§2495 — Title 10 Armed Forces | U.S. Code

§2495 Nonappropriated fund instrumentalities: purchase of alcoholic beverages

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 III— - MORALE, WELFARE, AND RECREATION PROGRAMS AND NONAPPROPRIATED FUND INSTRUMENTALITIES › § 2495

Last updated Apr 6, 2026|Official source

Summary

The Secretary of Defense must make sure that when military resale shops in the United States buy alcohol with nonappropriated funds, they buy from the most competitive supplier and use the most economical way to get and sell it, looking at price and other factors. Beer and wine must be bought from and delivered by a supplier located in the same State as the military installation. If a base sits in more than one State, a supplier in any of those States counts as a local supplier for beer and wine. For distilled spirits, the Secretary must look at all parts of distribution cost (like management, logistics, inventory, handling, utilities, and depreciation) and use military audit offices and the Department of Defense Inspector General to decide what is most economical. “Covered alcoholic beverage purchases” means alcohol bought by a military nonappropriated fund instrumentality with nonappropriated funds. “State” includes the District of Columbia.

Title 10, §2495

Armed Forces — Source: USLM XML via OLRC

(a)The Secretary of Defense shall provide that—

(1)covered alcoholic beverage purchases made for resale on a military installation located in the United States shall be made from the most competitive source and distributed in the most economical manner, price and other factors considered, except that

(2)in the case of malt beverages and wine, such purchases shall be made from, and delivery shall be accepted from, a source within the State in which the military installation concerned is located.

(b)If a military installation located in the contiguous States is located in more than one State, a source of supply in any State in which the installation is located shall be considered for the purposes of subsection (a)(2) to be a source within the State in which the installation is located.

(c)(1)In the case of covered alcoholic beverage purchases of distilled spirits, to determine whether a nonappropriated fund instrumentality of the Department of Defense provides the most economical method of distribution to package stores, the Secretary of Defense shall consider all components of the distribution costs incurred by the nonappropriated fund instrumentality, such as overhead costs (including costs associated with management, logistics, administration, depreciation, and utilities), the costs of carrying inventory, and handling and distribution costs.

(2)The Secretary shall use the agencies performing audit functions on behalf of the armed forces and the Inspector General of the Department of Defense to make determinations under this subsection.

(d)In this section:

(1)The term “covered alcoholic beverage purchases” means purchases of alcoholic beverages by a nonappropriated fund instrumentality of the Department of Defense with nonappropriated funds.

(2)The term “State” includes the District of Columbia.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2004—Pub. L. 108–375 renumbered section 2488 of this title as this section. 2000—Subsec. (c)(2), (3). Pub. L. 106–398 redesignated par. (3) as (2) and struck out former par. (2) which read as follows: “If the use of a private distributor would subject covered alcoholic beverage purchases of distilled spirits to direct or indirect State taxation, a nonappropriated fund instrumentality shall be considered to be the most economical method of distribution regardless of the results of the determination under paragraph (1).” 1996—Subsec. (a)(1). Pub. L. 104–106, § 333(a), inserted “and distributed in the most economical manner” after “most competitive source”. Subsecs. (c), (d). Pub. L. 104–106, § 333(b), added subsec. (c) and redesignated former subsec. (c) as (d). 1987—Subsec. (a)(2). Pub. L. 100–180 struck out “purchased for resale on a military installation located in the contiguous States” after “malt beverages and wines”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1987 Amendment Pub. L. 100–180, div. A, title III, § 312(b), Dec. 4, 1987, 101 Stat. 1073, provided that: “The amendment made by subsection (a) [amending this section] shall apply with respect to purchases of malt beverages and wine after the end of the 60-day period beginning on the date of the enactment of this Act [Dec. 4, 1987].” Procurement of Malt Beverages and Wine by Nonappropriated Fund Activity Pub. L. 109–148, div. A, title VIII, § 8080, Dec. 30, 2005, 119 Stat. 2717, which provided that none of the funds appropriated by div. A of Pub. L. 109–148 were to be used for the support of any nonappropriated funds activity of the Department of Defense that procured malt beverages and wine with nonappropriated funds for resale (including such alcoholic beverages sold by the drink) on a military installation located in the United States unless such malt beverages and wine were procured within that State, or in the case of the District of Columbia, within the District of Columbia, in which the military installation was located, was from the Department of Defense Appropriations Act, 2006, and was repeated in provisions of subsequent appropriations acts which are not set out in the Code. Similar provisions were contained in the following prior appropriations acts: Pub. L. 108–287, title VIII, § 8087, Aug. 5, 2004, 118 Stat. 991. Pub. L. 108–87, title VIII, § 8088, Sept. 30, 2003, 117 Stat. 1093. Pub. L. 107–248, title VIII, § 8092, Oct. 23, 2002, 116 Stat. 1558. Pub. L. 107–117, div. A, title VIII, § 8108, Jan. 10, 2002, 115 Stat. 2271. Pub. L. 106–259, title VIII, § 8108, Aug. 9, 2000, 114 Stat. 698. Pub. L. 106–79, title VIII, § 8132, Oct. 25, 1999, 113 Stat. 1266. Pub. L. 104–61, title VIII, § 8055, Dec. 1, 1995, 109 Stat. 662. Pub. L. 103–335, title VIII, § 8058A, Sept. 30, 1994, 108 Stat. 2632. Pub. L. 103–139, title VIII, § 8099A, Nov. 11, 1993, 107 Stat. 1462. Pub. L. 102–396, title IX, § 9114, Oct. 6, 1992, 106 Stat. 1929. Pub. L. 102–172, title VIII, § 8111A, Nov. 26, 1991, 105 Stat. 1200. Pub. L. 101–511, title VIII, § 8068, Nov. 5, 1990, 104 Stat. 1889. Pub. L. 101–165, title IX, § 9093, Nov. 21, 1989, 103 Stat. 1149. Pub. L. 100–463, title VIII, § 8122, Oct. 1, 1988, 102 Stat. 2270–40. Pub. L. 100–202, § 101(b) [title VIII, § 8081], Dec. 22, 1987, 101 Stat. 1329–43, 1329–76. Pub. L. 99–500, § 101(c) [title IX, § 9090], Oct. 18, 1986, 100 Stat. 1783–82, 1783–116, and Pub. L. 99–591, § 101(c) [title IX, § 9090], Oct. 30, 1986, 100 Stat. 3341–82, 3341–116. Pub. L. 99–190, § 101(b) [title VIII, § 8099], Dec. 19, 1985, 99 Stat. 1185, 1219.