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Title 10, Armed ForcesRelease 119-110

§2424 Procurement of Supplies and Services From Exchange Stores Outside the United States

Title 10 › Subtitle A — General Military Law › PART IV — SERVICE, SUPPLY, AND PROPERTY › CHAPTER 143 — PRODUCTION BY MILITARY AGENCIES › § 2424

Last updated Sep 22, 2026|Official source

Summary

The Secretary of Defense can let a part of the Department of Defense make a non-competitive contract with a military exchange store outside the United States to buy supplies or services for U.S. forces stationed abroad. Each contract must be no more than $100,000, use items already in that exchange’s on-hand stock when the contract is made, and only cover services the exchange normally offers. The $100,000 cap and the on-hand-stock rule do not apply to contracts for soft drinks made in the United States, and the Secretary of Defense must write rules to define what counts as a soft drink and how to show it was made in the United States.

Full Legal Text

Title 10, §2424

Armed Forces, Source: USLM XML via OLRC

(a)Authority.—
The Secretary of Defense may authorize an element of the Department of Defense to enter into a contract (through the use of procedures other than competitive procedures) with an exchange store operated under the jurisdiction of the Secretary of a military department outside the United States to procure supplies or services for use by the armed forces outside the United States.
(b)Limitations.—
(1)A contract may not be entered into under subsection (a) in an amount in excess of $100,000.
(2)Supplies provided under a contract entered into under subsection (a) shall be provided from the stocks of the exchange store on hand as of the date the contract is entered into with that exchange store.
(3)A contract entered into with an exchange store under subsection (a) may not provide for the procurement of services not regularly provided by that exchange store.
(c)Exception.—
Paragraphs (1) and (2) of subsection (b) do not apply to contracts for the procurement of soft drinks that are manufactured in the United States. The Secretary of Defense shall prescribe in regulations the standards and procedures for determining whether a particular beverage is a soft drink and whether the beverage was manufactured in the United States.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2006—Subsec. (b). Pub. L. 109–163 substituted “$100,000” for “$50,000”. 1996—Subsec. (c). Pub. L. 104–106 inserted heading and substituted “particular beverage” for “particular drink” and “beverage was” for “drink was”. 1994—Subsec. (c). Pub. L. 103–355 added subsec. (c).

Statutory Notes and Related Subsidiaries

Effective Date

of 1996 AmendmentFor

Effective Date

and applicability of amendment by Pub. L. 104–106, see section 4401 of Pub. L. 104–106, set out as a note under section 2220 of this title. Operation of Stars and Stripes Bookstores Overseas by Military Exchanges Pub. L. 103–160, div. A, title III, § 353, Nov. 30, 1993, 107 Stat. 1627, provided that: “(a) Requirement.—The Secretary of Defense shall provide for the commencement, not later than October 1, 1994, of the operation of Stars and Stripes bookstores outside of the United States by the military exchanges. “(b)

Regulations

.—The Secretary of Defense shall prescribe

Regulations

to carry out subsection (a).”

Reference

Citations & Metadata

Citation

10 U.S.C. § 2424

Title 10, Armed Forces

Last Updated

Sep 22, 2026

Release point: 119-110