Joint Services Prime Vendor Program Update Brief Foodservice

Joint Services Prime Vendor Program Update Brief Foodservice Ashore Solutions 2016 IMCOM delivers and integrates base support to enable readiness for a globally-responsive Army WE ARE THE ARMY’S HOME V 7 Dr. Peter Craig / IMCOM G 9 / 210 -466 -1287 / peter. craig. naf@mail. mil 1 15 June 2016

Our mission & what it means to you Ø To be the premier Non-Appropriated Fund acquisition, sourcing, and procurement organization for the Department of Defense food services for our Service Members and their Families worldwide 1. Combine your purchasing volume to secure lower product costs 2. Army NAF Contracting solicits bids from food distributors and awards contracts to best overall quality/logistics/price bids 3. Monitor purchases through a price verification process 4. Simplify the rebate and incentive process Bottom Line: Reduce food cost V 7 Dr. Peter Craig / IMCOM G 9 / 210 -466 -1287 / peter. craig. naf@mail. mil 2 15 June 2016

JSPVP at a Glance $158. 8 M Annual Sales $1. 01 M Rebates $264 K Incentives 2015 Joint Services Prime Vendor Program Results V 7 Dr. Peter Craig / IMCOM G 9 / 210 -466 -1287 / peter. craig. naf@mail. mil 3 15 June 2016

JSPVP Participation Others $2. 6 M Marines $22. 8 M Army $85. 3 M Navy $48. 1 M Army Navy Marines Others V 7 Dr. Peter Craig / IMCOM G 9 / 210 -466 -1287 / peter. craig. naf@mail. mil 4 15 June 2016

Navy Footprint Ø Navy global FY 15 footprint at $48. 1 M is 30. 3% of total JSPVP purchases 1. Navy Bases – $43. 9 M 2. Navy Exchanges – $3. 5 M 3. Navy Lodging – $700 K Ø Shout-outs: Annapolis – $6. 9 M Bahrain & San Diego – $2. 5 M Sasbo, Pearl, Atsugi, Coronado, Pensacola, & Great Lakes – $1. 1 M to $1. 4 M V 7 Dr. Peter Craig / IMCOM G 9 / 210 -466 -1287 / peter. craig. naf@mail. mil 5 15 June 2016

Navy Footprint Ø Purchased by category: ü ü ü Groceries - $10. 9 M Meat - $9. 1 M Frozen - $7. 3 M Poultry - $5. 7 M Dairy - $5. 2 M Paper Goods - $3. 6 M Ø JSPVP Paid $276, 672 in Rebates Ø FY 15 Purchase Volumes: ü ü 240, 900 dozen shell eggs 1, 139, 427 pounds of French fries 508, 000 pounds of chicken breasts 88, 956 gallons of salad dressing Dr. Peter Craig / IMCOM G 9 / 210 -466 -1287 / peter. craig. naf@mail. mil 6 V 7 15 June 2016

Navy Footprint Ø In FY 15 Navy accounts purchased 17, 551 cases of assorted cereal Ø JSPVP Kellogg’s off-invoice deviated allowances averaged $6. 51/case. Direct benefit to the Navy for participating in the JSPVP: $114 K Ø Rebates paid on 88, 956 gallons of salad dressing? $33 K V 7 Dr. Peter Craig / IMCOM G 9 / 210 -466 -1287 / peter. craig. naf@mail. mil 7 15 June 2016

How Do You Save? • • Contracted Prime Vendor Margins Save You $$$ Cornerstone Program Navy Savings $74 K World Class Customer Service One Point of Contact for PV Issues US Foods CMA Pricing New Rebate Program Payment Term Savings JSPVP Biz. Board link: www. mwrbrandcentral. com/BO/ V 7 Dr. Peter Craig / IMCOM G 9 / 210 -466 -1287 / peter. craig. naf@mail. mil 8 15 June 2016

Food Safety Ø The recent Pilgrim’s Pride Chicken recall highlights the need for immediate communication with the field Ø Typical Process: § PVs notified by manufacturers of products involved in recall § PVs cross-check to determine if any of you received the affected products § If you received recalled product, you will be instructed how to proceed § JSPVP follows up directly with PVs as well as registers with USDA for faster notification and awareness V 7 Dr. Peter Craig / IMCOM G 9 / 210 -466 -1287 / peter. craig. naf@mail. mil 9 15 June 2016

Current Prime Vendors 5 contracts with 4 Prime Vendors Ø US Foods - all CONUS Accounts (except AK) Ø Sysco Eastern Maryland* – Bahrain, Rota Spain, & Souda Bay Ø HFM - Pearl Harbor Ø Bi. Rite** - Pacific Rim Notes: * Europe being resolicited (Fall 2016 Award) ** Pacific Rim being resolicited (Fall 2016 Award) V 7 Dr. Peter Craig / IMCOM G 9 / 210 -466 -1287 / peter. craig. naf@mail. mil 10 15 June 2016

PV Value Added Services • Paid $64. 7 K in drop size incentives & new customer bonuses in FY 15 to the Navy • On-line ordering system with out of stock notices • Material Safety Data Sheets (MSDS) for all chemical purchases • Menu Profit Builder calculates costs, margins & nutritional information • Chef assistance/training & product cuttings • Central Order Guide Management (COGM) • Menu Design & Printing (fee for service) • Organics V 7 Dr. Peter Craig / IMCOM G 9 / 210 -466 -1287 / peter. craig. naf@mail. mil 11 15 June 2016

Contracted Manufacturer Agreements Ø Contracted Manufacturer Agreements (CMAs) provide discounts on products that can range from 5% to over 50% depending on the product category Ø Premier’s Manufacturer Agreements provide discounts on over 300, 000 products from over 250 product categories Ø Savings through deviations, rebates, and allowances Ø For more information about US Foods-Premier, go to: http: //www. uscommunities. org/suppliers/premier-us-foods/ V 7 Dr. Peter Craig / IMCOM G 9 / 210 -466 -1287 / peter. craig. naf@mail. mil 12 15 June 2016

CMA Growth Chart V 7 Dr. Peter Craig / IMCOM G 9 / 210 -466 -1287 / peter. craig. naf@mail. mil 13 15 June 2016

Centralized Order Guide Management Ø A powerful, easy-to-use tool Ø Puts the customer in control of which products your locations order Ø Gain direct, real-time management of each locations’ Master Shopping List Ø Helps maximize consistency and contract utilization for better pricing Ø Standardizes products among locations and across divisions V 7 Dr. Peter Craig / IMCOM G 9 / 210 -466 -1287 / peter. craig. naf@mail. mil 14 15 June 2016

COGM Screen Shot V 7 Dr. Peter Craig / IMCOM G 9 / 210 -466 -1287 / peter. craig. naf@mail. mil 15 15 June 2016

PV Value Added Services • On-line ordering system features catalogs, product guides & flyers • Corporate Chef • Market & Industry Trend Reports • Pro. PLUS Chemical Division including Df. E (designed for the environment), Green, and LEED approved products • Menu Management with recipes, nutritionals, cost analysis and profit planning • Food shows featuring new products V 7 Dr. Peter Craig / IMCOM G 9 / 210 -466 -1287 / peter. craig. naf@mail. mil 16 15 June 2016

PV Value Added Services April & May 2016: Bi. Rite held two food shows and 3 staff trainings. Pictured here at Dragon Hill Lodge in Korea V 7 Dr. Peter Craig / IMCOM G 9 / 210 -466 -1287 / peter. craig. naf@mail. mil 17 15 June 2016

PV Value Added Services Hawaii Flour Mills • HFM Plus on-line ordering program • Menu analysis, engineering, and design • Customer specific order guides based on purchase history • Shelf-to-sheet inventory guides • Purchase history reporting V 7 Dr. Peter Craig / IMCOM G 9 / 210 -466 -1287 / peter. craig. naf@mail. mil 18 15 June 2016

PV Value Added Services Sysco Eastern Maryland • Sysco Market on-line order system • Kids Live Well program – teaching and menus available • Reporting functions – purchase history & ad hoc reporting available • In-house brands save $$$ • On/off site training, menu analysis, culinary reviews, trends, and menu engineering V 7 Dr. Peter Craig / IMCOM G 9 / 210 -466 -1287 / peter. craig. naf@mail. mil 19 15 June 2016

Our Ongoing/Future Initiatives Ø Simplify business processes Ø Enhanced training opportunities with Prime Vendors, Mfg. , and food shows Ø Convert incentives to off-invoice allowances Ø Business Analytics Capabilities Ø Price Verification Ø COGM/Preferred Items V 7 Dr. Peter Craig / IMCOM G 9 / 210 -466 -1287 / peter. craig. naf@mail. mil 20 15 June 2016

JSPVP - How Do I Sign Up? ØAll Do. D NAFIs are eligible to access the benefits of the JSPVP. To enroll in this program: • Go to www. mwrbrandcentral. com/bo/ and click under FB&E, then JSPVP • Download and submit a completed application • NAF Contracting sends a contract modification to the PV • When the contract modification has been signed & countersigned, the contract modification will be considered executable and your savings will begin! V 7 Dr. Peter Craig / IMCOM G 9 / 210 -466 -1287 / peter. craig. naf@mail. mil 21 15 June 2016

Contacts Uttam Barua F & B Branch Chief 210 -466 -1293 uttam. barua. naf@mail. mil Clemente Berrios, Jr. Ph. D. (c) Program Lead 210 -466 -1295 clemente. berrios 2. naf@mail. mil Thomas Barclay Sr Business Analyst/Program Enrollment 210 -466 -1285 thomas. barclay. naf@mail. mil Brad Puterbaugh Field Liaison Action Officer/Prime Vendor COR 210 -233 -8177 brad. a. puterbaugh. naf@mail. mil V 7 Dr. Peter Craig / IMCOM G 9 / 210 -466 -1287 / peter. craig. naf@mail. mil 22 15 June 2016

Q&A V 7 Dr. Peter Craig / IMCOM G 9 / 210 -466 -1287 / peter. craig. naf@mail. mil 23 15 June 2016