Supplier Diversity Policy
The Exchange purchasing personnel will promote procurement from diverse supplierts to the maximum extent that such action is consistent with the The Exchange mission and applicable purchasing regulations. The Supplier Diversity Program applies to purchasing accomplished in the 50 United States, Puerto Rico and Guam.
The Exchange Facts
In 2009, The Exchange procurement from diverse suppliers was as follows:
- Small Businesses: $4.6 billion
- Women Owned Suppliers: $65 million
- Minority Suppliers: $173 million
- Vet / Disabled Vet Owned Suppliers: $18 million
The Exchange operates more than 3,100 retail and service facilities in more than in more than 30 countries, five U.S. territories and 50 states. These facilities are operated in a similar manner to commercial retail enterprises with limitations established by Congress and the Department of Defense. These facilities include:
- Retail Stores
- Food facilities
- Liquor stores
- Video rental
- Movie theaters
- Catalog services
- Military Clothing
- Barber & Beauty shops
- Laundry & Dry cleaners
- Gas stations & Auto repair
- Vending Centers
- Internet Shopping
The House Armed Services Committee prescribes what The Exchange can and cannot sell.
Although The Exchange is a federal organization, it is a non-appropriated fund (NAF) instrumentality that does not rely on tax dollars appropriated by Congress for major support.
The Exchange operates almost exclusively with funds generated from its business income. While The Exchange is subject directives issued by the Department of Defense, in addition to applicable Federal laws, procurement laws and regulations that apply to spending tax dollars, such as the Federal Acquisition Regulations (48 CFR 1, et. Seq.) do not generally apply to The Exchange procurement. Because The Exchange is a non-appropriated fund instrumentality of the federal government there are no set asides when it comes to procurement.
Per regulations AR 60-20 / AFR 147-14, The Exchange cannot negotiate, purchase or otherwise conduct any procurement business (including accepting in-store or other contract service) with active duty military personnel, U.S. Government employees (including NAF employees), or immediate family members of the above who reside in the same household.