Accession Number : ADA331324

Title :   A CBO Study: The Costs and Benefits of Retail Activities at Military Bases,

Corporate Author : CONGRESSIONAL BUDGET OFFICE (U S CONGRESS) WASHINGTON DC

Personal Author(s) : Clay-Mendez, Deborah

PDF Url : ADA331324

Report Date : OCT 1997

Pagination or Media Count : 95

Abstract : The Department of Defense (DoD) is seeking to reduce its infrastructure of bases and support activities in order to free up funds to replace aging weapon systems. One aspect of DoD's infrastructure that may merit review is its network of on-base grocery stores, department stores, and other shops that sell goods and services at below-market prices to active-duty, reserve, and retired military personnel. Despite the decline in the size of the military since the end of the Cold War, DoD remains one of the largest retailers in the United States. Its stores, with annual sales of more than $14 billion, employ 96,000 civilians - one for every 15 active-duty service members. What explains the size and scope of DoD's retail activities in the United States? Are government-run stores necessary to provide access to goods at military bases or to preserve military morale and cohesion? Are they more cost-effective than cash allowances as a way to attract and retain a high-quality force? This Congressional Budget Office (CBO) study examines the social and budgetary costs and benefits of DoD's retail activities and various alternatives for their future. It was prepared in response to a joint request from Congressman John Kasich, Chairman of the House Committee on the Budget, and Congressman William Zeliff Jr., former Chairman of the Subcommittee on National Security, Foreign Affairs, and Criminal Justice of the House Committee on Government Reform and Oversight. In keeping with CBO's mandate to provide objective, impartial analysis, the study makes no recommendations.

Descriptors :   *MILITARY FACILITIES, *COST BENEFIT ANALYSIS, MILITARY PERSONNEL, MORALE, RETAIL.

Subject Categories : Economics and Cost Analysis
      Personnel Management and Labor Relations

Distribution Statement : APPROVED FOR PUBLIC RELEASE