Army and Air Force Exchange Service The Army & Air Force Exchange Service ( Exchange ) is an agency of the United States Department of Defense . Its dual missions are to provide quality merchandise and services of necessity and convenience to authorized customers at uniform low prices , and to generate reasonable earnings to supplement appropriated funds for the support of United States Army and Air Force Morale , Welfare and Recreation ( MWR ) programs . The Exchange is headquartered in Dallas , Texas and its Director / Chief Executive Officer is Tom Shull . The Navy operates the equivalent Navy Exchange ( NEX ) , while the Marine Corps operates the Marine Corps Exchange ( MCX ) and the United States Coast Guard operates the Coast Guard Exchange ( CGX ) . Mission . The Exchange is charged with generating reasonable earnings , but returns roughly two - thirds of its net earnings to its customer base through their respective MWR programs ( ) . The only congressionally appropriated money spent in the Exchange comes in the form of utilities and transportation of merchandise to overseas exchanges and for salaries of U . S . military personnel assigned to the Exchange . A non - appropriated fund instrumentality ( NAFI ) of the Department of Defense , the Exchange funds 98 % of its operating budget , including civilian employee salaries , inventory investments , utilities and capital investments for equipment , vehicles and facilities , from the sale of merchandise , food and services to customers . Roughly 70 % of the Exchange earnings are paid to MWR programs . In the last ten years , more than $ 2 . 24 billion has been contributed by the Exchange to the Army and Air Force to spend on quality of life improvements for Soldiers , Airmen and their families — Youth Services , Armed Forces Recreation Centers , arts and crafts , aquatic centers , post functions and golf courses . In Fiscal Year 2011 , the Exchange earned more than $ 277 million from direct sales ( retail , food , and vending / services ) , finance revenue , and concessions on revenues of $ 10 . 3 billion . MWR and services programs received $ 203 . 3 million , which was distributed as follows : The per capita dividend in 2011 was $ 212 for every Soldier and Airman . In addition to funding MWR programs , the Exchange earnings are used to build new stores or renovate existing facilities without expense to the federal government . Funds to construct these new or replacement facilities come entirely from sales of merchandise and services . In 2009 , the new exchange built at Ramstein Air Base in Kaiserslautern , Germany became the largest exchange facility in the world . On its website , the Exchange states its business aim is " to serve Soldiers , Airmen and their families around the world . " Under contract with AAFES . Gamestop Controversy . Censorship . On May 9 , 2001 , The Stars and Stripes reported that the Exchange would not stock " American Terrorist : Timothy McVeigh & The Oklahoma City Bombing " on its shelves , nor would they allow it to be special ordered by customers at their stores . Although the Exchange has refused to sell other published materials , most of them were covered by the Honor and Decency Act , a Department of Defense policy banning certain pornographic materials . In September , 2010 , various branches of the military , including the Exchange , banned the sale of the new Medal of Honor game on base ( both in the Exchange Main Store and in GameStop locations on base ) . The reason behind the ban was that in the multiplayer of the game a player could control the Taliban against American forces . Due to overwhelming pressure from different sources and the threat of other bans ( including the UK Defense who was threatening to ban the game throughout all of England ) , EA ( the game ' s publisher ) removed the term Taliban from the game ( replacing it with " Opposing Forces " which is what all other military style shooters call the enemy ) . To this day , however , it is not possible to find this game on any Exchange base , either in the main store or the GameStop locations . Pricing discrepancies . Although the Exchange facilities do not charge taxes on products ( which includes excise taxes ) , the prices for alcohol and tobacco products are only marginally cheaper than retail stores that charge taxes . The lowest price for which tobacco and alcohol can be sold is limited by DoD directive . For tobacco products sold in CONUS , the price floor is 5 % less than the most competitive local price in the local community ; for OCONUS , tobacco prices fall within the range of the CONUS market . Alcohol sold in CONUS will be sold not less than 10 % below the best price in Alcohol Beverage Control states , and not less than 5 % below the competitive rate at non Alcohol Beverage Control states . According to the Exchange , these limits are set by the Department of Defense , per DoD Instruction 1330 . 9 . According to the DoD , the purpose of this is to comply with the deglamorization of alcohol and tobacco policy . Gas sales . The Hayden Cartwright Act does require the Exchange to pay these taxes . Fuel sold to military personnel on military installations is often sold at nearly the same rate as that found at nearby civilian locations , with it becoming increasingly common to find stations in surrounding communities selling fuel for several cents less per gallon . According to the Exchange , gasoline prices are only marginally cheaper because the individual stores are required to be " competitive " with off - post locales . In most locations , the exchanges are required to set prices to the exact rate of the lowest civilian rate within a certain number of miles of the installation ' s boundary , generally within five miles . Prices will be surveyed at each rate and the lowest price for each rate will be the price set at all fueling stations within that installation , or within that region of the installation in the case of larger installations where identical prices may not be practical . Prices may be surveyed at a rate determined appropriate for the local installation , up to multiple times per day , but not less frequently than weekly . Prices may amount to a loss for the exchange ; the Exchange is the only military exchange service permitted to lose money on fuel sales .