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Business, Industry, and Consumers: Transfer of Clothing Sales Stores to Exchanges

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Report Type Reports and Testimonies
Report Date May 15, 1978
Report No. FPCD-78-46
Subject
Summary:

Questions were asked and responses given on matters relating to the transfer of operations of military clothing sales stores (MCSS) to the Army and Air Force Exchange Service (AAFES). Did a recent Air Force review adequately address claims made by the insignia industry and were AAFES-operated MCSS experiencing insignia shortages or delays? The review did not address the claims but identified accounting and inventory management problems, including stock overages and shortages. Actions taken and planned by AAFES were considered responsive. Claims that the transfer would jeopardize the insignia industry and that the Defense Personnel Support Center could not properly manage procurements were not thought to be generally supportable. How cost effective is the transfer? Although the Air Force found its transfer cost effective, the Army decided against having AAFES operate its MCSS; an indepth evaluation was not necessary. Should the Army follow the Air Force's example of transferring MCSS operations to AAFES? This question, as well as other alternatives, will be considered in planning future work in the area.

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