The Defense Department is taking a significant step that could change the way military families shop for groceries.

On Friday, the Defense Commissary Agency released an official Request for Information, or RFI, on sam.gov, the federal government’s contracting site.

This move seeks input from the commercial grocery industry about whether private operators could take over running 178 military commissaries across the continental United States, Alaska, Hawaii, and Puerto Rico.

While this RFI is not an official call for proposals, it is an essential early step before any formal Request for Proposals might be issued.

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The Pentagon is reaching out to see if private grocery companies or investment firms are interested in, and capable of, assuming the operations of commissaries—either with no government subsidy or with a substantially reduced one.

This process must, crucially, maintain the “critical military benefit of a 23.7% average savings for authorized patrons,” according to Friday’s announcement by commissary officials.

Currently, these commissary stores receive more than $1.4 billion in taxpayer dollars each year.

These funds help cover operational costs, such as salaries and infrastructure needs, so that military shoppers can enjoy substantial savings at checkout.

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The idea behind the new RFI is rooted in an April 7 Defense Department memorandum, which directed the department to prioritize for privatization all functions that are not “inherently governmental.”

That directive specifically called out retail sales and recreation as possible candidates for such change.

However, this idea is not without controversy. Over the years, military advocacy groups have often voiced strong opposition to privatizing commissaries.

They are particularly skeptical about whether any private company could run the system efficiently, remain profitable, and still deliver the deep discount that military families rely on.

As it stands, the law requires commissaries to offer an average savings of 23.7% compared to local commercial grocery stores, and many worry that this might be at risk if the system is handed over to private interests.

At the same time, the RFI lays out another possible option: instead of keeping all—or even some—of the existing commissaries open, private grocery companies might be able to offer that same 23.7% discount to eligible military shoppers at their own, already established grocery stores.

This would mean that military families could receive their commissary benefit at local grocery chains, even if a physical commissary is not nearby.

Nevertheless, there is a substantial financial challenge attached to any privatization effort.

The Defense Department’s RFI includes a reference to an existing unfunded facilities maintenance backlog for commissaries, which would require an estimated $2.4 billion one-time infrastructure investment.

This would break down to about $500 million per year for up to five years. On top of that, there are annual maintenance costs of roughly $250 million.

The Pentagon is asking the private sector if it could absorb these costs and still deliver the necessary savings to military families.

Another aspect of the proposal is that if privatization does occur, the buildings and infrastructure could be made available to the commercial operator rent-free and in their current state. This arrangement would, of course, depend on the specific terms of the privatization agreement.

The RFI further instructs interested companies to assume there will be no government subsidy at all. If a subsidy is ultimately needed, the industry must provide a general estimate of what amount of funding might be required.

Regardless of what happens, any new operator would have to follow all existing laws and regulations, according to the RFI.

The private operator must also ensure that commissary food remains accessible, even during any defense threat level that might require continued operation or special delivery on a federal facility.

The Pentagon reinforced the importance of commissaries by designating their mission as essential during the COVID-19 pandemic.

It is also important to note that store locations will remain unchanged and requirements for military installation access will not be altered under any new arrangement.

The Defense Commissary Agency is currently gathering feedback and industry input, with a deadline for responses set for October 21.

Because this issue affects so many military families who depend on the commissary benefit for affordable groceries, the conversation about privatization is expected to continue.

Military advocates, policymakers, and families will be watching closely to see what comes next and how the Pentagon’s plans develop.

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