ALCGPSC 085/18 - USE OF THE COAST GUARD EXCHANGE SYSTEM FOR CONTINGENCY RESPONSE AND NATURAL DISASTER RESPONSE AND RECOVERY OPERATIONS

24 JUL 18

ALCGPSC  085/18
SUBJ:  USE OF THE COAST GUARD EXCHANGE SYSTEM FOR CONTINGENCY
RESPONSE AND NATURAL DISASTER RESPONSE AND RECOVERY OPERATIONS
A.  Coast Guard Financial Resource Management Manual, COMDTINST M7100.4 (series)
B.  Coast Guard Non-Appropriated Fund (NAF) Economy Act, 14 U.S.C. §152
1.  The Coast Guard Exchange System (CGX) was an integral partner and major resource
provider for Coast Guard response and recovery efforts during the 2017 Hurricane Season. In the
immediate response to the devastation, CGX supported the emergent needs of Operational
Commanders and Service Centers by sourcing and delivering critically needed emergency relief
supplies, food, water and other commodities to impacted units, first responders and those in
need. 
2.  Community Service Command (CSC) personnel liased with the Logistics Section Chief(s) of
Incident Management Teams to offer strategic sourcing of critically needed relief and emergency
supplies to the Coast Guard. This was the first use, on a global scale, of CGX to support
contingency and national disaster response operations and demonstrated the flexibility and
capabilities of CGX’s vast distribution and transportation networks.  Working closely with the
SILC Emergency Response Branch, the CSC team sourced and delivered nearly 300 pallets of
relief supplies. Utilizing the CGX as a “one stop shop” greatly reduced the financial management
and procurement services burden on already task saturated IMT’s, plus achieved savings to the
Coast Guard not normally achievable through commercial procurement methods. CSC directly
impacted the ability of the Coast Guard to resume normal operations for Search and Rescue,
Homeland Security and recovery of the maritime transportation system. 
3.  In accordance with paragraph 5.6.10.21 of reference (a), Coast Guard units are authorized to
use CGX as a source of supply for purchases with unit appropriated funds. CGX locations should
be considered as a source of supply for all purchases made with appropriated funds.  CGX is
working to be your primary source of routinely needed commodities as our robust retail network
and fulfillment system enables CGX to rapidly fulfill orders to meet mission needs. We have the
capability to meet most strategic sourcing needs and provide expedited delivery almost anywhere
in the world and the profits generated at CGX provide non-appropriated funding for MWR
activities wherever our Coast Guard family goes and provides for MWR programs and activities
directly supporting the resiliency of the Coast Guard family.  
4. In accordance with reference (b), utilizing the CGX System expedites the sourcing (with an
established MOA) and significantly reduces a unit’s financial management and procurement
requirements.   A pre-drafted MOA which has been vetted through the appropriate legal
approvals is available for review.  Areas, Districts, Sectors, Bases and Service Centers who wish
to pre-establish a signed MOA for contingency and natural disaster response (or other) purposes
should contact Mr. Scott Peabody, who may be reached at 757-842-4712 or email:
scott.peabody@cgexchange.org.  If there are emerging needs, you can also contact the CSC
Customer Service line at 800-572-0230.  
5.  Released by:  CAPT T. G. Prestidge, Commander, Personnel Service Center.  The Service
Center for our most important resource – Our People.
6.  Internet release authorized.