CONUS Commissaries on the chopping block

2,119 Views | 19 Replies | Last: 12 yr ago by AgLaw02
Ulysses90
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http://spousebuzz.com/blog/2013/11/plan-to-close-commissaries-stateside-coming-soon.html

quote:

The Defense Commissary Agency (DeCA) will be soon writing a plan for closing stateside commissaries at the request of the Defense Department, which is still looking for ways to slash costs in the face of mandated budget cuts.

Such a plan could leave military members stationed stateside at bases in remote locations, such as Fort Irwin, Calif., driving long distances for food. Those with local grocery store options outside the gate would be in better shape — but can still expect to pay around 30 percent more across the board should the commissaries close, especially on products such as meat which are often much cheaper on base than off.

The request, shared with military columnist and benefits guru Tom Phipott by military resale community sources, was made by the DoD’s Under Secretary of Defense Robert Hale, the department’s top financial adviser, and Air Force Lt. Gen. Mark F. Ramsay, director of force structure, resources and assessment for the Joint Staff.

The commissary has long been a subject of scrutiny by lawmakers, some of whom see the grocery benefit as an outdated, unnecessary expenditure. While a 5 percent surcharge on every commissary purchase covers most costs of running the stores themselves, DeCA relies on a $1.4 billion taxpayer funded budget to pay their workers, who are federal employees, at 247 stores worldwide.


I believe that execution of this proposal is only a matter of time. I am betting that the mitigation for this is reduction in service is an offer from a large chain of discount stores based in Bentonville Arkansas to offer across the board 10% discounts on groceries to military active duty, reservists, and retired that are presently eligible to shop at DeCA. I would also bet that the old DeCA buildings would end up being leased to private grocery chains with a concessions contract stipulating levels of service and stocklist of basic items. Though it will be a hardship I'll learn to live without the legions of DeCA baggers lined up behind the cash registers.
Scruffy
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So where will the dependapotimi (sp) shop?
jeffreyj05
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Terrible idea...but we'll adapt and overcome.
Aggie 509th
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As the number of Veterans in congress dwindles lower and lower...so do the Vet benefits.
Tango Mike
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quote:
As the number of Veterans in congress dwindles lower and lower...so do the Vet benefits.


Marketing studies have shown that the commissary is not cheaper than regional grocers or WalMart, largely due to the 5% tax that people don't pay at grocers and the fact that commissaries don't carry private labels. Joe doesn't shop at the commissary, it's full of retirees who can well afford to save money (and gas to get there) by shopping off post
Ulysses90
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quote:
Marketing studies have shown that the commissary is not cheaper than regional grocers or WalMart, largely due to the 5% tax that people don't pay at grocers and the fact that commissaries don't carry private labels. Joe doesn't shop at the commissary, it's full of retirees who can well afford to save money (and gas to get there) by shopping off post


Concur. I will have to admit that the butcher shop at the commissary is far and away cheaper than anywhere I have found off base but the rest of it is not really a great deal. DeCA brings a lot of imported high quality food to CONUS but their original mandate was more along the lines of bringing the shelves of a CONUS supermarket to military deployed overseas and in very remote places. There are still a few places like China Lake, Twentynine Palms, Ft. Irwin, and bases in Alaska that may need some special consideration but at most other posts and stations the private competitors right off base can easily suffice. The buildings in which DeCA resides will be leased out under a concessions contract in most cases. They won't be empty or repurposed for a bowling alley. Most places (like Quantico) I would guess that a Walmart would pay decent money for the prime location to market their goods to the military. In places like China Lake the concessions fee might be paid to a grocery chain to set up there but it would be a lot less than $1.4B a year to get private grocery chains to set up shop in already furnished and in many cases recently renovated buildings.
Pro Sandy
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Don't worry though, we will keep spending trillions for people who refuse to work while raising taxes and reducing benefits for those who work and serve.
Tango Mike
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Including the military, which was able to expand unemployment benefits to 99 weeks during the TARP explosion; asked if they wanted to reduce that upon cessation of OIF, the building tried to increase unemployment funds instead
Aggie 509th
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Very interesting feedback.
Aggie Infantry
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Not only the Commissaries, but also close the day care centers, the libraries, and the PX/BX on most CONUS Garrisons. Just outside the gate of Ft. Sam Houston, Ft. Bragg, Ft. Benning, etc… are Wal Marts, Food Lions, HEBs, Tiny Tots, and public libraries.

Only remote sites, like Hunter-Liggett still need these facilities.
Ulysses90
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quote:
Including the military, which was able to expand unemployment benefits to 99 weeks during the TARP explosion; asked if they wanted to reduce that upon cessation of OIF, the building tried to increase unemployment funds instead


That topic was raised in a brief I attended with the two star who until recently held the purse strings for the Marine Corps' budget. He said that the DOD was legally hamstrung by the Congress' extension of unemployment benefits to 99 weeks. As he explained it the counsel for the USD for Manpower affirmed that ODD did not have the authority to deviate from the duration of eligibility for unemployment benefits passed by Congress as law with no explicit exemption for military personnel. Simply stated the DOD has to treat its personnel the same way the civilian workforce is treated.

The consequence is that for any "career force" member of the armed forces who is refused enlistment or continuation to the point of retirement eligibility the DOD must set aside from its personnel budget 99 weeks of benefits. In other words an involuntary reduction in personnel strength does not really start to save money for two years because of severance, extended Tricare, and unemployment. We lose the contribution of the soldier but we still pay the cost of him being present for two years.
NormanAg
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quote:
...largely due to the 5% tax that people don't pay at grocers...


Yeah, you're right, I don't pay a 5% tax at local grocers. It's an 8 to 8.375 tax at my local grocers.

Hope Ulysses is right about the DECA facilities getting leased out to civilian grocers. Here's my list of AFB bases that DON'T have grocers anywhere NEAR the base gate:

Cannon AFB
Holloman AFB
Scott AFB
Edwards AFB
Minot AFB
Montgomery AFB

Those are just the ones I know of from personal experience. I'm sure there are many, many more.
Tango Mike
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You pay a tax on non-staples. I don't know of a single state that charges sales tax on foodstuffs.

Don't shoot the messenger, it wasn't my marketing study. Closing peripheral services on post is long overdue though
NormanAg
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OK does, and seven other states do as well.

http://www.taxadmin.org/fta/rate/sales.pdf



[This message has been edited by NormanAg (edited 11/26/2013 7:20p).]
NormanAg
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A grocery store at Edwards AFB is NOT a "peripheral service". It is a downright necessity.

And my wife just reminded me that at Andrews AFB (we left there in 1988) it's dangerous to shop anywhere NEAR the base.



[This message has been edited by NormanAg (edited 11/26/2013 7:40p).]
Rock1982
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Gents, this trend is going to continue.

Not only does Congress have fewer veterans at each election cycle, but the American public is increasingly distanced from who you are.

In this age of global brotherhood and Pax Americana that we are entering, why is this important anyway?
Gator2_01
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Commissary was always a waste for me. Produce was lackluster compared to off base. The only real savings was meats. MANY items were more expensive on base than off.
Martin Cash
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Never shopped at the commissary when I was on active duty. The prices weren't much cheaper and it wasn't worth waiting in line behind some woman with 6 baskets full of groceries.
armymom
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I cannot imagine Fort Irwin without a commissary! I would hate to rely on shopping in Barstow! As a retiree now I had not been to a commissary in a while. Visited Ft Hood last week and yes, it was remarkable the difference in prices for food items. You may not have shopped there but there are a lot of people who do and probably rely on those prices. Especially the meat department! Sorry to hear it may be going away!
Noble07
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quote:
You may not have shopped there but there are a lot of people who do and probably rely on those prices.


Why not just increase BAS? I don't see the point in the commissaries if we spend $3 so someone can save $1 on meat. I don't know if those numbers are accurate, but it wouldn't surprise me. The govt is not efficient at acquiring goods and services.
AgLaw02
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I've never seen much point in commissaries in big stateside cities. Overseas and remote areas are a different story.
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