Welcome to Army & Air Force Exchange Service and Army ...

1 SAME FY2018 DOD and Federal Agency Program Briefings | #SAMEDOD Welcome to army & Air Force Exchange Service and army installation Management Command Programs Moderator: Col. David DeMartino, , USAF (Ret.), Oneida Total Integrated Enterprises (OTIE) Speakers: Col. Juan Saldivar, USA, Command Engineer, army & Air Force Exchange Service Scott Dias, Deputy Chief, Construction Division, Operations Directorate, Office of the Assistant Chief of Staff for installation Management, HQ Department of the army The army and Air Force Exchange Service We go where you go to improve the quality of your lives through goods and services we provide 2 We go where you go to improve the quality of your lives through goods and services we provide 3 MISSION VISION CORE VALUES Family serving family Respect everyone Courage to use good judgment Be the preferred retail and Service provider for the Military family through extraordinary customer experiences and value pricing 3 Our Mission and Core Values Inspire Future Leaders Who Are Passionate About Serving Soldiers.

2 Airmen and their Families Intensify National Brands/ Reposition the Main Store Transform the Online Experience Grow the Express/Concessions Optimize the Supply Chain Improve CAPEX ROI Reduce SG&A costs 235 million additional earnings next 3-5 years $ 4 Exchange Strategic Priorities Supporting Military Communities $402M $ Dividend to Soldiers, Airmen and their Families $ 237M Revenue FY 2015 (includes concessions) Earnings FY 2015 Tastes of America, Wherever They Serve 7 Plants Providing US spec baked goods and bottled water to overseas bases School lunches served each year 3 Million 2,500 Facilities Worldwide Senior Enlisted Adviser Organization Deputy Director Europe Commander Pacific Commander Director of Staff Western Region Eastern Region services & Food Business Development OCONUS Region Strategic Planning & Partnerships Information Technology EVP & CIO Finance & Accounting EVP & CFO eCommerce Human Resources EVP & CHRO General Counsel Central Region Exchange Credit Audit & IG SVP Exchange Organization Director / CEO President & CMO Supply Chain Transportation EEO & Diversity VP Real Estate VP Logistics EVP & CLO Loss Prevention Chief Operating Officer 7 110816 Real Estate Vice President Mike

3 Smietana COM: 214-312-6579 EUR FMO DSN Prefix: 967 Contracting Division Mitchell Burnett COM: 214-312-3447 Finance & Accounting Greg Hardin COM: 214-312-3068 Master Planning Business Planning Construction A-E services Leases Equipment Facility Management Support services Project Accounting Capital Expenditures Fixed Assets Utilities EER FMO CER FMO WER FMO PAC F M O Corporate Energy New Construction Renovations Military Liaison Environmental Facility Management Moises Pinedo COM: 214-312-6757 Command Engineer COL Juan Saldivar COM: 214-312-8005 Planning Division VP Jeff Wigness COM: 214-312-2469 Construction Division VP Gus Elliott COM.

4 214-312-3911 Real Estate Directorate AAFES HQ FMO 8 110816 Mission Plan, Develop, Construct and Maintain Exchange Real Estate Assets Vision Be a Catalyst for Sustained, Long-Term Business Growth Real Estate Directorate Mission & Organization RE interfaces with DoD installation leadership at all levels OSD, army , AF Wing/Garrison, MAJCOM/IMCOM, Pentagon, Secretariat, DeCA Facility projects need BoD and Service approval (DD 1391) The Exchange is subject to DODI, AR & AFI rules on facilities & support Inter- Service Support Agreements (ISSA) at each installation Sharing 5-yr LRCP We Build Partnerships 9 We Build Partnerships Organization Mission Results Exchange Operations: All 50 US States 5 US Territories 33 Countries 2005-2015 Support for army , Air Force , Navy and Marine MWR services $ 10 Exchange Facilities 49 Contingency Ops 67 Theaters 123 Main Stores 164 Specialty Stores 168 Military Clothing 500 Convenience Stores 1500 Quick-Serve Restaurants 3300 Concessions 110816 YEARS 30-40 * Functional Review addresses facility location, size and shape.

5 30 20 10 0 Facility Life-cycle 11 Facility Life-Cycle Project Initiated (PPQ) Project Authorized (Charter) Scope Definition Design and Approval Construction Approval and Commitment Scope Defined (35% Design) Construction Completed (Grand Opening) BoD Approval Congressional Release YEAR 1 YEAR 2 YEAR 3+ BoD Viability Reconfirmation Planning Initiation Construction Project Life-cycle 12 Project Life-Cycle Sep-Oct Develop DD1391; coordinate w/BCEs & DPWs Nov Exchange FY NAF Program Approved by BoD Jan - Mar Finalize 1391s Apr Submit to services May services send to OSD Jun Brief OSD on Program Aug Brief Congress Jan - May Program Approved Project Approval Timeline 13 Project Approval Timeline Capital Program Authority 072715 Capital Program Authority 14 Master Planning Process Analyze installations on a 10-year cycle Integrated with installation Master Plan Validated as requirements change Image Updates Sales Per Square Foot (Stress)

6 Age of the Facility Years Since Last Renovation Merchandise Directorate / RE Strategies Locally Identified Requirements Where Projects Come From 15 Where Projects Come From A financially marginal project 7% - Below 7% 10% and above A financially desired project A financially acceptable project Project Cost Internal Rate of Return Net Present Value $ - $ $ - $ Project Cost Internal Rate of Return Net Present Value $ $ $ $ $ $ TOTAL Positive Net Present Value $ TOTAL Negative Net Present Value - $ Net Profit $ Express Dual Food Mini-Mall Exchange Mini-Mall Balance is the Key 16 110816 Net TOTALS.

7 Sustainment #/$ Investment #/$ 79 450M 108 300 200 150 100 0 $ Millions ------- BoD FY07 thru FY17 ----- FY07 FY09 FY10 FY08 FY15 FY14 FY13 FY12 FY11 18 15 20 17 14 16 10 15 5 7 2 2 250 10 2 3 4 11 3 Long Range Capital Program 022317 FY16 Cancelled or Resubmittal Projects 4 4 Program FY17 3 13 2 3 1 1 ($3M) $177M $255M $282M $228M $29M $86M $40M $ $ 50 $77M $205M ($4M) ($ ) ($6M) 3 ($ ) 17 2 ($ ) Long Range Capital Program Planned LRCP Projects (BoD Yr 2018)* 2018 PROJECT JBSA Fort Sam Houston, TX NC Shopping center Eglin AFB, FL NC Shopping center Eglin_Duke Field, FL NC Troop Store Ramstein AB, GER NC Express/Gas/Food Fort Bragg, NC NC Express/Gas (Linden Oaks) USAG-HI Schofield Barracks, HI IU Shopping center Fort Riley, KS IU Shopping center Peterson AFB, CO IU Shopping center Eielson AFB, AK IU Shopping center Hill AFB, UT IU Shopping center Buckley AFB, CO IU Shopping center Kadena AB, JPN IU Shopping center Ramstein AB, GER IU Shopping center 18 8 5 Sustainment Investment *Proposed Project Start 2019-2021 Conceived LRCP Projects (BoD Yr 2019)

8 * 2019 PROJECT Fort Benning, GA NC Troop Store Fort Rucker, AL NC Shopping center Fort Bragg, NC NC MM/Express/Gas/NBFF (Patriot Pt) Fort Hood, TX (69th ADA) NC Express/Gas/ Service Wiesbaden AAF NC Express/Gas JBLM, WA IU Shopping center Davis-Monthan, AZ IU Shopping center Cannon AFB, NM IU Shopping center Edwards AFB, CA IU Shopping center Fort Leavenworth, KS IU Shopping center Fort Polk, LA IU Shopping center Fort Stewart, GA IU Shopping center Hanscom AFB, MA IU Shopping center Luke AFB, AZ IU Shopping center Wright-Patterson AFB, OH IU Home & Garden Fort Bragg, NC IU Mallone Express Fort Carson, CO IU MM/Class VI/MCSS/Furniture Grand Forks AFB, ND IU Shopping center Fort Sill.

9 OK IU Shopping center 19 14 5 Sustainment Investment *Proposed Project Start 2020-2022 LRCP Planned Project Starts Facility Type of Work CY 2017 CY 2018 (Proposed) Shopping center New / Expand / Renovate 1 / $52M 2 / $ 90M Shopping center Image Update 3 / $17M 12 / $49M Troop Store New / Expand / Renovate 2 / $8M -0- Mini-Mall New / Expand / Renovate 2 / $14M 2 / $ 10M Express New / Expand / Renovate 5 / $25M 2 / $13M Food Projects New / Expand / Renovate 4 / $20M -0- Special Projects Build / Equip / Upgrade 1 / $5M 1 / $2M Project Totals 18 / $141M 19 / $164M As of 28 FEB17 20 2017-2018 LRCP Project Starts Construction / AE services Data / Geo (Title 1) / Design (Title 2) Construction Management (Title 3)

10 New Construction / Renovation Environmental / Energy Store Support services Facilities Management Office (FMO) Equipment / Fixtures NBFF and In-house Food Equipment Retail Store Fixtures Office Furniture Store Carpet and Flooring Gas Dispensing Fixture Logistics installation Contract (FLIC) Overseas Plants Vehicles (non-GSA) What We Procure 21 What we Procure A-E Contract Types Small Projects IDIQ Contracts Set Hourly Rates Individual Orders for each Project at FFP Large Projects Individual Contracts FFP Contracts with design phases Master Planning IDIQ Contracts Set Hourly Rates Individual Orders for each Project at FFP Environmental IDIQ and Individual Orders Energy Management IDIQ and Individual Orders FFP = Firm Fixed Price IDIQ = Indefinite Delivery/Indefinite Quantity 22 A-E Contract Types Doing Business with the Exchange 23 Doing Business with the Exchange Construction Solicitation Info at 24 Construction Solicitation Thank You!