REPORT ON FOOD SUPPLY AND DISTRIBUTION PRACTICES OF THE DEPARTMENT OF DEFENSE.

SEC. 1155. REPORT ON FOOD SUPPLY AND DISTRIBUTION PRACTICES OF THE DEPARTMENT OF DEFENSE. (a) Findings.—The Congress makes the following findings: (1) The Defense Personnel Support Center, a component of the Defense Logistics Agency, purchases more than 90 percent of the food supplied to military end-users, including dining halls, hospitals, and other facilities that feed troops. (2) Semiperishable items, such as canned goods, are stored in four depots of the Defense Logistics Agency, and perishable items, including fresh and frozen vegetables, fruits, and meats, are stored in 21 contractor-operated Defense Subsistence Offices. (3) Private sector end-users, including independent restaurants, hospitals, and hotels, obtain food through direct delivery from commercial distributors of food. (4) In a comprehensive inventory reduction plan issued in May 1990, the Secretary of Defense concluded that there was no benefit to using the food supply system of the Department of Defense in circumstances in which the food requirements of the Department could be met through the use of commercial distributors of food. (5) In a report published in June 1993, the General Accounting Office determined that the Department of Defense could achieve substantial cost savings by expanding the use of commercial distributors of food and related commercial practices in the food supply system of the Department. 107 STAT. 1763 (b) Review.—The Secretary of Defense shall conduct a review of the food supply and distribution practices of the Department of Defense. The review shall include the following: (1) An evaluation of the feasibility off and the economic advantages and disadvantages of, the expanded use of full-line commercial distributors of food to deliver food directly to military end-users. (2) An evaluation of the potential for the expanded use of such commercial distributors to reduce the need for the storage of food (except for war reserve stocks and items bound for overseas) directly by the Department of Defense and to eliminate the requirement for Defense Subsistence Offices and certain warehouse activities at military installations. (3) A comparison of the cost of using the Department of Defense food supply and distribution system to meet the Department of Defense food requirements with the cost of using commercial distributors of food to meet such requirements. (4) A consideration of any obstacles that would hinder the ability of the Department of Defense to procure commercial food items and to institute commercial practices with respect to food supply and distribution. (c) Report.—Not later than March 1, 1994, the Secretary shall submit to the congressional defense committees a report on the findings, conclusions, and recommendations of the Secretary as a result of the review conducted under subsection (b).