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B-199922 1 (1980-12-17)

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Urled Satres General Accounting Office
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Mr. Rollin T. ')CeInwetz
T.   Steinmetz and Associates, Inc.
P.O. Box 5037
603 W. Gowe Street
Kent, WA  98031

Dear Mr. Steinmetz:


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     Your let 'er to the Director of our International Division has been
referred to me   You ask whether your marketing company can offer a fe
case of Augsburger beer to the Army and Air Force Exchange System,Dlilas,
Texas (AAFES) for the purpose of having AAFES conduct a blind taste te   ,--
with a jury of their own selection, against any other brands in the market,
without this being construed as an unethical gratuity and an attempt to,
buy influence.

     Since AAFES is a non-appropriated fund instrumentality,  the requirements
of the Armed Services Procurement Act (10 U.S.C. £ 2301 et sg.  (1976)) and
the implementing provisions of the Defense Acquisition Regulationu (DAS) are
not app'tcable to its procurements.  58 Comp  Gen. 94 (1978).   ovetvr, the,
general policies governing the operation of AAFES are set forth in Atmy
Regulation (AR) 60-20 and AR-60-10.  With regard to procurement and al'coholic
beverages, see especially paragraphs 3-38 and 3-39 of AR 60-20 and paragraph
3-3 of AR 60-10.  Furthermore, both Army users and Air Force users, undtr
certain conditions, may issue local supplements to the generalpolicies  for
AAFES.  AR 60-10 at p.i.  Obviously, we cannot express any opinion on whether
any local regulations which may have been issued would cover the situation
you describe.

     In general, while this Office has no jurisdiction over either criminal
matters or questions of ethical conduct by AAFES employees, we cannot see
why the offer of a product to AAFES for testing purposes  (as opposed to a
gift to an individual in a position to affect procurement decisions) would
be construed either as unethical or an attempt to buy influence.


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