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I run into civilians all the time who think, as a military retiree, I can buy a suit at the Base Exchange for $20.00, or can buy a carton of cigarettes at the Commissary for $2.00 per carton.

While the Commissary and Base Exchange can save you money, they certainly do not produce the gigantic savings that many civilians think they do. You can't buy a $2,000 stereo for $500. You won't find T-Bone Steak for $.49 per pound.

Commissaries.

Defense Commissary Agency (DeCA) Commissaries are appropriated fund activities. By that, I mean they are allowed to use taxpayer dollars (if approved by Congress) for their operation and construction. The agency operates more than 230 stores through four regional headquarters, three in the United States and one in Europe. Commissaries operate under guidelines and procedures incorporated into Federal Law. Commissaries must sell their items for the same price they purchase them. A five percent surcharge is added to the purchase to help pay for normal operating costs and facility maintenance and construction.

Although most of the commissary "pay-roll" (cashiers, stockers, etc.) comes out of the surcharge, baggers are independent contractors who work solely for tips. It's customary to tip baggers between $1.00 and $5.00, depending upon the total amount of your purchase.

DeCA claims to provide an overall savings of 29.7 percent. Your particular mileage may vary, depending upon whether or not your local civilian food store charges a sales tax for food items, and what type of grocery stores you have available in your local area. In preparation for this article, I visited a local "Super Saver" Grocery Store, and bought $103.57 worth of groceries. I then made a list of the items I bought and traveled to Offutt Air Force Base. At the commissary there, I priced the exact same items. According to DeCA, my commissary bill should have been around $70.00. Had I actually purchased the items, my bill would have been $85.52. Tack on the 5 percent surcharge, and it would have been $89.79. I won't count the bagger's tip, as "Super Saver" is a "bag-it-yourself," type store. My total discount would have been 13.3 percent.

While DeCA is required by law to resell items at cost (plus surcharge), it is allowed to "cheat." A few years ago, without the permission of Congress, the Commander of DeCA unilaterally decided to increase the price of cigarettes sold in the commissaries. To get around the law, DeCa now buys all of it's tobacco products from military exchanges, which sells tobacco items at prices comparable to the local civilian economy prices. Many of you may not smoke, so may not care, and some of you may be saying, "Good. They should raise the price of cigarettes to discourage smoking." However, in my opinion, this has established a dangerous precedent. If DeCA is allowed to artificially inflate prices by choosing the source it purchases from (instead of purchasing from the lowest-priced source), then there is nothing to stop them from deciding next year that sugar or red meat is bad, and take similar measures with those type of items.

Military Exchanges. Unlike commissaries, military exchanges do mark-up items. In fact, in Fiscal Year 1998, AAFES made $342.9 million in "profit." This "profit" is used for local and service-wide Moral, Welfare, and Recreation (MWR) projects. There are three separate exchange systems: The Army and Air Force Exchange Service (AAFES), The Navy Exchange Service (NEXCOM), and the Marine Corps Exchange.

There has been some talk about combining the three separate systems into one Exchange Service, but -- so far -- that's all it's been. Just talk.

It is not difficult to find either the exact item, or a like-item in civilian stores, priced lower than one can purchase them in a military exchange. For example: The online AAFES exchange catalog lists a Samsung SV-C142P VCR for $159.00. I bought the exact same item at a local K-Mart one month ago for $129.00. When shopping for a new computer a few months ago, I traveled to the Offutt AFB exchange. The exchange was selling "last year's" computers at "this year's" prices. I definitely did not find any bargains on computers.

A common complaint about the exchanges comes from junior enlisted members and their families. While the exchanges may offer discounts on "name-brand" items, their selection of "non-branded" items leaves much to be desired. Many low-ranking enlisted folks can't afford Calvin Klein, no matter how high the savings. They would rather buy a "no-brand" name pair of jeans from Wall Mart at 1/2 the price. Indeed, a quick look through the woman's apparel section on the online store, shows nothing but famous name-brand clothing items. While this may be okay for senior NCOs/officers and their families, these type of items are not affordable by lower-ranking enlisted personnel.

AAFES is also responsible for the operation of on base service stations and Class VI (liqueur) stores, as well as base theaters and food franchises (such as Burger King). Don't expect any super-savings in this area. To establish gas and liqueur prices, AAFES periodically surveys the local area, and attempts to set their prices just slightly below the off-base average. Because of this system, it's not difficult to find off-base service stations to buy gas cheaper, and finding beer and liqueur at lower prices is no trouble at all. Your Whopper hamburger will cost you the exact same price it does downtown.

The exchanges and commissaries are important benefits, and provide millions of dollars each year toward the service's MWR programs. However, monetary savings from shopping at these facilities are modest, at best.

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