Mr. Patrick B. NixonDirector, DeCA

Mr. Patrick B. NixonDirector, DeCA

ALA European ChapterHeidelberg, GEAugust 2, 2006

ALA European ChapterHeidelberg, GEAugust 2, 2006

RelevantRelevant RelevantRelevant

RecognizedRecognized RecognizedRecognized

ResponsiveResponsive ResponsiveResponsive

Performance Measure

FY 2005Goals

FY 2005Actual

FY 2005 Scoring

FY 2006Goals

YTD Execution (June 06)

YTD%

ProjectedEOY

Status

Resale Stocks (Sales) ($M) (Current $)

$5,238.8 $5,368.6 $5,265.0 $4,056.0 77.0

Commissary Operations (Costs) ($M)(Current $)

$1,169.4 $1,165.4 $1,207.5 $869.6 72.0

Surcharge Obligations ($M)1

$279.7 $283.0 $315.0 $148.8 47.2

G

G

G

G

G

G

PerformanceMeasure

FY 2005Goals

FY 2005 Actual

FY 2005 Scoring

FY 2006Goals

YTD Execution (June 06)

YTD%

ProjectedEOY

Status

Facility ConditionIndex (FCI)

79.7 74.94 75 N/A

Major Construction Project Execution

NM1 NM1 >80% of Projects are

Green

N/A

Competitive Sourcing (% of 6392 Positions to Study)

50% 56% Action On Hold FY

2006 NDAA Sec 672 Amended

N/A

Internal Controls Over Financial Reporting

NM1 NM1 Full Compliance

100%

Audit Results of Financial Statements

UO2 UO2 UO2 N/A

1 Not Measured 2 Unqualified Opinion

Y

G

G

NR

NR

G

G

G

G

G

NR

NR

G

G

G

PerformanceMeasure

FY 2005Goals

FY 2005 Actual

FY 2005 Scoring

FY 2006Goals

YTDExecution(June 06)

YTD%

ProjectedEOY

Status

CommissaryCustomerService Survey (CCSS)

4.47 4.55 4.47 N/A

AmericanCustomerSatisfactionIndex (ACSI)

76 77 Meet or Exceed

Industry Average

N/A

Sustain 30%CustomerSavings

30% 32% 30% N/A

G

G

G

G

G

G

NR

NR

NR

PerformanceMeasure

FY 2005Goals

FY 2005 Actual

FY 2005

Scoring

FY 2006 Goals

YTDExecution(June 06)

YTD%

ProjectedEOY

Status

Corporate Development – Succession Planning (Leadership/Managerial Development)

NM1 NM1 0.27% of Current Year End Strength Engaged in

Leadership & Managerial Programs

0.28 104

Implement Prototype Store

NM1 NM1 Prototype Implemented in 7 Stores

2 29

Above Store Level Reengineering

NM1 NM1 100% Centralization

of Above Store Level

Operations by the End of Fiscal Year

135 42.3

NR

NR

NR

1 Not Measured

G

G

G

Sales Growth• $5,030.1 vs. $5,3868.6 – (+6.7%)

Benefit Value• 27.9% vs. 32.0% - (+14.7%)

Patron Satisfaction• 4.23 vs. 4.55 - (+7.6%)

Cost Management (Constant year 2000 $)• $1,102.7 vs. $981.5 – (-11%)

Sales Growth• $5,030.1 vs. $5,3868.6 – (+6.7%)

Benefit Value• 27.9% vs. 32.0% - (+14.7%)

Patron Satisfaction• 4.23 vs. 4.55 - (+7.6%)

Cost Management (Constant year 2000 $)• $1,102.7 vs. $981.5 – (-11%)

Run Like a BusinessRun Like a BusinessBenchmark DeCA Supermarkets

Avg. Sales per Week $494,419 $348,130

Weekly Dollar Sales per Sq. Ft. of Sales Area

$15.82 $ 7.47

Avg. Transaction $59.66 $25.28

Avg. Sq. Ft. per Store 31,260 34,190

Avg. Number of SKU’s 16,682 32,000

Inventory Turns 22.9 13

Stewardship• “Clean Audit Opinion” 4th Consecutive Year

• Identity Theft encryption is Tightest in Military resale

system

• DeCA’s energy use per sq ft is 9% better than the

“Energy Star” rating for supermarkets

• Computer Network Defense Score second highest

in DoD Strong firewalls & intrusion detection protect data Exceeding payment card industry data security

standard for identity protection

• FISMA compliance for all systems certified annually

to OSD

Stewardship• “Clean Audit Opinion” 4th Consecutive Year

• Identity Theft encryption is Tightest in Military resale

system

• DeCA’s energy use per sq ft is 9% better than the

“Energy Star” rating for supermarkets

• Computer Network Defense Score second highest

in DoD Strong firewalls & intrusion detection protect data Exceeding payment card industry data security

standard for identity protection

• FISMA compliance for all systems certified annually

to OSD

Focus Items

• Creates sense of community

• Exciting shopping experience

• Brand name recognition

• High coupon usage

• Pantry loading & convenience

Focus Items

• Creates sense of community

• Exciting shopping experience

• Brand name recognition

• High coupon usage

• Pantry loading & convenience

Focus Items

• Organics

• Health & wellness

• Nutritional leader

• Perimeter operation leader

• Know your customer

• Food safety

• Antiterrorism/Force Protection

Focus Items

• Organics

• Health & wellness

• Nutritional leader

• Perimeter operation leader

• Know your customer

• Food safety

• Antiterrorism/Force Protection

Intel Founder & CEO

“ Sooner or later, something

fundamental in your

business world will change”

“ Sooner or later, something

fundamental in your

business world will change”

Funding• Operational• Capital investment• Antiterrorism and Force Protection

OIGPBS*/BRAC

• Implementation timelines

• Quality of Life

Funding• Operational• Capital investment• Antiterrorism and Force Protection

OIGPBS*/BRAC

• Implementation timelines

• Quality of Life

BRAC

OIGPBS

* Overseas Integrated Global Presence Basing Strategy (OIGPBS)* Overseas Integrated Global Presence Basing Strategy (OIGPBS)

Take the best path over the easy path

Leverage the power of partnership

Take the best path over the easy path

Leverage the power of partnership