pm
SWOT Analysis
Tom Kelkis, Past President
Mary Beth Lech
6-6:30pm
Planning Your Chapter Program Year &
Chapter Events
Carly Cox, Dayton Chapter Past President
Kiel Anderson, Boston Chapter Co-VP of
Programs
6:30-7:30pm
Networking Reception and Activity
Chapter Relations (cont.)
• Chapter grants:
– All chapter grants for PY11 were accounted for $7,600 in unused funds were
returned to NCMA.
– For PY12, 35 chapters submitted 86 grant requests totaling over
$187,000. $50,000 was budgeted for distribution, all but $43.13 distributed.
• Virtual Chapter: 314 members, 131 international
– Increased participation in monthly chapter meetings (via webinar).
Conferences
• GCMC November 2011 in Bethesda, Maryland:
– Revenue up 15% from budget and 5% from prior year
– GCMC 2012 at DC Renaissance, Nov 5-6, 2012
• ADC March 2012 in Austin, Texas (under review due to declining attendance):
– 115 paid attendees, 38% below budget and 22% below prior year
– Exhibitor/Sponsor revenue approximately $63K – (Budget - $45K)
– Discussion of conference under New Business
• WC July 2012 in Boston, Massachusetts:
– 63% of exhibitor/sponsor budget sold (50% at comparable time last year)
– New presentation abstract submission management system utilized – total of 230
abstracts received ~ highest ever
– 3 of 6 keynote speakers secured
– 18 tracks, 120 breakout sessions selected; notifications NLT 30 March
– 3 plenary panels in development
– Mobile WC app will be launched
World Congress 2012 – Boston!
World Congress 2012 – Schedule
Conference Theme: “Contract Management & 2020 Transformational Leadership: Leading the
Way Through Uncertain Times”
Sunday ~ Keynote: Tom Ridge
Monday ~ Theme (Leadership): “Bringing Leadership to the Business of Public Procurement”
Keynote: Dov Seidman (Tentative): “The Generational Leader… Building Leadership Teams Today to Meet the
Challenges of Tomorrow…
Executive Panel: “The Generational Leader… Key Leadership Traits for the 21st Century”
Tuesday ~ Theme (Cost Efficiency & Budget Effectiveness): “Economic Realities & What We Do
About Them”
Keynote: (TBD): “Meeting Today’s Economic Challenges to Build Tomorrow’s Future”
Executive Panel: “Economic Effectiveness & Efficiency ~ Leadership & Organizational Strategies for Success”
Wednesday ~ Theme (Senior Procurement Leader Perspectives): “Beyond the Challenges…
Navigating the Path to Success”
Keynotes: Robert Fogarty, “Dear World” / Les Brown, Motivation & Leadership
***** Theme: “The Importance of Persistence & a Positive Attitude to Achieving Greatness in Difficult Times”
Executive Panel: “Making Good on the President’s Promise… A Procurement Process that Works Better…
Achievements We Can Be Proud Of”
Breakout Sessions: 230 Abstracts (Highest ever) >>> 6 Tracks >>>> 118 different sessions…
World Congress 2012 – Educational Breakout Sessions
Received a total of 230 topical abstracts ~ highest ever!
-- Vetting process complete; notifications NLT 30 March
18 Tracks – total of 120 sessions
1. ACQUISITION STRATEGY, PLANNING, AND SOURCING
2. BUSINESS AND PROPOSAL DEVELOPMENT
3. CONTRACT NEGOTIATION AND NEGOTIATION SKILLS
4. CONTRACT PERFORMANCE AND ADMINISTRATION
5. CONTRACT LAW AND COMPLIANCE
6. PROGRAM AND PROJECT MANAGEMENT
7. SUBCONTRACTING
8. COST ESTIMATING AND PRICING
9. ACCOUNTING AND FINANCIAL MANAGEMENT
10. HUMAN CAPITAL AND CAREER MANAGEMENT
11. LEADERSHIP DEVELOPMENT
12. NEW PROFESSIONALS
13. COMMERCIAL AND INTERNATIONAL CONTRACTS
14. CASE STUDIES: LESSONS LEARNED IN THE REAL WORLD
15. AGENCIES
16. TECHNOLOGY
17. CPCM CONTRACT MANAGEMENT BODY OF KNOWLEDGE (CMBOK) REVIEW
18. CFCM FEDERAL ACQUISITION REGULARION (FAR) REVIEW
19. CCCM UNIFORM COMMERCIAL CODE (UCC) REVIEW
Schedule for BOD Members
Thursday
July 26
12:00pm-3:00pm: Orientation for New Board Directors
Friday
July 27
9:00am-5:00pm: Board Strategic Planning Session
Saturday
July 28
7:00am–1:00pm: Golf Tournament @ TBD
9:00pm-4:00pm: Committee Meetings
4:00pm-7:30pm: Leadership Summit w/ Reception
7:30pm-9:30: Board of Directors Dinner
Sunday
July 29
9:00am-3:00pm: Board of Directors Meeting
4:00pm–5:00pm: Opening Session w/ Tom Ridge, Former PA Governor
and 1st Secretary of Homeland Security
5:00pm–6:30pm: Exhibit Hall Ribbon-Cutting and VIP Reception
Schedule for BOD Members
Monday
July 30
8:00am–5:15pm: World Congress program
8:00am-5:15pm: Committee Meetings
6:30pm–10:30pm: World Congress Gala at JFK Library
Tuesday
July 31
8:00am–5:15pm: World Congress program
8:00am-5:15pm: Committee Meetings
12:30pm–2:30pm: Executive Advisory Council Luncheon
Wednesday
August 1
8:00am–12:00pm: World Congress program
Monthly
Leadership Forum
Month
Contributing Leader
February
Charlie Chadwick
March
Elliott Branch
April
Kim Rupert
May
Po Collins
June
Russ Blaine
July
August
September
October
November
December
Education
• Revenue in line with budget and 23% up over last year
• Net contribution ahead of budget and last year
• E-learning On Line Prep Courses continue to grow –
CFCM FY 11 - 2 courses – 25 students each.
FY 12 - 4
courses – 2 x 25 students and 2 x 35.
CPCM (Asynchronous) FY 11 – No courses,
FY 12 – 2
courses 1 x 50 and 1 x 100.
Fee for both - $495 per student
• Webinars and Virtual Conferences behind budget.
• Book revenue ahead of budget.
– New book released March 2012, “The 100 Worst Government Mistakes
in Government Contracting”
Education
• CMLDP:
– Call for applications May 1-June 30, 2012
– 25 students to be accepted
– Coursework begins ~August 2012
2012
Roll-out!
Certification
• Transactions and revenues exceed last year’s actuals.
– Applications up 2% over same period last year;
– Certifications awarded up 18% over same period last year.
• Preparatory materials improved, expanded:
– Revised CPCM exam: scenario-based format, launched in January,
aligned to CMBOK 3.0.
– 5 new CPCM practice exams, now available directly from NCMA.
– Online CPCM Preparatory Course: launched in January.
– Updated CFCM study guide and exam planned for July 2012.
DAU/NCMA CON 090
Initiative
Memorandum of Agreement
 CON 090 students may sit for
CFCM exam upon completion of
course
 Promotes collaboration for
development of CM
professionals within DoD
 Graduates who pass the CFCM
exam will obtain their
certification after completion of
1 year experience
Industry Certification Initiative (I-Cert)
Purpose: Enhance the value and professionalism of the contract
management workforce to better support government requirements by
offering opportunities for industry members to obtain certification pursuant to
DAWIA and FAC-C requirements.
To…
NCMA
The Value Proposition

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
Contract
Management
Profession


Government


Industry


Provide needed service and value to the contract
management profession.
Supports the professionalization & capability of a blended
workforce.
Effectively utilizes Educational Partners for high-yield
initiative.
Provides incentive for self-development.
Builds on current NCMA certifications and provides an
additional metric of professionalism for quality and
opportunities for advancement.
Supports “best-value” strategies, quality and potential of
DAWIA and FAC-C certified vendors.
Provides trained resource for greater productivity.
Provides greater incentive for companies to invest in the
professional development of their employees.
Provides opportunities for increased support of contract
requirements via DAWIA or FAC-C certified employees.
Current Education
Partners


















ASI Government
American Graduate University
Bellevue University
Bottomline Concepts, LLC
Centre Consulting
Certified Contracting
Solutions, LLC
Chicago Training &
Consultancy, LLC.
ESI International
FedBid, Inc.
Federal Market Group
Federal Publications Seminars
Management Concepts
NPI
Next Level Purchasing
Public Contracting Institute,
LLC
Saint Louis University
University of California, Irvine
Villanova University
Advertising Sales and Creative Services
• Advertising revenue down: negative variance 12% from budget and 14%
from prior year.
• Declines in CMJobs, Website, Corporate sponsorships and Educational
Partners. Resource Guide and CM Magazine are flat.
• Advertising expected to fall short of budget for the year
• 2012 Salary Survey – survey to be released in March/April
Core Operations: Staffing changes
• Neal Couture, executive director, resigned December 31,
2011.
– Duties absorbed by CLO Boykin and CFO Smith during interim.
• Kelly Higginbotham resigned as customer service
representative on February 8, 2011 – moved to PCI.
• Suzy Olsen hired as a customer service representative
effective February 22, 2011.
• Vacant customer service representative position – currently
seeking qualified candidate.
• Facility: at capacity
Senior Leader Engagement
• VIP Visits Completed
– Mr. Shay Assad, Director of Defense Pricing, DoD (August 2011)
– Ms. Donna Jenkins, Director, Federal Acquisition Institute (August 2011)
– MGen Wendy Masiello, Deputy Assistant Secretary for Contracting, USAF (September 2011)
– Mr. Patrick Fitzgerald, Director, DCAA (September 2011)
– Ms. Katrina McFarland, President, DAU (October 2011)
– Mr. Bill McNally, Senior Procurement Executive, NASA (January 2012)
• On the Docket…
– Mr. Joseph Jordan, Administrator; and Ms. Joanie Newhart, Associate Administrator for
Acquisition Workforce Programs, OFPP
– Mr. Charlie E. Williams Jr., Director, Defense Contract Management Agency
– Rear Admiral (Select) Althea H. "Allie" Coetzee, Executive Director, Deputy Assistant
Secretary of the Navy, for Acquisition and Procurement
– Dr. Carol Lowman, Executive Director, Army Contracting Command
– Dr. Mindy Connolly, Chief Acquisition Officer, General Services Administration
• Add key industry leaders…
HR Outsourcing
• RAFFA Inc. appointed in February to provide HR
Outsourcing services.
• RAFFA Inc. made presentation to all staff.
• Several staff members have utilized services.
• Progress report provided to Executive Committee.