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<classification authority="sudocs">GA 1.13:GGD-96-108</classification>
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 <subject>Concessions contracts</subject>
 <subject>Defense contracts</subject>
 <subject>Defense procurement</subject>
 <subject>Assignment of contract proceeds</subject>
 <subject>Post exchanges</subject>
 <subject>Profits</subject>
 <subject>Retail facilities</subject>
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<titleInfo>
 <title>Concessions Contracting: DOD Military Exchange Services Rates of Return</title>
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<abstract>Pursuant to a congressional request, GAO reviewed concessions
contracting in the Department of Defense&apos;s (DOD) three military exchange
services, focusing on: (1) the extent of centrally managed concessions
operations; (2) the rates of return and factors that influenced the
rates of return; and (3) the rates of return compared to other agencies&apos;
or governments&apos; rates of return.&lt;p/&gt;GAO found that: (1) in fiscal year (FY) 1994, 27 centrally managed DOD
concessions operations produced $273.5 million in gross revenues; (2) in
FY 1994, DOD received $57.7 million or a 21.1 percent rate of return
from centrally managed concessions operations; (3) the 1994 rate of
return was higher than the average rates of return of civilian agencies,
selected state governments, and Canada; (4) DOD policy requires that
centrally managed concession contracts be procured as competitively as
possible at the headquarters level from a central location by trained
procurement personnel to obtain the best advantage possible; (5) DOD
concessions policies do not provide preferential treatment to the
incumbent concessioners or grant concessioners compensation for
improvements made to federal property; and (6) in 1994, 6 of the 9
centrally managed contracts were awarded competitively and DOD
controlled all concessions fees.</abstract>
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 <topic>Defense procurement</topic>
 <topic>Assignment of contract proceeds</topic>
 <topic>Post exchanges</topic>
 <topic>Profits</topic>
 <topic>Retail facilities</topic>
 <topic>User fees</topic>
 <topic>Military facilities</topic>
 <topic>DOD Morale, Welfare, and Recreation Program</topic>
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