Five senators have proposed legislation to help offset the effects on troops if commissary prices increase under proposed changes to\u00a0the decades-old method of pricing groceries.<\/p>\n\n\n\n
Sen. Jim Inhofe, R-Okla., filed an amendment May 26 that would require defense officials to produce a report on whether to change the rates for Basic Allowance for Subsistence if commissaries increase grocery prices. Co-sponsors\u00a0for the amendment are: Sens. Joe Donnelly, D-Ind.; Orrin Hatch, R-Utah; Tim Kaine, D-Va.; and Mike Rounds, R-S.D.<\/p>\n\n\n\n
Currently, commissaries sell items at the cost from the manufacturer or distributor,\u00a0plus a 1\u00a0percent charge to cover spoilage and loss and a 5\u00a0percent surcharge. Proposals working their way through the House and Senate would allow commissaries to set prices, marking them up or down, in order to make a profit that would be used to offset the cost of operating commissaries. In 2016, it \u00a0costs taxpayers $1.4 billion to operate commissaries worldwide.<\/p>\n\n\n\n
Service members’ basic pay and Basic Allowance for Subsistence don’t vary by location, nor do commissary prices, but defense officials reportedly are considering a plan that would set the prices \u2014 and savings \u2014 to the local market. Thus, the price of a can of peas, for example, might be higher in some geographic areas than others.<\/p>\n\n\n\n
In 2016, the Basic Allowance for Subsistence is $368 a month for enlisted members, and $253 a month for officers. The allowance is meant to offset costs of a service member’s meals. It’s not intended to offset costs of meals for family members.<\/p>\n\n\n\n
Inhofe’s proposal would require DoD to submit a report to Congress by March 31, 2017, on the feasibility of changing the amount of BAS. The report would include an assessment of the potential for price increases at commissaries, and an assessment of changing BAS in light of potential price increases, including different BAS rates in different locations.<\/p>\n\n\n\n
According to DoD’s legislative proposal, laying out the fundamental changes in how the commissary benefit is delivered, the current pricing system \u2014\u00a0selling all items at cost \u2014\u00a0“constrains sales margins and limits potential savings benefits across disparate geographic markets.”<\/p>\n\n\n\n
It will become clearer once senators return from their Memorial Day recess whether the Inhofe amendment will be considered. It’s amendment SA 4237 to the Senate version of the national defense authorization bill.<\/p>\n\n\n\n