Defense Commissary Agency schedules roundtable for its Fresh Fruit & Vegetable program
Defense Commissary Agency schedules roundtable for its Fresh Fruit & Vegetable program
The Defense Commissary Agency has scheduled an industry roundtable Nov. 16 at the Airport Marriott in Atlanta to discuss the implementation of its Fresh Fruit & Vegetable program.
The roundtable is the result of the success of a recent test to see if a produce business model, based upon commercial practices, could reduce costs to DeCA -- resulting in lower prices and better quality for customers.
The DeCA initiative is expected to create significant interest among suppliers in the commercial sector as the agency sells more than $350 million annually in fresh fruit and vegetables.
DeCA operates a worldwide chain of 268 commissaries providing groceries to military personnel, retirees and their families. Authorized patrons purchase items at cost plus a 5 percent surcharge, which covers the costs of building new commissaries and modernizing existing ones. Shoppers save an average of 30 percent or more on their purchases compared to commercial prices -- savings worth about $2,700 annually for a family of four.
The new produce business model is being included in DeCA's strategic plan and includes web-based, consolidated ordering; receipt reconciliation; competitive bidding based on best quality, service and price; and merchandising support.
"This is a break with business as usual, but we have a mission to provide customers with the best produce at the best prices," said Patrick B. Nixon, acting director and chief operating officer for DeCA. "The recent test indicates this kind of commercial business model may work best to accomplish that mission, so we are pursuing it on behalf of the military families shopping in commissaries."
The initial test involved 20 commissaries in Virginia, Georgia, South Carolina, West Virginia and North Carolina using a Norfolk, VA, distributor. During the test, produce prices dropped even further than the already significant savings usually found in commissaries. Service levels also increased, as did variety and merchandising support.
By reducing paperwork, the new ordering system saved produce managers time, thus freeing them to help customers. The contract utilized approximately 80 small business concerns including local farmers, and disadvantaged and veteran-owned businesses.
Close monitoring of the six-month test by DeCA indicated overall produce quality improved as well as sales as customers discovered the increased savings and improvements in quality and service. As a result of the positive test results, DeCA awarded a competitive two-year commercial contract for the 20 stores in the initial test, plus two overseas locations, in Keflavik, Iceland, and Guantanamo Bay, Cuba.
DeCA officials are also planning to expand the effort to competitively award formal contracts across the United States, the Far East and Europe through a new series of solicitations.
DeCA has always used the Defense Logistics Agency and its procurement agent, Defense Supply Center-Philadelphia, for nearly all fresh fruit and vegetable support. DSC-P also procures for other government facilities, including military dining halls, but DeCA is its largest customer.
The agency has appointed Tom Milks, deputy director of DeCA East as project manager for the transition of produce contracting from DLA to DeCA. A notice has been posted under "doing business with DeCA" at www.commissaries.com.
The roundtable is the result of the success of a recent test to see if a produce business model, based upon commercial practices, could reduce costs to DeCA -- resulting in lower prices and better quality for customers.
The DeCA initiative is expected to create significant interest among suppliers in the commercial sector as the agency sells more than $350 million annually in fresh fruit and vegetables.
DeCA operates a worldwide chain of 268 commissaries providing groceries to military personnel, retirees and their families. Authorized patrons purchase items at cost plus a 5 percent surcharge, which covers the costs of building new commissaries and modernizing existing ones. Shoppers save an average of 30 percent or more on their purchases compared to commercial prices -- savings worth about $2,700 annually for a family of four.
The new produce business model is being included in DeCA's strategic plan and includes web-based, consolidated ordering; receipt reconciliation; competitive bidding based on best quality, service and price; and merchandising support.
"This is a break with business as usual, but we have a mission to provide customers with the best produce at the best prices," said Patrick B. Nixon, acting director and chief operating officer for DeCA. "The recent test indicates this kind of commercial business model may work best to accomplish that mission, so we are pursuing it on behalf of the military families shopping in commissaries."
The initial test involved 20 commissaries in Virginia, Georgia, South Carolina, West Virginia and North Carolina using a Norfolk, VA, distributor. During the test, produce prices dropped even further than the already significant savings usually found in commissaries. Service levels also increased, as did variety and merchandising support.
By reducing paperwork, the new ordering system saved produce managers time, thus freeing them to help customers. The contract utilized approximately 80 small business concerns including local farmers, and disadvantaged and veteran-owned businesses.
Close monitoring of the six-month test by DeCA indicated overall produce quality improved as well as sales as customers discovered the increased savings and improvements in quality and service. As a result of the positive test results, DeCA awarded a competitive two-year commercial contract for the 20 stores in the initial test, plus two overseas locations, in Keflavik, Iceland, and Guantanamo Bay, Cuba.
DeCA officials are also planning to expand the effort to competitively award formal contracts across the United States, the Far East and Europe through a new series of solicitations.
DeCA has always used the Defense Logistics Agency and its procurement agent, Defense Supply Center-Philadelphia, for nearly all fresh fruit and vegetable support. DSC-P also procures for other government facilities, including military dining halls, but DeCA is its largest customer.
The agency has appointed Tom Milks, deputy director of DeCA East as project manager for the transition of produce contracting from DLA to DeCA. A notice has been posted under "doing business with DeCA" at www.commissaries.com.
