Board Brief Operational Report

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Board BriefOperational Report

• Neal J. Couture, CPCM
• Executive Director
• Board of Directors Meeting
• December 3, 2006
• Tysons Corner, Virginia

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Finance

• Annual growth is averaging 10 since FY 03.
• Major investments in IT and Leadership
  Development Program beginning in FY 06.

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Membership
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Membership

• In FY06, we had 1,588,522 in membership revenue.
• We increased goal for FY07 to 1,634,850., based
  on plans to increase membership sales connected
  to conferences.
• Membership revenue was slightly higher than
  planned, so we increased the revenue forecast to
  1,653,263 in the 10/06 EAC.
• Actuals 11/06 YTD 686,505 are running ahead of
  EAC 681,515.
• 17,802 members on 10/31/2006 vs. 17,642
  10/31/2005.

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Education
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National Education Seminar (NES) Program

• In FY06, we had 63 seminars with 361,607
  revenue.
• We increased goals for FY07 to 70 seminars and
  446,005. revenue, based on a small price
  increase and a plan to increase number of
  seminars.
• We received fewer chapter commitments than
  planned, and we offered chapters discounts to
  generate more commitments, so we revised the
  revenue forecast to 380,465 in the 10/06 EAC.
• Actual revenues 11/06 YTD 43,614 are running
  behind of EAC 46,407.
• Significantly lower expenses so far this year due
  in part to less travel needed to support the
  NESs we have performed.
• FY07 seminar is Leadership Building
  High-Performance Buying Selling Teams,
  available now.
• Continue to offer Best Contracting Practices for
  Business, Contract Negotiations, Performance
  Based Acquisition, Service Contracting An
  Integrated Approach, Project Management in the
  Contracting Process, and The Contracting
  Professional as Risk Manager.
• FAR 45 Government Property Management seminar
  planned for when the final rule is released,
  probably in February.
• Earned Value Management (EVM) seminar developed,
  plan to release next fiscal year.

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Audio-seminars Program

• In FY06, we had 10 seminars with 201,627
  revenue.
• We increased goals for FY07 to 19 seminars and
  217,350. revenue, based on plans to launch a
  contracting basics series.
• Seminar attendance has been significantly higher
  than planned, so we increased the revenue
  forecast to 342,479 in the 10/06 EAC.
• Actuals 11/06 YTD 156,709 are running ahead of
  EAC 152,579.
• December 13 GAO Sustained Protests - 2006 Year
  in Review.
• Basics series
• December 14 Acquisition Planning
• January 11 Contract Structure and Content
• February 15 Contract Formation Policies and
  Procedures
• March 15 Contract Administration Policies and
  Processes

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Book Sales

• In FY06, we had 118,974 in revenue.
• We reduced goal for FY07 to 102,269. revenue,
  because of concerns of market saturation of
  certification preparation manuals particularly
  the GBK volume.
• Guide to Basic Contract Terms launch is earlier
  than plan, so we increased revenue forecast to
  112,791 in the 10/06 EAC.
• Actuals 11/06 YTD 48,997 are running slightly
  behind EAC 50,707.
• Three new books are scheduled for publication in
  December 2006
• Leadership Building High Performance Buying and
  Selling Teams the NES manual,
• Guide to Basic Contract Terms the 3rd edition,
  and
• Annotated Guide to the Contract Management Body
  of Knowledge the full text version of the CMBOK.

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E-Learning

• In FY06, we had 6 course titles with 247
  registrants, and 56,059 revenue.
• Goals for FY07 were kept similar to FY06 because
  of no plans to launch new courses, due to
  concerns of VCampus.
• Course registrations have exceeded forecasts
  however, average price paid is lower than plan
  due to product mix, so we decreased the revenue
  forecast to 49,335 in the 10/06 EAC.
• Actuals 11/06 YTD 15,865 are running marginally
  higher than EAC 15,535.

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Certification
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Certification

• Numbers of certification applicants,
  recertifications, and new certificants are
  running consistent with or ahead of FY 06 pace
  for the first four months of FY 07.
• Pass rates for Federal and Commercial Module
  Exams YTD are in the ballpark. Target is 60.
• General Business Module pass rate remains well
  below target, but is continuing to trend
  upward.
• NCMA reduced certification application fees
  effective July 1st, 2006 to bring mandatory
  program costs in line with that of the Certified
  Purchasing Manager (CPM) program offered by the
  Institute for Supply Management (ISM).
• CKO and Certification Program Administrator
  attended training on ANSI / ISO accreditation
  standards in mid-September. Requirements are
  quite formidable. CKO building business case and
  roadmap to accreditation weighing costs,
  benefits, and time required.
• A contract was signed in late October 2006 to
  convert to a new testing service provider
  (Kryterion). Go-live date is targeted for March
  1, 2007. Current provider, Prometrics, has been
  the subject of numerous, valid customer
  complaints.
• A second contract with Kryterion was signed in
  late October 2006 for complete psychometric
  analysis of all versions of all three
  examinations (Federal, General Business,
  Commercial) and candidate results from new
  program inception to date. Results of this
  analysis are expected in January 2007. This
  analysis on a periodic basis is a requirement of
  good practice consistent with pursuit of
  accreditation. It will provide a sound basis for
  changes to examination content to align future
  candidate results with program goals.

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Meetings
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Meetings

• The FY 07 plan dropped the Commercial Contracting
  Conference (October) and added the Executive
  Contract Management Conference (February).
• The Aerospace and Defense Contracting Conference
  held in Garden Grove, CA in July 2006 exceeded
  revenue budgets (140,180 vs. 120,175).
• The Government Contract Management Conference
  will exceed revenue goals.
• No changes to forecasts for the remaining
  conferences.

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Conference Portfolio Performance History
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Communications
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Communications
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Communication

• In FY06, we had 1,291,451 in communication
  revenue.
• We decreased goal for FY07 to 1,273,387., based
  on education partner risks and hedging against
  drops in CMJobs.com ads.
• CM Magazine ads revenue was slightly lower than
  planned, so we decreased the revenue forecast to
  1,264,402 in the 10/06 EAC.

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Communications

• Contract Management Magazine
• Article submissions remain steady for the next
  several monthswe are holding steady with ad
  revenue and anticipate ending the year at EAC of
  534,800.
• The 2007 Resource Guide was polybagged with the
  November 2006 issue of Contract Management.
• A new NES brochure with dates and locations was
  polybagged with the December 2006 issue of
  Contract Management.
• A revised Knowledge Catalog will be polybagged
  with the January 2007 issue of Contract
  Management.
• Books
• The new NES book by Gregory A. Garrett,
  Leadership Building High-Performance Buying and
  Selling Teams, is in the office. We are working
  on the companion workbook for the seminarit will
  be ready for the December GCMC06 conference. This
  Leadership book as well as the newly revised
  Desktop Guide to Basic Contracting Terms and the
  CMBOK (annotated and revised) will be ready by to
  sell at the GCMC06.

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Governance and Component Relations
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Administration
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Special Projects

• Relocation
• Sublease executed 10/15/06.
• Purchase contract executed 11/29/06.
• Move-in scheduled 2/15/07.
• IT systems
• LAN management in-house effective 11/1/06.
• Microsoft CRM go-live 12/22/06.
• ResultsDirect CMS and EducationDirector kick-off
  3/07.