AFSA Periodical 300-2 January 16, 2004
WILL DOD ACTIONS REDUCE YOUR COMMISSARY BENEFIT?
DoD has initiated a study to consider changing the way products are priced at military commissaries. The drive is to justify using a profit-based practice called "variable pricing" (currently used by civilian markets). Variable pricing would give DoD the authority (through commissary managers) to arbitrarily choose the price of each product offered to you. Currently, beneficiaries pay a straight "cost plus 5 percent" on all products. The DoD variable pricing effort, if implemented, would almost certainly shift the currently required annual $1.2 billion government appropriation from all American taxpayers to those citizens who have earned the right to shop at commissaries. This DoD variable pricing effort is on such a fast track that it wants the justification study completed in time for congressional hearings in March of this year.
Amazingly enough, certain defense officials have asserted that variable pricing could be implemented without affecting the current savings of more than 30 percent of what you would spend in civilian markets. As AFSA members know, the five-percent surcharge (over cost) is used to build new stores and modifying existing ones. The Defense Commissary Agency has repeatedly explained that the resulting 30 percent savings for military beneficiaries is only possible because commissary prices are not determined in the same method used by civilian stores--i.e., through variable pricing. Additionally, on November 21, 2003, House Subcommittee on Total Force Chairman John M. McHugh wrote Defense Secretary Rumsfeld (in response to various DoD actions, including wanting to study variable pricing):
"We understand the responsibility for the Department to review the processes in order to ensure effective and efficient operations. However, we believe that [your] . . . recent actions reflect a single-minded interest in cutting appropriated funding for commissaries without sufficient regard for the welfare of servicemembers and their families. . . .Congress does not seek a reduction in appropriated funding support for commissaries. Rather, we are willing to pay what is necessary to protect this powerful retention tool that servicemembers consider one of their most important benefits. We believe that these recent Department actions are sending the wrong message about the Department’s commitment to the quality of life of our military families at the very moment when we can least afford to alienate the force."
Despite this clear message, DoD went ahead with the study which is being conducted at this time. DoD marches forward, suggesting it can use the variable pricing method, still save beneficiaries at least 30 percent and, at the same time, reduce or eliminate the annual $1.2 billion funding which is appropriated by Congress to fund the commissary benefit.
AFSA believes that it defies logic that DoD could manipulate costs to make the annual $1.2 billion dollar commissary appropriation go away without transferring the cost to the beneficiary! Government agencies must stop working so hard to shift the "burden" of military benefits to military taxpayers and, in effect, make those who sacrifice so much pay for their own benefits.
In reacting to negative reports, Deputy Defense Undersecretary for Military Community and Family Policy John Molino responded ". . . remember, we’re not implementing variable pricing. We are simply studying the concept." AFSA finds it distressing that the Administration would even conduct such a study. It would be better if DoD accepted the role as advocate for military members and their families instead of repeatedly looking for ways to shift the cost of career quality-of-life benefits to the few taxpayers who actually put their lives on the line through military service.
Those who seek to run military benefits programs like a business–focusing on reducing the "bottom line" instead of serving as advocates for funding these benefits–suggests contempt and lack of appreciation for current and career military members. Current and past military members should be thankful that AFSA and its coalition partners stand watch, and that House and Senate committee leaders and members have the integrity, courage, and dedication to get involved and stop most of these ill-thought-out attacks.
Non-pay military benefits such as health care, exchanges, commissaries, Department of Defense Dependent Schools, family support programs, and MWR services are essential benefits that should be run efficiently--but must be fully funded as a national priority. AFSA has urged the President to intervene to stop such machinations and will lobby appropriate Senate and House committees to continue to resist such DoD plans. Further, AFSA will strongly assert that this nation should provide the benefits of those who protect our freedoms–as a fully committed national priority.
While AFSA urges Congress and the Administration to publically speak out against such efforts, we also urge all AFSA members to do the same by immediately contacting your elected officials and tell them to resist the DoD desire to implement variable pricing in military commissaries. Once again, make this important effort a voting issue; tell those who seek your vote exactly how you want them to respond. If you need assistance, contact AFSA’s Directorate of Military and Government Relations.
JAMES D. STATON
Executive Director
If this is actually taking place it really pisses me off. Please call your congresional reps and tell them wich way they should vote when the time comes
BTW AFSA is
Air Force Sergeants Association Basically a lobby orginization that looks after the rights of servicmen and vetrans.
