An evaluation of direct cash compensation in lieu of military commissary privileges Martin Alcott

Due to a shifting national focus aimed at reducing Department of Defense force levels and weapons procurement, no program is safe from budget cutting scrutiny. The reduction has affected all areas of Defense and has become known as downsizing. The privatization methods introduced during the 1980's should continue to serve the military by better utilizing future shrinking Defense budgets. The purpose of this thesis is to evaluate the privatization alternative of direct cash payments in lieu of commissary privileges. A cost comparison was conducted in order to determine the feasibility of direct cash payments. It compares active duty estimated commissary savings to commissary appropriated fund support. The data presented supports the conclusion that direct cash payments are more efficient than commissary privileges, eliminating the Continental United States portion of government subsidies, over $130 million could be saved annually.