Operations Report

1. Operations Report Neal J. Couture, CPCM Executive Director Board of Directors Meeting Arlington, Virginia December 11, 2010

2. Action Items from BOD Meetings • Send top three priorities of what association should focus on this program year, along with goals to measure success. (July 2010) Assigned to: BOD Status: Done.

3. Chief Knowledge Officer • Search continues – 100 applications received, 10 candidates interviewed. • Re-advertised position as Federal Acquisition Analyst – 10 applications to date, 1 candidate interviewed. • In negotiations with CKO candidate – senior defense acquisition professional with 25 years experience, teaching experience, human capital programs. • Challenge is location – Ashburn.

4. ISM • Executive Director Neal Couture met with Paul Novak, Chief Executive Officer of the Institute for Supply Management (ISM) on October 14, 2010. • ISM lukewarm to discussion of alliance. Unsure of risks vs. rewards. • Possible interest in shared operations. • Agreed to meet again on date undetermined to review operations to look for possible opportunities.

5. NIGP • Investigated opportunity for NCMA to produce NIGP’s periodical magazine. • NIGP would provide content • NCMA would edit, design, produce and distribute magazine • Network Media would sell advertising in magazine • Provided preliminary data to NIGP for discussion. • CEO presently discussing with NIGP board and staff • Next steps: • Await NIGP response • finalize business case to assess risks vs. benefits • draft agreements

6. Collaboration with Education Partners • Researching for possible business case. • Goal is to increase NCMA's presence in educational programming. Motivated by expectations and demands of members as articulated in annual membership survey. • Meeting with educational partners Thursday to gauge interest in participating in a new education collaboration. • The approach we are considering is to bring partner educational programs to NCMA members under the NCMA brand. • NCMA's role would be to market, sell and provide logistics. • Partners’ role would be to provide the course content, materials, and speakers.

7. Finance • Favorable YTD variance in net revenue: $488.9 K • Reserves are $2.147 million, which is 32.6% of operating budget ($6.581 million). • YTD investment gains: $155K • $100,000 contribution to reserves from operations in November 2010 • Positive audit results. • Caution! Advertising sales revenue slowing.

8. Financial Report Update 2.9% positive variance over budget.

9. Financial Report Update * World Congress timing change 6.8% positive variance in expenses from budget

10. Financial Report Update * World Congress timing change $446,000 positive variance in net gain year to date (5 months)!

11. Membership • 19,961 members as of 12/1/2010. Negligible change from beginning of year. • Revenue down in Q1-Q2 FY2011 due to pre-paid dues from last dues increase. • Project that revenue will return to budget profile in Q3FY2011. • Retention rate: 80.6% remains consistent.

12. Goals are based on FY2010-11 Budget

13. Chapter Relations • Annual Chapter Feedback report completed • Overall satisfied with support from NCMA • Virtual chapter chartered and operating • 200 members • Executive Briefing Series • Meet-up at GCMC • Chapter grants awarded • Caution! Tax reporting liabilities.

14. Conferences • GCMC 2010 exceeded attendance and revenue goals! • 600 “paid” • 980 in attendance (badged) • 85 exhibitors • 30 career fair exhibitors, ~200 participants • Risk Factor: GCMC size and configuration creating site selection challenges. FY2011 sites under review.

15. Conferences (cont.) • Planning for ADC 2011 in Glendale, AZ in March 2011 in process. • Karl Bird, JPL Acquisition Director, Chair • Forecast to meet budget. • World Congress 2011 in Denver, CO in July 2011 in process. • Elliott Branch, U.S. Navy Executive Director for Acquisition, Chair • Presentation proposals being submitted through 12/31/2010. • Forecast to meet budget.

16. Education • Risk factor: Conducted fewer webinars than planned due to topic and speaker selection, workload issues. • Mitigation plan: new CKO/analyst hire will significantly contribute in this area. • CFCM Online Preparatory Program • 25 students • Volunteer instructors: Beverly Arviso, Tom Reid, Michelle Currier, Neal Couture • Offered only to candidates already admitted for CFCM examination. • Next class starts 1/2010: sold out in 1 week. • Considering adding sessions using paid instructors.

17. Certification • Transactions and revenues exceed budget year to date. • Applications up 56%; • Certifications awarded up 74%7. • Increasing size of exams from 110 to 150 questions in January. • Proposal to major aerospace company to provide certification to up to 1,000 employees.

18. Advertising Sales and Creative Services • Journal published on schedule in September • Website page views up 65% • Website redesign project: launch late winter • Caution! Advertising sales at risk due to extended economic recession.

19. Standards • Risk factor: schedule delays, resource allocation; mitigated by impending hire of CKO/analyst • CMBOK project: Job analysis report complete, CMBOK draft through review, Wiki to launch January. • Community validation and comment on draft CMBOK • Placement study: research plan modified to incorporate interviews and focus groups at World Congress 2011 in Denver. • CM2 project: to be assigned to CKO/analyst • Annual salary survey: as scheduled

20. Core Operations - Facility • Couture re-elected to Cape Court Condo Association for 3 year term. • Cambria Tidwell is appointed Secretary; Sam Smith is financial advisor. • Significant reserves issue caused by developer’s malfeasance. • Researched opportunity to acquire neighboring suite. • Have now fully occupied the existing space. • Acquisition and build-out costs do not justify purchase at this time.

21. Core Operations - Staff • Wyatt Miedema, IT Manager serving active duty Army in Bahrain until April. • Hired contractor to provide services • Trained employee to cover routine tasks • Revised plan for communities: implementing spring 2011. • Turnover: 4% YTD