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10-B-3. Resale Purchases.<br />

a. When resale sales are authorized, an inventory of supplies,<br />

consistent with the forecast demand, may be carried in stock at<br />

the authorized MWR sales outlets for resale at a reasonable mark-<br />

up to authorized participants. This inventory shall be restricted<br />

to articles associated with MWR activities. Coordination with the<br />

exchange, when present, is required.<br />

b. Resale merchanoise may be purchased from the local market, NAFA,<br />

or NAVRESSO Price Agreement Bulletins. Procurement from<br />

commercial sources may be made without soliciting competitive<br />

proposals. However, every effort should be made to procure items<br />

at the least cost. Patrons shall be required to place a deposit<br />

of at least one-third of the retail price for specially ordered<br />

merchandise.<br />

C. Resale items of supply and materials for use in connection with a<br />

hobby craft activity outside the United States are not subject to<br />

balance of payments restrictions.<br />

4. Coin-Operated Vending Machines.<br />

a. At shore units with exchanges, vending machines will be operated<br />

as outlined in Comptroller Manual, Volume VII, Non-appropriated<br />

Fund Activities Manual (COMDTINST M7010.5 (series)).<br />

b. At shore units with satellite exchanges, vending machines will be<br />

operated as outlined in Comptroller Manual, Volume VII, Non-<br />

appropriated Fund Activities Manual (COMDTINST M7010.5 (series)),<br />

except those operated for civilian <strong>recreation</strong> organizations.<br />

C. At shore units without a NAF activity or satellite exchange, but<br />

with an established <strong>morale</strong> fund, vending machines will normally be<br />

operated by private concessionaires; however, they may also be<br />

owned by the unit <strong>morale</strong> fund and operated as a <strong>morale</strong> fund<br />

activity.<br />

d. If the cognizant authority determines not to establish a <strong>morale</strong><br />

fund at a unit and the unit has no NAF activities or satellite<br />

exchange, vending machines may be operated through the <strong>morale</strong> fund<br />

established at a unit in close geographical proximity. Prior to<br />

approval by the cognizant authority, agreement is to be reached on<br />

profit utilization. This method will provide for services,<br />

account for funds, generate revenue for <strong>morale</strong> fund use, and<br />

reduce the amount of paperwork.<br />

e. Regardless of whether operated as a NAFA or MWR activity, the<br />

requirements set forth in Comptroller Manual, Volume VII, Non-<br />

appropriated Fund Activities Manual (COMDTINST M7010.5 (series))<br />

regarding design, construction, installation, sanitation,<br />

operation, etc., will be met.<br />

f. Vending machines on afloat units may be operated as an MKR<br />

activity or as a CGES activity at the discretion of the<br />

commanding officer.

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