Proposed Transfer of the Operations of the Hickam Air Force Base Clothing Sales Store to the Hawaii Regional Exchange

Published by the Government Accountability Office on 1971-07-15.

Below is a raw (and likely hideous) rendition of the original report. (PDF)


                             COMFTROUER      GENERAL         OF       -I-
                                                         l        c
                                           WASHINGTON.        D.C.


             III further response to your letter of May 26, 1970, and as indicated in
       our letter of December 17, 1970, we are reporting on the proposed transfer
       of the operations of the i%ckam Air Force Base A..-._..-
                                                        clothing sales store to the
       Hawaii Regional Exchange.
             The earlier interim reply advised you of our intention    to continue
     / monitoring actions taken by the Air Force on the proposed transfer and of 3c
    - our intention     to provide you, when sufficient data was available,  with a
       final report dealing with the legal questions, cost determinations,      treat-
       ment of employees, and the other matters cited in your request.
             On June 8, 1971, we were notified by Air Force Headquarters that a
       letter had been sent to the Pacific Air Forces (PAW?) informing them that,
       as a result of an objection by the Judge Advocate General (JAG), a decision
       was made not to approve the implementation of the PACAE'and Pacific Exchange
       System proposal to semrice test the Hickam Air Force Base clothing sales
       store operations by the Exchange Service.
             The JAG's objection      was twofold.
                  --The 20 percent management fee, that was to be levied
                     by the Pacific Exchange System against the clothing
                     sales store (chartered as an Air Force Stock Fund),
                     exceeded the scope of the stoc~~%%?ih&h~
                     violated Air Force regulations, which limit charges
                     made against stock funds.
                  --!Lhe proposal would result in the replacement of the
                     management function of a military  service with the
                     management function of a nonappropriated fund activity
                     without express Congressional permission.

                                      50 TH ANNIVERSARY                     192t- 1971@!izig

               Since the Air Force is not proceeding with the proposed     transfer, we
       plan no additional      work in this area.  Please let us know if   we can be of
       further     assistance.

                                                   Sincerely   yours,

                                         &Deputy   Comptroller  General
                                                   of the United States
cl +
Y'     The Honorable Patsy T. Mink
       House of Representatives

                                                                                                                                                                            qd6                       LFb
         OCR                        FORM     2(9-76)
                                                                                                RELEASE OF GAO          REPORT                              .
                                                                                                                                                                                            -             .

                                                                                                                                                                 DATE:                12J14178
                                                                                                   .                                                                       79-61
I-                                                                                                                                                               No.

             TITLE:      Letter report concerning   the proposed transfer
                         of the operations   of the Hickarn Air Force Base
                         clothing  sales store to the Hawaii Regional
                PUSLICATION NUMBER:                         B-NUMBER:     B-l 69268                                                                                       DATE:                 7/15/71
           -‘_                          .                                                                                              -.     .                  :                          .         :
               ADDRESSEE:                                        The Honorable  Patsy T.                  Nink
                                                                 House of Representatives

     --------------------------------                                                                                                                                       ----C-m

               The abave                               0          report        q          letter report has been released as follows:                                                           ‘.

                                                                                                                           :--                                                    .*- .- .
                                                                                                                                                                                      ‘_                                    _

     El                         x           To anyone             requesting          a copy.                                  .
                                                                                                                                                           . ...“.’        .-        I-.”
                                                                                                                                                                            -. * ‘..-.f- .‘;
                                                                                                                                                                                                       ._ -

                                            To the individuals                 listed below only       (This is not a blank&       ;elease).                                               “- .               L



                                                                                                                                   .                                                         ‘-f.                           .:
              Authorization                                for Release:                                                                                                                    _-..I ._ _ “_
                                                                                                                                                                                                . .      .        ,.        --
                                                            The Congresswoman                   is no longer     in office.                                                                                                .
                                                                                                   -_                                       _. .                     -I                                                    -.

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