National Allowance Pricing NAPA

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National Allowance Pricing(NAPA)

• Mr. Ed Lees
• Mr. Joe Rossi

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National Allowance Pricing Agreement (NAPA)

• Implemented in 1996 to maximize the leverage of
  DSCPs buying power
• Reduces overall delivered price under prime
  vendor contracts
• Agreements between DSCP and suppliers/manufacturer
  s
• Identify allowances/discounts to various products
• Prime vendor bills the government the invoice
  price less the NAPA allowance and initiates a
  bill back to the agreement holder
• Agreement holder reimburses allowances to the
  prime vendor
• Realized at the dining facility level at time of
  purchase
• Results in national name brands that are
  competitive and at times less expensive than
  private labels
• The NAPA team
• Linda Emmertz [phone] Linda.Emmertz_at_dla.mil
• Ed Lees [phone] Edward.Lees_at_dla.mil
• Roe Colaberdino [phone] Rosemarie.Colaberdin
  o_at_dla.mil

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National Allowance Pricing Agreement

• Agreements between DSCP and manufacturer
• Allowances provided as bill-backs
• Does not obligate distributor to stock product
• Does not obligate customer to purchase product

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Bill Backs How It Works

• Landed Cost (-Allowance)
• Distribution Cost
• DSCP CRR
• Unit Price
• Discount provided at time of purchase (Operator
  Benefits)

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National Allowance Pricing Agreement Statistics

• of NAPAs - 250
• of Labels - 1,500
• of Itemsin NAPA Catalog - 16,000

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Current NAPA Holders Brand Name Items

• On the Worldwide Web
• HTTP//www.dscp.dla.mil/subs/napa.htm
• Complete catalog of items on the Web

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NAPA Savings
Millions
estimated
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Discrepancy reporting

• Monthly reporting for all contracts
• Reporting all NAPA discrepancies
• Request action be taken for each discrepancy
• Discrepancy values have decreased 98

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Information Technology Test

• Benchmark with industry how they enforce
  discounts
• Goals
• Ensure DSCP customers receive NAPA allowance
• Deliverable will provide allowance and usage
  tracking system
• Agreement awarded to One2OneUS.com
• Data live on secure website 12 Jan 2001
• Agreement info
• 5 year agreement
• Manufacturers will pay IT company directly
• Worldwide Web accessible

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Capturing the Flow of DSCP Purchasing
InformationContained in the EDI 810 Transaction

• One2OneUS data warehouse
• Leverages existing operational systems
• Designed by food industry experts

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• DSCP Subsistence
• Sales NAPA Allowance Tracking Program

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Report Analyze
Web Site https// www.one2oneus.com
Capture
ManufacturerMfg SKUMfg UPC IFDAFood
CategoryFood Classification GovernmentMilitary
BaseDining FacilityGeographical RegionMilitary
Service
DSCP
One2OneUS processing of data
Prime Vendor
Manufacturer
Classify Verify
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Web SiteDemonstrationTraining Overview
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Available Reports
Military Base
Manufaturer
Date
Mfg SKU
DoDAAC
NSN
Food Category
Prime Contract
Food Class
Prime Vendor
Navy FIC
Region
Govt Food Cat
Service
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Primary Goals

• Secure web site with 24-7 access
• Track quantity dollars
• Ensure your NAPA savings
• Flexible reporting tool

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Username Password

• Sign up today for access to the One2OneUS.com web
  site
• Your account information will be sent via email
  along with a user manual

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Thanks !!!
Questions?