DOD Commissaries and Exchanges: Plan and Additional Information Needed on Cost Savings and Metrics for DOD Efforts to Achieve Budget Neutrality

Given budget constraints, DOD is reviewing opportunities for efficiencies in its commissaries and exchanges, which provide reduced- price groceries and services for the military community. In fiscal year 2015, $1.3 billion in appropriated funds were used for DOD commissaries and exchanges. The National Defense Authorization Act for Fiscal Year 2016 mandated that DOD report on its plan for budget neutrality, and included a provision for GAO to assess DODs report. GAO evaluated the extent to which DODs report (1) includes a plan to achieve budget neutrality and (2) addresses seven mandated elements and three mandated benchmarks to ensure the maintenance of customer satisfaction, quality of products, and savings that commissary and exchange patrons are to realize. GAO compared DODs report with the mandated elements and benchmarks, generally accepted research standards, and federal internal control standards, and interviewed DOD officials.