The burden of high fruit and vegetable\u00a0prices on Pacific commissary customers could get lighter.<\/p>\n\n\n\n
Congressional appropriators would require the Defense Commissary Agency to set aside\u00a0$48 million in\u00a02017 for the shipment of produce to Pacific commissaries. It’s\u00a0an effort to reverse the price hikes of fresh fruits and vegetables in the Pacific and especially Guam,\u00a0where a package of lettuce has\u00a0<\/strong>been known to\u00a0<\/strong>cost shoppers more\u00a0than $10.<\/p>\n\n\n\n It\u2019s part of the House Appropriations\u2019 defense subcommittee\u2019s bill, which provides an overall $517.1 billion in discretionary funding for DoD. The Defense Commissary Agency would be required to spend at least $48 million to support the transportation of fruits and vegetables to those commissaries, if the measure makes its way into law. <\/span>The bill is from the House Appropriations Committee’s defense subcommittee and is headed to the full committee as part of the overall 2017\u00a0defense funding proposal.<\/p>\n\n\n\n\n\n Prices on many fresh produce items in the Pacific spiked last November after the Defense Commissary Agency implemented new contracts\u00a0in an effort to save the very same $48 million on shipping\u00a0a year the government was paying to ship produce to those commissaries<\/span>. Instead of the government paying to ship the produce, the <\/span>contractors either get the produce from local sources in these areas,<\/span> or bear the cost of shipping it from other countries, including the U.S.<\/p>\n\n\n\n And that cost is passed on to the commissary customer.<\/p>\n\n\n\n While there were some trouble spots in Japan and South Korea, the problems with high prices appears<\/span> to be more pronounced in Guam, sources said.<\/p>\n\n\n\n Some <\/span>Customers in Guam reported that prices of some produce items had doubled or tripled. One military wife posted a picture of a 22-ounce package of Romaine lettuce priced at $10.69.<\/p>\n\n\n\n Some items have to be airlifted, such as bagged salads and seasonal items such as berries. Airlifting is more expensive. But whether the produce was airlifted or moved by ship, until last November, customers didn’t have to pay for that cost.<\/p>\n\n\n\n\n\n The provision in the subcommittee’s bill would require DoD to infuse the $48 million back into the system to support the transportation of fruits and vegetables.<\/p>\n\n\n\n The appropriators added another provision limiting the use of those funds to fruits and vegetables either grown locally in the country where the commissary is located\u00a0or bought by\u00a0commissary agency officials at a location in the continental U.S.<\/p>\n\n\n\n The subcommittee “is clearly trying to shift the failed Asian produce sourcing policy back to something that works,” said one congressional staff member. He noted that the Defense Commissary Agency instituted the new policy without congressional approval\u00a0and contrary to congressional concerns.<\/p>\n\n\n\n The new contract has not only increased the cost of produce\u00a0but resulted in poor availability of items and lower quality, he said. “Customers are complaining while DeCA is blaming this on transition issues or focusing exclusively on the Guam issue, ignoring Japan and Korea.<\/p>\n\n\n\n “Service members are paying more for lower-quality goods,” he said.<\/p>\n\n\n\n Last month, in a report accompanying its version of the defense policy bill, the House Armed Services Committee included a requirement for the DoD Inspector General to evaluate the effectiveness of the new purchase process for fresh fruits and vegetables\u00a0compared to the previous process in which the transportation costs were funded by DoD. It will also do an assessment of the similar local purchase process currently ongoing in Europe.<\/p>\n\n\n\n Among other things, the IG will compare the amount of produce lost due to spoilage or importation delays\u00a0compared to the previous contract; and will compare the benefits and impacts of the new contract on commissary customers in the Pacific and on the Cost of Living Allowance. Commissary prices are one of the factors used in determining the overseas COLA.<\/p>\n\n\n\n Auditors will also document the percentage increase or decrease of local market prices of fresh fruits and vegetables\u00a0compared to Pacific commissary prices.<\/p>\n\n\n\n