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					                        Business Programs Quarterly Report
                            1st Quarter Fiscal Year 2003

Army Lodging

 Army Lodging Staffing Guides: Completion of the Army Lodging Staffing
Guidelines is ongoing. Final coordination was received from all Regions. Comments
were reviewed and incorporated into position descriptions. Revised position
descriptions have been forwarded to the Deputy Chief of Staff, G-1 and Assistant G-1
for Civilian Personnel for final coordination. On 21 November 2002, a follow up
memorandum was forwarded to Regions addressing the status of their
comments/recommendations. Upon completion of final coordination with Deputy Chief
of Staff, G-1 and Assistant G-1 for Civilian Personnel, positions descriptions will be
posted in the Position Description Library for use by all installations. Copies of the
Staffing Guidelines will be made available to each installation for their use as a desk
reference. Position Descriptions will be translated into multiple languages. The next
step is to develop generic performance standards for each position. (POC is Carol
Milling, DSN 761-5367, e-mail: Carol.Milling@cfsc.army.mil.)

 Lodging Success Program: The National Capital Region (NCR) and San Antonio
RFPs for Full Service hotels have been updated to reflect recommendations from legal,
and are due to be released by 1 February 2003. Further solicitation for current LSP
locations (Hampton/Newport News, Atlanta, Miami) will commence following existing
contract review and timeline evaluation. Expansion cities to include El Paso, Colorado
Springs, Seattle/Tacoma, and Baltimore are targeted for FY03 award. (POC: Dee
Geise, DSN 761-3816, e-mail Dolores.geise@cfsc.army.mil)

 LSP Business Initiatives Council (BIC): This SecArmy-approved initiative was
further briefed and approved through the BIC process, including the Process Function
Board, Executive Directors, and Executive Steering Committee. On 13 December 2002
the initiative was presented to the DoD BIC Principals and approved for implementation.
The LSP Initiative will be implemented in two steps. The first step is to obtain parity
between the Joint Travel Regulation and Joint Federal Travel Regulation as pertains to
re-imbursement of military and civilian official travel. The second step is to convene a
joint service Implementation Planning Team to determine the best business practices to
be employed in order for the LSP to most effectively meet the needs of DoD official
travelers. (POC: Dee Geise, DSN 761-3816, e-mail Dolores.geise@cfsc.army.mil)

 Military Training Service Support (MTSS): The Senior Review Group (SRG)
meeting was conducted on 19 December 2002 to review the Fort Lee pilot and address
approval to begin the MTSS pilot at Fort Gordon. The SRG approved the Fort Gordon
pilot and also directed a compressed CONUS-wide implementation timeline to begin in
the Southeast Region in FY04. The new timeline requires full CONUS implementation
by FY05. (POC: Dee Geise, DSN 761-3816, e-mail Dolores.geise@cfsc.army.mil)
 Army Lodging Training: During the 1st Quarter, the Lodging Supervisor‟s Course
was was held at Penn State University. 26 Army Lodging personnel representing 18
installations and four Marine Corps personnel representing four installations
successfully completed the course.

The basic courses scheduled for the 2nd Quarter FY 03 are the Lodging Customer
Service Course, 13 – 16 Jan 03 and the Lodging Human Resources Course, 10 – 14
Mar 03. The advanced courses offered during the 2nd Quarter are Performance
Analysis in Hospitality Organizations, 12 – 17 Jan 03, Strategic Leadership for
Hospitality Managers, 10 – 14 Feb 03 and Process and Quality Tools for the Hospitality
Manager, 16 – 20 Feb 03. To register for a course individuals must complete the new
electronic application form and forward it via e-mail to their supervisor. The supervisor
then forwards the application to the MWR Academy via e-mail to
mwracademy@cfsc.army.mil, with „cc‟ to the training POC (listed above).

Information on all courses can be found on Army Lodging website at
www.armymwr.com/corporate/programs/lodgingandtravel/development.asp.
Individuals can obtain an application by accessing the MWR website at
http://209.100.134.195/mwrweb/webmwracademy.html or by contacting their facility
Lodging Manager.

.   As a reminder, please ensure the Six-Month Follow-Up Report to the
    student‟s Learning Application Report is completed and forwarded to the
    training POC (listed above). The purpose of the follow-up report is to assist
    in measuring the effectiveness of our training program.

(POC: Mr. Larry L. Harris, DSN 761-3784, e-mail Larry.Harris@cfsc.army.mil.)

   FY03-FY05 Wellness Program
      o Fort Eustis (FY01 pilot)– The design build contractor‟s 30% design
         submission was completed and approved during the period. Subsequently, a
         formal ground breaking ceremony was conducted in Nov 02. The contractor‟s
         65% design submittal was received in Dec 02 for review and approval.
      o Fort Wainwright (FY03)– The design build contractor‟s initial quality definition
        package (QDP) submittal was not accepted due to square footage/cost
        issues. These issues have now been resolved and a final QDP submission is
        expected 2nd quarter FY03.
      o Dugway Proving Ground (FY03)– An Architect/Engineering (A/E) firm was
        selected to support development of a request for proposal (RFP). A
        functional design criterion was provided to the A/E who will develop an RFP
        using the Fort Eustis RFP as a template. A charette for this project is
        scheduled for Feb 03.
      o Fort Hamilton (FY03)– The design build contractor‟s initial quality definition
        package (QDP) submittal was not accepted due to square footage/cost
        issues. These issues are expected to be resolved early in 2nd quarter.
      o Fort Lewis (FY04) – A cash flow analysis of Wellness execution confirmed the
        ability to commence renovation work on one building where scope does not
        require Congressional approval; a program/interior design familiarization visit
        was conducted during 1st quarter FY03.
      o Hohenfels (FY04) – A review of renovation projects at this site demonstrated
        no requirement for Congressional reporting except for a single new addition
        requirement. An initial visit was conducted to the site to coordinate design
        requirements with the European Regional Office of the Corps of Engineers
        who where tasked to contract for A/E services in support of the required
        renovation work.
      o Camp Stanley/Camp Carroll (FY04) – Charette documents associated with
        efforts in FY01 were reviewed for compliance with the Army Lodging
        Wellness criteria. A complete review of necessary revisions will be completed
        in 2nd quarter.
(POC: Ms. Debbie Martin, DSN 761-5368, E-Mail Debbie.Martin@CFSC.Army.mil )

 Demand and Facilities Assessments: A statement of work outlining requirements
for a demand and facilities analysis at each Army Lodging location was completed and
forwarded for action by NAF contracting. This effort concurrently meets tasking by the
Apr 02 Wellness Process Action Team and actions required under the Wellness Fast
Track BIC. Contract award and execution of work at an initial pilot site is expected in
2nd Qtr FY03. (POC: Ms. Debbie Martin, DSN 761-5368, E-Mail
Debbie.Martin@CFSC.Army.mil)

   International Hotel Motel & Restaurant Show Consolidated Buy (IHM&RS):
Army Lodging executed the third Army Lodging Consolidated Buy in conjunction with
the 2002 IHM&RA. $1.4M in television, microwave, refrigerator, VCR, and mattress
requirements at over 30 Army Lodging activities was combined for quantity and Show
savings in excess of $89K. The furnishings consolidated buy will be executed in Jan
03. Guidance for the 2003 IHM&RS consolidated buy will be issued formally in the
FY04 budget guidance but an advance copy will be distributed to support the
anticipated Jun 04 submission date for planned FY04 purchases. (POC: Ms. Debbie
Martin, DSN 761-5368, E-Mail Debbie.Martin@CFSC.Army.mil)
    Financial Results: FY 03, Army Lodging revenue for the 1st Qtr was $46.2M or
99.3 percent of budget; expenses were $39.8M or 98.9 percent of budget. For the 1 st
Qtr FY 03, utilization of lodging facilities Army-wide was in line with the budgeted
projections. Total revenue fell short of budget projections by .7 percent or $.3M and
the budgeted expense were 1.1 percent or $.5M less than projected resulting in year to
date NIBD of $6.4M or 107.7 percent of budgeted NIBD. Army Lodging achieved the
rating of Green in accordance with the BoD financial standards for budget to actual
execution. For FY 02 Army Lodging achieved an occupancy rate 75.9 percent. This
was a 2.3 percent increase over the 73.6 percent occupancy rate for FY 01. (POC: Mr.
Craig Smith, DSN 761-5366, email: Craig.Smith@cfsc.army.mil)

 Audit of Army Lodging Overhead Costs: The U.S. Army Audit Agency (AAA) will
conduct a MWR BoD requested multi-location audit of Army Lodging overhead costs
during the 2nd and 3rd Qtr FY 03. The audit objectives are to evaluate procedures used
by MWR and Army Lodging activities to identify and allocate common support costs to
each other. Specifically the audit will evaluate if:
       o MWR and Lodging activities follow established guidelines to allocate
          overhead costs.
       o Allocated costs reasonably portray the amount of support provided.
       o Key management controls, related to the allocation of overhead costs are in
          place and operating.
AAA reviewed FY 00-02 IMWRF/Lodging data and has chosen audit sites from each
CONUS Region: Forts Gordon, Jackson, Lee, Leonard Wood, Bliss and Sam Houston.
Additionally, a review of Europe Region data will be reviewed to determine if site visits
are warranted. AAA conducted entrances conferences at the CONUS Regions during
Jan 03. The summary draft audit report is projected to be issued in September 2003.
(POC: Mr. Craig Smith, DSN 761-5366, email: Craig.Smith@cfsc.army.mil)

 Public Private Venture (PPV) Landmark Hotels at Bragg, Hunter, Irwin (BHI:)
1st Qtr FY03 occupancy averages were 94% at Bragg Landmark (Army Lodging was
88%); 38% at Landmark Hunter (Army Lodging occupancy information is not available);
and 64% at Landmark Irwin. (POC: Jan Morgan, DSN 761-5370, e-mail
Jan.Morgan@CFSC.Army.mil)

Standardization Initiatives
 Bed and Bath Linen Contract: 1st Qtr FY03 yielded sales of $310,056 from 48
sites as compared to 1st Qtr FY02 sales of $255,787 on the Kahn Bed and Bath Linen
contract. 1st Qtr FY03 savings are estimated at 25% or $103K. (POC: Jan Morgan,
DSN 761-5370, e-mail: Jan.Morgan@cfsc.army.mil )
 Amenities Contract: 1st Qtr FY03 activity provides sales of approximately $52,758
from 35 lodging sites. Savings are estimated at 20% or $13K. Historical comparison
data is not available, as the contract did not begin distribution until mid-May 2002.
Research conducted during the market analysis revealed savings and increased quality
associated with centralized purchasing of the condiment packs versus individual
installation purchases. (POC: Jan Morgan, DSN 761-5370, e-mail:
Jan.Morgan@cfsc.army.mil )

 Telecommunications: The AAFES Sprint Hospitality Telecommunications system
has been installed at 13 locations. Installation plans are underway at 8 other locations.
Sites participating in the program enjoy state-of-the-art hospitality telecommunications
which includes system integration and streamlining of the call accounting system, voice
mail, programmable guest or staff wake-up calls, dedicated internet, and/or satellite
television with pay-per-view and in-room account inquiry functionality. (POC: Jan
Morgan, DSN 761-5370, e-mail: Jan.Morgan@cfsc.army.mil )

 Standardization Initiative In Progress: NAF Contracting awarded the contract for
pre-printed materials on 16 Jan 2003. The contract achieves bulk pricing for routinely
replenished materials, such as guest folios and registration forms, Do Not Disturb signs,
telephone dialing instructions, and electronic keycards. A draft Statement of Work was
submitted to NAF Contracting for review for an initiative to obtain a centralized contract
for credit card processing and services. (POC: Jan Morgan, DSN 761-5370, e-mail:
Jan.Morgan@cfsc.army.mil )

 Employee Communication Center: There was no Army Lodging execution
against this agreement during 1st quarter FY03. The program has reached a
sustainment decision point as sites reach the end of their initial two-year agreement. All
participating sites have executed orders to continue the program beyond the initial two-
year period with the exception of one. (POC: Mr. Steve Coulson, DSN 761-5373, e-mail
Steve.Coulson@CFSC.army.mil )
Business Operations Division

Army Golf (POC: Mr. Bill Sport, DSN 761-5200, e-mail: Bill.Sport@cfsc.army.mil)

 Financial Overview. Through 1QFY03, the Army‟s 56 golf courses recorded a Net
Loss Before Depreciation (NLBD) of $670.0K on net revenue of $12.2M for a return of
negative 5.5 percent. The MWR BOD standard for FY03 is 18.0 percent NIBD. Major
factor affecting program performance is extreme weather conditions affecting playability
of courses during December, primarily along the east coast, installation access, and
major troop deployments. Through Nov 03 YTD, revenue and NIBD was ahead of Nov
02 pace. The Eastern Regions (SE and NE) suffered the greatest from weather effects
and have combined losses of $1.1M for the Quarter. The reduction of USA Income by
$107,000 between the two quarters has a major negative impact on NIBD. The Pacific
Region, unaffected by realignment, is on pace for a banner year in golf. For 1QFY03,
net sales declined only slightly ($44K) with COGS declining over one-percent to 56.8
percent. The labor increase of 2.0% reflects annual cost of living adjustment. The
negative NIBD variance is almost directly attributable to increases in labor for the Korea
Region (+$175K) for course construction/renovation projects.


 Golf Course Superintendents’ Training. Training for the Army golf course
superintendents (and their other service counterparts) was most successful.
Approximately 30 superintendents convened at Texas A&M during 2-13 December 02
for the intensive two-week course. A full range of agronomic topics, integrated pest
management, and environmental considerations were included. New equipment
development was a feature presentation by the Toro Company. The upcoming program
was the fifth and final course on the current contract. A statement of work (SOW) is
under development to request bids for continued training opportunities for
superintendents and golf managers. Interest for continuation of the course is very high.


 PGA/Armed Forces Golf Managers Training Seminar. The seminar was be held
in Orlando, FL, Sunday through Wednesday, 19-22 Jan 03 with the Merchandise Show
following on Thursday through Sunday, 23 - 26 Jan 03. The program included attracting
and retaining quality personnel, and player development (grow the game), pro-shop
merchandising, and “what auditors look for.” The presentations were well received and
included many recommendations on how to cut costs, increase revenue, thus
increasing profitability. The Army one-day breakout session featured a Picatinny
Arsenal presentation on course improvements, opening to veterans‟ play, and how to
gain installation access through coordination with installation activities. FY02 golf
benchmarks and upcoming budget and accounting changes were discussed. The Golf
Excellence in Management Award winners were recognized and presented plaques for
their achievements before their peers. Congratulations to Rik Bond, Selfridge, MI and
Mark Smith, Wiesbaden, GE for their outstanding performance through a very trying
year.
 All-Army Golf Trials and Armed Forces and Council for International Military
Sports Championships (CISM). CFSC‟s Business Programs and Recreation
Directorates have combined forces for future golf events. The Army Golf Program
Manager will head up team selection and site selection for future Army Trials. The
Recreation Division will continue to provide funding. Fort Jackson, SC will host The All-
Army Trials Camp for FY03 (30 Sep-4 Oct). The Armed Forces Golf Championship will
be hosted by the Navy at NAS Millington, TN. On a continuing note, congratulations
and special thanks to Mr. Bobby Kaerwer, General Manager of the Fort Bliss, TX Golf
Course for a superb performance as host for all three golfing events this year.


 Future Events. To further promote Army golf and increase revenues. A driving
range promotion (Lucky Bucket Sweepstakes) is planned for May-June 03. Grand
prizes of one-week golf vacation for two will be awarded to two lucky winners. Weekly
participation prizes will also be awarded. Link Up to Golf (PGA) is being looked at for
another promotion to attract a wider patron base for golf and to gain lifetime players of
the game.

Army Bowling (POC: Ms. Wanda Arthur, DSN 761-5202,
e-mail: Wanda.Arthur@cfsc.army.mil)

 Financial Overview. In 1Q FY 03, bowling net revenue was $11.3M, up 5.6%
from1Q FY 02, and NIBD was $1.5M, no change from FY 02 results. NIBD as a percent
of revenue was 13.4 and 14.7 in 1Q FY 03 and 02, respectively. The BOD standard for
FY 03 is 18 percent. Although the program is running almost par with 1Q FY 02, during
that time, it was faced with the after effects of 11 Sep 01, and program performance
was greatly hampered. Traditionally, in past years, bowling has been able to meet or
exceed the BOD standard in the first quarter because of the heavy influx of league
players; then, performance falls off during the last two quarters of the fiscal year as
leagues finish for the season. Many centers are still struggling to rebuild their league
base, which was greatly diminished with the increase in OPTEMPO.

 Bowling Center Management Certification Program. Classes required for
Certification offered through the MWR Academy in FY 03 are:

          Business Programs Managers‟ Course
              o 7 – 18 Apr 03

          Snack Bar Management Course
              o 12 – 21 Aug 03 Fort Lee

    For more details or to register for the course please visit the MWR
Academy‟s website at:
http://www.armymwr.com/corporate/operations/humanresources/webmwracademy.asp
    For the most recent copy of the bowling certification document, go to
http://www.armymwr.com/corporate/programs/business/policy/ and click on
Policy and Regs.

     Applications for certification in Level I and Level II should arrive at CFSC
Headquarters before 1 Mar 03 for them to be processed, for presentation at Bowl Expo.
While the due date is somewhat flexible, be sure to contact the program manager to
determine if a late arrival can be accommodated. Last year, the first year of the
program, there were three managers certified and there are several who are ready this
year. Certified bowling center managers are professionals in their field and are proud to
be part of the program. To obtain a copy of the certification document, which provides
all information on training requirements and how to apply, use this link:
http://www.armymwr.com/corporate/programs/business/policy/ ,and click on Bowling
Center Certification.

 2003 Army Bowling Trial Camp. The Army Bowling Trial Camp scheduled for
9 – 13 Mar 03, at Fort Dix, NJ was cancelled because of a funding issue. Army Sports
and Recreation will select a 6-man and a 6-women team who will represent the Army in
the 2003 Armed Forces Bowling Championship, 14 – 22 Mar 03 at Lackland AFB, TX.

 BPAA Membership. CFSC has centrally funded membership in the Bowling
Proprietor‟s Association of America (BPAA) for all Army bowling centers both in CONUS
and OCONUS. CONUS centers are members at the local/state/regional and national
level and OCOUNUS centers are members at the national level. Membership carries
many benefits, some of which are:

      Proven ideas for seasonal promotions, creative formats and clubs to increase
       open play, and other profit generating ideas.
      Discounted pricing on trademarked and licensed bowling club programs, i.e.
       NFL, Disney, Cartoon Network, Rugrats, etc..
      Employee educational tools to assist with in-house training.
      Reports on industry studies available only to members, i.e. benchmarks,
       personnel compensation and benefits, employee job descriptions, etc..
      Periodicals that keep management abreast of the latest in industry trends.
      The BPAA web sites.

    The list in not all inclusive and managers should review information carefully as it
arrives at their center to be sure they are using the benefits of membership. Our military
liaison at the BPAA is Mr. Rich Cairns, and membership is handled by Ms. Cynthia
Warren, both can be reached at 800-343-1329
 Bowl Expo. The 2003 International Bowl Expo and Tradeshow will be held at the
Mandalay Bay Hotel and Convention Center from 16 thru 20 June 03. Information on
the military training program, held in conjunction with Bowl Expo, has been finalized and
can be found at www.bowlexpo.com, click on the Military link for the training schedule.
The user name and the password is “AFBC”. It must be in uppercase letters. Classes
to support the certification program, offered at the Expo; are Equipment and
Maintenance Management (EMM), taught by Brunswick; USA Bowling Bronze
Coaching; Lane Certification, taught by Bowling Inc.; and International Bowling Pro
Shop Instructors Association‟s pro shop course. The EMM workshop and the coaching
class are jointly funded by the Services and there is no cost for the managers to attend.
Check on line for the fees for the other two classes.

   The military will be housed in the Orleans Hotel. The Orleans not only has lanes,
which will enable the military to provide the special training that it requires, but the room
rate will be below or at per diem, saving installations dollars. The room rate will be $49
on Sun thru Thu and $79 on Fri and Sat. Call the Orleans Hotel directly for
reservations, 800-675-3267/702-365-7111. They will only accept advanced
reservations via phone. Be sure to tell them the reservation is for the “International
Bowl Expo 2003” or for the Armed Forces portion of that group. The military break-out
sessions will be on 15 Jun at the Orleans Hotel. Military managers are encouraged to
stay at the Orleans since it is the location of the Joint Services Bowling Training
Program and shuttle service will be provided to the Mandalay Bay for the Bowl Expo
seminars and tradeshow. This will eliminate the need for a rental car.

Army Clubs (POC: Mr. James C. Matthews, DSN 761-1499, e-mail:
James.Matthews@cfsc.army.mil)

 Financial Overview. Army Clubs and FBE managers are doing a remarkable job
adjusting to installation operating exigencies. Net Revenue increased over $1M from 1 st
Quarter FY 02 to $41M and NIBD increased from $2.4M to $3.2M. The improved NIBD
is a strong indicator of effective managerial control of labor and other expenses. The
improved revenue indicates facilities are recovering from losses during the same period
in FY 02, and tracking to meet the BoD standard of 8 percent. Reduction of losses
overall and elimination of chronic losing activities has enabled the CFBE program to
achieve the highest NIBD in five years even though revenue is $6M less than in FY 98
(1st Quarter).

The Army operates 246 CFBE facilities worldwide. In FY02, the Army CFBE program
produced a $13.2M NIBD, up from $10.5M in FY01. Total revenue decreased from
$172.8M in FY01 to $165.0M in FY02.

 Bingo. The Army Bingo programNIBD has remained relatively constant since 1998
at $1.3M to $1.4M while revenue has increased by $2.0M.
 Catering and Bingo Conference. “Spirit of Excellence III” Catering and Bingo
Conference 2003 will be held 26-28 March 2003 at the Riviera Hotel and Casino in Las
Vegas, Nevada. This conference is being sponsored by IMCEA, for more information
check www.imcea.com for more information. CFSC will be funding the registration for
all qualified attendees.
Business Operations - Miscellaneous Program Notes
   2002 Carroll and EIM Award Winners.
             Community Club under $750K annual revenue
                   Jeffrey Holmes, Landstuhl Community Club

             Community Club over $750K annual revenue
                 Armond DiPoalo, USMA West Point Club

             Golf Course between $500K and $1M annual revenue
                   Richard Bond, Selfridge Golf Course

             Golf Course over $1M annual revenue
                   Mark Smith, Rheinblick Golf Course

             Bowling Center between 14-30 lanes
                   Edward Scully, Fort Dix Bowling Center
                   John Howard, Redstone Arsenal Bowling Center

             Bowling Center over 30 lanes
                   Barbara Cox, Fort Hood Phantom Warrior Lanes

             Leisure Travel under $300K annual revenue
                    Elvira Garcia, Fort Bliss ITR Office

             Leisure Travel over $300K annual revenue
                    Helen Lindsay, Fort Rucker ITR Office

             Recycling over $300K annual revenue
                   Michael Carnes, Fort Knox Recycling

             Business Manager
                   Ronald Telles, Fort Bliss Business Manager

 Joint Services Prime Vendor Program (JSPVP). During the 1st QFY03 the
JSPVP purchasing volume totaled $23,870,384. The manufacturer rebate allowances
combined with the off-invoice discounts returned to program participants totaled
$331,229. The manufacturer allowance program and the number of participants
continues to grow. Partnerships are now in place with 134 manufacturers and the total
number of program participants is up to 221. The program managers and contract
distributors stand ready to continue their strong support on behalf of all JSPVP
participants during these changing, stressful times. (POC: Mr. John Grassmick, DSN
761-5210, e-mail John.Grassmick@cfsc.army.mil)
 AAFES/MWR Credit Processing Pilot Test Update. As an additional component
of the AAFES/Army MWR pilot test, AAFES/Army MWR began testing the acceptance
of the Military Star Card in 3Q FY 02. To date, AAFES has processed $205K in Military
Star Card transactions at 10 locations. This is a saving due to zero Merchant Discount
Rate (MDR) expense of $6K. AAFES/Army MWR are still on schedule to fully deploy the
acceptance of the Military Star Card at all participating sites in 3rd QTR FY 03. To date,
AAFES has processed $42.3M in credit card sales at approximately 396 locations. This
is a saving in the MDR expense of $531K. (POC: Mr. Paul Amos, DSN 761-5206, e-
mail: Paul.Amos@cfsc.army.mil)

 Point of Sales. CFSC has recently finished the DoD-mandated System Test and
Evaluation (ST&E) of the vendor's software. The vendors are responding with the cost
and time to fix the noted deficiencies. The Army MWR Certifying Authority (CFSC-CIO)
is analyzing the cost, time and risk associated with the vendor's responses. (POC: Mr.
Paul Amos, DSN 761-5206, e-mail: Paul.Amos@cfsc.army.mil)

 FY 02 Business Program Benchmarks. The FY 02 Business Programs
Benchmarks are complete. This year, CFSC-BP will not publish the Benchmarks in
hard copy format, but will reproduce them in CD format. CFSC-BP will mail to each
Regional HQ sufficient quantities of CDs for their respective installation. Additional
copies can be downloaded from CFSC webpage at
http://www.armymwr.com/corporate/programs/business/operations/benchmarks/.

To further take advantage of technology and to reduce work load and expenses, next
year's Benchmarks (FY 03) will only be available via the web. CFSC-BP will produce a
limited number of hard copy or CD format Benchmarks upon request.

Events Division
(POC is Coleen Amstein; 703-681-5226/DSN 761-5226 or email)
Coleen.Amstein@cfsc.army.mil)

 Operation Leisure, Capture the Fun: This test promotion is currently underway at
12 installations within the Southwest Region. The three-month promotion began on 1
Jan and includes all business programs and ITR. The promotion centers around a
game board filled with different prizes. Each time a person makes a purchase within a
participating facility, he/she receives a free scratch off game piece. Designed to create
excitement, patrons can win multiple prizes ranging from instant wins (free soda, line of
bowling, bucket of ball or shoe rental) to trips, electronic equipment and a variety of
other prizes targeted at different market segments. To win the prizes on the game
board, patrons must match the coordinates from the “scratch and win” game piece to
the coordinates on the game board. After the promotion end on 31 Mar, the results will
be evaluated to determine viability for implementing Army-wide. (POC is
Shirley.Kappa@cfsc.army.mil; phone 703-681-5228 / DSN 761-5228)
 Designated Driver Sweepstakes Pays Off Big for Army Participants!
The Designated Driver Program Sweepstakes ended January 3, 2003 with 37
installations taking part in the promotion. The sweepstakes was available through
AAFES and Marine and Army MWR Business programs. For the Army, this was a first-
time Army-wide promotion with AB. Although not official at this time, the results indicate
that all installations who submitted entries, except for one, had numerous
winners and Army MWR participants ended up winning 159 out of the 165 prizes
awarded! Four out of the five grand prize $1,000 winners also came from Army MWR
submissions. Overall winners from the regions are as follows: Northeast – 9;
Southeast - 12, Europe 39; Southwest – 41; and Northwest - 64. Congratulations
winners and thanks to all those who participated! (POC is Anita.Tornyai@cfsc.army.mil;
phone 703-681-5223 / DSN 761-5223)

 Go Hog Wild with our Summer Miller Brewing and Harley Davidson Promotion
Coordination is underway for the "American Made Summer" promotion sponsored by
MWR, Miller Brewing and Harley Davidson. Beginning June 1, participating food and
beverage facilities will be able to offer patrons scratch-off game cards featuring prizes
such as Harley Davidson coolers, jackets and shirts. Commemorative special edition
Miller Lite/Harley Davidson collectible beer cans will be sold in the facility. Participants
will be able to enter a drawing for a Harley Davidson bike, provided only for ARMY
MWR participants. Special hog calling contests, hog special nights, and fat boy
promotions can also be implemented as part of this special promotion. (POC is
Anita.Tornyai@cfsc.army.mil; phone 703-681-5223 / DSN 761-5223)

 Representatives Needed for Food and Beverage Promotions Team.
The Events Division is in the process of establishing a food and beverage
promotions team to assist with concept development and implementation of
promotions. The team, including installation and regional personnel, will meet 2-3 times
per year via teleconferencing, with the initial meeting to take place in conjunction with
the Catering and Bingo conference in March or NRA/IMCEA conference in May. Each
region is requested to submit the names of three nominees they would like to have
represent their region on this panel. (Prefer a variety of personnel from the region and
installation). Also please indicate if these individuals will be attending either or both of
the conferences listed above. Prefer candidates who are involved with day-to-day
operations and execution of special events and activities within food and beverage
facilities. The exact team composition of members will be established once the names
are received; not all nominees will be selected. Please submit names NLT 10 Mar 03.
(POC is Anita.Tornyai@cfsc.army.mil; phone 703-681-5223 / DSN 761-5223)
 Lucky Bucket Sweepstakes: Final coordination is underway for the spring driving-
range promotion. The program concept provides two ways for participants to win. Nine
"lucky" numbered golf balls will be provided. Each week, one ball will be dropped into
the range ball machine. Patron receiving the "lucky" ball wins an instant prize.
The second part of the promotion is an "Enter to Win" sweepstakes. For every
purchase at the driving range, patrons receive an entry form for a chance to win a
“Great Golf Escape" package for two. Drawing will be held at CFSC on or about July
31st. The nine week promotion originally scheduled to begin April 1st has been pushed
back a month. The new dates are May 1st through June 30th. This allows locations in
the northern part to fully participate into the promotion. To date, 27 installations signed
on to participate. Don't miss out on this opportunity to generate additional revenue for
your golf courses. Spread the word and sign up now! (POC is
Jennifer.Rondez@cfsc.army.mil ; phone 703-681-5211 / DSN 761-5211)

MWR Food Services Division

 Financial Update. For the first quarter Fiscal Year (FY) 2003, the Army Branded
Theme Restaurant program yielded a Net Income Before Depreciation (NIBD) of
$404,357 or 8.92% based on Total Revenue of $4,531,334. This compares to a NIBD
of $532,790 or 11.84% and $4,499,663 in Total Revenue for the same quarter in FY
2002.

       Contributing factors for the change in revenues were the opening of an additional
2 units and also the closing of two unprofitable operations. NIBD however decreased
by $128,433, which in large part was due to troop deployments, increased installation
security and fixed labor.

       Within KL facilities, Total Revenue for 1st Quarter FY 03 was $723.8K with an
NIBD of $48.6K or 6.7%. All other Theme operations generated Total revenue of $3.8M
with NIBD of $356K or 9.3%.

       Current FY 2003 projections for Theme Operations are approximately $1.6M
NIBD or 8.9% based on revenue projections of $19M. These estimates conservatively
replicate quarterly results and factor in increases of 9 new operations, yet at the same
time deal with the future uncertainty of troop deployments and security issues.

      Currently there are 40 Army Branded Theme operations worldwide with 8
openings planned in FY 03, and 28 other projects planned or in design. (POC: Edward
A. Urben, DSN 761-5255, email: Edward.Urben@cfsc.army.mil).
 Sports USA Football Promotion. In a close competition between the Sports USA's
at Forts Bragg, Hood, and Stewart to pick the most winning teams throughout the NFL
season, Fort Bragg Sports USA won the monstrous Big Green Pick award for the
second straight year. Throughout the season, guests at Sports USA challenged each
other and the other Sports USA‟s to select winners biweekly of the NFL games. As part
of the season-long football promotion, SSG Anthony Edwards won the drawing for a trip
for two to the NFL Pro Bowl in Honolulu. SSG Edwards was at Fort Hood when he
entered the drawing, but was deployed to Korea when he learned he had won the trip.
His wife traveled from Fort Hood to meet him in Hawaii. The Football Promotion is part
of the series of yearlong events designed and produced by the CFSC Food Services
Division specifically for the Sports USA units. (POC is Lisa Holland, DSN 761-5212,
email: Lisa.Holland@cfsc.army.mil).

 Grand Openings. A Primo's Express snack bar opened in the new Kid‟s Zone in
Kaiserlautern, Germany on 6 November 2002. On 29 December 2002, a Primo's
Express snack bar also opened in the Victor Constant Ski Lodge at USMA, West Point,
New York. Primo's Express offers fresh pizzas, burgers, sandwiches, salads and much
more. Initial indications are customers are very satisfied with the quality and variety of
menu items Primo's Express offers at both locations. (POC is Lisa Holland, DSN 761-
5212, email: Lisa.Holland@cfsc.army.mil).

 Upcoming Openings. A Lil' Skeeters BBQ snack bar is scheduled to open at
Picatinny Arsenal, New Jersey on 27 February 2003. In March, a Reggie‟s Beverage
Company restaurant will open in the brand new Nehelani Catering and Conference
Center on Schofield Barracks, Hawaii. In April two Lil‟ Skeeters BBQ units are planed to
open the first at West Point, New York and the second in Schweinfurt, Germany. (POC:
Mark Cauthers, DSN 761-5218, email: Mark.Cauthers@cfsc.army.mil ).

 Upcoming Theme Operations Promotions. Theme Operations launched its new
seasonal promotion for the period of January through April 2002. The full serve
promotion features five grilled quesadillas. This promotion previously ran during 2000
and was extremely popular with Reggie's and Mulligans' guests. The quesadilla
varieties include the Reuben, Cordon Bleu, Smoked Chicken, the Spinach, Mushroom
and Artichoke and Buffalo Chicken. Full Serve restaurants received full color,
professionally printed menu inserts to temp guests with these new special menu items.
Marketing offices received a package containing black and white ad layouts, sign and
radio scripts to help promote the quesadillas.
Theme Operations Quick Serves are running a separate promotion during the same
time frame and includes a new dinner-sized Caesar Salad and a delicious Chicken
Parmesan Pizza. This pizza uses regularly stocked kitchen ingredients, like chicken
tenders, standard dough and cheese blends. Extra sauce and fresh Parmesan cheese
give this pizza its tempting look and flavors. Specialty pizzas add interest and variety to
the regular menu and offer pepperoni-weary guests something new. Quick serve units
received large posters and counter cards to excite visual interest in the salad and pizza.
Marketing offices received a package containing the color layouts and black and white
print ads, plus radio and signage scripts to help promote the specials.

       A new promotion effort that will cover two year's worth of advertising is currently
in production. The new Promotion Binder will offer unit managers a selection of limited
time offers (LTO‟s) and special menu items that they can select and run any time. This
gives unit managers more freedom and a wider variety of promotions currently
available. Oversight of the promotions will be facilitated by Theme Operations Regional
Managers to assure that a promotion is running in a unit at all times. Managers will be
able to choose the promotion that suits their local market and direct-order their display
materials via e-mail, phone or fax. Marketing offices will receive a separate binder that
matches the one the unit managers receive. This binder will include an ad package,
and all the print layouts for the display materials. The Promotion Binder will be
presented at the Unit Managers Workshop in March, and will be shipped out shortly
thereafter. (POC: Sharon Bertschi, DSN 761-5213, email:
Sharon.Bertschi@cfsc.army.mil ).

 Name Brand Fast Food Program. The name brand fast food program gives Army
installation personnel the ability to respond to market demand by offering the Army
family nationally recognized quick service chain restaurants that can be located in MWR
facilities. This program is a joint effort on the part of the CFSC and AAFES. To date 38
assessments have been completed resulting in 19 recommendations for
implementation. In December 2002 the first Army NBFF operation (a Subway sandwich
shop) opened at the Walter Reed Army Medical Center, Washington, D.C. Financially,
the operation is far exceeding initial expectations, and is providing enhanced QOL for
our Total Army Family. On 18 January 2003 another Subway unit opened in Vicenza,
Italy, and on 26 January 2003 (Super Bowl Sunday) a Godfather's Pizza restaurant
opened at Fort Carson, Colorado. Seven additional locations are programmed for
openings in 2003 that include Subway's, A&W Root Beer, Charley's Steakery, and Capt.
D‟s. (POC: Mike Ambrose, DSN 761-5214, email: milo.ambrose@cfsc.army.mil )
 Name Brand Casual Dining Initiative. A name brand casual dining initiative is
being developed to meet an increasing demand for sit-down dining and to generate
maximum revenue for installations. CFSC has developed a basic ordering agreement
and is currently working with Compass, Eurest Support Services, a franchisor of TGI
Friday‟s restaurants/cafe‟s to place the Army‟s first casual dining restaurant a TGI
Friday‟s Café in Patrick Henry Village, Heidelberg, Germany. Once an operating
agreement is reached for this location, CFSC personnel will solicit interested
installations to request an assessment through this centrally managed contract. (POC:
Roger Weger, DSN 761-5224, email: Roger.Weger@cfsc.army.mil )

 Unit Managers Conference. The 5th Annual Army Theme Unit Manager‟s
Conference is scheduled for 10-14 March 2003 in State College, PA on the Penn State
University campus. The conference will provide unit managers with
information/solutions to theme specific issues, industry updates, sales and promotions
management, internal controls, team building, guest service training and much more.
(POC: Janet Lambert, DSN 761-3818, e-mail: Janet.Lambert@cfsc.army.mil ).

				
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