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FPCD-80-18 1 (1979-12-05)

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                   UNITED STATES GENERAL ACCOUNTING OFFICE
                          WASHINGTON, D.C. 20548


FEDERAL PERSONNEL AND
COMPENSATION DIVISION


     B-146895                                  DECEMBER 5, 1979


     The Honorable Harold Brown
     The Secretary of Defense

     Dear Mr. Secretary:                                111011

          Subject: TThe Payment of Basic Allowance for Subsis-
                    tence to All Enlisted Members at Three Mili-
                    tary Installations Should Be Discontinuedj
                    (FPCD-80-18)

          We have completed a review of the administration of
     basic allowance for subsistence (BAS) by the Department of
     Defense (DOD). DOD and the military services have taken
     several actions stemming from recent studies and tests to
     improve food services and the administration of BAS. Some
     of these actions can result in marked improvements in food
     services. We are concerned, however, that the Departments
     of the Air Force and Navy are continuing to incur additional
     BAS costs of about $800,000 annually at three installations
     although the tests have been completed. These costs relate
     solely to one aspect of the test that DOD has not adopted
     DOD-wide mainly because the increased costs would be pro-
     hibitive.

          We recognize that discontinuing the BAS payments could
     cause morale problems at the three installations. We be-
     lieve that the problems can be minimized and that the funds
     can be better used to improve food services throughout DOD.

          As you know, all military personnel receive either a
     cash BAS or meals provided by the Government. Enlisted men
     receive BAS only when they do not eat in Government dining
     facilities for certain authorized reasons. All officers,
     because they are required to purchase their meals, are paid
     BAS at all times.

          The Department of the Air Force began testing a new
     food service system at Shaw Air Force Base, South Carolina,
     in October 1972 to identify ways to improve food service and
     BAS administration. All enlisted personnel were paid BAS
     and required to purchase their meals, and dining facilities

                                                          (963125)

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