18Apr08 IMCOM Policy #44 revised

DEPARTMENT OF THE ARMYUS ARMY INSTALLATION MANAGEMENT COMMAND

2511 JEFFERSON DAVIS HIGHWAYARLINGTON, VA 22202-3926

IMDCG

MEMORANDUM FOR All US Army Installation Management Command Garrisons

SUBJECT: US Army Installation Management Command (IMCOM) Policy #44, Morale, Welfare, and Recreation (MWR) Business Programs Corporate Strategy for Performance Improvement

1. REFERENCES:

a. DoD Instruction 1015.10, Programs for Military Morale, Welfare, and Recreation, October 2007

b. DoD Instruction 1015.15, Procedures for Establishment, Management, and Control of Nonappropriated Fund Instrumentalities and Financial Management of Supporting Resources, October 2007

c. Army Regulation 215-1, Morale, Welfare, and Recreation Activities andNonappropriated Fund Instrumentalities, July 2007

d. Army Regulation 215-3, Nonappropriated Fund Personnel Policy, August 2003

e. Installation Management Command NETCALL #23, MWR Business Management, March 2004

2. PURPOSE. To provide guidance to all US Army IMCOM personnel on MWR Business Programs Corporate Strategies for Food & Beverage (F&B), Bowling, and Golf operations. This document constitutes IMCOM doctrine and is directive in nature.

3. APPLICABILITY. This policy memorandum applies to all Regions and Garrisons.

4. PROCEDURE. This policy will be implemented at all US Army Garrisons. Recommended changes or exceptions to this policy may be requested, with proper justification, through IMCOM Regions to HQ IMCOM.

5. PROPONENT. The Installation Management Command is the proponent for this policy memorandum. Point of contact is Mr. Ernie Taylor, (703) 602-5248, DSN 332-5248, or email [email protected].

PHILLIP E. SAKOWITZ, JR. Executive Director

DRAFTDEPARTMENT OF THE ARMY

US ARMY INSTALLATION MANAGEMENT COMMAND2511 JEFFERSON DAVIS HIGHWAY

ARLINGTON, VA 22202-3926

Summary of Change

Changed Director, Morale, Welfare, and Recreation (DMWR) to Director, Family, Morale, Welfare, and Recreation (DFMWR) throughout document

Changed document from regulation to policy, eliminated references to regulation throughout

Corrected numbering errors throughout document

Adds Chapter 3-3, Catering, which sets policy on the Centralized Catering Program

Incorporates and supersedes Policy #42

Updates internet web links

Adds Appendix D, Competitive Price Surveys for Bowling, Golf and Food & Beverage

Adds language in paragraph 3-1.h.9 making use of Army standard point of sale and systems mandatory

Updates salary tables 3, 11, and 17

Changes the NIBD standard for Bowling to reflect 15% at all locations

Adds policy on Premium Well and Premium Call brands

Changes Golf NIBD standard to 15% for all Army golf course operations

Adds labor benchmark of Not To Exceed 50% for total golf operation

Updates pricing for Golf Table 15 and Bowling Table 9

Adds new pricing tier to Golf, Table 15

Table of ContentsParagraph Page

Chapter 1GeneralPurpose...............................................................................................................1-1 3References..........................................................................................................1-2 3Explanation of abbreviations and terms.............................................................1-3 3Records Management.........................................................................................1-4 3

Chapter 2ResponsibilitiesHQ IMCOM Director, Morale, Welfare, and Recreation........................................2-1 3IMCOM Region Directors/Region Deputy Directors..............................................2-2 4IMCOM Garrison Commanders/Managers, or Garrison Deputy Commanders......2-3 4Garrison Directors, Morale, Welfare and Recreation...........................................2-4 5Managers/Supervisors.........................................................................................2-5 5

Chapter 3Business Programs Corporate StrategyBusiness Activities..............................................................................................3-1 6Food and Beverage (F&B)...................................................................................3-2 10Catering..............................................................................................................3-3 12Bowling (Category B and Category C).................................................................3-4 16Golf.....................................................................................................................3-5 20

Chapter 4Performance Improvement ProgramReporting Process...............................................................................................4-1 25Reporting Requirements.....................................................................................4-2 26Performance Improvement Program Policy.........................................................4-3 26

Appendices

A. References...................................................................................................... 28B. Business Plan.................................................................................................. 29C. Scorecards...................................................................................................... 29D. Competitive Price Surveys…………………………………………………………………………….. 29

Figure ListNA

Glossary

IMCOM Policy 44, Corporate Strategies · 31 March 2008

Chapter 1 General

1-1. Purpose

This policy prescribes policies, responsibilities, and procedures for administering the United States Army, Installation Management Command (IMCOM) Nonappropriated Funds (NAF) Business Programs Corporate Strategy (BPCS) in accordance with AR 215-1, Military Morale, Welfare, and Recreation (MWR) Programs and Nonappropriated Fund Instrumentalities (NAFI).

1-2. References

Required and related publications are listed in appendix A.

1-3. Explanation of abbreviations and terms

Abbreviations and terms used in this policy are explained in the glossary.

1-4. Records Management

Records created as a result of processes prescribed by this policy must be identified, maintained, and disposed of according to AR 25-400-2, The Army Records Information Management System (ARIMS), and DA Pam 25-403, Guide to Recordkeeping in the Army. Record titles and descriptions are available on the Army Records Information Management System website (https://www.arims.army.mil).

Chapter 2Responsibilities

2.1. HQ IMCOM Director, Morale, Welfare, and Recreation (IMMW) will -

a. Provide guidance and oversight for the implementation, execution, and monitoring the corporate strategy.

b. Properly coordinate all revisions and updates to this policy with:

(1) IMCOM Region Directors (2) HQ IMCOM Directorates (3) HQ FMWRC Central NAF Contracting (4) Family, Morale, Welfare and Recreation Command (FMWRC) (5) Assistant Chief of Staff Installation Management (ACSIM) (6) Assistant G-1 for Civilian Personnel Policy, NAF Program Management Division

c. Perform annual review, monitoring, and evaluation of the IMCOM Business activities and programs scorecard evaluations and the BPCS program.

d. Provide funding and logistical support to conduct meetings of the Business Programs Steering Committee (BPSC) and supervise their effort to review, revise, maintain and implement the BPCS.

2-2. IMCOM Region Directors/Region Deputy Directors and Director FMWR (DFMWR) will -


https://www.arims.army.mil/

a. Implement the corporate strategy at all garrison business activities in IMCOM.

b. Support the attendance of appropriate region and garrison personnel at BPSC meetings in order to review, revise, maintain, and implement the BPCS.

c. Provide region level evaluation of the progress of implementation of the BPCS for each garrison and the region overall.

d. Promote and support BPCS fees and pricing policy for standard products, programs, and services.

e. Promote participation in central procurement enterprise and mandatory purchasing initiatives.

f. Support Region Program Analysts on-site analysis and completion of scorecards and internal controls checklists IAW the provisions of this policy. Complete region evaluations of garrison business activities and enterprise IAW the BPCS and the BPCS score sheet and internal control checklist.

g. Educate senior mission commanders, tenant units, and garrison commanders on the benefits and requirements of the BPCS.

h. Provide direct assistance to garrison MWR and business activities in the planning and execution of the BPCS.

i. Forward requests for interpretation of this policy to FMWRC.

2-3. IMCOM Garrison Commanders/Managers, or Garrison Deputy Commanders will -

a. Implement and execute the requirements of the BPCS.

b. Support the attendance of appropriate garrison personnel at BPSC meetings in order to review, revise, maintain, and implement the BPCS.

c. Provide garrison level evaluation of the progress of implementation of the BPCS for each business activity and the garrison overall

d. Require, support, and implement BPCS fees and pricing policy for standard products, programs, and services.

e. Require all activities participate in central procurement enterprise and mandatory purchasing initiatives.

f. Require completion of evaluations of garrison business activities and enterprise IAW the BPCS and the BPCS score sheet and internal control checklist

g. Educate senior mission commanders, tenant units, and managers on the benefits and requirements of the BPCS.

h. Provide funding and support to garrison MWR and business activities in the planning and execution of the BPCS.

i. Forward requests for interpretation of this policy to FMWRC.


2-4. Garrison Directors, Family, Morale, Welfare and Recreation will - a. Implement and execute the requirements of the BPCS.

b. Require the attendance of appropriate garrison personnel at BPSC meetings in order to review, revise, maintain, and implement the BPCS.

c. Provide garrison evaluation of the progress of implementation of the BPCS for each business activity and the garrison overall

d. Require managers and business activities to implement BPCS fees and pricing policy for standard products, programs, and services.



g. Educate senior mission commanders, tenant units, managers, customers, and garrison commanders on the benefits and requirements of the BPCS.


i. Forward requests for interpretation of this policy to IMCOM Region. j. Work with Provost Marshal to develop reasonable access programs that allow authorized users easier access to our facilities. This program should include identification cards and vehicle passes.

2.5. Managers/Supervisors will -

a. Implement and execute all requirements of the BPCS.

b. Attend the BPSC meetings when required in order to review, revise, maintain, and implement the BPCS.

c. Evaluate and report the progress of implementation of the BPCS for each business activity and the garrison overall

d. Implement and maintain BPCS fees and pricing policy for standard products, programs, and services.



g. Educate senior mission commanders, tenant units, customers, and employees on the benefits and requirements of the BPCS.



i. Forward requests for interpretation of this policy to garrison DFMWR.

Chapter 3

Business Programs Corporate Strategy (BPCS)

3-1. Business Activities

a. Mission Statement: Commanders will provide business program facilities and services at levels that meet or exceed customer expectations and result in profitable operations.

b. Strategic Vision Statement: Commanders ensure customers have access to MWR business activities and programs which deliver competitively priced quality products, in a safe environment, while achieving Army NAF Operating Budget financial standards.

c. Management Philosophy: IMCOM is committed to effective and efficient management of Business Programs operations. Implementation of the corporate strategy will provide sound stewardship of resources. Commanders and managers will apply best business practices to meet established NAF Operating Budget Guidance financial performance objectives.

d. Corporate Strategy: The BPCS is a systematic approach to ensure programs provide expected services and produce sufficient revenues to maintain and improve operations in the future. Business programs are revenue generating MWR programs unless otherwise authorized through the waiver process outlined in Chapter 4, Performance Improvement Program (PIP). Business programs are established based on validated customer demand, market conditions, and the ability to generate sufficient profits to cover operational program expenses. Business programs include retail, food, beverage, dining, snack bar, catering, social events, entertainment, and other hospitality or recreational services normally associated with club, restaurant, bowling center, or golf course operations. Multiple programs are usually co-located to maximize resources and minimize expenses.

e. Revenue Generating Activities: All business programs have the potential to be profit generators for shared MWR funds by achieving the Army’s Net Income before Depreciation (NIBD) financial standards. The BPCS implements a corporate approach intended to make every business operation a contributor to funding available for Army-wide, regional, and garrison use. This policy sets the procedures, minimum pricing levels, responsibilities, and well-defined rules for the programs.

f. Components: Performance measures, professional development, competitive price surveys, management compensation, incentive plans, program staffing, pricing, and the IMCOM PIP thresholds are components within general procedures for all business operations, activities, and programs.

g. Participation: The policies and guidelines outlined herein are mandatory in terms of pricing and standards. Exceptions to pricing and fees will be considered only under special local conditions and justified in writing through the Region and to IMCOM Headquarters.

h. General procedures: The general procedures outlined in this section are mandatory for all business operations, activities, and programs.


(1) PIP Program and Thresholds: Business activities and operations are placed in the program when losses exceed established loss thresholds over 4 quarters, based on a semi-annual review. PIP process and procedures are IAW Chapter 4 of this policy.

(2) Business Plans: All business operations will develop and implement a business plan, which will include the action plan, as an annual requirement utilizing the IMCOM Business Plan format. The business plan is a web based template available at http://www.armymwr.biz/business_programs.htm. This link will be inserted in the NAF Operating Budget Guidance and included in the IMCOM MWR and FMWRC web pages. Business plans establish how critical income and profits will be achieved for the period covered and support the creation of the annual operating budgets.

(a) BPSC and FMWRC will implement and maintain the web-based business plan system. The business plan must be complete, support the needs in the local garrison market, and meet budget objectives. Action plans must be complete and include specific resourced and realistic action items that will implement improvements and resolve operational problems, and the action owner and completion date (month/year). Garrison operations will be evaluated using the Business Plan, Action Plans, Internal Control Checklists, Audits, Corporate Strategy Scorecard, and Budget performance compliance.

(b) Each activity manager will include as part of their business plan a well thought out contingency plan for reduced or curtailed operations that may occur during major troop deployment. Operations will submit business plans (including contingency plans) with their annual budget proposals for Garrison Commander approval.

(c) The Garrison Commander will submit plans and budget to the region for review and approval. Proposals for new operations will obtain region approval of business plans and action plans before the garrison commits any NAF or APF resources to the new operation.

(d) Regions and garrisons will ensure that approved plans and budgets are provided back to garrison-level functional managers for operational purposes. Region and garrison managers will provide oversight to ensure compliance with the business plan, action plan, and this policy (e.g., develop marketing strategies to increase program growth).

(e) Management will review internal controls, analyze fee pricing and cost drivers for competitiveness, determine appropriate staffing levels, and determine right sizing of service. Operations that revise budgets during the fiscal year must revise their existing business plans and action plans and resubmit for garrison and region review/approval.

(f) Business activities and program managers will review/revise business plans annually (monthly action plan review and update) for submission with annual budget proposals. A deliberate process and formal document is necessary to communicate to all parties who will contribute to improvement of specific operations. Garrisons will use the standard business and action plan format to conduct garrison wide assessments.

(g) Specific program requirements for business plans are found in the respective Food and Beverage, Golf, and Bowling sections of the Corporate Strategies.

(h) All IMCOM NAFI Business Activities (including AAFES partnerships, Public Private Ventures, Enhanced Use Lease, Name Brand Fast Food, Name Brand Casual Dining, or other revenue generating activities) will comply with the requirements of the corporate strategy by developing and implementing comprehensive business plans and action plans.


(3) Management Performance Standards: Manager’s performance standards will be based on the business programs’ performance drivers. Performance drivers will be incorporated into business plans, scorecards, and checklists and linked throughout the entire planning, execution, measurement, evaluation, and review/revised operational processes. Garrison level leadership has the authority to structure the performance standards within these common drivers to support their operational needs. All strategies and actions in business plans will be measurable and relate back to these seven drivers:

Meeting Benchmarks Personal and Professional Self Development Staff Training and Development High Quality Hospitality Service High Quality Products High Quality Facilities Effective Business Processes

Performance Standards using the seven performance drivers are required for all NF 3, 4, and 5 revenue generating facility managers.

(4) Management Incentive Plans (MIP): MIPs are required for all NF 3, 4, and 5 revenue generating facility managers. Additional management positions under the facility or general manager level may also be included in incentive plans. All incentive plans are subject to limitations within AR 215-3 (NTE $25K annually). MIPs will be developed and implemented annually and may be adjusted or dissolved at the discretion of the commander. The details of the plan will be captured in a memorandum for record, signed by the employee, Garrison DFMWR, and Region DFMWR, and attached to the negotiated budget and forwarded to the respective region. Once the operational budget is approved, a copy of the plan will be sent to NAF Financial Services along with certification of funds from the fund manager for payment at times specified in NAF operating budget guidance.

(a) The MIP is based on dollars earned over the approved budgeted NIBD. The minimum split is 75 percent to the facility and maximum 25 percent to positions that contribute directly or indirectly to the financial success and quality service improvements in specific operations. There will be a separate agreement for each position included in the overall incentive plan. At the end of each Fiscal Year (FY) the actual results are compared to the approved budget. Corporate financial goals and NIBD standards are the focus of the approved budget. The amount earned over the approved budgeted NIBD is split according to the share ratio in the approved agreement.

(b) Incentives for operations on the PIP list and/or below corporate goals and standards may be awarded based on financial improvement terms that are negotiated and approved by the Region Director in advance. Agreements will not be based on negative NIBD unless specifically included in PIP business plan approved by the Region Director. No agreement will be approved for facilities exceeding PIP management time limitations or on waiver under PIP criteria.

(c) Additional goals such as reducing other operating expenses, labor, and cost of goods sold (COGS) below benchmarks can be included in the agreement plan, but are secondary to approved budgeted NIBD. These benchmarks and goals are not used to automatically disqualify the management incentive plan. Additional goals/rewards (such as service and facility improvements), can be considered outside the qualified management incentive plan.


(d) Incremental participation (assuming management duties during the budget cycle or departing during the budget cycle) requires the reconciliation and approval by the Region Director of incremental agreement allocations and will not be back dated or post dated.

(5) Professional Development: Position appropriate training in accordance with the Army Civilian Training, Education, and Development System (ACTEDS) Career Ladders is mandatory (http://www.armymwr.biz/acteds_51.htm) for NF 3/GS-5 and above. For employees below these grades, managers will develop plans for program specific training and professional development using ACTEDS. All business program personnel will have an Individual Development Plan (IDP) that is updated annually using the standard format (http://www.imcom.army.mil/site/hr/wfd/IDP%20FORM.doc).

(6) Competitive Price Surveys: Annual surveys will be conducted at a minimum of three comparable golf, bowling, and food & beverage operations using the standard IMCOM competitive survey found in appendix D. Additional competitors will be surveyed if they directly compete with local operations. The competitive price survey should compare current local Army rates, minimum rates set by the Corporate Strategy, and competitor’s rates. Competitive price surveys will be submitted to the Region with the annual operating budget.

(7) Performance Measurement: In order to measure performance and establish a baseline, IMCOM business activity metric scorecards (Appendix C) and internal control checklists (Appendix B) are established for food & beverage, bowling, and golf operations. Program assessments using the scorecards and internal control checklists will be completed by the Region Business Programs Analyst during annual site visits. These assessments must be completed by the Region Business Programs Division, on-site at all garrisons with Business Program activities, on an annual basis to ensure compliance with IMCOM policies. Garrison business activities will conduct self assessments using the scorecards and internal control checklists and submit completed assessments to the region with the annual operating budget.

(8) Standard Pricing Structure: The minimum fees for golf and bowling will be established in the NAF operating budget guidance and will be fully implemented with the approved budget. Incremental increases in pricing implemented over a reasonable budget period are recommended. Exceptions to the pricing guidelines require written authorization through the region to FMWRC. Bowling and golf fees will not be less than 75 percent of the prevailing off-post rate. Pricing of food and beverage items are determined using published Army benchmarks in conjunction with sales mix calculations.

(9) All activities will make maximum use of Army standard point of sale (POS) systems: GolfTrac and RecTrac. Army standard systems will be used to generate critical management reports for effective operations, i.e., FoodTrac, EventMaster, and Time Labor Management System. Usage of systems listed is mandatory.

3-2. Food and Beverage (F&B)

a. F&B as defined in AR 215-1, Chapter 8, para 8-24, will be operated in accordance with DoD and DA directives, and applicable regulations.

Food, Beverage and Entertainment (F&B) Strategy (includes all F&B in program codes KA, KE, KF, KG, KL, KM, LE, LL, LQ, LT)

Table 1 - Components of F&B programs


http://www.imcom.army.mil/site/hr/wfd/IDP%20FORM.doc

Regular Bar Theme Bar Catering (Private) bar Full Service (Dining Room) Casual Service (Dining Room) Quick Service (Snack Bars) Theme Food Catering Bingo Free Standing Snack Bar Mobile Snack Bars

Bulk Beer Retail Special Events Membership Programs Administrative (includes contracts,

entertainment, management, and facility expenses, Army Recreation Machine Program)

Concessionaires: Record in appropriate departments, i.e., food and beverage, pro shop, etc.

Table 2 – Army Benchmarks

F&BAll

RegularBar

Theme Bar

Catering Bar

Dining Room

*Snack Bar

Catering Bingo

LABOR 42% 30% 30% 25% 40% 35% 30% N/A

COGS 40% 25% 25% 25% 38% 35% 30% N/A

OOE 10% 10% 10% 5% 10% 10% 10% N/A

NIBD 8% 35% 35% 45% 10% 15% 30% 15%

*Snack Bars - When alcoholic beverage sales exceed 25 percent of total snack bar sales, all sales will be accounted for in the Regular Bar Department (01). The department includes all associated costs, expenses, labor, equipment, and necessary inventory to support regular bar operations.

b. The financial standard for F&B operations is eight percent.

c. The overarching responsibility and focus of F&B Managers is developing, marketing, and professionally providing F&B products and services that meet the desires of the customer. Army MWR will operate F&B activities that represent leading commercial industry trends by properly positioning the business activity; creating new business activity models by contracting with name brand restaurants through Public Private Venture (PPV), licensing agreements, and franchises; partnering with Theme operations; partnering with AAFES in new operations and as replacements for existing operations; and divesting operational responsibility of F&B programs where appropriate. In order to develop garrison plans to meet the financial standards, the following items need to be incorporated:

(1) Market Density: F&B managers will coordinate with marketing services and other relevant installation personnel to ensure that F&B operations are of the correct size and are sufficiently dispersed geographically to maximize revenue generating opportunities and minimize internal MWR competition. Existing agreements between FMWRC and AAFES require assessment of potential impact that any new F&B operation will have on current AAFES and MWR operations.

(2) Marketing: Marketing research is a critical element which must be addressed in the initial stages of developing a business plan and operating an F&B facility or program. Full disclosure of market segments, competition, and market demands ensure solid footing for planning and execution of any operation. Development of marketing plans should serve


as the blueprint for how the component parts of the operation will be forecasted, advertised, promoted, set up, and executed.

(3) Pricing: Pricing structure should be driven by competition and financial benchmarks. To ensure F&B standards are achieved, costing/pricing data should be submitted annually for regional review and approval. The use of FoodTrak and/or EventMaster data will guide the development of menus, room rental fees, and delivery charges.

(4) Control Expenses: The use of Army corporate purchasing programs is mandatory (Prime Vendor, IMCOM Mandated Products). During deployment, training exercises, or significant population fluctuations, operations should be adjusted to reflect market size. See contingency plan in business plan section. The use of approved automation, such as FoodTrak and EventMaster, is mandatory. Internal controls are required for cash, inventory, and property to reduce shrinkage and to keep product cost at the lowest levels (per AR 215-1). Use of internal control spread sheet as an annual self assessment is required.

(5) Labor Management: Refer to Table 2 for maximum percentages. Most operations have numerous positions providing benefits making it difficult to manage labor cost during market fluctuations and periods of increased security. The majority of F&B positions should be performed by flexible employees. While there are exceptions based on location, Army benchmarks are designed for a typical Army F&B facility to achieve profitability.

(6) Proper Labor Accounting: All personnel will be accounted for in the department they work. Staffing includes the appropriate ratio of permanent employees to flexible employees.

(7) F&B Program Managers’ Compensation: The total compensation package for F&B managers should be comprised of a salary and a management incentive plan. The following salaries are considered reasonable guidelines based on similar operations in private industry for a base salary. Regional variances should be considered based on cost of living, size of operation, and available labor market.


Table 3 – Food & Beverage Base Salaries

PositionLowerPercentile

MedianPercentile

UpperPercentile

Full Service Manager $34,980 $40,810 $52,470

Snack Bar Manager $29,150 $32,670 $39,600

Assistant Unit Manager $29,150 $32,670 $39,600

Night Manager $24,530 $30,360 $38,500

Banquet Manager $30,360 $37,290 $50,160

Catering Manager $34,980 $40,810 $50,160

Chef $33,770 $40,810 $48,950

d. Premium Well Strategy for Bar Operations:

(1) This strategy will: (a) Improve product quality and customer brand recognition. (b) Reduce inventory lines. (c) Establish a distinct point of difference from our competition in both pricing and product quality. (d) Improve bar profitability by increasing contribution income per sale.

(2) Financial benchmarks for bar operations are shown in table 2. Most important of these is to achieve an overall NIBD of 35% or greater in bar operations.

(3) Bar operations with departments 01, 03 or 25 will establish two pricing tiers, Premium Well and Premium Call, rather than the typical three tiers. Selected well and call brands are established in January of each year based on a survey of best selling products in AAFES Class VI stores and disseminated through the regions to Installations. FMWRC has responsibility for this action. Installations have the flexibility to stock additional brands that are locally popular.

(4) The standard pour for distilled spirits is one ounce. This keeps our prices as low as possible and helps to control over-consumption. Cocktails that contain more than 2 ounces of liquor/liqueur will be "built" using a ½ ounce pour for each ingredient based on the standardized recipe. If the requested cocktail has not been programmed into the Point of Sale (POS) with an associated recipe, it must be “built” using the keys on the register; ringing in the individual brands of liquor/liqueur poured. Half-ounce key will be programmed into point-of-sale systems to properly total the sale.

(5) Only Premium Well and domestic beers are authorized to be used in reduced pricing programs.

(6) Per IMCOM Policy Memorandum # 44, para 3-1.h.6. To get a complete overall picture of competition a survey of a minimum of three competitors providing similar or like services and goods is required. It is important to compare prices with like facilities as well as like products. Comparison of domestic beers, import beers, premium well, premium call, and house wine is required. Remember when comparing facilities look at the brand names your competitor used for well and call. Look at the decor and services provided, check the types of imported beer and only compare against brands you carry. Is the house wine, box or bottle? Ensure you compare your facility with establishments that are similar in size, decor, service, and product.


(7) Marketing: Include "We Proudly Serve a Premium Well" on all appropriate marketing material.

(8) AAFES Class VI is the distilled products preferred prime vendor. Activities are required to purchase a minimum of 80% of total distilled product purchases through AAFES Class VI where available. Participation must be maximized to take advantage of pricing and rebate volume. Non- AAFES Class VI buys can include specialty items not readily available through AAFES.

3-3 Catering

a. Catering Strategy: Catering operations are conducted IAW AR 215-1, paragraphs 8-24c(3) and 10-4.

Table 4 – Components of Army Catering

Private Events Official Military Events Catering (Private) bar Entertainment Conferences and Meetings

Special Events Administration Catered Food Themed Events Expositions

b. Performance Measures: The Army Catering Desk Reference contains standard operating procedures. Catering is accounted for as departments within the appropriate MWR program. Stand alone catering facilities will use program KM. Catering service may also be offered from bowling centers and golf courses for events such as private outings, tournaments, and birthday parties. Catering sales and related expenses will be recorded in department 03 (Private Party Bar), department 13 (Private Party Food).

Table 5 – Catering Financial Standard/Benchmarks

Benchmark MeasurementFood COGS 30%Food Labor 30%Food OOE 10%Food NIBD 30%Bar COGS 25%Bar Labor 25%Bar OOE 5%Bar NIBD 45%Overall Catering NIBD 30%

c. Room Fees: Operations will charge room fees to cover all costs associated with the use of catering rooms/meeting space. Official events, special events hosted by private organizations, and events held in Community Activity Centers are not exempt from room fees. Semi-annually facility managers will prepare cost sheets for common expenses to determine actual charges. These costs would include linens, labor costs, and other associated expenses. Special requests beyond the standard set-up will be charged accordingly. Fees for recurring set ups such as podium packages may be pre-set and will be reset annually at a minimum.


d. Meetings. Standard room fees are based on the capacity of the room.

e. Catered events, where food and non-alcoholic beverage purchases exceed four times the amount of the standard room rental fee (see paragraph 3-3.c), the fee will be waived.

f. Labor Management: Accurate labor expensing is critical to financial success.

(1) Employees may work in catering and in the dining room or bar during the same shift. Costs for their labor must be assigned and transferred to the appropriate department based on preponderance of time.

(2) Events held on Sundays and/or holidays will incur an additional per person charge to cover employees’ premium pay and benefits.

(3) Staffing standards outlined in the catering desk reference are industry standards and are considered sufficient to make each event successful. Additional staff can be arranged for an additional minimum charge per hour per employee with an overtime rate of per hour per employee when appropriate based on local wage rates plus benefits.

g. Catering Sales Manager Compensation: Total compensation package for catering sales managers consists of a reasonable salary, a percentage of service charges, and quarterly incentives based on quarterly sales goals established locally. Compensation for achieving quarterly sales goals will be documented during the budget process, approved by DFMWR, and submitted to Region with Business Plan. Catering Sales Manager will not be included in the Manager Incentive Plans. Salary guidelines are provided in Table 3.

h. Deposits: Customers are required to pay deposits for all private/unofficial events. Deposits must be paid at the time they sign the contract for their event. Deposit amounts are shown in the “Catering Information and Pricing” section of the catering manual.

i. Room Reservations:

(1) Telephonic reservation requests are considered tentative.

(2) All reservation requests must be followed by a signed contract and applicable deposit within 72 hours of making the reservation. Reservations without deposit are subject to cancellation.

(3) The customer signing the contract is responsible for the event and is the only person authorized to make changes to the contract.

(4) Use of room is for a standard maximum of four hours. A reasonable amount of time in advance of the event will be allowed for the customer to provide their own decoration. Additional time may be added to the contract in consideration of additional fees.

j. Minimums for holding events will be established locally. The approximate number of attendees will be provided at the time of making the reservation. This number will determine the space required. The number will be updated 30 days before the event.

k. The guaranteed number is required at least 72 hours before the event. This is the number of attendees that the host is responsible to pay for. However, if participation is greater than the guarantee, the event host will be charged for the actual number of meals served.


l. Facility management reserves the right to reassign the event to a smaller room or cancel the event if participant numbers decrease below established minimums.

m. A minimum 18% service charge will be applied to all food and beverage purchases.

n. Catering managers will use RecTrac, EventMaster and FoodTrak automation in accordance with this policy and the related desk reference.

(1) Party contracts will be produced either by RecTrac, EventMaster or pre-numbered paper contracts issued by Financial Management.

(2) EventMaster and FoodTrak will be synchronous via software interface.

(3) EventMaster will be used to produce customer invoices and management reports. o. Five Star Catering Menu Procedures

(1) The Army Five Star Catering Menu Program will be used to standardize products and services offered in Army facilities worldwide. This is a mandatory program for all Army Morale, Welfare, and Recreation (MWR) Catering Programs and is Army Policy.

(2) The purpose of this program is to standardize menu items and recipes in facilities throughout the Army. The Five Star Menu is an integral part of the overall Army plan to revitalize clubs, bowling, and golf activities; create value by enhancing quality, product, service consistency, and overall perceived value. Using Five Star menu items standardizes training, eases procurement of products, and standardizes food quality thus allowing management to concentrate on customer service.

(3) In order to reach the goal of standardization, Army MWR Catering programs will be required to maintain an 80% Five Star core-catering menu and comply with buffet standards as outlined in this guide.

(4) Responsibilities

(a) FMWRC: Will provide documentation and standards to include: menu samples where applicable, recipes, product specifications, nutritional analysis, standard equipment listing, Five Star Menu operational manuals and recipe updates. Will provide Five Star Menu courses to provide the necessary training on the preparation and presentation of the Five Star Core Menu items.

(b) IMCOM Regions and Garrison Staffs: Track and validate that all activities under their oversight comply with all menu requirements outlined in this guide. Assessments will be completed during annual site visits by Region Business Program Analysts.

(c) Garrison Commander/DFMWR: Through the Business Operation Chief (BOD) ensures implementation of and compliance with the Army policy on Five Star Core Menu. Ensures proper communication and marketing are accomplished to promote the food program and to adhere to the policy of the Five Star Core Catering Menu Program on the installation.

(d) BOD/Club Manager: The BOD and club manager are the two key people in the implementation of this policy. Their commitment is essential to ensure this program is properly implemented and executed.


(1) Manage the Army Five Star Core Menu IAW the established recipes and standards.

(2) Develop menus that meet Five Star Core Menu requirements.

(3) Review cost cards as required on a quarterly basis

(4) Maintain standard food specifications for the mandatory Five Star Core Catering Menu items and ensure specifications for all other menu items meet or exceed the requirements provided in the core catering menu “Manufacturer Specification Sheet”.

(5) Recruit, hire, supervise, administer, and train staff on established systems, production, and presentation standards.

(6) Work with marketing to aggressively develop and implement marketing, promotions, advertising, and merchandising food programs that support the Five Star Core Catering Menu.

(7) Identify and purchase equipment and supplies within the established operational budget.

(8) Ensure established nonappropriated fund accounting procedures and requirements are maintained.

(9) Maintain a daily financial summary to include data on separate day-parts and activities

(10) Forecast, develop, revise, and maintain capital requirement budgets within established standards for replacement of equipment items.

(11) Installation (DFMWR or Business Division Chief) should: (12) Ensure the Core Menu’s standards are maintained in accordance with Army Policy and Instructions.

p. The standard measurement for compliance is that catering operations use at least 80 percent of the Five Star Core Catering Menu items (Catering Menu template).

(1) Recipe Validation: Recipes are considered core when they are produced and presented exactly as outlined in the Five Star Core Catering Menu guide/core menu software program, to include all related sub recipes and names. (Substitution of side items is permitted upon customer request). The description and name are mandatory for all Catering menu items.

(2) Ingredients: You must maintain the exact standard specifications for all mandatory Five Star core menu items. For non-mandatory items you can substitute like ingredients in a recipe. The ingredient must meet or exceed the quality level of the specification provided in the core, i.e., you can substitute a 6 oz Tyson Chicken Breast with a 6 oz Perdue chicken breast, but you can’t substitute a 6 oz with an 8 oz.

(3) Non-Mandatory Core Menu Items: Managers are highly encouraged to incorporate non-mandatory Five Star Core Menu items into their menus. The Five Star Core Catering Menu database, software, will be periodically updated and available as a tool for managers to further develop their menus and stay on top of industry trends. Managers may incorporate local recipes and menu items, not to exceed 20% of the total menu offerings. The recipes will be submitted to FMWRC, Business Programs, for review.


q. Train key club employees so they understand and can explain the basic information about Five Star Core Catering Menus and the Five Star Core Menu policy. Tailor the following training scenario to meet local conditions. The objective is to ensure the staff understands and fully supports the new Five Star Core Catering Menu Program and can assist customers with questions concerning item preparation and taste.

SUGGESTED STAFF TRAINING SCENARIO, initial training/food preparation (4 hours)

(1) Have your kitchen staff prepare and present the core items that will appear on the menus. Stress the use of recipes, the new specification requirements for selecting recipe ingredients, availability of nutritional information for recipe items, and plate presentation. Using the Core Recipes will standardize food quality and provide consistency. Estimated time required: 4 1/2 hours or 15-20 minutes per new menu item prepared. Allow kitchen staff along with the wait staff to sample the menu items. This will enable them to answer questions from the guests on preparation and taste. (2) Core Catering Menu training class: Five Star Core Catering Menu training is conducted on a regular basis at the FMWRC Academy in Arlington VA.. Contact them for class dates and quotas.

3-4. Bowling (Category B and Category C)

a. Category B Bowling Centers are included in the corporate strategy in terms of performance criteria. Funding at the appropriate Common Level of Support (CLS) level is required to be implemented IAW NAF Operating Budget Guidance.

b. Category C Bowling may receive CLS funding under provision of AR 215-1 for remote and isolated locations.

c. Bowling Program Strategy (includes program codes KA and LE)

Table 6 - Components of Bowling Programs

Lane Operations Bowling Equipment Pro Shop Regular Bar Snack Bars / Parties Army Recreation Machine

Program Video Arcades

Bingo Promotions / Special Events Administrative (includes contracts,

entertainment, management, and facility expenses)

Concessionaires: Record in the appropriate department, i.e., food and beverage, pro shop, etc.

Bowling is an entertainment business and must provide a variety of products to attract both casual and repetitive bowlers. Customers are willing to pay for entertainment opportunities that are wholesome, multifaceted, and offer an exceptional experience. Bowling centers must be fun, inviting destinations where people enjoy the programs and activities. Bowling Center Managers must develop a culture focused on creating programs and maximizing participation in activities offered at the centers. Bowling has to be packaged as a valued entertainment option. An overarching responsibility and focus of bowling managers has to


be the developing, marketing, and selling of bowling programs, products, and services that meet market demands.

(1) Performance Measures: The MWR Board of Directors approved standards and benchmarks are in tables 7 and 8.

Table 7 - Financial Standards Table 8 – Bowling Benchmarks

RegionNIBD Financial Standard for Category C

BenchmarkMeasurement

KORO 15% Average Revenue per Line Bowled

$2.00

PARO 15% Total Center Labor Cost 45%

EURO 15% Lines per Lane per Day 17

WEST 15%Pro Shop Cost of Goods Sold (COGS) 75%

NERO 15% Pro Shop Inventory Turnover per Year

3

SERO 15%Food & Beverage (see F&B Benchmarks) Table 2

Category B Centers NIBD >= $0

(2) Business Plans: All business plans are prepared using the central web-based business plan format.

(3) Action plans: In addition to the business plan, bowling managers need to incorporate a number of bowling specific actions into an action plan that is designed to expand programming to increase patronage, increase revenue, and maintain and improve facilities. The action plan must reflect specific tasks for improving lineage and programming events from the previous year. Managers will develop and implement plans to increase bowling party business, special events, promotions, and traditional and non-traditional organized (league) activities during the budget process. Managers will develop and implement a mandatory 12-month calendar of programming (submitted with business plan) to draw various market segments to the bowling center, including but not limited to, the following:

Food combo pricing Youth, Family, and After School Events Introductory events to introduce youth, singles, and families to bowling (i.e., Bowling

Proprietors of America Association (BPAA) Blastoff events) FMWRC special events promotions Coaching/lessons Industry special events and promotions (i.e., Strike Ten) Tournaments Senior programs Holiday themed events Corporate functions Parties (i.e., birthday, holiday)


(4) New Bowlers: Managers will aggressively pursue new bowlers through special promotions and target marketing. Garrisons with bowling centers will submit the appropriate paperwork to gain Assistant Secretary of the Army for Manpower and Reserve Affairs (ASA M&RA) approval for use of our bowling centers by veterans. This civilian population segment already has a connection to the military and is a logical target market. Managers will develop programs to retain and expand existing leagues and develop new leagues.

(5) Coaching: A coaching or teaching program is an integral part of a systematic approach to increase lineage. All centers are encouraged to have teaching programs to attract new bowlers and encourage repeat business.

(6) Maintenance: Facility managers will be knowledgeable of and implement a maintenance plan as recommended by the manufacturer of equipment specific to each facility. Managers will develop and implement a systematic approach to maintain and improve facility conditions and submit with their strategic business plan.

(7) Financial Goals: All net income standards are reflected in the NAF Operating Budget Guidance and are mandatory.

d. Bowling Fees: In order to meet the Army’s bowling recapitalization and construction needs, and develop a standard pricing structure; fees will be set at a minimum IAW table 9.


Table 9 – Bowling Fees

Activity Minimum Fee

Lineage Fee (per game)

Open Bowling $2.25

Adult Leagues and Tournaments $2.25

Youth Leagues $2.00

Military Intramural Leagues $1.75

Rental Shoes $1.75

Note - IAW paragraph 3-1, g. exceptions to pricing and fees will be considered only under special local conditions and justified in writing through the Region and to HQ IMCOM.

e. Pro-Shop/Retail Operations: A successful pro shop can be a lineage multiplier but for most centers a small inventory of bowling aids sold over the front counter is sufficient to support our clientele. Pro shop merchandise and products should represent current market demands and trends. To meet the Army pro shop benchmarks (table 6), inventories must be aggressively managed. High inventory holdover will equal future deferred losses. Vendors can usually supply balls within a week after ordering making the stocking of large numbers of hard goods unnecessary. Special orders are the preferred method of providing bowling balls for our patrons. This quick turnaround effectively makes the vendor the pro shop warehouse.

f. New Pro Shops: New pro shops require a comprehensive business plan that complies with chapter 4, Performance Improvement Program (PIP), before implementation and starting operations. To include a pro shop in a new construction project, the business plan for the pro shop will be included as part of the project validation assessment process.

g. Labor Management: The following professional staff or core staff will be regular full or part-time status positions. All other positions will be flex status employees as shown on business needs based on Table 10.


Table 10 – Bowling Staff

Staff / PositionsKA(12 lanes or less)

LE Medium(13-24 lanes)

LE Large(>24 lanes)

Department

Operations StaffGeneral Manager RFT RFT RFT G1Assistant Manager X RPT RPT G1Admin Assistant X X RPT G1Night Manager X RPT RPT G1Recreation Assistant X X X 45Recreation Aide X X X 45Maintenance Staff*Lead Equipment Service

RPT RPT RFT 88

Asst Equipment Service X X X 88Lead Lane Attendant X X X 45Asst Lane Attendant X X X 45Lead Custodial X X X G1Asst Custodial X X X G1Pro Shop StaffPro Shop Manager X X X 39Recreation Aide X X X 39Ball Driller X X X 39**Food and Beverage StaffManager RPT RFT RFT 11,14,26Food Service Worker X X X 11,14,26Bartender X X X 1, 25RFT = Regular Full-time RPT = Regular Part-timeX = If business warrants, these positions will be filled with flex employees*In lieu of equipment service positions, maintenance contracts should be considered, where available, to reduce labor cost and eliminate parts inventories**Subject to Theme Operations policies vs. local operations

Centers will adjust staffs to meet the labor benchmark based on location, labor market and center size. Actual staffing should be market driven and produce budgets based on achieving NIBD standards.

h. Bowling Managers’ Compensation: The total compensation package for bowling managers should be a two-tier plan that includes a reasonable salary and a Management Incentive Plan based on paragraph 3-1.h.5 of this policy. Based on the BPAA industry compensation study, the salary ranges in table 11 are considered reasonable for entry-level based on similar operations in commercial industry. For managers to charge for lessons, the manager must be certified by one of the industry associations and have a written agreement with MWR outlining compensation details. Regional variances should be considered based on cost of living, proven performance record, and available labor market. Management incentive plans should require completion of or show demonstrated continuous progress towards completing the Army Bowling Certification Program.


Table 11 – Bowling Salaries

Staff / Positions*KA (12 lanes or less)

LE Medium (13-24 lanes)

LE Large (>24 lanes)

Manager $30,000 to $39,000 $35,500 to $51,000 $41,800 to $68,300Assistant Manager $23,500 to $28,600 $26,000 to $40,000 $28,600 to $45,000

*APF reimbursable or direct APF Labor

3-5. Golf

Golf Program Strategy (program code LQ)

Table 12 - Components of Golf Programs

Course Operations Turf Management Pro Shop Regular Bar Snack Bars / Dining Rooms Lessons Catering Driving Range

Golf Car Operations Promotions / Special Events Administrative (includes contracts,

concessionaries, entertainment, management, and facility expenses)

Concessionaires: Record in the appropriate department, i.e., food and beverage department, pro shop, etc.

Note: An overarching responsibility and focus of golf managers has to be the developing, marketing, and selling of golf programs, products, and services that retain existing customers and attract new customers.

a. Performance Measures: The MWR Board of Directors approved standards and Army benchmarks are in tables 13 and 14.


Table 13 – Financial Standards Table 14 – Golf Benchmarks

RegionNIBD Financial Standard

Benchmark Measurement

WEST (North)

15% Total Operation Labor Cost 50%

NERO 15% Total Other Operating Cost 25%

WEST (South)

15% Pro Shop Cost of Goods Sold (COGS)

72%

SERO 15% Pro Shop Inventory Turnover per Year

3

EURO 15% Pro Shop Inventory Levels50% of previous years sales

KORO 15%Rounds Played (based on 200 rounds per 18-holes per playable day)

70%

PARO 15%Total Maintenance Expense per Hole $25,000

b. Business Plans: In addition to the core business plan, golf managers need to incorporate a number of golf specific actions into their strategic plans in order to expand programming to increase patronage, revenue, and maintain and improve facilities.

(1) Business and action plans must reflect plans for increasing rounds played and events from the previous year. Managers will develop and implement plans to increase rounds through special events, promotions, and development of new players during the budget process. Managers have the flexibility to deviate from the basic golf fees when setting prices to maximize revenue and increase participation through special programming and events. Managers will develop and implement a mandatory 12-month calendar of programming (submitted with strategic business plan) to draw various market segments to the golf operation and increase rounds played.

(2) Business plans should reflect actions to improve the financial results of food and beverage operations if they are not meeting the eight percent NIBD standard for F&B operations.

(3) Managers will aggressively pursue new players. As a minimum, garrisons will submit the appropriate paperwork to gain ASA (M&RA) approval for veterans’ use of our golf courses. This civilian population segment already has a connection to the military and is a logical target market.

(4) Establish player development programs that grow more customers and create additional interest. Some examples are:

Play Golf America Family/Youth Programs Install Novice Tee Boxes Establish special rates for less than traditional 9-hole rounds to encourage additional

play during slow periods such as late afternoon


c. Golf Fees and Categories: Low fees directly affect course and clubhouse conditions and management’s latitude to reinvest in our facilities. Operating costs go up every year, particularly the cost of labor, and fees must rise as well to keep pace (table 15).

(1) Standard fee categories will provide fairness, consistency, and common levels of service across the Army.

(2) Daily and annual greens fees: To meet the financial standards, all greens fees will have a set minimum (see Table 15). Installations may establish local promotion rates for slow play periods such as twilight rates to increase play.

(3) Car Fees. Golf car income is important to MWR and a large investment has been made toward providing current golf car fleets at all Army courses. Golf car fees should not be discounted. Car fees should be closely monitored to ensure rates are comparable to our competitors. Golf industry typically does not allow private golf cars on courses. Private car owners/riders will be charged for each rider for each round of golf played. Use of private golf cars on Army golf courses will be phased out over a 5-year period beginning 1 Oct 07. No new private golf car registrations will be allowed during the phase-out period. In the interim, if currently allowed, the private golf cars will be registered, pay a per-rider trail fee, and a minimum annual storage fee if applicable.

(4) Golf operations will honor reciprocal play on our courses for personnel who live further than 50 miles from the installation and have paid advance greens at another Army installation. These players must show evidence of their paid advance greens fees and will be charged at least 50 percent of the local daily greens fee.

Table 15 – Minimum Standard Golf Fees

Fee CategoryDaily Greens Fees Annual Greens Fees Golf Car Fees

9-holes 18-holes Single Family 9-holes 18-holes

E1-E6 / Youth $6.00 $9.00 $360 $540

E7-O3 $9.00 $15.00 $580 $870

Authorized Patrons $12.00 $19.00 $760 $1,200

Guest / Public $15.00 $28.00 $1,200 $1,800

Reciprocal 50% Daily Rate

50% Daily Rate N/A N/A

All Categories N/A N/A N/A N/A$8.00 per rider

$12.00 per rider

*Private Car N/A N/A N/A N/A$8.00 per rider

$8.00 per rider

Private Car - minimum annual storage fee is $360

Note - IAW paragraph 4.g exceptions to pricing and fees will be considered only under special local conditions and justified in writing through the Region to HQ IMCOM.


d. Golf F&B Operations: F&B services will be operated as a profit center IAW with the F&B strategy section of this policy. The use of the prime vendor program is mandatory.

e. Pro Shop Operations: Pro shop merchandise and products should represent current market demands and trends. In order to meet the Army pro shop benchmarks (table 14), inventories must be aggressively managed. Golf merchandise and technology changes rapidly and product lifecycles on many items is only six months causing inventory to be outdated quickly. High inventory holdover will equal future deferred losses. Vendors can usually supply clubs within a week after ordering thereby making the stocking of large numbers of hard goods unnecessary. Custom club fitting and special orders are the preferred method of providing golf clubs and club sets for our patrons.

f. Pro shop Managers should periodically and systematically review pro-shop sales reports and remove from inventory items with little or no demand.

g. Control Expenses: Increasing net revenue is extremely important, but just as important is decreasing expenses in the golf program. The use of Army corporate purchasing programs is mandatory (Joint Services Prime Vendor, IMCOM mandated products). During deployment, training exercises, or significant population fluctuations, operations should be adjusted to reflect market size. The use of approved automation, such as Food TraK, EventMaster and GolfTrac, is mandatory. Internal controls are required for cash, inventory, and property to reduce shrinkage and to keep product cost at the lowest levels (per AR 215-1).

(1) Golf operations in frost-belt locations should close for some period in the December - February months to reduce off-season losses. Typically, golf operations should be closed at a minimum for the first two weeks of the year. Each golf manager will assess their local conditions and submit annual calendar with business plan through their garrison to the appropriate region. Flexible staff members will be released until the spring growing season and the professional staff members are afforded maximum use of annual leave.

(2) Reinvestment in our facilities is important to keep them current with industry and protect our investment. Capital purchase and minor construction (CPMC) proposals require thorough and conclusive research/analysis and result in increased revenue and a positive return on investment (ROI). While maintenance equipment will not have a positive ROI, garrisons need to thoroughly evaluate and develop a replacement schedule.

h. Labor Management: Refer to tables 2 and 14 for maximum percentages. Golf managers with a teaching certification may serve as both the manager and teaching pro. While there are exceptions based on location, size, and market, the following professional staff is the standard to operate a typical 18-hole course and achieve Army benchmarks. Installations will take action to convert all other positions to flexible appointments. Actual staffing should be market driven and produce budgets based on achieving NIBD standards. All personnel will be accounted for in the department they work. Only the general manager, administrative assistant, and custodial staff should be assigned to Administration Department G1.


Table 16 – Staff for 18-hole Operations

Staff / Positions Classification Department

Operations StaffGeneral Manager RFT G1Administrative Assistant RFT G1Golf Professional RFT 41Pro Shop / Counter X 39Recreation Assistant X 41Custodial X G1*Food and Beverage Manager

RFT 11,14,26

Food Service Worker / Bar

X 01,03,11,13,14,25,26

Maintenance Staff X XGrounds Superintendent RFT 88Asst / Spray Technician RFT 88Mechanic RFT 88Course Maintenance X 88RFT = Regular Full-time RPT = Regular Part-timeX = If business warrants, these positions will be filled with flex employees*RPT if course is closed in the off-season

i. Golf Program Managers Compensation: The total compensation package for golf managers should be comprised of a reasonable salary, lesson income, and a management incentive plan. Based on the National Golf Course Owners Association compensation study, salary ranges in Table 17 are considered reasonable for entry-level based on similar operations in commercial industry. Regional variances should be considered based on cost of living, proven performance record, and available labor market.

Table 17 – Golf Salaries

Staff /Positions

9-Holes 18-Holes 27-Holes 36-Holes

General Manager $37,290 to $51,370

$54,340 to $67,980

$67,980 to $78,980

$79,860 to $105,380

Assistant Manager $23,760 to $28,380

$31,680 to $41,580

$38,830 to $51,590

$39,930 to $54,780

Head Professional $30,580 to $39,710

$39,710 to $50,930

$41,910 to $51,810

$45,980 to $50,985

Assistant Golf Pro $24,310 to $26,070

$25,300 to $27,830

$25,850 to $29,480

$30,470 to $31,680

j. Lesson Fee Income: Lesson fee income is a typical income stream for golf professionals. The recommended split is 20 percent to the operation and 80 percent to the golf manager. Generally, lessons are given during non-duty time. The fee is dependent on the individual skills of the instructor, but a minimum of $25 per half hour for a teaching professional is consistent with similar commercial and municipal courses. Personnel giving


lessons should be a certified golf instructor and must have a written agreement with MWR outlining compensation details.

k. Course Maintenance and Conditions: The Army golf goal is to achieve quality playing conditions comparable to mid to high level municipal golf courses. Army golf strategy is to develop and implement a systematic approach to maintain and improve playing conditions at all courses. Course superintendents will prepare an annual maintenance plan as part of the overall business plan and annual budget submission. The plan should include, but is not limited to: mowing and fertilizer schedules, comprehensive integrated pest management plan for insects, problem grasses, weeds and diseases, equipment preventative maintenance plan/schedule, and maintenance equipment five year purchase plan. All golf course superintendents are required to successfully complete MWR Academy training courses directly related to the position.

Chapter 4Performance Improvement Plan (PIP)

4-1. Reporting Process

a. FMWRC will collect, consolidate, and analyze financial performance information and submit a consolidated report to HQ IMCOM MWR listing every activity and location of Category C operations that are losing more money than the PIP threshold criteria as outlined in NAF Operating Budget Guidance.

b. At the same time, FMWRC will notify regions and garrisons when an activity is reported on the Category C PIP list.

c. Regions will notify commanders that the activity identified on the PIP list is under review and take steps to implement the required actions IAW this policy.

d. DFMWR’s will ensure business activities that are not meeting financial standards implement appropriate actions and procedures IAW with this policy.

e. Managers will execute improvement plans, implement cost savings and service improvement initiatives, and ensure all business activities meet required financial standards.

4-2. Reporting Requirement

All reports are submitted through IMCOM command channels at the 2nd and 4th quarter financial reporting periods. Monthly reports are required on specific locations that are chronic (more than two reporting periods) losing activities.

4-3. Performance Improvement Program Policy:

1. The purpose of the PIP policy is to provide guidance to all US Army IMCOM garrison personnel on Category C Business Performance Improvement Program.

2. This policy applies to all IMCOM Regions and Garrisons. This memorandum supersedes policy memorandum #42, dated 30 November 2004.

3. IMCOM is committed to effective and efficient management of Category C Business Operations.


a. One of the goals of the IMCOM Strategic Plan is to provide sound stewardship of resources. The main objective to meeting this goal is to apply best business practices to meet established nonappropriated funds (NAF) operations financial performance objectives.

b. Activities in this category are not mission essential, but offer desirable social and recreational opportunities for eligible patrons. Operations are funded through self-generated revenue with limited appropriated funds, and income is utilized to maintain infrastructure, expand programs, renovations and new construction. Operations that are unable to achieve profitability will change their mode of operation or close. The Category C Business Performance Improvement Program is a systematic approach to ensure losing business operations become profitable, or receive an exception based on well-defined rules. This memorandum sets the procedures, timelines, responsibilities, and well-defined rules for the program.

4. PROCEDURES:

a. Business activities and operations are placed in the program when losses exceed established loss thresholds over 4 quarters, based on a semi-annual review. Reviews will occur at the end of the 2nd and 4th quarter of the year. Operations will be notified in writing from FMWRC placed in the program, approximately 1 month following the semi-annual reviews. Garrisons with three or more operations in the PIP are required to conduct a garrison-wide assessment, and submit a garrison level recovery plan to the Region Director for review and approval. Operations in the program will remain for a minimum of 4 quarters, and removed only on approval of the IMCOM Deputy Commanding General, based on profitability over a cumulative 4 quarter time period, closure, or a waiver. Facilities are required to submit business plans, reduce losses, meet standards, or close unless specifically authorized by IMCOM HQ to continue operations under a waiver. b. Operations will develop a Strategic Business and Action Plan in a standard format (encl). Operations will be judged, based on their Strategic Business and Action Plans, so it is important that plans are prepared for completeness, understanding of their markets, and especially their action plan for resolving operational problems. All plans must answer these basic questions:

(1) Is there a sufficient market here to sustain a profitable Category C Operation?

(2) Are there any staffing issues that would prevent this operation from being profitable?

(3) Is the physical plant sufficient to meet the increased demand in order to meet profitability standards?

(4) Can the operation be successful under the current mode of operation?

(5) If done properly without impediments, how long should the transformation take to break-even? Meet profitability standards?

(6) What are the external factors that contribute to the operations current failing performance?

It is imperative that these plans include a strong market analysis, competitive analysis, and comprehensive action plan that include objectives, actions, responsibilities, due dates, training, and identify any potential roadblocks. The competitive analysis must include a review of both internal and external competition, to include operations run by MWR, AAFES, Troop Dining Facilities, and off-base commercial operations. The competitive analysis will


address each aspect of the operation (i.e. food service, retail and program services). All of these facilities are competing for the same market. If the market cannot support all of these programs, then the unprofitable operations will be closed.

c. Plans will be approved by the Garrison Commander and submitted to their respective region office. The Region Director will develop operational recommendations and approve all plans either by memorandum or executive summary for submission to the IMCOM Deputy Commanding General, by the end of the quarter in which notification is received.

d. Regions will review the implementation of the strategic action plan monthly, and submit review to HQ IMCOM quarterly. Regions and garrisons will adjust plans as necessary to achieve profitability. Garrisons will have 4 quarters from submission to show significant improvement, IAW an approved strategic action plan. If improvement is on course, the garrison will have an additional 2 quarters to reach profitability. If progress does not meet the action plan, the Region Director will decide on closing, consolidating, revising the recovery plan, or seeking a waiver to continue operating a losing operation. Operations will have a maximum of 6 quarters to reach profitability from the initial corrective action.

e. Capital Projects and Minor Construction (CPMC): Existing CPMC guidance remains in effect for operations in Category C Business Performance Improvement Program status. Regions will review CPMC proposals from operations on the watch list to ensure adherence with the approved business plans, ensuring realistic chances for accomplishing return on investment. Activities are required to submit a business case analysis for all CPMC projects. This analysis must show in detail how the project fits into the strategic plan, financial impact on the program, and return on investment. Projects that do not have a significant impact on improving Net Income Before Depreciation, and directly affect the implementation of an approved action, will be disapproved.

f. Waivers will be based on specific circumstances and re-certified annually. Waivers will be submitted as a last resort, but only after the action plans have been fully implemented (6 quarters). Waivers may be submitted for remote/isolated operations where no other services are available; temporary losses due to significant deployments; or operations that support a revenue generator (i.e., club loses money, but supports the ARMP program). Historical data and other services, both on and off the garrison, will be determining factors in granting waivers. Waiver processes will include assessment of mission essential requirement costs for the operation, and MACOM RMs will provide non-BASOPS APF resources to cover that cost. Operations will still be required to submit plans, be monitored by the regions and FMWRC. The IMCOM Deputy Commanding General will approve an acceptable loss.

g. All operations that are new or re-opening after construction will submit to the region a Strategic Business and Action Plan, six weeks prior to opening, for approval. Regions will monitor action plans on a monthly basis. These operations will be exempt from the Category C Business Performance Improvement Program for 1 year to recoup losses associated with opening a new business.

h. The goal is forthright: Leaders and employees throughout IMCOM must be committed to improving management of business operations, and only operate customer-driven programs where the market is sufficient to support profitable operations. Troops will be supported when services cannot be provided by any other means. Management professionals at all levels must understand and embrace the goal of providing sound stewardship of resources, and apply best business practices to meet NAF operations financial performance objectives.

APPENDIX A


References

Section IRequired Publications

DoD Instruction 1015.10Programs for Military Morale, Welfare, and Recreation

DoD Instruction 1015.15Procedures for Establishment, Management, and Control of Nonappropriated Fund Instrumentalities and Financial Management of Supporting Resources

AR 215-1Military Morale, Welfare, and Recreation Programs and Nonappropriated Fund Instrumentalities

AR 215-3Nonappropriated Funds Personnel Policy

Section IIRelated Publications

This section contains no entries

Section IIIPrescribed Forms


Section IVReferenced Forms

DA Form 2028Recommended Changes to Publications and Blank Forms

APPENDIX BBusiness Plan

APPENDIX CScorecards

APPENDIX DCompetitive Price Surveys

Glossary

Section IAbbreviations

AR


Army Regulation

ARIMSArmy Records Information Management System

BPCSBusiness Programs Corporate Strategy

BPSCBusiness Programs Steering Committee

DADepartment of the Army

DoDDepartment of Defense

EEOEqual Employment Opportunity

FMWRCFamily, Morale, Welfare and Recreation Command

FWSFederal Wage System

HQHeadquarters

HRDHuman Resources Division

IMCOMInstallation Management Command

MIPManagement Incentive Plan

MWRMorale, Welfare and Recreation

NAFNonappropriated Fund

NIBDNet Income Before Depreciation

PIPPerformance Improvement Plan

RDRegion Director

Section IITerms



Section IIISpecial Abbreviations and Terms



18Apr08 IMCOM Policy #44 revised

Documents

Transcript of 18Apr08 IMCOM Policy #44 revised