Operations Report

Al Boykin, CPCM, CFCMCLO & Interim Executive Director

Sam Smith, CPACFO & Interim Chief Operating Officer

Board of Directors MeetingAustin, TXMarch 24, 2012

Action Items from BOD Meetings1. Review NCMA’s committee structure; consider whether the

committees are aligned to our strategy, and if charters are aligned with the practice. Following discussion at November 13 Board meeting, present revised recommendations at March 24 Board meeting.Assigned to : Penny White, Chair, Governance CommitteeStatus: Revised recommendations briefed today.

2. Provide the concept maps (output from mind mapping sessions) to the CMLDP for review and comment to gain further insight on the future of the profession and the association.Assigned to: Michelle Currier, Chair, CMLDP Oversight CommitteeStatus: Complete, feedback from CMLDP directed to Michelle Currier.

Finance

•Year to Date numbers as of close of February 2012•Revenue: $5,269 million vs. $5.316 million budgeted

– 0.9% negative variance from FY 12 budget– 1.2% positive variance from last year

•Net operating gain: $597K vs. $404K budgeted– 48% positive variance from FY 12 budget

Higher contribution from Membership, Meetings; lower Marketing expenditure partially offset by lower Advertising contribution.

– 33% negative variance from last year

Lower contribution from Advertising and higher Administration costs (2 additional staff CLO and Jr Accountant, and legal costs) partially offset by higher Membership contribution

Finance

•Reserves are $2.56 million, which represents 4.5 months of budgeted operating expenses - ($6.826 million).

•YTD investment gain: $71K

Finance (cont.)

•Concerns: – Advertising:– Revenue is down on budget and history – particularly

CMJobs.com. Expected to continue to be weak – in both CMJobs.com and Print.

– Meetings: – ADC – Expected paid registration for current conference is 115,

FY 12 Budget 185 (revised during EAC to 150), FY 11 Phoenix 147, FY 10 San Diego 234. Trend is downward – Discussion of conference included under new business.

Salaries and benefits as % of revenueASAE Operating Ratio Report – 2009 Data (Latest Available)

FY12 Budget

FY12 EAC

FY11 FY10 FY09

NCMA 35.8% 38.0% 31.0% 32.3% 32.7%

Increase in FY 12 EAC percentage is as a result of projected lower sales – Salaries and Benefits remain unchanged at $2.5 million for both Budget and EAC

$5m to $10m

Average 36.0%

Median 37.3%

6

Number of employeesASAE Operating Ratio Report – 2009 Data –(Latest Available)

FY12Budget

FY12 EAC

FY11 FY10 FY09

NCMA 27.25 26.70 25.25 21.0 26.5

$5m to $10m

Average 46.4

Median 37.0

7

Revenue per employeeASAE Operating Ratio Report – 2009 Data (Latest Available)

FY12 Budget

FY12 EAC FY11 FY10 FY09

NCMA $262,016

$252,561 $276,156 $273,226

$227,280

$5m to $10m

Average $251,247

Median $175,447

8

Operating Profit %ASAE Operating Ratio Report – 2009 Data (Latest Available)

FY12 Budget

FY12 EAC FY11 FY10 FY09

NCMA 4.4% 1.7% 12.5% 12.8% 0.0%

$5m to $10m

Average 1.2%

Median 1.6%

9

Membership

February 29, 2012 February 28, 2011

Members 21,679 20,317

1.75% increase

Membership

• New member benefits – complimentary webinars based on membership type.

Chapter Relations

• Mid-Year Leadership Conference was held in January 2012 in Las Vegas– Evaluations – similar overall results as 2011

• 80.3% rated excellent or very good overall• 84.3% would recommend to their colleagues

– Attendance exceeded budget – 163 paid (137 reg/26 student) vs. 155 paid.

– Breakout sessions were a success, will add addl breakout sessions in 2013.

• Leadership Summit tied to World Congress in Boston on July 28– Based on history, moved from stand-alone event to smaller event tied

to WC2012. – Addl training via webinars on demand will be added for use by all

volunteers.

Chapter Relations (cont.)

4-4:30pm Intro of NCMA New EDMary Beth Lech, Chapter Relations Manager

4:30-5pm Strategic Vision for NCMA & the Duties of Chapter Leaders

Elliott Branch, PresidentNew ED

5-5:15pm Break

5:15-5:45pm Calendar of Events & Chapter Resources

Mike Wright, Chapter Relations Specialist

5:45-6pm SWOT Analysis Tom Kelkis, Past PresidentMary Beth Lech

6-6:30pm Planning Your Chapter Program Year & Chapter Events

Carly Cox, Dayton Chapter Past PresidentKiel Anderson, Boston Chapter Co-VP of Programs

6:30-7:30pm Networking Reception and Activity

Chapter Relations (cont.)

• Chapter grants:– All chapter grants for PY11 were accounted for $7,600 in unused

funds were returned to NCMA.  – For PY12, 35 chapters submitted 86 grant requests totaling over

$187,000. $50,000 was budgeted for distribution, all but $43.13 distributed. 

• Virtual Chapter: 314 members, 131 international – Increased participation in monthly chapter meetings (via

webinar).

Conferences

• GCMC November 2011 in Bethesda, Maryland:– Revenue up 15% from budget and 5% from prior year– GCMC 2012 at DC Renaissance, Nov 5-6, 2012

• ADC March 2012 in Austin, Texas (under review due to declining attendance): – 115 paid attendees, 38% below budget and 22% below prior year– Exhibitor/Sponsor revenue approximately $63K – (Budget - $45K)– Discussion of conference under New Business

• WC July 2012 in Boston, Massachusetts:– 63% of exhibitor/sponsor budget sold (50% at comparable time last year)– New presentation abstract submission management system utilized – total of

230 abstracts received ~ highest ever– 3 of 6 keynote speakers secured– 18 tracks, 120 breakout sessions selected; notifications NLT 30 March– 3 plenary panels in development– Mobile WC app will be launched

World Congress 2012 – Boston!

World Congress 2012 – ScheduleConference Theme: “Contract Management & 2020 Transformational Leadership:

Leading the Way Through Uncertain Times”

Sunday ~ Keynote: Tom Ridge

Monday ~ Theme (Leadership): “Bringing Leadership to the Business of Public Procurement”

Keynote: Dov Seidman (Tentative): “The Generational Leader… Building Leadership Teams Today to Meet the Challenges of Tomorrow…Executive Panel: “The Generational Leader… Key Leadership Traits for the 21st Century”

Tuesday ~ Theme (Cost Efficiency & Budget Effectiveness): “Economic Realities & What We Do About Them”

Keynote: (TBD): “Meeting Today’s Economic Challenges to Build Tomorrow’s Future”Executive Panel: “Economic Effectiveness & Efficiency ~ Leadership & Organizational Strategies for Success”

Wednesday ~ Theme (Senior Procurement Leader Perspectives): “Beyond the Challenges… Navigating the Path to Success”

Keynotes: Robert Fogarty, “Dear World” / Les Brown, Motivation & Leadership***** Theme: “The Importance of Persistence & a Positive Attitude to Achieving Greatness in Difficult Times”Executive Panel: “Making Good on the President’s Promise… A Procurement Process that Works Better… Achievements We Can Be Proud Of”

Breakout Sessions: 230 Abstracts (Highest ever) >>> 6 Tracks >>>> 118 different sessions…

World Congress 2012 – Educational Breakout Sessions

Received a total of 230 topical abstracts ~ highest ever!-- Vetting process complete; notifications NLT 30 March

18 Tracks – total of 120 sessions

1. ACQUISITION STRATEGY, PLANNING, AND SOURCING2. BUSINESS AND PROPOSAL DEVELOPMENT 3. CONTRACT NEGOTIATION AND NEGOTIATION SKILLS4. CONTRACT PERFORMANCE AND ADMINISTRATION 5. CONTRACT LAW AND COMPLIANCE 6. PROGRAM AND PROJECT MANAGEMENT 7. SUBCONTRACTING 8. COST ESTIMATING AND PRICING 9. ACCOUNTING AND FINANCIAL MANAGEMENT 10. HUMAN CAPITAL AND CAREER MANAGEMENT11. LEADERSHIP DEVELOPMENT 12. NEW PROFESSIONALS 13. COMMERCIAL AND INTERNATIONAL CONTRACTS 14. CASE STUDIES: LESSONS LEARNED IN THE REAL WORLD15. AGENCIES 16. TECHNOLOGY 17. CPCM CONTRACT MANAGEMENT BODY OF KNOWLEDGE (CMBOK) REVIEW18. CFCM FEDERAL ACQUISITION REGULARION (FAR) REVIEW19. CCCM UNIFORM COMMERCIAL CODE (UCC) REVIEW

Schedule for BOD Members

Thursday July 26

12:00pm-3:00pm: Orientation for New Board Directors

Friday July 27

9:00am-5:00pm: Board Strategic Planning Session

Saturday July 28

7:00am–1:00pm: Golf Tournament @ TBD9:00pm-4:00pm: Committee Meetings4:00pm-7:30pm: Leadership Summit w/ Reception7:30pm-9:30: Board of Directors Dinner

Sunday July 29

9:00am-3:00pm: Board of Directors Meeting4:00pm–5:00pm: Opening Session w/ Tom Ridge, Former PA Governor and 1st Secretary of Homeland Security5:00pm–6:30pm: Exhibit Hall Ribbon-Cutting and VIP Reception

Schedule for BOD Members

MondayJuly 30

8:00am–5:15pm: World Congress program 8:00am-5:15pm: Committee Meetings6:30pm–10:30pm: World Congress Gala at JFK Library

Tuesday July 31

8:00am–5:15pm: World Congress program 8:00am-5:15pm: Committee Meetings12:30pm–2:30pm: Executive Advisory Council Luncheon

WednesdayAugust 1

8:00am–12:00pm: World Congress program

MonthlyLeadership ForumMonth Contributing Leader

February Charlie Chadwick

March Elliott Branch

April Kim Rupert

May Po Collins

June Russ Blaine

July

August

September

October

November

December

Education

• Revenue in line with budget and 23% up over last year• Net contribution ahead of budget and last year• E-learning On Line Prep Courses continue to grow –

CFCM FY 11 - 2 courses – 25 students each. FY 12 - 4 courses – 2 x 25 students and 2 x 35.

CPCM (Asynchronous) FY 11 – No courses, FY 12 – 2 courses 1 x 50 and 1 x 100.

Fee for both - $495 per student• Webinars and Virtual Conferences behind budget.• Book revenue ahead of budget.

– New book released March 2012, “The 100 Worst Government Mistakes in Government Contracting”

•CMLDP:– Call for applications May 1-June 30, 2012– 25 students to be accepted– Coursework begins ~August 2012

Education

2012 Roll-out!

Certification

•Transactions and revenues exceed last year’s actuals.– Applications up 2% over same period last year; – Certifications awarded up 18% over same period last year.

•Preparatory materials improved, expanded:– Revised CPCM exam: scenario-based format, launched in

January, aligned to CMBOK 3.0.– 5 new CPCM practice exams, now available directly from

NCMA.– Online CPCM Preparatory Course: launched in January.– Updated CFCM study guide and exam planned for July 2012.

DAU/NCMA CON 090 Initiative

Memorandum of AgreementCON 090 students may sit for CFCM exam upon completion of coursePromotes collaboration for development of CM professionals within DoDGraduates who pass the CFCM exam will obtain their certification after completion of 1 year experience

To… The Value Proposition Current Education Partners

NCMA Provide needed service and value to the contract management profession.

Supports the professionalization & capability of a blended workforce.

Effectively utilizes Educational Partners for high-yield initiative.

ASI Government American Graduate

University Bellevue University Bottomline Concepts, LLC Centre Consulting Certified Contracting

Solutions, LLC Chicago Training &

Consultancy, LLC. ESI International FedBid, Inc. Federal Market Group Federal Publications

Seminars Management Concepts NPI Next Level Purchasing Public Contracting

Institute, LLC Saint Louis University University of California,

Irvine Villanova University

Contract Management Profession

Provides incentive for self-development. Builds on current NCMA certifications and provides

an additional metric of professionalism for quality and opportunities for advancement.

Government Supports “best-value” strategies, quality and potential of DAWIA and FAC-C certified vendors.

Provides trained resource for greater productivity.

Industry Provides greater incentive for companies to invest in the professional development of their employees.

Provides opportunities for increased support of contract requirements via DAWIA or FAC-C certified employees.

Industry Certification Initiative (I-Cert)Purpose: Enhance the value and professionalism of the contract management workforce to better support government requirements by offering opportunities for industry members to obtain certification pursuant to DAWIA and FAC-C requirements.

Advertising Sales and Creative Services

• Advertising revenue down: negative variance 12% from budget and 14% from prior year.

• Declines in CMJobs, Website, Corporate sponsorships and Educational Partners. Resource Guide and CM Magazine are flat.

• Advertising expected to fall short of budget for the year • 2012 Salary Survey – survey to be released in March/April

Core Operations: Staffing changes

•Neal Couture, executive director, resigned December 31, 2011.– Duties absorbed by CLO Boykin and CFO Smith during interim.

•Kelly Higginbotham resigned as customer service representative on February 8, 2011 – moved to PCI.

•Suzy Olsen hired as a customer service representative effective February 22, 2011.

•Vacant customer service representative position – currently seeking qualified candidate.

•Facility: at capacity

Senior Leader Engagement• VIP Visits Completed

– Mr. Shay Assad, Director of Defense Pricing, DoD (August 2011)– Ms. Donna Jenkins, Director, Federal Acquisition Institute (August 2011)– MGen Wendy Masiello, Deputy Assistant Secretary for Contracting, USAF

(September 2011)– Mr. Patrick Fitzgerald, Director, DCAA (September 2011)– Ms. Katrina McFarland, President, DAU (October 2011)– Mr. Bill McNally, Senior Procurement Executive, NASA (January 2012)

• On the Docket…– Mr. Joseph Jordan, Administrator; and Ms. Joanie Newhart, Associate Administrator

for Acquisition Workforce Programs, OFPP– Mr. Charlie E. Williams Jr., Director, Defense Contract Management Agency– Rear Admiral (Select) Althea H. "Allie" Coetzee, Executive Director, Deputy

Assistant Secretary of the Navy, for Acquisition and Procurement – Dr. Carol Lowman, Executive Director, Army Contracting Command– Dr. Mindy Connolly, Chief Acquisition Officer, General Services Administration

• Add key industry leaders…

HR Outsourcing

•RAFFA Inc. appointed in February to provide HR Outsourcing services.

•RAFFA Inc. made presentation to all staff.•Several staff members have utilized services.•Progress report provided to Executive Committee.