Sec. 634. Review of management, food, and pricing options for defense commissary system
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The Secretary of Defense shall conduct a review, utilizing the services of an independent organization experienced in grocery retail analysis, of the defense commissary system to determine the qualitative and quantitative effects of— using variable pricing in commissary stores to reduce the expenditure of appropriated funds to operate the defense commissary system; implementing a program to make available more private label products in commissary stores; converting the defense commissary system to a nonappropriated fund instrumentality; and eliminating or at least reducing second-destination funding.
The review required by this section also shall consider the following: The impact of changes to the operation of the defense commissary system on commissary patrons, in particular junior enlisted members and junior officers and their dependents, that would result from— displacing current value and name-brand products with private-label products; and reducing or eliminating financial subsidies to the commissary system. The sensitivity of commissary patrons, in particular junior enlisted members and junior officers and their dependents, to pricing changes that may result in reduced overall cost savings for patrons.
The feasibility of generating net revenue from pricing and stock assortment changes. The relationship of higher prices and reduced patron savings to patron usage and accompanying sales, both on a national and regional basis. The impact of changes to the operation of the defense commissary system on industry support; such as vendor stocking, promotions, discounts, and merchandising activities and programs. The ability of the current commissary management and information technology systems to accommodate changes to the existing pricing and management structure.
The product category management systems and expertise of the Defense Commissary Agency. The impact of changes to the operation of the defense commissary system on military exchanges and other morale, welfare, and recreation programs for members of the Armed Forces. The identification of management and legislative changes that would be required in connection with changes to the defense commissary system. An estimate of the time required to implement recommended changes to the current pricing and management model of the defense commissary system.
Not later than September 1, 2015, the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report containing the results of the review required by this section.