Application of Army Regulations to Army and Air Force Exchange System Procurement Policy

B-199922: Dec 17, 1980

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This document discusses whether a marketing company can offer a free case of Augsburger beer to the Army and Air Force Exchange System, Dallas, Texas (AAFES) for the purpose of having AAFES conduct a blind taste test, with a jury of their own selection, against any other brands in the market, without this being construed as an "unethical gratuity and an attempt to buy influence."

Since AAFES is a non-appropriated fund instrumentality, the requirements of the Armed Services Procurement Act (10 U.S.C. 2301 et. seq. (1976)) and the implementing provisions of the Defense Acquisition Regulation are not applicable to its procurements However, the general policies governing the operation of AAFEs are set for tin the Army Regulation. Futhermore, both Army users and Air Force users, under certain confitions, may issue local supplements to the general policies for AAFES. We cannot express any opinion on whether any local regulations which may have been issued would cover the situation you describe.

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