§2487 — Title 10 Armed Forces | U.S. Code

§2487 Relationship between defense commissary system and exchange stores system

Title 10 › Subtitle Subtitle A— - General Military Law › Part PART IV— - SERVICE, SUPPLY, AND PROPERTY › Chapter CHAPTER 147— - COMMISSARIES AND EXCHANGES AND OTHER MORALE, WELFARE, AND RECREATION ACTIVITIES › Subchapter SUBCHAPTER II— - RELATIONSHIP, CONTINUATION, AND COMMON POLICIES OF DEFENSE COMMISSARY AND EXCHANGE SYSTEMS › § 2487

Last updated Apr 6, 2026|Official source

Summary

The Department of Defense must run the commissary system and the exchange stores as two separate systems. Two exceptions exist: combined exchange-and-commissary stores allowed under section 2489, and Navy NEXMART stores set up before October 1, 2003. The two systems cannot be merged or combined unless Congress passes a law that allows it. The law calls the commissary system, the exchange stores, and other money-making morale and welfare facilities run by nonappropriated fund groups the “defense retail systems.” The Secretary of Defense may create shared business practices and let commissaries and exchanges use joint contracts for products, services, and supplies to make operations better and save money. Under those agreements, appropriated funds under section 2483 can reimburse nonappropriated fund entities for the commissary share, and commissaries can accept payments for the nonappropriated share. Army and Air Force Exchange Service, Navy Exchange Service Command, and Marine Corps exchanges may sell obligations to the Federal Financing Bank under section 6 of the Federal Financing Bank Act (12 U.S.C. 2285) to offer in-store credit at lower cost.

Title 10, §2487

Armed Forces — Source: USLM XML via OLRC

(a)(1)Except as provided in paragraph (2), the defense commissary system and the exchange stores system shall be operated as separate systems of the Department of Defense.

(2)Paragraph (1) does not apply to the following:

(A)Combined exchange and commissary stores operated under the authority provided by section 2489 of this title.

(B)NEXMART stores of the Navy Exchange Service Command established before October 1, 2003.

(b)(1)The operation and administration of the defense retail systems may not be consolidated or otherwise merged unless the consolidation or merger is specifically authorized by an Act of Congress.

(2)In this subsection, the term “defense retail systems” means the defense commissary system and exchange stores system and other revenue-generating facilities operated by nonappropriated fund instrumentalities of the Department of Defense for the morale, welfare, and recreation of members of the armed forces.

(c)(1)Notwithstanding subsections (a) and (b), the Secretary of Defense may establish common business processes, practices, and systems—

(A)to exploit synergies between the defense commissary system and the exchange system; and

(B)to optimize the operations of the defense retail systems as a whole and the benefits provided by the commissaries and exchanges.

(2)The Secretary may authorize the defense commissary system and the exchange system to enter into contracts or other agreements—

(A)for products and services that are shared by the defense commissary system and the exchange system; and

(B)for the acquisition of supplies, resale goods, and services on behalf of both the defense commissary system and the exchange system.

(3)For the purpose of a contract or agreement authorized under paragraph (2), the Secretary may—

(A)use funds appropriated pursuant to section 2483 of this title to reimburse a nonappropriated fund entity or instrumentality for the portion of the cost of a contract or agreement entered by the nonappropriated fund entity or instrumentality that is attributable to the defense commissary system; and

(B)authorize the defense commissary system to accept reimbursement from a nonappropriated fund entity or instrumentality for the portion of the cost of a contract or agreement entered by the defense commissary system that is attributable to the nonappropriated fund entity or instrumentality.

(d)To facilitate the provision of in-store credit to patrons of the exchange stores system while reducing the costs of providing such credit, the Army and Air Force Exchange Service, Navy Exchange Service Command, and Marine Corps exchanges may issue and sell their obligations to the Federal Financing Bank as provided in section 6 of the Federal Financing Bank Act of 1973 (12 U.S.C. 2285).

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 2487, added Pub. L. 99–661, div. A, title III, § 313(a), Nov. 14, 1986, 100 Stat. 3852; amended Pub. L. 102–484, div. A, title III, § 364(a), (b)(2), Oct. 23, 1992, 106 Stat. 2381, 2382; Pub. L. 104–106, div. A, title III, § 332, Feb. 10, 1996, 110 Stat. 260; Pub. L. 107–107, div. A, title III, § 333(a), Dec. 28, 2001, 115 Stat. 1058, related to release of certain commercially valuable information to the public by the Secretary of Defense with respect to commissary stores, prior to repeal by Pub. L. 108–375, div. A, title VI, § 651(a)(1), Oct. 28, 2004, 118 Stat. 1964.

Amendments

2016—Subsecs. (c), (d). Pub. L. 114–328 added subsec. (c) and redesignated former subsec. (c) as (d). 2011—Subsec. (c). Pub. L. 112–81 added subsec. (c).