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FPCD-78-46 1 (1978-05-15)

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DOCMENT BESURE


06094 - [B1366370]
(Trausfer of Clothing Sales Stores to Exchanges]. FPCD-78-46;
B-133177. May 15, 1978. 2 pp. * enclosure (7 pp.).

Report to Sen. Jacob K. Javits; by H. L. Krieger, Director,
Federal Personnel and Compensation Div.

Contact: Federal Personnel and Compensation Div.
Organization Concerned: Department of the Air Force; Department
    of the Army.
Congressional Relevance: Sen. Jacob K. Javits.

         Questions were asked and responses given on matters
relating to the transfer of operations of military clothing
sales stores (BCSS) to the Army and Air Force Exchange Service
(AAFES). Did a recent Air For4,e review adequately addrnss claims
made by the insignia industry and were AAFES-cperated ECSS
experienciag insignia shortages or delays? The review did not
address the claims but identified accounting and inventory
management problems, including stock overages and shortages.
Actions taken and planned by AAFES were considered responsive.
Claims that the transfer would jeopardize the insignia induQtry
and that the DefenLe Personnel Support Center could not properly
manage procurements were not thought to be generally
supportable. How cost effective is the transfer? Although the
Air Force found its transfer cost effective, the Army decided
against having AAFES operate its MCSS; an indepth evaluation was
not necessary. Should the Army follow the Air Force's example of
transierring BUSS operations to AAFES? This question, as well as
other alternatives, will be considered in nlanning future work
in the area. (HTV)

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