Notice2025-23761
34 CFR Part 395 Limitation of the Randolph-Sheppard Vending Facility Program Priority for the Department of the Army
Primary source
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Published
December 23, 2025
Issuing agencies
Education Department
Abstract
The Secretary has found that the placement and operation of dining facilities (DFACs), through the Randolph-Sheppard priority, on Department of the Army installations adversely affects the interests of the United States. As such, the Secretary has approved a limitation of the Randolph-Sheppard priority for the Department of the Army's DFAC contracts.
Full Text
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<title>Federal Register, Volume 90 Issue 244 (Tuesday, December 23, 2025)</title>
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[Federal Register Volume 90, Number 244 (Tuesday, December 23, 2025)]
[Notices]
[Pages 60078-60079]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-23761]
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DEPARTMENT OF EDUCATION
34 CFR Part 395 Limitation of the Randolph-Sheppard Vending
Facility Program Priority for the Department of the Army
AGENCY: Office of Special Education and Rehabilitative Services,
Department of Education.
ACTION: Approval of a limitation of the Randolph-Sheppard priority for
the Department of the Army.
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SUMMARY: The Secretary has found that the placement and operation of
dining facilities (DFACs), through the Randolph-Sheppard priority, on
Department of the Army installations adversely affects the interests of
the United States. As such, the Secretary has approved a limitation of
the Randolph-Sheppard priority for the Department of the Army's DFAC
contracts.
DATES: The limitation of the priority is approved on December 23, 2025.
This limitation applies prospectively to DFAC contracts entered into by
Department of the Army after the date of publication of this notice.
FOR FURTHER INFORMATION CONTACT: Christopher Pope, U.S. Department of
Education, 400 Maryland Ave. SW, Room 4B104, Washington, DC 20202.
Telephone: (202) 245-7375. Email: <a href="/cdn-cgi/l/email-protection#74371c061d07001b041c11065a241b04113411105a131b02"><span class="__cf_email__" data-cfemail="703318021903041f001815025e201f00153015145e171f06">[email protected]</span></a>.
If you are deaf, hard of hearing, or have a speech disability and
wish to access telecommunications relay services, please dial 7-1-1.
SUPPLEMENTARY INFORMATION:
Background
The Randolph-Sheppard Vending Facility Program provides
entrepreneurs who are blind with opportunities to operate a business in
competitive integrated employment consistent with the Rehabilitation
Act of 1973, as amended by title IV of the Workforce Innovation and
Opportunity Act. In 1936, Congress established the program, through the
Randolph-Sheppard Act, to enhance employment opportunities for trained,
licensed blind persons to operate vending facilities on federal and
other properties. Blind vendors are licensed by State licensing
agencies (SLAs); SLAs are typically State Vocational Rehabilitation
(VR) agencies. Each state (except Wyoming), Puerto Rico, and the
District of Columbia operate a Randolph-Sheppard Vending Facility
Program. In FFY 2024, there were approximately 1,200 licensed blind
vendors. For the Department of the Army specifically, 24 DFAC
contracts, across 22 installations in the United States, are currently
awarded to SLAs through the Randolph-Sheppard priority.
Authority
The Randolph-Sheppard Act, 20 U.S.C. 107 et seq., and the
Department's regulations implementing it at 34 CFR part 395, establish
a priority for
[[Page 60079]]
operation of vending facilities and cafeterias on Federal properties by
blind vendors licensed by SLAs, where such operation is feasible and
would not adversely affect the interests of the United States. Upon
justification provided by a Federal department or agency to the
Secretary, and the Secretary's determination that placement or
operation of a vending facility or cafeteria adversely affects the
interests of the United States and thus justifies a limitation on such
placement or operation, the limitation becomes effective upon
publication by the Secretary in the Federal Register. 34 CFR 395.30(a)
and (b).
Justification of Limitation
Based on information provided by the Department of the Army, the
Secretary has determined that a limitation of the Randolph-Sheppard
priority is justified for the Department of the Army's DFAC contracts.
The Secretary acknowledges that the Randolph-Sheppard Vending Facility
program, as applied to the Department of the Army's DFAC contracts,
adversely affects the interests of the United States. Specifically, the
Department of the Army's critical role in national security and the
paramount importance of maintaining operational mission readiness of
its service members necessitates removal of barriers that prevent the
Department of the Army from being in the best position possible to
conduct its procurements and manage its DFAC contracts. Based on the
Department of the Army's representations, it is clear that the
Randolph-Sheppard priority hinders the Department of the Army's ability
to act swiftly, efficiently, and cost-effectively in procuring and
managing DFAC contracts, which negatively impacts the availability and
quality of food options for the nation's warfighters.
Higher Costs
Randolph-Sheppard regulations at 34 CFR 395.33(b) stipulate that
when a proposal submitted by an SLA for the operation of a DFAC is
determined to be within the competitive range, the agency shall consult
with the Secretary as described in 34 CFR 395.33(a). The Secretary
considered that the Department of the Army reported an instance where a
DFAC contract had a 33 percent higher price differential and a
cumulative difference of $164 million more when comparing lowest price
technically acceptable proposals with some proposals made by SLAs over
a five-year period. The higher costs from applying the Randolph-
Sheppard priority may also have the adverse effect of decreasing funds
available for other investments critical to ensuring service member
readiness. According to the Department of the Army, this requirement
has stifled its ability to select a vendor proposing innovative
approaches and process improvements, better service, and cost savings.
The Secretary thus has determined, after consultation with the
Department of the Army, that operation of DFACs subject to a Randolph-
Sheppard priority cannot be provided at a reasonable cost.
Arbitration Delays
SLAs are afforded the right to arbitration in the Randolph-Sheppard
Act. On average, the Department of the Army has faced arbitrations that
last 801 days resulting in significant delays in awarding DFAC
contracts. The Secretary considers it unreasonable to expect the
Department of the Army to be entangled in any DFAC contract arbitration
that could last for more than two years. The Secretary believes this is
an unreasonable burden to place on the Department of the Army, thus a
limitation on applicability of the Act for Department of the Army DFAC
contracts is justified.
Performance Issues
The Department of the Army conveyed various examples of performance
issues with Randolph-Sheppard DFAC contracts including nutrition (e.g.,
not including nutritional menu standards and serving meals that do not
meet requirements) and sanitation (e.g., cross-contamination of food
and improper labeling). Other reported performance issues include food
safety (e.g., foreign objects in food) and lack of documented employee
training related to safety and sanitation.
Conclusion
For these reasons, the Secretary has concluded that a limitation of
the Randolph-Sheppard priority is justified for future DFAC contracts
competed by the Department of the Army. The Secretary notes that blind
vendors may still bid for DFAC contracts even if there is no Randolph-
Sheppard priority in place.
Accessible Format: On request to the program contact listed under
FOR FURTHER INFORMATION CONTACT, individuals with disabilities can
obtain this document in an accessible format. The Department will
provide the requestor with an accessible format that may include Rich
Text Format (RTF) or text format (txt), a thumb drive, an MP3 file,
braille, large print, audiotape, compact disc, or other accessible
format.
Electronic Access to This Document: The official version of this
document is the document published in the Federal Register. You may
access the official edition of the Federal Register and the Code of
Federal Regulations at <a href="http://www.govinfo.gov">www.govinfo.gov</a>. At this site you can view this
document, as well as all other Department documents published in the
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you must have Adobe Acrobat Reader, which is available free at the
site.
You may also access Department documents published in the Federal
Register by using the article search feature at
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feature at this site, you can limit your search to documents published
by the Department.
Linda McMahon,
Secretary of Education.
[FR Doc. 2025-23761 Filed 12-22-25; 8:45 am]
BILLING CODE 4000-01-P
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