Defense officials have reportedly asked the Defense Commissary Agency to develop a plan to close all U.S. commissaries. (Staff Sgt. John D. Strong II / Air Force)
Defense officials have reportedly asked the Defense Commissary Agency to develop a plan to close all U.S. commissaries — about three-fourths of its stores, according to a resale community source familiar with details of a meeting with representatives of the Joint Staff and Pentagon comptroller’s office.
The source, who spoke on condition of anonymity, said the meeting was held within the last few weeks and was part of preparations for the fiscal 2015 DoD budget request that is due out on February.
According to DeCA, there are 178 commissaries in the U.S., including Alaska and Hawaii. Almost 70 stores operate overseas.
Operating costs for the overseas stores account for 35 percent of DeCA’s budget, but only about 16 percent of total worldwide sales.
Commissary officials negotiate lower prices for products based on volume. Closing all or most U.S. commissaries would lead to higher prices and a degraded benefit in remaining stores, said Tom Gordy, president of the Armed Forces Marketing Council, in written testimony presented to the House Armed Services Committee’s military personnel panel Wednesday.
The council represents over 330 manufacturers of products sold in commissaries, exchanges and other military morale, welfare and recreation venues.
The proposal to close all U.S. stores was not discussed at the hearing, but Gordy said in his written testimony that closing U.S. stores “would eliminate the benefit for millions of families, breaking a commitment that has been made to every service member.”
He noted in his testimony that the Joint Staff reportedly had asked DeCA in recent weeks to look at cutting its $1.4 billion annual budget by one-third to two-thirds.
The fact that such a proposal would come from within DoD is “very concerning,” said Steve Rossetti, director of government affairs for the American Logistics Association.
Commissaries are “one of the most valued benefits.,” he said. “For what this costs the department, they get a huge return,” not only in terms of th ebenefit itself but in other factors such as jobs for military spouses. About 30 percent of DeCA employees are spouses.
“It’s astonishing because DeCA is one of the few organizations in DoD that is cutting major costs and has been since 1991,” Rosetti said.
DeCA receives nearly $1.4 billion in annual taxpayer subsidies. It has reduced its annual funding requirement by $700 million over the last 20 years, said DeCA Director Joseph Jeu. The taxpayer subsidy has changed little in recent years, even accounting for inflation.
Jeu said DeCA is constantly looking for ways to save money, but added that the agency has no more “low-hanging fruit” to cut.
But Rep. Joe Heck, R-Nev., an Army reservist, said other proposals under consideration include raising the commissary surcharge on patrons to 10 percent from the current 5 percent; raising prices by 2 percent to 3 percent to pay for shipping products to overseas stores; and creating an “enhanced” commissary that would sell other products at additional markups.
Any such changes would have a “great impact” on troops and families, Jeu told lawmakers.
But Heck noted that based on the agency’s calculations that commissaries save a family of four an average of $4,500 a year, raising the surcharge by 5 percent would lower savings only to $4,275.
Heck said that if such steps are necessary to maintain the benefit, DoD officials must consider them. “I encourage you to take that kind of perspective,” he told Jeu.
Replies
Eliminate that which is the real dysfunction, and a reasonable and coherent solution will smother the indignity from which it came. But onto who,s hand,s will the execution of a real solution fall upon.
I truly believe that there are millions who know the answer, but will we ever see our deliverer. What Say You ?.
I'm really tired of this. If we are going to do some cutting in the military it should NEVER happen to things that help any and all military personnel. In fact, the men and women of our armed forces should have as many conveniences as we can afford. If it means gutting 60 billion dollars on a jet fighter that sucks... so be it. Or you could gut 30 billion AND use the other 30 billion towards military personnel programs.
I would also take some money from some civilian programs that are rife with abuse and outright theft, and use that money towards helping military personnel. You know, people that REALLY earn it!
Next step...no more on base housing? Obama and Hagel will then propose a plan to house troops and their families in Dempster Dumpsters where they can stay only if the buy Obamacare at triple the price. .
You will see a lot more of this in the future.
So now the only bennys we who are 100% service connected from war injuries will be axed. Its sad enough that vets have to be 100% to use the exchange, commissarry , clothing and sales, I have to take my buddies who are less then 100% to shop, I consider that a duty. So now they want to shut down that and I guess MWR. My family has served since the War of 1812 and Im sick that all this crap happened on my watch.
Contingency plan--- Not a new idea --there were similar discussions in 69-70 when we field trained by sounding off Clank Clank I'm a tank. and most our field training was done on paper --and we were issued sticks to carry when we drew guard duty and not issued live ammo unless we qualified at the range or were expending old ammo. Back when we had to provide our own pool sticks and chalk and tips --or trust our game in the day room to the warped ,often tipless, or worn sticks. whenever the budget gets tightened its the day room /or the commissary that get shut down first.
Don't ask Joe Heck to do anything. He is a do nothing worthless sort of guy. I and Hagel is destroying our military. When will Citizens say enough is enough???
They are already talking about reducing Tricare coverage AND possibly a minimum co-pay.
That's it, take away the Commissary. Make people that are paid less then the civilian counterpart pay the same price. Make them pay a co-pay for medical and dental. Make them live off base on their current pay. ALL OF THIS IS JUST A WAY FOR THE MUSLIM-IN-CHIEF TO ABOLISH THE MILITARY, AND MAKE IT EASIER FOR HIS MUSLIM BROTHERHOOD FRIENDS COME INTO THIS COUNTRY AND TAKE OVER!!!
HOLY CRAP!!! This is horrible!!! You are right Thomas P LaLonde!! Our military doesn't get paid a lot as it is. The commissary had lower prices than shopping off base. I know. My dad was USAF.
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