Military Exchanges:

Management of Navy Exchanges and Related Issues

NSIAD-87-25FS: Published: Oct 20, 1986. Publicly Released: Oct 27, 1986.

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Pursuant to a congressional request, GAO provided information on the management and operation of the Navy Resale and Services Support Office (NAVRESSO), specifically: (1) why NAVRESSO has more military personnel than the Army and Air Force Exchange Service (AAFES); (2) the impact of the Navy's recent realignment within the Naval Supply System Command (NAVSUP); (3) the training required by and available to Navy Supply Corps officers who manage exchanges; and (4) whether the Navy has assigned inexperienced retired military personnel as deputy exchange officers.

GAO found that: (1) NAVRESSO has more military personnel assigned to it than AAFES because its personnel are assigned to both exchanges and commissaries, and officer and enlisted assignments in military exchanges are necessary as a shore assignment for normal sea-to-shore rotation; (2) NAVSUP replacement of officers managing commissaries with civilians will increase the number of officers available to fill officer fleet requirements as the Navy grows to a 600-ship force; (3) Navy Supply Corps officers who manage exchanges enroll in a 27-week course to learn about supply management, disbursement, leadership and management, retail operations, food service, and quantitative management/computer systems, and rotate job assignments to enhance their professional development; and (4) there was no data that indicated that the Navy assigned inexperienced retired military personnel to positions as deputy exchange officers.

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