United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 2005-12-22 monographic deposited born digital 13 p. GA 1.13:GAO-06-256R https://www.govinfo.gov/app/details/GAOREPORTS-GAO-06-256R P0b002ee180382850 f:d06256r DGPO 2010-08-12 2011-03-23 GAOREPORTS-GAO-06-256R machine generated eng fdlp REPORT GAOREPORTS-GAO-06-256R GAO-06-256R Funds management Military bases Military facilities Military policies Program evaluation Recreation Sales Pilot programs Program implementation Correspondence A43857 The Department of Defense (DOD) has three military exchanges--the Army and Air Force Exchange Service, the Navy Exchange, and the Marine Corps Exchange--that operate retail and other specialty stores. During fiscal years 2000 through 2004, the three exchanges provided more than $300 million annually, an average of 55 to 70 percent of their profits, in the form of a dividend to support the military services' morale, welfare, and recreation programs. DOD, through the Defense Commissary Agency (DeCA), also operates commissaries that sell groceries and authorized household products at the lowest practical price, charging patrons only for the cost of goods sold plus a 5 percent surcharge. The funds generated by the surcharge are used to construct new and modernize existing commissaries. The Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 authorized the Secretary of Defense to conduct a pilot project involving the sale of film, one-time use cameras, and telephone cards in not less than 10 commissary stores for a period selected by the Secretary, but not less than 6 months. Previously, these items had only been sold by the exchanges. Concerns were expressed by some associated with the exchanges that allowing the commissary stores to sell these items could adversely affect the exchange dividend, which could reduce the funding for the military services' morale, welfare, and recreation programs. The legislation also included a requirement that we examine that issue. In response to the 2005 act, we determined (1) the status of the pilot project to sell film, one-time use cameras, and telephone cards in select commissaries; and (2) the potential impact that the pilot project could have on the exchange dividend. https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-06-256R/html/GAOREPORTS-GAO-06-256R.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-06-256R/pdf/GAOREPORTS-GAO-06-256R.pdf GAO-06-256R https://www.govinfo.gov/app/details/GAOREPORTS-GAO-06-256R Correspondence GAO-06-256R; Pilot Project to Expand Merchandise Sold in Commissary Stores Will Likely Have a Negligible Impact on the Exchange Dividend; Funds management Military bases Military facilities Military policies Program evaluation Recreation Sales Pilot programs Program implementation Public Law 108-375