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GAO-11-266R 1 (2011-04-20)

handle is hein.gao/gaobaanxq0001 and id is 1 raw text is: i GA 0 A countabiity I Integity * Reliability United States Government Accountability Office Washington, DC 20548 April 20, 2011 The Honorable Susan Collins United States Senate The Honorable Olympia Snowe United States Senate Subject: Defense Infrastructure: DOD Used Available Guidance in Its Decision to Discontinue Commissary Operations at NAS Brunswick, but Criteria Needs Clarification The Department of Defense (DOD) plans to cease commissary operations at Naval Air Station (NAS) Brunswick, Maine because of a 2005 base realignment and closure recommendation to close the installation and transfer the assigned active-duty personnel and equipment to NAS Jacksonville, Florida. DOD plans to close NAS Brunswick and its commissary by September 15, 2011. As of January 2009, NAS Brunswick commissary-located approximately 6 miles northwest of the air station in the town of Topsham-had more than 19,000 authorized patrons. About 10,000 authorized patrons are expected to remain after the installation closes. Representatives from communities surrounding Brunswick and certain elected state officials expressed concern that the commissary's closure will limit shopping options and purchase prices will rise for reservists, military retirees, and dependents and the relatively small number of active-duty personnel remaining in the region after the installation closes. Commissaries are intended to enhance the quality of life of active-duty personnel, military retirees, and their dependents, and support military readiness, recruitment, and retention goals. Commissaries are not expected to be self-supporting, and provide a noncash benefit for active-duty personnel by offering food and related household and health and beauty items that are similar to merchandise sold in commercial grocery stores. This merchandise is typically offered for sale at substantially reduced prices (including exemption from any sales taxes) when compared to retail prices at commercial grocery stores. DOD estimates that a family of four can save about $4,400 annually (or approximately 30 percent) by shopping at a commissary instead of a commercial grocery store. As directed by Senate Appropriations Report 111-40, the Under Secretary of Defense (Personnel and Readiness) submitted a report to Congress on March 30, 2010, which evaluated the economic feasibility of continuing commissary operations in the Brunswick area following the closure of NAS Brunswick. As you requested, we evaluated the extent to which DOD considered applicable guidance in deciding to GAO-I 1-266R Defense Infrastructure Page I

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