Can a private organization supporting a museum, operate a resale activity?
Yes. There are two policies involved. First, there is the “resale primacy” policy that is prescribed by the joint exchange regulation. Second is the policy that allows a private organization to provide resale in support of an official activity. According to DoDI 1000.15, paragraph 6.4, a private organization can supplement DoD activities when specifically approved. If these foundations can exist as private organizations, then the local commander needs to provide the approval for their continued operation on the installation as a private organization that offers continuous resale in the museum gift shops. As for the resale primacy, these gift shops are servicing mostly visitors to the installation and should be charging local sales tax. This fits their designation as a private organization since they do not receive any of the sovereign rights provided to NAFI’s.
