American Logistics Association Military Market Facts July 2008

American Logistics Association Military Market Facts July 2008

American Logistics Association A Brief Overview

Our History n 1920 Incorporated as the Quartermaster’s Association (QMA) QMA was composed of officers of the Regular Army, the National Guard, the Organized Reserves, key civilians in the federal government and leaders of industry. QMA disseminated professional information concerning all Quartermaster and related activities, and fostered and promoted a spirit of cooperation and friendly exchange of ideas among the members. n 1961 QMA becomes the Defense Supply Association (DSA) The name was changed in response to the establishment of the Defense Supply Agency, as well as the increasing responsibilities being placed upon the U. S. Army Quartermaster Corps to provide food, clothing and general supplies to all the Armed Forces under Do. D’s single manager concept. The Association was composed of officers of the Armed Forces, key civilians in the federal government and leaders of industry. n 1972 DSA becomes the American Logistics Association (ALA) To eliminate confusion with the Defense Supply Agency, the Association changed its name to the American Logistics Association and adopted the “eagle in the oval” logo. The new ALA carried forward the same objectives of the Quartermaster and Defense Supply Associations. According to an editorial in the July/August 1972 issue of ALA’s Review Magazine, the new name “was chosen to “show clearly who we are, what we do and how we intend to function. ‘American’ must always exalt the pride of patriotism…we believe in our country, in its customs, in its ideas and in its business efforts. ‘Logistics’ is defined as that branch of the military art which embraces the details of transport and supply. ‘Association’ is a union; a connection of persons or things, or a union of persons in a company or society for some particular purpose. ”

Our History n 1974 ALA reorganizes into a national trade association Led by a Board of Directors comprised of representatives from industry, the newly organized association was designed to serve industry and its related interests in military and other government activities. 2005 The ALA Board of Directors revised the mission of ALA to include a focus on Total Quality of Life and MWR/Services. The American Logistics Association promotes, protects, and enhances the military resale and quality of life benefits on behalf of our members and the military community.

Programs and Services n It is our goal to provide valuable programs and services that enable all members to operate effectively and efficiently with the military resale system and services. n ALA is the only organization that can give you the resources and the information you need to succeed. We strive to increase the visibility of the Association and enhance the services that ALA provides its members.

Contact Information n American Logistics Association 1133 Fifteenth Street, N. W. Suite 640 Washington, DC 20005 (202) 466 -2520, Fax (202) 296 -4419 www. ala-national. org

Military Market A Closer Look 49 States 2 U. S. Territories 30 Foreign Countries

Military Resale Market FY 07 Total Sales: $18. 5 Billion

Military Resale Market Sales Trend 2008 $18. 56 B

Military Patrons Active Duty Demographics

Authorized Shoppers Total Shoppers 11. 6 Million Source: Defense Manpower Data Center (DMDC)

Active Duty Military Personnel Trend Source: DMDC

Active Duty Demographics Male Female Age <22 Officers 16. 3% Source: DMDC 202, 949 Enlisted 83. 6% 14. 6% 29% 17% 32 -36 13% 37 -49 85. 4% 22 -26 27 -31 1, 186, 435 23% 17% 50+ . 01%

Military Resale Agencies • • • Defense Commissary Agency (De. CA) Army and Air Force Exchange Service (AAFES) Navy Exchange Service Command (NEXCOM) Marine Corps Exchange (MCX) Coast Guard Exchange Systems (CGES) Veterans Canteen Service (VCS)

Defense Commissary Agency

De. CA Profile Established: 1991 Employees: 16, 358 Headquarters: 1300 E Avenue Fort Lee, VA 23801 -1800 Phone: (804) 734 -8253 Web site: www. commissaries. com Major Distribution Facilities: - CONUS Civilian Distributor Network - Overseas De. CA Central Distribution Centers FY 2007 Sales: $5. 65 Billion Director: Vacant Chief Executive Officer: Richard S. Page, SES Selected Operations and Services: Grocery; Freeze; Chill; Produce Meat; Dairy Deli/Bakery

Mission Statement n Deliver the Premier Quality of Life Benefit to the Armed Services Community - To enhance recruiting, retention and readiness by efficiently and effectively providing exceptional savings and excellent products and superior services EVERYTIME, EVERYPLACE.

De. CA Facts n n n n Annual operating Budget- Congressionally Funded Headquarters- Fort Lee, Virginia FY 2007 Sales- $5. 65 Billion 258 stores (171 in CONUS and 87 OCONUS) Merchandise sold at cost plus 1% to cover shrinkage, plus 5% surcharge applied at register Vendor Stocking-required for some categories Estimated that 45% of De. CA shoppers are retirees Commissaries recognized as the #1 non-pay benefit

De. CA Sales Trends (In Billions)

Commissary Sales vs. America’s Top Food Retailers Company Name Estimated Annual Sales (in billions) 1. Walmart $98. 8 2. Kroger $58. 5 3. Albertsons $36. 3 4. Safeway $32. 7 5. Costco $31. 1 6. Ahold USA $22. 6 7. Publix $20. 1 8. Supervalu $19. 9 9. Delhaise America $16. 5 10. Meijer $6. 7 11. H. E. Butt $14. 4 12. Winn-Dixie $8. 5 13. BJ Wholesale $5. 8 14. Defense Commissary Agency $5. 4 Source: Progressive Grocer Magazine, May 2006

De. CA Does More With Less! Supermarket* Average Selling Area 34, 147 sq. ft. 31, 392 sq. ft. 13 14. 7 $297, 496 $506, 968 Checkout $27, 344 $34, 452 Customer $30. 86 $60. 76 $7. 12 $16. 15 45, 000 16, 829 118 hours 59 15. 3 22. 1 $27. 34 $58. 57 Average Number Checkouts Weekly Sales Per De. CA** Store Square Foot Avg. Number of Items Stocked Avg. Hours Open per Week Inventory Turns Sale per Customer Transaction * Source of supermarket figures: FMI Speaks 2006 **Based on all De. CA CONUS stores with sales of $2 milllion or more per year.

De. CA Sales Store Rank Sales 2007 Transactions #1 Fort Belvoir, VA $95, 680, 209 1, 096, 567 #5 San Diego NB $70, 273, 055 1, 057, 251 #10 Langley AFB $63, 292, 723 985, 652 #25 Wright-Patt AFB $50, 485, 933 677, 811 #50 Kadena AB, Okinawa $37, 882, 636 733, 812 #100 Ft Wainwright, AK $21, 993, 270 386, 591 FY ’ 07 Average Sales Per Store $20. 2 Million Source: Progressive Grocer Magazine, May 2007

De. CA Prices All Merchandise at Cost +1% (shrinkage) + 5% (surcharge) n n No Slotting fees or co-op advertising 100% of all deal money is passed to the patron An ideal test market scenario since the effect of trade funds can truly be monitored

Distance Deters Commissary Store Visits n n The average Commissary is 2. 5 times as far from home as the local grocery store However, by a 2 to 1 margin, patrons are willing to put up with inconveniences to save 30% on their grocery bill

Commissary Consumers Use Coupons Heavily n n n 126. 4 Million coupons redeemed in FY 2007. Total coupon value was $98. 8 Million. De. CA earns approximately $10. 1 Million in handling fees per year. Redemption percentages are generally higher in the military market. Average coupon face value is 78 cents.

De. CA Business Drivers n Promotions via Display (Presented to De. CA Headquarters) q q q Manager Specials: Category leaders, high volume items, deep discounts, normally 7 days, mandated display, administered via automated VCM at Headquarters Power Buy Display: High volume items, excellent prices, mandated quantities and display Primary Display: Required displays (K 1 & K 2 display these to the maximum extent possible) Secondary Display: Optional displays (store discretion) One Time Buys/Shippers: Highly consumable, impulse items Continued…

De. CA Business Drivers n n n n Case Lot Sales: Special events to sell patrons in case increments Dollar Days: Dollar price points and dollar multiples on brand name food items Coupons: On-shelf manufacturer coupons, FSI coupons & Internet coupons all accepted Demos: Very effective and cost efficient Advertising: Several effective Military specific vehicles available In-store De. CA Radio: In most major De. CA stores In-store Floor Advertising: Available for most De. CA stores

Exchange Sales Trends In Billions

Exchanges AAFES, NEXCOM and Marine Corps Exchanges n Operate as Federal Instrumentalities - unique organizations within the Do. D n Self-funded, using few tax dollars n Exchanges pay their own operating costs from Revenues n Return earnings to Customers through payments to Morale, Welfare and Recreation Activities and investments in new, renovated exchange facilities Coast Guard Exchanges n An MWR activity; Coast Guard is part of the Department of Homeland Security Veterans Canteens n Operates under the authority of the Department of Veterans Affairs

AAFES Profile Established: 1895 Employees: 43, 000 Headquarters: 3911 S. Walton Walker Blvd. Dallas, TX 75236 -1598 Phone: (214) 312 -2001 Web site: www. aafes. com Major Distribution Facilities: Forest Park, GA; Newport News, VA; French Camp, CA; Waco, TX; Giessen, Germany; Tokyo, Japan; Yakota, Japan; Inchon, Korea; Okinawa, Japan; Honolulu, Hawaii FY 2007 Sales: $9. 66 Billion Commander: Brigadier General Keith L. Thurgood, USAF COO: Mike Howard Selected Operations and Services: Retail Stores; On-line Shopping Concessions; Catalog Services Food Facilities; Gas and Auto Repair Military Clothing Stores; Movie Theaters Vending Centers, State Department Commissaries

AAFES Regions (5) European Region Main Exchanges Pacific Region Main Exchanges England Italy Alaska Germany Greenland Eastern Region Main Exchanges Guam, Japan, S. Korea, Okinawa Hawaii Western Region Main Exchanges Central Region Main Exchanges Puerto Rico

NEXCOM Profile Established: 1946 Commander: Employees: 15, 000 Rear Admiral Robert J. Biachi, SC, USN Headquarters: 3280 Virginia Beach Blvd. Virginia Beach, VA 23452 Phone: (757) 463 -6200 Web site: www. navy-nex. com Major Distribution Facilities: Norfolk, VA; Chino, CA Pensacola, FL; Naples, Italy Honolulu, Hawaii; Yokosuka, Japan FY 2007 Sales: $2. 30 Billion COO: Michael Good, SES Selected Operations and Services: Retail Stores; Concessions Food Facilities; Gas and Auto Repair Authorized Uniform Stores Vending Centers; Ship Stores

NEXCOM Districts (11) European District Northwest District Northeast District Capitol District Western District Tidewater District (HQ) Japan Guam Hawaii District Cuba Japan District Guam District Mid-South District Southeast District Puerto Rico

MCX Profile Established: 1897 Director: MG. Gen Timothy R. Larson, USMC (Ret) Employees: 3543 Headquarters: 3044 Catlin Ave. Quantico, VA 23134 -5103 Phone: (703) 784 -3800 Web site: www. usmc-mccs. org Major Distribution Facilities: None Deputy Director Business Operations: Michael T. Tharrington Selected Operations and Services: Retail Stores; Concessions Vending Centers; Gas and Auto Repair Food and Hospitality Facilities MWR Programs Marine Corps Exchanges (MCX) are a part of the Marine Corps Community Services (MCCS) on the Marine Corps bases. FY 2007 *Estimated Sales: $793. 3 Million *Cooperative format

MCX Facilities (17) Henderson Hall Quantico (MCX HQ) Camp Allen Barstow Twentynine Palms Camp Pendleton Miramar & MCRD San Diego Yuma Beaufort Parris Island Albany Hawaii Japan Iwakuni Kaneohe Bay Cherry Point Camp Lejeune

CGES Profile Established: 1945 Commander: Employees: 1, 600 Captain Edward Eng Headquarters: 870 Greenbrier Circle Greenbrier Tower II Suite 502 Chesapeake, VA 23320 -2681 Phone: (757) 420 -2480 Web site: www. uscg. mil/mwr Major Distribution Facilities: None FY 2007 Sales: $125. 3 Million Director of Operations: Bob Mc. Ginty Selected Operations and Services: Retail Stores Gas Stations MWR Programs Food Operations (franchised) Vending Centers

Kodiak CGES High-Volume Exchanges Port Ketchikan. Angeles North Coast, Cleveland Astoria Seattle South Portland North Bend New London Staten Cape Cod Island Humbolt Bay Petaluma Baltimore Alameda Yorktown Cape May Portsmouth Elizabeth City Charleston San Pedro Mobile (2) Honolulu Galveston New Orleans St. Petersburg Mayport Clearwater Miami Hawaii Puerto Rico Borinque San Juan

VCS Profile Established: 1946 Director: Employees: 3, 100 MS. Marilyn Iverson, SES COO: Headquarters: #1 Jefferson Barracks Road Building #25 St. Louis, MO 63125 -4194 Phone: (314) 894 -1200 Web site: www. vcscanteen. com Major Distribution Facilities: None FY 2007 Sales: $309 Million Ralph Shalda, SES Selected Operations and Services: Retail Stores, Food Operations (Cafeterias) Personalized Services, Vending

VCS Profile n n Central Buying Office Core Customers: q q q n n Patients (including relatives and friends) Staff and Medical workers Volunteers Average Retail Store size: 1, 500 -1, 800 sq. ft. Approved items are placed in VCS’ Automated Merchandise Catalog (AMC). Items on AMC are available to each canteen for ordering merchandise.

Exchanges - Main Stores CONUS AAFES OCONUS TOTAL 109 51 160 NEXCOM 45 32 77 MCX 17 2 17 VCS 170 0 170 CGES 66 10 76 Total 405 95 500 NOTE: Resale systems combined operate thousands of retail operations including Main Stores, Shoppettes, Troop Stores, Package Stores, Sport Shops, Lawn and Garden, Fast Food, Military Clothing Stores, Gas Stations, etc.

Exchange Sales vs. America’s Top Retailers Wal. Mart Sales (Billions) $315. 7 Target $52. 6 Sears $49. 1 K-Mart $19. 7 J. C. Penney $25. 6 Federated Dept. Stores $23. 4 May Dept. Stores $14. 4 Kohl’s $13. 4 U. S. Military Exchanges $11. 6 Dillards Nordstrom Source: NRF online $7. 7 $7. 1

Exchange Resale Systems Business Drivers n n n Pricing equal to or lower than best customer Voluntary Price Reduction (VPR) Favorable payment terms Marketing funds for: üIn-store demos üPremiums, give-a-ways üTruckload and parking lot sales üContests, sweepstakes üClerk training üScholarships continued. . .

Exchange Resale Systems Business Drivers n Advertising funds for: q Weekly tabloids, In-store flyers q Special programs n Prepaid freight Warehouse allowances Business Processes q Vendor Managed Inventory (VMI) q Same UPC code # for Bonus Packs q Pre-ticketing for certain kinds of merchandise n n

Ship Stores Profile Established: 1909 Headquarters: 3280 Virginia Beach Blvd. Virginia Beach, VA 23452 Phone: (757) 463 -6200 Web site: www. navy-nex. com Major Distribution Facility: Yokosuka, Japan FY 2007 Sales: $84. 2 Million Commander: Rear Admiral Robert J. Bianchi, SC, USN Vic President, Ship Stores Program: Charlie Vaughn Selected Operations and Services: Retail Stores; Vending Machines Laundries; Barber Shops

What Makes Ship Stores Unique? n n n Investment in inventory is constrained q limited storage and display space Assortments reduced to best selling SKU’s Majority of sales occur while deployed Captive market when at sea Store hours restricted while in port or repair yards Requires 24 -72 hour turnaround for deliveries

MWR/ Services MWR, GSA, Department of State

MWR Operations Morale, Welfare and Recreation

MWR is a term given to a complete range of community support, quality of life programs, services, and activities that are provided to members of the Armed Forces and their families on military installations throughout the world.

Operations n n n Each of the military services operates MWR activities Each military service has its own MWR organization, and while they manage similar activities, each does so in its own manner within the broad policy mandates of Do. D Operations are generally decentralized, but there is growing trend toward regional operations in Army & Navy.

Program Funding n n MWR operations are funded with a combination of tax payer funds (appropriated) and self generated funds (non-appropriated) referred to as “APF” and “NAF” respectively NAF is generated through the sale of goods and services by both MWR operations and the Exchanges (dividends)

Programs Categories “A” Title Mission Essential Funds 100% APF Program Examples Fitness Center, Intramural Sports, Libraries, Rec. Centers “B” Community Support 35% NAF 65% APF Youth Program, Child Dev. Center Outdoor Rec. , Rec. Pool “C” Business Operations 100% NAF* Category may determine type of contracting procedures utilized q APF: Defense Federal Acquisition Regulations Supplemental q NAF: Do. D and Service Specific Regulations ** n Do. D Directive 4105. 67 n Do. D Instruction 4105. 71 Source: DMDC Clubs, Golf, Bowling, Retail Stores, Snack Bars Restaurants, Lodging, Marinas *With some limited exceptions ** www. defenselink. mil

MWR’s Most Frequented Facilities Air Force Army Fitness Facilities Libraries Outdoor Rec. Clubs and Entertainment Fitness Facilities Gyms/fields Bowling Libraries ITT Navy Marines Fitness Facilities ITT Fast Food Venues Outdoor Rec. Gyms

Army MWR Operations Headquarters: U. S. Army Community and Family Support Center (CFSC) 4700 King Street Alexandria, VA 22302 Commander: BG Johnson, USA COO: Rich Gorman, SES Phone: (703) 681 -7472 Web site: www. armymwr. com General Information: 2007 Revenues: $778 M APF $953 M NAF Employees: 36, 000 Contains data on: Lodging, Sports, Recreation, Construction, Contracting (How to Do Business), Contracting Officer Listing, Armed Forces Recreation Centers, Child and Youth Programs and more Facilities: Lodging Operations 78 Golf 57 Fitness 236 Clubs, food, beverage, entertainment 227 Key HQ Phone Numbers: Family Programs: (703) 681 -5375 Soldier Programs: (703) 681 -7398 Recreation: (703) 681 -7226 Business Programs: (703) 681 -5203 NAF Contracting: (703) 681 -5244 NAF Construction: (703) 681 -1506 Army Installation Management Agency (IMA) Chief, MWR & Family Support Branch: Arnie Cole Phone: (703) 602 -1812

Marine Corps MWR Operations Headquarters: U. S. Marine Corps Personal and Family Readiness Division 3280 Russell Road Quantico, VA 22134 -5103 Director: MG (Ret) Timothy Larsen General Information: 2007 Revenues: $200 M NAF * $200 M APF* Employees: 13, 319 2007 Recapitalization: $20. 1 M Contains Data On: Semper Fit (rec. /fitness), Family Programs, Business Ops Programs, Personal Services (child/youth), Construction, Contracts, MCX Sites, Buyers Lists, Sales Reports, How to Do Business Facilities: Fitness 53 Food Ops 198 Lodging 7 Golf 11 *estimated Dep. Dir. Business Ops: Michael Tharrington Phone: (703) 784 -9501/9816 (fax) Web site: www. usmc-mccs. org Key Phone Numbers: Dep. Dir. Business Operations: (703) 784 -3800 Public Affairs: (703) 783 -9517 Retail Branch: (703) 784 -3800 Services Branch: (703) 784 -3800 Food & Lodging: (703) 784 -3800

Navy MWR Operations Commander, Navy Installations Command (CNIC) Director, Fleet & Family Readiness Programs: John Baker Phone: (202) 433 -4544 Director, Fleet Readiness Programs: Christian Mehrer Phone: (202) 433 -4538 Headquarters: Commander Navy Installations Command (N 9) 2713 Mitscher Rd SW Washington DC 20373 -5802 General Information: 2007 Resources: $461. 9 M NAF (includes NEX Dividends) $368. 0 M APF (Direct) Employees: 15, 000 (NAF, APF, FN, and MILPERS) 2007 NAF Recapitalization: $52. 8 M Facilities: Fitness 145 Golf Courses 38 MWR Lodges Facilities 26 RV Parks 41 Food Ops 443 Contains Data On: Fitness, motion pictures, ITT, Business Activities, Facilities and Acquisition, Community Support (child/youth), Public Affairs, (How to Do Business) HQ POCs: F&FR Support Center: (Tom Mc. Fadden) (901) 874 -6615/6812 (fax) Web site: www. mwr. navy. mil Other HQ POCs: F&FR Service Center: (Tom Mc. Fadden) (901) 874 -6618/6803 (fax) Marketing/Communications: (901) 874 -4243 Fitness/Fleet Rec: (901) 874 -6802 Media Resources/Motion Pictures: (901) 874 -6537 Recreation: (901) 874 -6640 Food Service: (202) 433 -4640 Lodging Program: (202) 433 -4621 Child and Youth Programs: (901) 874 -6699 Facilities & Acquisition: (901) 874 -6674 Computer Services: (901) 874 -6520 Finance: (901) 874 -6592 Personnel: (901) 874 -6716 Training: (901)874 -6735

Air Force Services Operations Headquarters: U. S. Air Force Services Directorate of Services 1770 Air Force Pentagon Washington, DC 20330 -1770 General Information: 2007 Revenues: $752 M NAF $599 M APF Employees: 47, 247 Director: Arthur Myers, SES Deputy Dir: Linda Egentowich, YC-03 Phone: (703) 604 -0010/0321 (fax) Web site: www. afsv. af. mil Contains data on: Aero Clubs, Child and Youth, Fitness and Sports, Tops in Blue, Lodging, ITT, Mortuary Affairs, Survivor Assistance, Career Program, Faculty Design Guides, Libraries, Golf, Clubs, AFNAFPO, Public Affairs and News 2006 Recapitalization: $131. 9 M Facilities: Fitness Centers 115 Fast Food Ops 108 (Clubs Only) HQ POCs: Programs Policy: (703) 604 -0738 Armed Forces Entertainment: (703) 604 -2429 Child & Youth: (703) 604 -6421 Golf Courses 66 Lodges 93 continued. . .

Air Force MWR Operations: Air Force Services Agency 10100 Reunion Place, Suite 500 San Antonio, TX 78216 -4138 Commander: Col. Fredric C. Ryder, USAF Phone: (210) 652 -6207/7041 (fax) www-p. afsv. af. mil Web site: www. afnafpo. com Includes How to Do Business, Acquisition Data, Smart Buy Program A. F. Services Agency POC’s Community Prgms: (210) 652 -3371 Rec & Business: (210) 652 -3193 Fit & Sports: (210) 652 -7021 Mkting & PAO: (210) 652 -4945 Lodging: (210) 652 -8875 Food: (210) 652 -2619 A. F. NAF Purchasing AFNAFPO HQ AFSVA/SVC 10100 Reunion Place, Suite 304 San Antonio, TX 78216 -4138 Director: (210) 652 -5426 Purchasing Div: (210) 652 -5426

Coast Guard MWR Operations Headquarters: Coast Guard Morale, Well-being, and Recreation 870 Greenbrier Circle Greenbrier Tower II, Suite 502 Chesapeake, VA 23320 -2641 General Information: 2007 Revenues: $15. 2 M NAF $15. 70 M APF Employees: AF/NAF 853 Chief: Captain Edward Eng MWR Director: Gary Scheer Phone: (757) 420 -2480/0659 (fax) Web site: www. uscg. mil/mwr www. cg-exchange. com Facilities: Lodge 30 (excludes RV) Golf Courses 2 Food & Bev Ops 26 Fitness Ops 31 (excludes stand-alone equipment)

GSA Regional Small Business Centers

Lurita Alexis Doan Administrator Federal Supply Service Information Center (FML) Washington, DC 20406 www. gsa. gov GSA’s 12 Regional Small Business Centers (SBCs) can help your small business locate contracting opportunities. They are in place to help small businesses locate GSA buyers for their products and services and understand GSA contracting and schedule procedures. Sales total approximately $25 billion annually.

GSA’s 12 Regional SBCs Region 1 – New England 10 Causeway Street Suite 11 AB Boston, MA 02222 (617) 565 -8100 Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont Region 5 – Great Lakes 230 South Dearborn Street Room 3718 Chicago, IL 60604 (312) 886 -8901 Illinois, Indiana, Michigan, Minnesota, Ohio, Wisconsin Region 2 – Northeast & Caribbean 26 Federal Plaza New York, NY 10278 (212) 264 -1234 New Jersey, New York, Puerto Rico, U. S. Virgin Islands Region 6 – The Heartland 1500 East Bannister Road Kansas City, MO 64131 (816) 926 -7203 Iowa, Kansas, Missouri, Nebraska Region 3 – Mid-Atlantic Strawbridge Bldg. , 20 North 8 th Street (215) 446 -4928 Philadelphia, PA 19107 Delaware, Maryland (except Prince Georges and Montgomery Counties), Pennsylvania, Virginia (except Arlington, Fairfax, Loudoun and Prince William Counties, and the City of Alexandria), West Virginia Region 7 – Greater Southwest 1500 East Bannister Road 819 Taylor Street Fort Worth, TX 76102 (817) 978 -0800 Arkansas, Louisiana, New Mexico, Oklahoma, Texas Region 4 – Southeast Sunbelt 77 Forsyth St. Atlanta, GA 30303 (404) 331 -5103 Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, Tennessee Region 8 – Rocky Mountain Building 41, Room 145 Denver Federal Center P. O. Box 25006 Denver, CO 80225 (303) 236 -7408 Colorado, Montana, North Dakota, South Dakota, Utah, Wyoming Region 9 – Pacific Rim 450 Golden Gate Ave. San Francisco, CA 94102 (415) 522 -2700 Hawaii, Nevada (except Clark County), Northern California Room 3108 300 North Los Angeles Street Los Angeles, CA 90012 (213) 894 -3210 Arizona, Nevada (Clark County), Southern California Region 10 – North West/Artic Room 2413 400 Fifteenth Street, SW Auburn, WA 98001 (253) 931 -7956 Alaska, Idaho, Oregon, Washington Northern Capital Region (NCR) Room 1050 301 7 th St. , SW Washington, DC 20405 (202) 708 -5804 District of Columbia, Maryland (Prince Gorges and Montgomery Counties), Virginia (Arlington, Fairfax, Loudoun and Prince William Counties and the City of Alexandria)

Office of Commissary and Recreation Affairs (CR), U. S. Department of State ● The Secretary of State has the legislated authority to establish and operate employee associations at U. S. diplomatic missions abroad, and the staff of the Office of Commissary and Recreation Affairs (CR) supports and oversees these associations. There approximately 125 associations, whose members are from both the civilian agencies of the USG as well as the various military units under the jurisdiction of the Chief of Mission. Continued…

Office of Commissary and Recreation Affairs (CR), U. S. Department of State ● The associations average under $500, 000 on gross annual revenues. Sales total $44 million annually. The majority of them are located in developing countries where goods and services are either difficult to acquire, expensive, unsafe, unavailable or all of the above! Some associations offer little more than a few conveniences such as a snack bar or a video club. Others run more extensive facilities more in line with those of the military. Each association is responsible for its own procurement — there is no centralized procurement. However, CR assists associations by providing them with appropriate sources of procurement through the Supplier Directory and our contacts in the industry. Continued…

Office of Commissary and Recreation Affairs (CR), U. S. Department of State ● Although the employee associations differ from the military in size and scope there is one overriding similarity: the mission to provide high quality goods and services to support the morale and welfare of Americans serving our country abroad. To this end, CR invites any and all interested supplier to contact us by fax or e-mail. We invite any interested companies to review our internet site to get a better idea of the kinds of information important to our employee associations. It can be found at: www. state. gov/m/a/c 8225. htm. SA-1, Room L 304 Washington, D. C. 20522 -0101 202 -663 -1330, Fax 202 -663 -1329 Email: foodandfun@state, gov

The Military Market Facts Presentation has been brought to you by the American Logistics Association. Advocates for Military Total Quality of Life www. ala-national. org