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B-146875 1 (1973-10-30)

handle is hein.gao/gaobaaehu0001 and id is 1 raw text is: RESTRICTED - to be released buts'We t General oci approval Sby the Ofi0 ~ i~8eaos a record of7 whichi Iketby he DistribkUtio~ Se 1 !u -af A W .... I\LLLAS ED -- B-146875 -Vinrrovco from~ t~l Feport • ,,. ,-.,OCT 3 0 1973 c,*,.r ; U,' 't. ;4. turn promptly. &I T e Honorable Glenn R. Davis Dear Mr. Davis: In response to your recent inquiry regarding funds-used j by the Department of Defense for cQnstructing c-ommissaries and / p~o t _excl anges, we obtained statistical data showing the num- ber and costs of projects funded, or proposed to be funded, from nonappropriated and appropriated funds during fiscal years 1971 through 1973. For the commissaries, there were 149 non-appropriated- fund projects totaling $42 million and-23 appropriated-fund projects totaling $40 million. For the exchanges, there were 555 non-appropriated-fund projects totaling $135 million and 4 appropriated-fund projects totaling $2 million. (See en- closure.) For fiscal year 1974, the Department of Defense requested appropriated funds for eight commissary projects totaling $19 million and for one exchange project for $1.8 million. Comparable data is not available for nonappropriated funds. Commissaries are required by law to add to the stores' purchase cost a surcharge to cover operating expenses for domestic transportation; maintenance of operating equipment and supplies; utilities; and losses due to shrinkage, spoilage, and pilferage. Other cjmmi s axy. ts are covered by appro- priated funds. The Department of Defense considers excess surcharge funds collected on commissary sales to be nonappro- priated funds and uses them to pay for improvements, altera- tions, and additions or for large construction projects, de- pending on the funds available. Exchanges are self-sustaining and are non-appropriated-fund activities. Appropriated funds are generally used to pay for large commissary projects, such as construction of new stores. One major exception is the Fort Benning, Georgia, Community Shop- ping Center, which includes a commissary, post exchange, and several small shops and which is estimated to cost about $8 million. This center is being financed almost entirely by nonappropriated commissary and exchange funds. Appropriated funds have not been sought because delays in obtaining them SBEST DOCUMENT AVAILABLE I af 90/9 I9

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