DOGE Cuts ‘Unreasonably Priced’ Contracts at VA, Saving Taxpayers Millions
The Department of Government Efficiency (DOGE) announced that the Department of Veterans Affairs has canceled a $15.3 million services contract deemed “unreasonably priced,” as part of a broader effort to overhaul spending practices within the agency.
“Great work by the @DeptVetAffairs cancelling an unreasonably priced multi-year $15.3M services contract for ‘salary survey data and analysis,” DOGE posted on X.
The contract had cost the VA an annual $3.9 million but has now been replaced with a similar service priced at just $5,000, saving the agency approximately $1.1 million over the life of the original agreement.
Earlier this month, DOGE also revealed that the VA had been paying $380,000 per month for minor website modifications. That contract was not renewed, and the same work is now being performed by an internal VA software engineer working about 10 hours per week.
These changes follow a February announcement that the VA would dismiss over 1,000 employees, a move the agency said would free up $98 million annually for healthcare, benefits, and services for veterans.
VA Secretary Doug Collins, in an interview last week with Spectrum News, said the Trump administration is committed to fixing the agency. He noted that while there had been previous discussions of a 15 percent staff reduction, that number remains a “goal” rather than a confirmed target, and the merits of such a cut are being evaluated.
“First off, 15 percent is a goal,” he said. “I mean, we’re looking through right now to see if that’s what is actually needed in our area to make sure that we can maintain the twin goals of making sure healthcare and our benefits are processed and our benefit claims processed in a timely manner, healthcare being provided as well.”
Collins also addressed pushback from labor unions and members of Congress.
“I’ve got, especially unions and members of Congress, in the House and the Senate, and others who are complaining now ‘you’re changing things at the VA, you’re making it worse,’” Collins continued. “In fact, we’re making it better.”
“We’re also moving money that we’ve found in savings to contracts – over $300 million – we’re moving to community care so that we can make sure that our veterans are getting quicker access to their providers, either in the VA or in the community,” he added.
