3 COMFTROUER GENERAL OF -I- l c WASHINGTON. D.C. B-169268 7 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 ~-169268 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 P cl + Y' The Honorable Patsy T. Mink House of Representatives -2- 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 Exchange 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 cl .- : . ‘-f. .: Authorization for Release: _-..I ._ _ “_ . . . ,. -- The Congresswoman is no longer in office. . -_ _. . -I -. Division Director, Associate Director, Assistant Director, information Office (3) Distribution Section (2) . / Research Assistant Office of Congressional Relations
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)