{"id":82062,"date":"2026-06-25T18:42:58","date_gmt":"2026-06-25T18:42:58","guid":{"rendered":"https:\/\/one.sightlinemg.com\/navytimes\/uncategorized\/2026\/06\/25\/dod-scraps-plan-to-privatize-commissaries\/"},"modified":"2026-08-08T17:20:39","modified_gmt":"2026-08-08T17:20:39","slug":"dod-scraps-plan-to-privatize-commissaries","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/navytimes\/management\/pay-benefits\/mil-money\/2026\/06\/25\/dod-scraps-plan-to-privatize-commissaries\/","title":{"rendered":"DoD scraps plan to privatize commissaries"},"content":{"rendered":"\n

Defense officials won\u2019t be handing off the operation of commissaries to the private sector, DoD\u2019s top personnel official said Wednesday. <\/p>\n\n\n\n

\u201cWe learned and found that there was nobody interested in taking a 24% haircut right out of the gate,\u201d in order to provide the 24% saving for military customers, said Anthony Tata, under secretary of defense for personnel and readiness. Tata spoke during a Wednesday meeting on Capitol Hill of the American Logistics Association, a nonprofit trade association representing businesses supplying products and services to the military marketplace. <\/p>\n\n\n\n

In September, the Pentagon issued a public request for information<\/a> to find out whether any entities were interested in taking over the operation of the 178 commissaries in the United States.<\/p>\n\n\n\n

The RFI was issued following DoD\u2019s April 7, 2025, memorandum, directing that all functions that are not inherently governmental would be prioritized for privatization<\/a>. The order specifically cited retail sales. <\/p>\n\n\n\n

Prices are the determining factor that drive people to the commissary, Tata said. \u201cFamilies go there because they know they\u2019re going to save 24%-plus.\u201d <\/p>\n\n\n\n

That said, if commissaries aren\u2019t providing a user-friendly benefit, people will go elsewhere, he said, and efforts are underway to use technology and other tools to help bring shoppers into the stores. <\/p>\n\n\n\n

In an April 3 letter, defense officials notified lawmakers they had decided not to pursue privatization of the military resale system, which includes commissaries, exchanges and other retail outlets. They said they had determined that \u201cprivatization would create an unacceptable risk to the readiness and well-being of service members and their families.\u201d<\/p>\n\n\n\n

Military family advocates applauded the decision. <\/p>\n\n\n\n

\u201cWe\u2019ve always questioned whether a private entity could operate the commissary system profitably while still delivering the savings that families rely on,\u201d said Eileen Huck, director of government relations for the National Military Family Association. \u201cThe response to the administration\u2019s outreach isn\u2019t surprising. We\u2019re pleased that the administration recognizes the importance of the commissary benefit to military families.\u201d<\/p>\n\n\n\n

In addition to the savings, Huck said, she\u2019s spoken with families in remote areas who rely on commissaries for items like Kosher and Halal foods, as well as dietary items for family members with special needs.<\/p>\n\n\n\n

DoD\u2019s analysis concluded that \u201cthe potential cost savings of privatization are unlikely to be realized without severely degrading the benefits these programs provide,\u201d stated the letter, signed by Sean O\u2019Keefe, deputy under secretary for defense for personnel and readiness. <\/p>\n\n\n\t