Mr. Philip E. Sakowitz, Jr. Director, DeCA

1. DeCA Update Mr. Philip E. Sakowitz, Jr. Director, DeCA Atlanta June 2010

2. Work Hard, Play Hard Top 3 Funniest Stories Huge Fans at Supervalu Russ Moffett’s Golf Swing CSM Garcia’s Safety Guidance

3. 1 2 Urgent and Important Important But Not Urgent IMPORTANT 3 4 Urgent But Not Important Not Important, Not Urgent URGENT Strategic Performance

4. Leadership & Management The Honorable Clifford L. Stanley Under Secretary of Defense Personnel & Readiness Lt Gen Richard Y. Newton III, USAF Chairman Board of Directors

5. DeCA Executive Leadership “Diversity is Our Strength”

6. How Are We Doing?

7. Customer Savings Updated savings figures for commissary shoppers based on August 2009 USDA figures for retail grocery store food purchases consumed at home: X 31.7% average savings = – FAMILY of FOURsaves nearly$3,300annually – FAMILY of THREEsaves nearly$2,600annually – A COUPLEsaves nearly$2,100annually – SINGLESsaves over$1,100annually

8. Customer Service • Commissary Customer Satisfaction Survey (CCSS) • Patron Satisfaction • 4.67 (out of 5.0) ALL-TIME HIGH! • American Customer Satisfaction Index (ACSI) • National average for commercial grocers: 76 • DeCA’s score: 78

9. FMI's Top 4 Hassles • Standing in Line • Out of Stock • Incorrect Pricing • Uncleanliness

10. FMI's Hassles • Standing in Line • Modern front end systems with SCOs • One-line queuing system for high customer traffic • Store associate flexibilities to work front end • Bagger service • Out of Stock • QAEs monitor stocking compliance • Store associate flexibilities to work in areas needing attention

11. FMI's Hassles • Incorrect Pricing • Lack of flexibility in pricing is a strength • Electronic Shelf Labels • Uncleanliness • Janitorial services contract compliance • Meat, produce, deli/bakery, dairy cleanliness emphasis

12. Commissary… No Hassles

13. Bagger Management • Baggers perform valuable service for commissary customers • Presence on installation: military commander access issue • Presence in commissary: DeCA management issue • Is bagger’s presence in Agency’s best interest? • Store director’s responsibility, INHERENT AUTHORITY, to manage bagger presence • Management needs to make decisions, take action based on: • Safety • Security • Good order • Customer Service

14. ANY PROBLEMS ? Contact Victor.Garcia@deca.mil

15. Fiscal Accountability • “Unqualified” opinion of financial statements for the 8th straight year! • First place finish for 2009 Statement of Assurance • DoD Financial Management Process Improvement (HQ & Major Command Level) Individual Award – Streamlining Receiving Process – Marc Petit • DeCA’s Internal Control Program was showcased by OSD at the DoD Internal Control Conference and in the FY 2010 Reporting Guidance

16. NAS, JRB, New Orleans, La. Eglin AFB, Fla. New Fort Bliss, Texas Moody AFB, Ga. New Fort Riley, Kan. Fort Campbell, Ky. New /Renovated Stores Opening in 2011 New

17. Putting Surcharge to Use $=Millions

18. Guard & Reserve Support • FY 2009: 165 on-site sales generated • $9.1M in sales • 82,888 Patrons served • FY 2010: 160 on-site sales scheduled (150 goal) • 87 events accomplished through May 28th • $5.4M in sales • 43,357 Patrons served

19. "Going Green" • Energy Efficient Savings Dayspromotion featuring “Go Green” products • April 22-May 5, 2010, promotion, coinciding with Earth Day (April 22) and Arbor Day (April 30) is our third annual environmentally themed sale • CFL (Compact Fluorescent Lighting) • % CFL bulbs to total bulbs was 16.5% in FY 2009 up from 5.2% in FY 07 • Since FY 2007 over 3.5 million CFL Bulbs sold • Reusable grocery bags • Over 3.05 million DeCA imprinted non-thermal bags have been sold since October 2007 • Over 821,000 non-imprinted thermal bags sold since 2005

20. Where We're Going

21. Sunday Premium • Decision in Fathauer V. United States • Part-time employees are entitled to Sunday premium pay if they work on Sunday • All eligible part-time employees are to be paid retroactively from May 26, 2009, forward • DFAS system change request is effective pay period ending June 5, 2010 • In addition, OPM has instructed agencies to pay claims six years from date claim filed

22. Legislative Issue • 3% Withhold • Tax Increase Prevention and Reconciliation Act of 2005 • 3% withholding on all payments of $10,000 or more to contractors of Federal, State, and local government • Implementation delayed several times – now January 1, 2011 • Legislative repeal has been proposed • Reported out favorably by HASC Special Panel on Defense Acquisition

23. NSPS Closeout • Converted 2,238 employees to NSPS October 2007 to March 2008 • Retreated 2,473 employees back to GS on May 9, 2010 • Revert to legacy performance management system • Five tiers for job performance ratings • Rating period extended to August 9, 2010 • Will include performance from October 1, 2009 to August 9, 2010

24. Where We're Going Actions in Our Control

25. CLASS • “One DeCA” Standards • Centers of Excellence and Service Analysis Teams review of draft standards • Consider grocery industry best practices • Provide recommendations based on analysis • Decision Support Tool • Manpower Staffing Standards • Time measurements by task summarized • Developing man-hour standards

26. Strategic Planning Focus Items • Value of the Benefit Quality of life, military readiness, and cost avoidance • Workforce Renewal Workforce development and succession planning • Business Transformation Aligning people, processes, and technology to the strategic vision • Continuous Process Improvement Improved processes – reduced costs for DeCA, industry and stakeholders • Relevancy of the Benefit Maintaining the savings and customer service

27. Workforce Development Training With Industry • Benefit from industry best practices, innovation & strengthened partnerships • Duration of assignment – 60 days • Target participant – to GS 11 and GS 13 • Recommendations by Headquarters/Regional leadership • Applications reviewed by Commissary Career Board • Final approval of candidate selections by ESC • Solicitation for candidates – August 2010

28. Partnerships & Campaigns • Military Resale Industry (Exchanges) • Morale Welfare & Recreation (MWR) • Private Organizations • DeCA Patron Council • Defense School System (DODDS) • Scholarships for Military Children • Industry

29. Partnerships • DoD wellness campaign promoted to employees via OneNet • DoD ‘Spring Into Action’ Fitness Challenge • Ongoing partnership promoting USDA’s health initiative to DoD community • ‘Let’s Move’ new initiative to combat childhood obesity • Food for Thought Program in partnership with DoDEA • Food Demonstrations Targeting Nutritional Needs of Children

30. ALL BRANCHES ALL RANKS GUARD & RESERVE FAMILIES & SPOUSES RETIREES Outreach • Continued focus on the commissary benefit awareness • All outreach must be successful • Must be a good steward of taxpayer dollars Your Text here

31. Value of the Commissary Benefit Quality of Life Military Readiness • Savings • Ancillary Support • Military Related Employment • Peace of Mind • Recruitment • Retention Cost Avoidance Other Factors • Defense Transportation System • Commissary Role in Computing COLA • Emergency & Contingency Planning • Government Goal Support • Cultural Support

32. Communication Capabilities Increasing DeCA’s Reach in a Short Time • Facebook • 3,700+ followers in 7 months and growing • Twitter • 2,700+ get DeCA Dietitian tweets • You Tube • Flickr • Internet Radio Social Media Presence Supplements Print, Broadcast and Internet Media for Greater Audience Reach

33. Do's and Don'ts • CLASS • Customer Service • Prices • Partnerships • Balance • Passion

35. "The Commissary It's Worth the Trip"

36. Thank You!