2019 NDAA Conference report lays out implications for Military resale:
The conference report for the 2020 National Defense Authorization Act is locked and there are significant implications for Military Resale. Congress addressed the oversight of the business transformation process that is currently underway and asked for detailed reports on the analysis that led to the recommendation to consolidate business operations of the commissary and the exchanges. The report also prohibits any actions towards consolidation until this detailed analysis by the GAO is completed and reviewed by the respective committees. We will keep you informed as these issues mature. The language contained in the report that lays out these important issues is detailed below...
To be enacted
SEC. 631. DEFENSE RESALE SYSTEM MATTERS. 10
(a) IN GENERAL.
—The Under Secretary of Defense for Personnel and Readiness shall, in coordination with the Chief Management Officer of the Department of Defense, maintain oversight of business transformation efforts of the defense commissary system and the exchange stores system in order to ensure the following:
(b) EXECUTIVE RESALE BOARD ADVICE ON OPERATIONS OF SYSTEMS.
—The Executive Resale Board of the Department of Defense shall advise the Under Secretary on the implementation of sustainable, complementary operations of the defense commissary system and the exchange stores system.
(c) INFORMATION TECHNOLOGY MODERNIZATION.
— The Secretary of Defense shall, acting through the Under Secretary and with advice from the Executive Resale Board, require the Defense Commissary Agency and the Military Exchange Service to do as follows:
SEC. 632. PROCUREMENT BY COMMISSARY STORES OF CERTAIN LOCALLY SOURCED PRODUCTS.
The Secretary of Defense shall ensure that the dairy products and fruits and vegetables procured for commissary stores under the defense commissary system are, to the extent practicable and while maintaining mandated patron savings, locally sourced in order to ensure the availability of the freshest possible dairy products and fruits and vegetables for patrons of the stores.
SEC. 633. GAO REVIEW OF DEFENSE RESALE OPTIMIZATION STUDY.
—The Comptroller General of the United States shall conduct a review of the business case analysis performed as part of the defense resale optimization study conducted by the Reform Management Group, titled "Study to Determine the Feasibility of Consolidation of the Defense Resale Entities" and dated December 4, 2018.
(b) REPORTS REQUIRED; ELEMENTS.
—Not later than March 1, 2020, and June 1, 2020, the Comptroller General shall submit to the Committees on Armed Services of the Senate and the House of Representatives an interim report and a final report, respectively, regarding the review performed under this section. Each report shall include evaluations of the following:
—The Secretary of Defense may not take any action to consolidate military exchanges and commissaries until the Committees on Armed Services of the Senate and the House of Representatives notify the Secretary in writing of receipt and acceptance of the findings of the Comptroller General in the reports required under this section.