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Title 10, Armed ForcesRelease 119-110

§2685 Adjustment of or Surcharge on Selling Prices in Commissary Stores to Provide Funds for Construction and Improvement of Commissary Store Facilities

Title 10 › Subtitle A — General Military Law › PART IV — SERVICE, SUPPLY, AND PROPERTY › CHAPTER 159 — REAL PROPERTY; RELATED PERSONAL PROPERTY; AND LEASE OF NON-EXCESS PROPERTY › § 2685

Last updated Sep 22, 2026|Official source

Summary

The Secretary of Defense may add a price adjustment or surcharge to items sold in commissary stores. Money from those extra charges can only be used to buy, build, expand, convert, repair, maintain, or equip commissary stores and central product processing facilities, and to pay for related environmental checks, surveys, planning, design, administration, and overhead. "Physical infrastructure" means real property, utilities, and equipment, including computer gear. With approval from the Director of the Office of Management and Budget, the Secretary can commit expected future surcharge money ahead of time, even across fiscal years. The Secretary may also let a nonappropriated fund instrumentality enter into a contract to build a shopping mall or similar shared facility that includes a commissary, and use surcharge funds to pay for the commissary portion. Proceeds from sales of recyclables, surplus property, license fees, royalties, and business-related management fees can also be used for these purposes.

Full Legal Text

Title 10, §2685

Armed Forces, Source: USLM XML via OLRC

(a)Adjustment or Surcharge Authorized.—
Notwithstanding any other provision of law, the Secretary of Defense may, for the purposes of this section, provide for an adjustment of, or surcharge on, sales prices of goods and services sold in commissary store facilities.
(b)Use for Construction, Repair, Improvement, and Maintenance.—
(1)The Secretary of Defense may use the proceeds from the adjustments or surcharges authorized by subsection (a) only—
(A)to acquire (including acquisition by lease), construct, convert, expand, improve, repair, maintain, and equip the physical infrastructure of commissary stores and central product processing facilities of the defense commissary system; and
(B)to cover environmental evaluation and construction costs related to activities described in paragraph (1), including costs for surveys, administration, overhead, planning, and design.
(2)In paragraph (1), the term “physical infrastructure” includes real property, utilities, and equipment (installed and free standing and including computer equipment), necessary to provide a complete and usable commissary store or central product processing facility.
(c)Advance Obligation.—
The Secretary of Defense, with the approval of the Director of the Office of Management and Budget, may obligate anticipated proceeds from the adjustments or surcharges authorized by subsection (a) for any use specified in subsection (b) or (d), without regard to fiscal year limitations, if the Secretary determines that such obligation is necessary to carry out any use of such adjustments or surcharges specified in subsection (b) or (d).
(d)Cooperation With Nonappropriated Fund Instrumentalities.—
(1)The Secretary of Defense may authorize a nonappropriated fund instrumentality of the United States to enter into a contract for construction of a shopping mall or similar facility for a commissary store and one or more nonappropriated fund instrumentality activities. The Secretary may use the proceeds of adjustments or surcharges authorized by subsection (a) to reimburse the nonappropriated fund instrumentality for the portion of the cost of the contract that is attributable to construction of the commissary store or to pay the contractor directly for that portion of such cost.
(2)In paragraph (1), the term “construction”, with respect to a facility, includes acquisition, conversion, expansion, installation, or other improvement of the facility.
(e)Other Sources of Funds for Construction and Improvements.—
Revenues received by the Secretary of Defense from the following sources or activities of commissary store facilities shall be available for the purposes set forth in subsections (b), (c), and (d):
(1)Sale of recyclable materials.
(2)Sale of excess and surplus property.
(3)License fees.
(4)Royalties.
(5)Fees paid by sources of products in order to obtain favorable display of the products for resale, known as business related management fees.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2000—Subsec. (a). Pub. L. 106–398, § 1 [[div. A], title III, § 333(b)(1)], substituted “Secretary of Defense” for “Secretary of a military department, under

Regulations

established by him and approved by the Secretary of Defense,”. Subsec. (b). Pub. L. 106–398, § 1 [[div. A], title III, § 333(a)], amended heading and text of subsec. (b) generally. Prior to amendment, text read as follows: “The Secretary of a military department, under

Regulations

established by him and approved by the Secretary of Defense, may use the proceeds from the adjustments or surcharges authorized by subsection (a) to acquire, construct, convert, expand, install, or otherwise improve commissary store facilities at defense installations and for related environmental evaluation and

Construction

costs, including surveys, administration, overhead, planning, and design.” Subsec. (c). Pub. L. 106–398, § 1 [[div. A], title III, § 333(b)(2)], substituted “Secretary of Defense, with the approval of” for “Secretary of a military department, with the approval of the Secretary of Defense and” and “Secretary determines” for “Secretary of the military department determines”. Subsec. (d)(1). Pub. L. 106–398, § 1 [[div. A], title III, § 333(b)(3)], substituted “Secretary of Defense” for “Secretary of a military department”. 1997—Subsecs. (a) to (d). Pub. L. 105–85, § 374(b), inserted subsec. headings. Subsec. (e). Pub. L. 105–85, § 374(a), added subsec. (e). 1994—Subsec. (c). Pub. L. 103–337, § 2851(b), inserted “or (d)” after “subsection (b)” in two places. Subsec. (d). Pub. L. 103–337, § 2851(a), added subsec. (d). 1982—Subsec. (c). Pub. L. 97–321 added subsec. (c). 1977—Subsec. (b). Pub. L. 95–82 struck out “within the United States” after “defense installations”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2000 Amendment Pub. L. 106–398, § 1 [[div. A], title III, § 333(c)], Oct. 30, 2000, 114 Stat. 1654, 1654A–60, provided that: “The amendment made by subsection (a) [amending this section] shall take effect on October 1, 2001.”

Reference

Citations & Metadata

Citation

10 U.S.C. § 2685

Title 10, Armed Forces

Last Updated

Sep 22, 2026

Release point: 119-110