Review of Prices Paid by Military Commissaries on Brand Name Vendor Supply Bulletin Contracts

GAO was asked to assist in auditing annual indefinite quantity contracts negotiated by the Defense Personnel Support Center for military commissaries. The commissaries use these contracts to purchase grocery items from vendors at prices that are supposed to be as advantageous as those offered to commercial customers. GAO was asked to determine whether the vendors were complying with a price reduction clause which states that, when a vendor reduces prices to commercial customers, the commissaries should receive the same reduction.