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The Army requested a decision concerning the propriety of entering into a sole-source procurement with the Army and Air Force Exchange Service (AAFES) for lunchroom monitoring services for the Department of Defense Dependents Schools (DODDS). GAO held that the: (1) sale of goods and services was generally outside the scope of a proper nonappropriated fund instrumentality function; (2) draft justification for contracting for the monitoring services with AAFES on a sole-source basis was valid; and (3) Army properly concluded that the lunchroom monitoring services were logically related to current AAFES responsibilities. Accordingly, the Army could contract with AAFES for the required services.

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