Small Firms May Find Shelf Space in Commissaries The Defense Department has agreed to look for new opportunities for small businesses to sell their products to military commissaries. The department accepted recommendations from a General Accounting Office report on the operations of the commissaries, which are supermarkets serving military personnel and retirees. GAO said federal law now permits commissaries to stock name-brand products only if they are sold on a regional or national basis through chain stores. That locks out products made by small local firms. The Defense Department agreed to work with the Small Business Administration to determine whether to recommend a change in the law. GAO estimated that products of small businesses accounted for about 7% of commissary sales during 2000 and 2001. The department also agreed to conduct a study to determine whether commissaries should create private-label brands. GAO said many small firms supply private-label products to commercial supermarket chains. The report said private-label products account for about 16% of supermarket sales. The report cited other barriers to small business suppliers: The Defense Commissary Agency buys products on national contracts. The commissariesare typically much farther apart than stores in a supermarket chain, complicating delivery requirements. The report, “Defense Commissaries: Additional Small Business Opportunities Should Be Explored” (GAO-03-160), is available at www.gao.gov.