S.Amdt. 2054

SA 2054. Mr. INHOFE submitted an amendment intended to be proposed by
him to the bill H.R. 1735, to authorize appropriations for fiscal year
2016 for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe military personnel strengths for such fiscal year, and for
other purposes; which was ordered to lie on the table; as follows:

At the appropriate place insert the following:

REPORT AND ASSESSMENT OF POTENTIAL COSTS AND BENEFITS OF
PRIVATIZING DEPARTMENT OF DEFENSE COMMISSARIES.

(a) In General.--Not later than February 1, 2016, the
Secretary of Defense shall submit to the Committees on Armed
Services of the Senate and the House of Representatives a
report assessing the viability of privatizing, in whole or in
part, the Department of Defense commissary system. The report
shall be so submitted to Congress before the development of
any plans or pilot program to privatize defense commissaries
or the defense commissary system.
(b) Elements.--The assessment required by subsection (a)
shall include, at a minimum, the following:
(1) A methodology for defining the total number and
locations of commissaries.
(2) An evaluation of commissary use by location in the
following beneficiary categories:
(A) Pay grades E-1 through E-4.

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(B) Pay grades E-5 through E-7.
(C) Pay grades E-8 and E-9.
(D) Pay grades O-1 through O-3.
(E) Pay grades O-4 through O-6.
(F) Pay grades O-7 through O-10.
(G) Military retirees.
(3) An evaluation of commissary use in locations outside
the continental United States and in remote and isolated
locations in the continental United States when compared with
other locations.
(4) An evaluation of the cost of commissary operations
during fiscal years 2009 through 2014.
(5) An assessment of potential savings and efficiencies to
be achieved through implementation of some or all of
recommendations of the Military Compensation and Retirement
Modernization Commission.
(6) A description and evaluation of the strategy of the
Defense Commissary Agency for pricing products sold at
commissaries.
(7) A description and evaluation of the transportation
strategy of the Defense Commissary Agency for products sold
at commissaries.
(8) A description and evaluation of the formula of the
Defense Commissary Agency for calculating savings for its
customers as a result of its pricing strategy.
(9) An evaluation of the average savings per household
garnered by commissary use.
(10) A description and evaluation of the use of private
contractors and vendors as part of the defense commissary
system.
(11) An assessment of costs or savings, and potential
impacts to patrons and the Government, of privatizing the
defense commissary system, including potential increased use
of Government assistance programs.
(12) A description and assessment of potential barriers to
privatization of the defense commissary system.
(13) An assessment of the extent to which patron savings
would remain after the privatization of the defense
commissary system.
(14) An assessment of the impact of any recommended changes
to the operation of the defense commissary system on
commissary patrons, including morale and retention.
(15) An assessment of the actual interest of major grocery
retailers in the management and operations of all, or part,
of the existing defense commissary system.
(16) An assessment of the impact of privatization of the
defense commissary system on off-installation prices of
similar products available in the system.
(17) An assessment of the impact of privatization of the
defense commissary system, and conversion of the Defense
Commissary Agency workforce to non-appropriated fund status,
on employment of military family members, particularly with
respect to pay, benefits, and job security.
(18) An assessment of the impact of privatization of the
defense commissary system on Exchanges and Morale, Welfare
and Recreation (MWR) quality-of-life programs.
(c) Use of Previous Studies.--The Secretary shall consult
previous studies and surveys on matters appropriate to the
report required by subsection (a), including, but not limited
to, the following:
(1) The January 2015 Final Report of the Military
Compensation and Retirement Modernization Commission.
(2) The 2014 Military Family Lifestyle Survey Comprehensive
Report.
(3) The 2013 Living Patterns Survey.
(4) The report required by section 634 of the Carl Levin
and Howard P. ``Buck'' McKeon National Defense Authorization
Act for Fiscal Year 2015 (Public Law 113-291) on the
management, food, and pricing options for the defense
commissary system.
(d) Comptroller General Assessment of Report.--Not later
than May 1, 2016, the Comptroller General of the United
States shall submit to the Committees on Armed Services of
the Senate and the House of Representatives a report setting
forth an assessment by the Comptroller General of the report
required by subsection (a).
Section 652 of this act is null and void.
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