DeCA Privatization RFI File.docx

CUI

Government and Assigned Contractors Only Releasable by Government Only

Defense Commissary Agency Privatization of Commissary Operations Request for Information (RFI)

PURPOSE

In accordance with the Deputy Secretary of War memorandum of April 7, 2025, “Workforce Acceleration & Recapitalization Initiative Organizational Review,” which directs all functions that are not inherently governmental (e.g., retail sales and recreation) should be prioritized for privatization, the Defense Commissary Agency (DeCA) is issuing this Request for Information (RFI) on behalf of Personnel & Readiness (P&R), Department of War (DoW), to obtain industry feedback on the potential privatization of its 178 commissary locations across the contiguous United States (CONUS), Alaska, Hawaii, and Puerto Rico. The DoW is interested in exploring the potential to deliver today’s 23.7% savings benefit, as required by current DoW policy, with no or minimal government investment. The DoW seeks to determine whether commercial grocers are interested in and capable of: 1) preserving the military benefit of a 23.7% savings by operating these commissaries or enabling this savings via existing off installation commercial grocery stores with no government subsidy, or with a materially reduced subsidy, and 2) addressing the existing unfunded facilities maintenance backlog for in-scope commissaries through a one-time industry infrastructure investment of $2.4 billion (approximately $500M per year for up to 5 years) and an annual maintenance costs of approximately $250 million.

BACKGROUND

DeCA is a DoW appropriated funding organization that is part of military family support and is a non-pay compensation benefit. DeCA delivers a vital benefit to provide reliable access to quality grocery and household products where the military lives and works, operating 235 commissaries in 13 countries and two U.S. Territories. DeCA commissary shopping privileges are available to approximately 8.35M authorized households worldwide. Today, approximately 1.8M authorized households shop at least monthly. The commissary system is required by statute to offer its patrons “saving…achieved by commissary stores based on a comparison of prices charged by those stores on a regional basis with prices charged by relevant local competitors for a representative market basket of goods.” 10 U.S.C. § 2484(i)(2)(B). This statutory savings rate has been calculated, as a system-wide average, to be 23.7%. If DoW decides to privatize commissaries, location buildings and infrastructure may be offered to the operating commercial entity rent-free and in as-is condition, subject to the terms outlined in the privatization agreement. This RFI seeks to understand if and how commercial entities could deliver this savings, considered to be a vital component of the military benefit system that supports reliable food access while enhancing quality of life and readiness where military members, their dependents, and other commissary patrons live and work in the contiguous United States (CONUS), Alaska, Hawaii and Puerto Rico. This RFI also seeks information to address the existing unfunded facilities maintenance backlog for in-scope commissaries through a one-time industry infrastructure investment of $2.4 billion (approximately $500M per year for up to 5 years) and an annual maintenance cost of approximately $250 million.

INSTRUCTIONS FOR RFI RESPONDENTS

Submission Format and Length Responses must be submitted as a Microsoft Word document (doc or .docx). Responses shall be limited to a maximum of 50 pages (including cover letter and appendices, attachments, or enclosures). Submissions exceeding the 50-page limit will not be considered. Font shall be Times New Roman, size 12, single-spaced, with one-inch margins. Section and question numbering should be maintained for clarity.

Submission Deadline and Method All responses must be received no later than midnight on October 21, 2025. Late submissions will not be considered.

Responses must be submitted electronically to the DeCA Acquisition Management Directorate at: Attention Alicia Taylor at email Alicia.taylor@deca.mil Please include the subject line: “Response to DeCA Commissary Privatization RFI Number RFIPRIVDECA - [Company Name]” Partnerships and Teaming Partnered or teamed responses are acceptable. Respondents are encouraged to identify all participating entities and describe their roles and contributions. If you are submitting a partnered or team-based approach, only one response should be submitted, and all partners/teams must be identified and their role described in the RFI response.

Questions:

Companies may also submit written questions to DeCA via e-mail to the point of contact listed below. All questions must be received by NLT October 1, 2025.

RFI Point of Contact for Questions:

Mr. Berry Patrick RFI Project Officer Defense Commissary Agency Email: Berry.patrick@deca.mil CC: Alicia.taylor@deca.mil

Purpose Reminder and Disclaimer:

The purpose of this RFI is to determine industry interest and capability to operate Defense Commissary Agency commissaries on military installations across the contiguous United States, Alaska, Hawaii, and Puerto Rico. Information received will be used for planning purposes only and does not constitute a solicitation or commitment by the government.

Notice to All Responders This RFI is for information and market research purposes only, and is not a request or solicitation for proposals, offers, quotes, or any similar submittals. The request does not constitute a government promise or intention to conduct any future contract planning or actions. The request creates no obligations to respond in any particular format or form, and the government has no obligation to reply or take action in response to any information submitted.

Responders should clearly and distinctively mark any submitted information they consider to be proprietary, confidential, or sensitive. The government will make all reasonable efforts to protect such information from disclosure, within limitations imposed by law or regulation. The Government reserves the right to use the responses in its decision-making processes and future acquisition planning.

RFI Parameters:

· Plan must deliver 23.7% Savings to eligible commissary patrons (i.e., grocery store customers) based on a comparison of prices charged by commissaries on a regional basis with prices charged by relevant local competitors for a representative market basket of goods. Measurement methodology used by the Defense Commissary Agency (DeCA) is to compare its retail prices to AOC (All Other Channels except DeCA) for the “representative basket of goods.”

· Assume no government subsidy. However, if government subsidy is required to meet required savings criteria, please provide a general estimate of what would be needed.

· Assume that the parameters apply to commissaries in all 178 current CONUS locations, inclusive of Alaska, Hawaii and Puerto Rico commissary locations.

· Assume operation within all applicable laws and regulations that are currently applicable to DeCA’s operations, which include but are not limited to the Competition in Contracting Act, Small Business Act, Service Contract Act, and DeCA-specific statutes at Title 10, Chapter 147 of the United States Code.

· Givens:

· Store locations;

· Store conditions (capital investments from private entity);

· Requirements for military installation access (all employees, support functions [e.g., goods delivery, maintenance personnel]);

· Provide access to commissary food in any defense threat level which may require operations or delivery on a federal facility.

In addition to or alternatively, the RFI responder can suggest a different approach such as offering eligible patrons a 23.7% discount at the existing responder’s store locations, rendering use of all or a portion of existing commissary locations unnecessary.

QUESTIONNAIRE

Section 1: Administrative Information

1. Company name:

2. Company mailing address:

3. Point of contact name:

4. Email address:

5. Phone number:

6. Company public access website:

Section 2: Company Profile

1. Are you foreign owned?

2. Where is your corporate headquarters?

3. What regional offices do you operate?

4. How many years have you been operating grocery stores?

5. In what states do you operate?

6. How many stores do you operate?

7. Do you have experience operating grocery stores on government property?

Section 3. Personnel Support System

1. What is your current employee support model to include: retirement plans, health care, sick and annual leave, long-term care and other support systems?

2. Please describe any other employee support programs that you may have?

3. Please provide your employee breakdown percentage by the number of personnel that are full-time, part-time, and hourly wage flexible schedule employees.

Section 4: Potential Operational Models

1. What is your level of interest in operating military commissaries in CONUS, Alaska, Hawaii, and Puerto Rico?

2. Do you have an operating model to propose if the DoW should pursue privatization of commissaries? If so, please briefly describe.

3. What operational risks or barriers do you foresee related to privatization of commissaries?

Section 5: Operational Capabilities

1. Describe your supply chain infrastructure.

2. Describe the overall product mix available in your grocery store locations.

3. What volume of customers do you serve in your typical grocery store locations that you operate?

Section 6: Pricing and Savings

1. Is it possible for you to achieve the 23.7% savings without government appropriations subsidies?

2. If not, what level of appropriations would be needed to operate privatized commissaries?

Section 7: Financial Background

1. Do you have the financial capacity to assume commissary operations? If so, please briefly describe.

2. Can you meet the level of critical infrastructure backlog investment of approximately $2.4 billion and annual maintenance cost of $250 million? If not, what level of capital investment for modernization would you be willing and able to make?

3. What investments or support from the Government would you need to participate in privatization?

4. What financial or operational conditions would you need met to consider assumption of operations of commissary stores under a privatization agreement?

5. What financial and operational advantages might you provide if the commissaries were privatized?

6. What financial risks or barriers do you foresee related to privatization of commissaries?

Please submit your responses to this questionnaire electronically to the DeCA Acquisition Management Directorate at: Attention Alicia Taylor at email Alicia.taylor@deca.mil by NLT 11:59pm EST. on October 21, 2025. Late submissions will not be considered.