
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 10USC2482]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                PART IV--SERVICE, SUPPLY, AND PROCUREMENT
 
 CHAPTER 147--COMMISSARIES AND EXCHANGES AND OTHER MORALE, WELFARE, AND 
                          RECREATION ACTIVITIES
 
Sec. 2482. Commissary stores: operation

    (a) Private Operation.--Private persons may operate commissary 
stores under such regulations as the Secretary of Defense may approve. A 
contract with a private person for the operation of any commissary store 
may not require or permit the contractor to carry out functions for the 
procurement of products to be sold in the store or to engage in 
functions relating to the overall management of a commissary system or 
the management of any such store. Such functions shall be carried out by 
personnel of the Department of Defense under regulations approved by the 
Secretary of Defense.
    (b) Contracts With Other Agencies and Instrumentalities.--(1) The 
Defense Commissary Agency, and any other agency of the Department of 
Defense that supports the operation of the commissary system, may enter 
into a contract or other agreement with another element of the 
Department of Defense or with another Federal department, agency, or 
instrumentality to provide or obtain services beneficial to the 
efficient management and operation of the commissary system. However, 
the Defense Commissary Agency may not pay for any such service provided 
by the United States Transportation Command any amount that exceeds the 
price at which the service could be procured through full and open 
competition, as such term is defined in section 4(6) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 403(6)).
    (2) A commissary store operated by a nonappropriated fund 
instrumentality of the Department of Defense shall be operated in 
accordance with section 2484 of this title. Subject to such section, the 
Secretary of Defense may authorize a transfer of goods, supplies, and 
facilities of, and funds appropriated for, the Defense Commissary Agency 
or any other agency of the Department of Defense that supports the 
operation of the commissary system to a nonappropriated fund 
instrumentality for the operation of a commissary store.
    (c) Governing Board.--(1) Notwithstanding section 192(d) of this 
title, the Secretary of Defense shall establish a governing board for 
the commissary system to provide advice to the Secretary regarding the 
prudent operation of the commissary system and to assist in the overall 
supervision of the Defense Commissary Agency. The Secretary may 
authorize the board to have such supervisory authority as the Secretary 
considers appropriate to permit the board to carry out its 
responsibilities.
    (2) The Secretary of Defense shall determine the membership of the 
governing board, which shall include, at a minimum, appropriate 
representatives from each military department.
    (3) The governing board shall be accountable only to the Secretary 
of Defense and to the civilian officer of the Department of Defense who 
is assigned the responsibility for the overall supervision of the 
Defense Commissary Agency pursuant to section 192(a) of this title. The 
Director of the Defense Commissary Agency shall be accountable to and 
report to the board.

(Aug. 10, 1956, ch. 1041, 70A Stat. 141; Pub. L. 100-456, div. A, title 
III, Sec. 321, Sept. 29, 1988, 102 Stat. 1952; Pub. L. 104-106, div. A, 
title III, Sec. 331(a), Feb. 10, 1996, 110 Stat. 260; Pub. L. 104-201, 
div. A, title III, Sec. 341(b), Sept. 23, 1996, 110 Stat. 2489; Pub. L. 
105-261, div. A, title III, Secs. 361(b), 363(a), Oct. 17, 1998, 112 
Stat. 1984, 1985.)

                                          Historical and Revision Notes
-------------------------------------------------------------------------------
---------------------------------
            Revised section                      Source (U.S. Code)            
   Source (Statutes at Large)
-------------------------------------------------------------------------------
---------------------------------
2482..................................  [Uncodified].                        Au
g. 1, 1953, ch. 305, Sec.  624
                                                                              (
last proviso), 67 Stat. 353.
-------------------------------------------------------------------------------
---------------------------------

    This section is codified as permanent law on the basis of an opinion 
of the Assistant General Counsel (Fiscal Matters), Department of 
Defense, dated September 28, 1954. The words ``and privately owned 
organizations'' are omitted as surplusage since under 1 U.S.C. 1 
``person'' includes such an organization.


                               Amendments

    1998--Subsec. (b)(1). Pub. L. 105-261, Sec. 363(a), inserted at end 
``However, the Defense Commissary Agency may not pay for any such 
service provided by the United States Transportation Command any amount 
that exceeds the price at which the service could be procured through 
full and open competition, as such term is defined in section 4(6) of 
the Office of Federal Procurement Policy Act (41 U.S.C. 403(6)).''
    Subsec. (c). Pub. L. 105-261, Sec. 361(b), added subsec. (c).
    1996--Pub. L. 104-106 struck out ``private'' after ``stores:'' in 
section catchline, designated existing text as subsec. (a), inserted 
heading, and added subsec. (b).
    Subsec. (b)(1). Pub. L. 104-201 substituted ``another element of the 
Department of Defense or with another Federal department, agency, or 
instrumentality to provide or obtain services'' for ``another 
department, agency, or instrumentality of the Department of Defense or 
another Federal agency to provide services''.
    1988--Pub. L. 100-456 inserted at end ``A contract with a private 
person for the operation of any commissary store may not require or 
permit the contractor to carry out functions for the procurement of 
products to be sold in the store or to engage in functions relating to 
the overall management of a commissary system or the management of any 
such store. Such functions shall be carried out by personnel of the 
Department of Defense under regulations approved by the Secretary of 
Defense.''


                    Effective Date of 1998 Amendment

    Pub. L. 105-261, div. A, title III, Sec. 363(b), Oct. 17, 1998, 112 
Stat. 1986, provided that: ``The amendment made by subsection (a) 
[amending this section] shall apply with respect to services provided or 
obtained on or after the date of the enactment of this Act [Oct. 17, 
1998].''


    Prohibition on Consolidation or Other Organizational Changes of 
                  Department of Defense Retail Systems

    Pub. L. 105-261, div. A, title III, Sec. 367, Oct. 17, 1998, 112 
Stat. 1987, provided that:
    ``(a) Defense Retail Systems Defined.--For purposes of this section, 
the term `defense retail systems' means the defense commissary system 
and exchange stores and other revenue-generating facilities operated by 
nonappropriated fund activities of the Department of Defense for the 
morale, welfare, and recreation of members of the Armed Forces.
    ``(b) Prohibition.--The operation and administration of the defense 
retail systems may not be consolidated or otherwise merged unless the 
consolidation or merger is specifically authorized by a law enacted 
after the date of the enactment of this Act [Oct. 17, 1998].
    ``(c) Effect on Existing Study.--Nothing in this section shall be 
construed to prohibit the study of defense retail systems, known as the 
`Joint Exchange Due Diligence Study', which is underway on the date of 
the enactment of this Act pursuant to a contract awarded by the 
Department of the Navy on April 21, 1998, except that any recommendation 
contained in the completed study regarding the operation or 
administration of the defense retail systems may not be implemented 
unless implementation of the recommendation is specifically authorized 
by a law enacted after the date of the enactment of this Act.''


  Demonstration Program for Operation of Certain Commissary Stores by 
                 Nonappropriated Fund Instrumentalities

    Pub. L. 102-484, div. A, title III, Sec. 363, Oct. 23, 1992, 106 
Stat. 2380, provided that:
    ``(a) Establishment of Demonstration Program.--(1) The Secretary of 
Defense shall establish a demonstration program to determine the 
feasibility of having nonappropriated fund instrumentalities operate 
commissary stores at military installations.
    ``(2) Under the program referred to in paragraph (1), the Secretary 
of Defense shall select nonappropriated fund instrumentalities to 
operate commissary stores located at military installations selected by 
the Secretary under subsection (b).
    ``(b) Selection of Military Installations.--For participation in 
such program, the Secretary shall select not less than one nor more than 
three military installations in the United States, including at least 
one installation where National Guard personnel, other reserve component 
personnel, and their dependents comprise the predominant number of the 
users of the facilities and services of the installation.
    ``(c) Program Requirement and Limitation.--(1) Except as provided in 
paragraph (3), commissary stores operated under such program shall be 
operated in accordance with section 2484 of title 10, United States 
Code, relating to the payment of costs by the Department of Defense in 
connection with the operation of commissary stores.
    ``(2) Except as provided in paragraph (3), the Secretary of Defense 
may, subject to such section, authorize a transfer of goods, supplies, 
and facilities of, and funds appropriated for, the Defense Commissary 
Agency to the nonappropriated fund instrumentalities selected under 
subsection (a)(2) for the purpose of operating combined exchange and 
commissary stores under such program.
    ``(3) Appropriated funds may not be used pursuant to such section to 
pay costs associated with the direct support and operation of combined 
exchange and commissary stores under such program.
    ``(d) Period of Demonstration Program.--A nonappropriated fund 
instrumentality selected under subsection (a)(2) shall operate 
commissary store facilities under such program for the period beginning 
on the date of the selection of the nonappropriated fund instrumentality 
and ending on the date of the expiration of the period referred to in 
subsection (e).
    ``(e) Report.--Not later than the expiration of the one-year period 
beginning on the date of the enactment of this Act [Oct. 23, 1992], the 
Secretary of Defense shall submit to the Congress a report on the 
implementation of such program. The report shall include the findings, 
conclusions, and recommendations of the Secretary, including a 
recommendation with respect to whether similar programs should be 
carried out at other military installations.
    ``(f) Definition.--In this section, the term `nonappropriated fund 
instrumentality' means an instrumentality of the United States under the 
jurisdiction of the Department of the Army or the Department of the Air 
Force (including the Army and Air Force Exchange Service) which is 
conducted for the comfort, pleasure, contentment, or physical or mental 
improvement of members of the Armed Forces.''
