It based its decision to seek privatization on an April memo from Defense Secretary Pete Hegseth that called on Defense Department components to review organizational structure to increase efficiency and optimize the civilian workforce. It also called for retail and recreation functions to be prioritized for privatization — something that has long been debated for commissaries.
The Military Officers Association of America said in May that privatization of commissaries would “risk a benefit that allows young military families to make ends meet and allows retirees, disabled veterans and survivors to keep up with rising costs.”
Instead, the association called for the Pentagon to strengthen the Defense Commissary Agency, which in some remote locations may be the only grocery store for miles.
Friday’s request focuses on commissaries in the continental United States, Alaska, Hawaii and Puerto Rico.
It seeks to understand if commercial grocers would be able to meet the Defense Department policy that commissary shoppers save 23.7% as a benefit to military service with little to no help from the federal government.
The commercial partner might also have to be willing to address an existing maintenance backlog of U.S. commissary facilities. This would take a one-time investment of $2.4 billion, or $500 million annually for five years, according to the information request. The annual maintenance costs for the stores is about $250 million a year.
If the Pentagon decided to privatize commissaries, existing stores might be offered to the vendor rent free and in an as-is condition, according to the request.
Proposals are due Oct. 21.
The Defense Commissary Agency said it operates 235 stores in 13 countries and two U.S. territories with shopping privileges available to roughly 8.35 million households. Of those, about 1.8 million shop at least monthly.
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