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Air Force Services is the primary choice of field commanders for combat support and to provide Air Force people with quality of life programs and services. Perhaps no accomplishment speaks more to the importance of what the Services team contributes to Air Force mission effectiveness than our involvement in recent worldwide deployments. We were there doing what only we could do: Feed troops, set up and manage tent cities, operate field exchanges, attend to fallen comrades, provide fitness activities and off-duty sports programs , and channel thousands of items donated by American citizens to front line troops.
Back in the states, we are on the job every day meeting community needs. Child care and youth programs help parents cope with daily work situations as well as being there during deployments. Librarians keep local programs humming along while providing special support to deployed units. We expand food and lodging programs when reserve forces come in to replace deployed forces. In short, we meet the community support needs of Air Force people everyday but are ready to rally special support when needed for the deployment mission.
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Services activities are funded with a combination of taxpayer dollars-- appropriated funds (APFs) and self-generated, nonappropriated funds (NAFs) or troop dollars. The non-MWR mission essential programs, like food service, troop support and mortuary, are funded entirely by Congressional appropriations through the Air Force budget with APFs. Lodging, another mission essential program, is funded through a combination of APF and NAF dollars. To distinguish where APFs can be used in MWR programs, Congress has directed the grouping of the activities in three categories.
The categories are grouped according to their mission essentiality and ability to generate revenue. MWR activities that more directly support the warfighting mission are grouped in Category A. These activities are authorized 100% APF funding. Those activities that are essential to community and family support are grouped in Category B. These activities are authorized a significant level of APFs (defined as at least 50%), but have the capability to generate limited funds for their own support. Category C, while no less important to the Air Force quality of life, contains activities that have significant revenue-generating capability. These activities are authorized limited APF support. In general, they must generate enough income to cover their own operational costs.
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The Army and Air Force Exchange Service (AAFES) is chartered by Congress to sell products and services to Army and Air Force members worldwide and to generate profits to operate MWR programs. AAFES provides approximately 25% overall savings compared to off base, and generates profits that are split between AAFES (for construction and facility renovations) and the Services for MWR programs. Bases received this dividend in the form of a lump sum payment based on their AAFES store annual sales, and at some locations, in the form of new facilities from the central NAF construction program. AAFES has the primary right to provide resale operations on Army and Air Force bases. Services activities may offer resale items when these operations are incidental to the program being provided (golf balls at golf courses) or does not compete with products and services provided by AAFES.
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NAFs are monies generated through the sale of goods and services to Air Force members and their families. They are returned to the Air Force community to support programs and activities not authorized APFs. Air Force and DoD policy are very specific on where NAFs may be used. They are intended to support the community as a whole rather than targeted to specific individuals or to short-term purposes.
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With the exception of Child Development Center fees which are set by DoD, the Air Force policy is that goods and services should be priced to
(1) deliver value and encourage customer participation, and
(2) cover operating costs. Charging "what the market will bear" is discouraged.
Bases should set prices at the lowest level that will generate enough revenue to sustain operations over the long term. A benchmark in congressional guidance is that prices should be set no less than 25% below that off-base--consistent with commissary and exchange savings. This policy discourages the "nickel and dime" charges (such as a fee for towel service at fitness centers) that are considered a nuisance by the customer.
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Generally, all Services programs (except dining facilities) may be used by individuals who contribute to the Air Force mission. In addition to active duty personnel and their families, the other major users are Guard and Reserve personnel, Air Force civilian employees, and all categories of retired personnel. Active duty personnel and their families have first priority when bases must limit use because of space or other factors. For the most part, participation is rarely limited in any activity. Common exceptions include child care when there is a lack of space, golf tee times on the weekend, and in fitness centers during peak periods.
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Clubs support the institutional value and tradition of the Air Force and membership in them is encouraged. Air Force policy is that separate officer and enlisted clubs should be maintained wherever possible. When separate clubs are not possible, they may be collocated or consolidated. Care must be exercised to maintain good order and discipline where they are collocated or consolidated.
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Funding 
