Title 10 — Armed Forces

Part IV · Chapter 147 — Commissaries and Exchanges and Other Morale, Welfare, and Recreation Activities

§ 2487. Relationship between defense commissary system and exchange stores system

Statutory text

Separate Operation of Systems.—

Except as provided in paragraph (2), the defense commissary system and the exchange stores system shall be operated as separate systems of the Department of Defense.

Paragraph (1) does not apply to the following:

Combined exchange and commissary stores operated under the authority provided by section 2489 of this title.

NEXMART stores of the Navy Exchange Service Command established before October 1, 2003.

Consolidation or Other Organizational Changes of Defense Retail Systems.—

The operation and administration of the defense retail systems may not be consolidated or otherwise merged unless the consolidation or merger is specifically authorized by an Act of Congress.

In this subsection, the term “defense retail systems” means the defense commissary system and exchange stores system and other revenue-generating facilities operated by nonappropriated fund instrumentalities of the Department of Defense for the morale, welfare, and recreation of members of the armed forces.

Common Business Practices.—

Notwithstanding subsections (a) and (b), the Secretary of Defense may establish common business processes, practices, and systems—

to exploit synergies between the defense commissary system and the exchange system; and

to optimize the operations of the defense retail systems as a whole and the benefits provided by the commissaries and exchanges.

The Secretary may authorize the defense commissary system and the exchange system to enter into contracts or other agreements—

for products and services that are shared by the defense commissary system and the exchange system; and

for the acquisition of supplies, resale goods, and services on behalf of both the defense commissary system and the exchange system.

For the purpose of a contract or agreement authorized under paragraph (2), the Secretary may—

use funds appropriated pursuant to section 2483 of this title to reimburse a nonappropriated fund entity or instrumentality for the portion of the cost of a contract or agreement entered by the nonappropriated fund entity or instrumentality that is attributable to the defense commissary system; and

authorize the defense commissary system to accept reimbursement from a nonappropriated fund entity or instrumentality for the portion of the cost of a contract or agreement entered by the defense commissary system that is attributable to the nonappropriated fund entity or instrumentality.

Access of Exchange Stores System to Federal Financing Bank.—

To facilitate the provision of in-store credit to patrons of the exchange stores system while reducing the costs of providing such credit, the Army and Air Force Exchange Service, Navy Exchange Service Command, and Marine Corps exchanges may issue and sell their obligations to the Federal Financing Bank as provided in section 6 of the Federal Financing Bank Act of 1973 (12 U.S.C. 2285).

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

2004
Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005
Pub. L. 108–375 div. A title VI § 651(b)(1) · 118 Stat. 1811
Enacted · 10 U.S.C. § 2487
Added Pub. L. 108–375, div. A, title VI, § 651(b)(1), Oct. 28, 2004, 118 Stat. 1971
Source evidence
Code source credit
Added Pub. L. 108–375, div. A, title VI, § 651(b)(1), Oct. 28, 2004, 118 Stat. 1971
Enacted provision · exact public law section
(1) by inserting after section 2485, as amended by subsection (a)(7), the following: “SUBCHAPTER II— RELATIONSHIP, CONTINUATION, AND COMMON POLICIES OF DEFENSE COMMISSARY AND EXCHANGE SYSTEMS “Sec. “2487. Relationship between defense commissary system and exchange stores system. “2488. Combined exchange and commissary stores. “2489. Overseas commissary and exchange stores: access and purchase restrictions. “§ 2487. Relationship between defense commissary system and exchange stores system “(a) Separate Operation of Systems.— (1) Except as provided in paragraph (2), the defense commissary system and the exchange stores system shall be operated as separate systems of the Department of Defense. “(2) Paragraph (1) does not apply to the following: “(A) Combined exchange and commissary stores operated under the authority provided by section 2489 of this title. “(B) NEXMART stores of the Navy Exchange Service Command established before October 1, 2003. “(b) Consolidation or Other Organizational Changes of Defense Retail Systems.— (1) The operation and administration of the defense retail systems may not be consolidated or otherwise merged unless the consolidation or merger is specifically authorized by an Act of Congress. “(2) In this subsection, the term ‘defense retail systems’ means the defense commissary system and exchange stores system and other revenue-generating facilities operated by nonappropriated fund instrumentalities of the Department of Defense for the morale, welfare, and recreation of members of the armed forces.” ;
2011
National Defense Authorization Act for Fiscal Year 2012
Pub. L. 112–81 div. A title VI § 642 · 125 Stat. 1298
Added · 10 U.S.C. § 2487(c)
Pub. L. 112–81 added subsec. (c)
Source evidence
Code amendment note
Subsec. (c). Pub. L. 112–81 added subsec. (c).
Enacted provision · exact public law section
SEC. 642. ACCESS OF MILITARY EXCHANGE STORES SYSTEM TO CREDIT AVAILABLE THROUGH FEDERAL FINANCING BANK. Section 2487 of title 10, United States Code, is amended by adding at the end the following new subsection: “(c) Access of Exchange Stores System to Federal Financing Bank.— To facilitate the provision of in-store credit to patrons of the exchange stores system while reducing the costs of providing such credit, the Army and Air Force Exchange Service, Navy Exchange Service Command, and Marine Corps exchanges may issue and sell their obligations to the Federal Financing Bank as provided in section 6 of the Federal Financing Bank Act of 1973 (12 U.S.C. 2285).” .
2016
National Defense Authorization Act for Fiscal Year 2017
Pub. L. 114–328 div. A title VI § 661(d) · 130 Stat. 2000
1. Added · 10 U.S.C. § 2487(c); 10 U.S.C. § 2487(d)
  Pub. L. 114–328 added subsec. (c)
2. Redesignated · 10 U.S.C. § 2487(c); 10 U.S.C. § 2487(d)
  Pub. L. 114–328 redesignated former subsec. (c) as (d)
Source evidence
Code amendment note
Subsecs. (c), (d). Pub. L. 114–328 added subsec. (c) and redesignated former subsec. (c) as (d).
Enacted provision · exact public law section
(d) Establishment of Common Business Practices.— Section 2487 of such title is amended— (1) by redesignating subsection (c) as subsection (d); and (2) by inserting after subsection (b) the following new subsection (c): “(c) Common Business Practices.— (1) Notwithstanding subsections (a) and (b), the Secretary of Defense may establish common business processes, practices, and systems— “(A) to exploit synergies between the defense commissary system and the exchange system; and “(B) to optimize the operations of the defense retail systems as a whole and the benefits provided by the commissaries and exchanges. “(2) The Secretary may authorize the defense commissary system and the exchange system to enter into contracts or other agreements— “(A) for products and services that are shared by the defense commissary system and the exchange system; and “(B) for the acquisition of supplies, resale goods, and services on behalf of both the defense commissary system and the exchange system. “(3) For the purpose of a contract or agreement authorized under paragraph (2), the Secretary may— “(A) use funds appropriated pursuant to section 2483 of this title to reimburse a nonappropriated fund entity or instrumentality for the portion of the cost of a contract or agreement entered by the nonappropriated fund entity or instrumentality that is attributable to the defense commissary system; and “(B) authorize the defense commissary system to accept reimbursement from a nonappropriated fund entity or instrumentality for the portion of the cost of a contract or agreement entered by the defense commissary system that is attributable to the nonappropriated fund entity or instrumentality.” .