Ord Community Commissary, Seaside, California (Photo: Jennifer Leggett)
The DOD is weighing whether private companies could take control of commissary operations, a change that may alter a long-standing benefit for military families, retirees, and Disabled Veterans. According to Military Times, the Defense Commissary Agency has issued a Request for Information asking the grocery industry to weigh in on the feasibility of running 178 commissaries across the continental United States, Alaska, Hawaii, and Puerto Rico.
The RFI, posted Friday on the federal contracting site sam.gov, is an exploratory step. It does not yet solicit formal bids but is intended to determine if commercial grocers or investment firms are interested and capable of assuming the mission.
“The purpose of this RFI is to determine whether commercial grocery operators and investment firms are both interested in and capable of assuming commissary operations, with no government subsidy or with a materially reduced subsidy, while preserving the critical military benefit of a 23.7% average savings for authorized patrons,” officials explained in the announcement.
Commissaries currently depend on more than $1.4 billion in taxpayer funding each year to cover salaries and operational costs. That funding ensures eligible shoppers, including active-duty Military Families, retirees, and Disabled Veterans, receive an average discount of 23.7 percent compared with local grocery stores, a rate set by law.
This traces back to an April 7 DOD directive requiring agencies to consider privatization for functions not deemed inherently governmental. Retail operations and recreational services were specifically identified in that guidance.
The idea of privatizing commissaries has long been met with resistance from Military Family advocates. They question whether private businesses could maintain the same level of savings without losing money, and whether the quality and reliability of the benefit would be preserved for those who rely on it most, including retired and Disabled Veterans.
The RFI presents another possibility: allowing commercial grocery chains to provide the mandated discount to military patrons at their existing stores. That could reduce or eliminate the need to maintain commissary locations.
A major challenge involves the condition of commissary facilities. The Defense Department estimates a $2.4 billion backlog in maintenance and upgrades. The RFI asks whether industry could cover those needs through an investment of about $500 million annually for five years, along with ongoing maintenance expenses of roughly $250 million a year.
If privatization moves forward, commissary buildings and infrastructure could be handed over rent-free to private operators in their current state. Companies are expected to plan for operations without subsidies, though the RFI allows for estimates if some level of government support would be required.
The request also makes clear that commissaries must remain operational under any security conditions, as they were considered mission essential during the COVID-19 pandemic. Stores would remain located on military installations, and base access requirements would stay in place.
Industry responses are due by October 21.
Currently, there are over 20 commissaries throughout California.
Author: Rikki Almanza
Rikki is a Web Content Coordinator for the American Legion, Department of California. With a deep-rooted family connection to the military, Rikki is committed to using her skills and knowledge to provide valuable assistance and resources to servicemembers and veterans.
