The Department of Veterans Affairs has canceled a $15.3 million contract after a federal review found the pricing to be excessive, according to the Department of Government Efficiency (DOGE).
The contract in question, described as a multi-year agreement for “salary survey data and analysis,” was being paid out at a rate of approximately $3.9 million annually.
According to a statement posted Monday on X by DOGE, the contract has been replaced with a substantially cheaper alternative that meets the same requirements at a cost of just $5,000.
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“Great work by the @DeptVetAffairs cancelling an unreasonably priced multi-year $15.3M services contract for ‘salary survey data and analysis,’” DOGE said in the post.
The new arrangement, described by the agency as a “market price” solution, is expected to save the government roughly $11.1 million over the life of the original contract.
Great work by the @DeptVetAffairs cancelling an unreasonably priced multi-year $15.3M services contract for “salary survey data and analysis.”
The service was replaced at market price of ~$5K/year vs. the contracted $3.9M/year, saving $11.1M over the remaining life of the… pic.twitter.com/Hiovs29DPS— Department of Government Efficiency (@DOGE) April 14, 2025
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The change is part of an ongoing effort by the VA and DOGE to identify and eliminate wasteful spending across the department.
Earlier this month, DOGE revealed another instance of excessive contracting within the VA.
According to the agency, the department was paying $380,000 per month for website updates that involved only minor modifications.
The work, it said, was not being carried out by an internal VA software engineer who was only dedicating about 10 hours per week to the project.
Despite the minimal workload, the contract had been renewed prior to DOGE’s involvement.
In a separate cost-saving move, the VA announced in February that it had dismissed more than 1,000 employees.
That decision, officials said at the time, would enable the agency to redirect over $98 million annually toward health care, benefits, and services for veterans.
VA Secretary Doug Collins has stood by DOGE’s cost-cutting efforts and the department’s broader reform initiatives, saying they are critical to improving care and support for the nation’s veterans.
“These changes are part of the new administration’s mission to ensure every dollar is used to benefit those who have served our country,” Collins said in recent remarks.
He emphasized that efficiency reforms are aimed at strengthening the VA’s ability to deliver essential services without waste or mismanagement.
We found nearly $2 billion in @DeptVetAffairs contracts that we’ll be canceling so we can redirect the funds back to Veterans health care and benefits.
No more paying consultants to do things like make Power Point slides and write meeting minutes! pic.twitter.com/z1gv3PKhfA— VA Secretary Doug Collins (@SecVetAffairs) February 25, 2025
The Department of Government Efficiency has continued to scrutinize existing contracts and expenditures across federal agencies, with a focus on maximizing taxpayer value and redirecting funds toward direct service delivery.
The VA’s latest move marks another high-profile example of the Biden-era contracts and agency deals coming under review, as the administration of President Donald Trump re-evaluates government spending priorities across key departments.
🇺🇸 VETERANS AFFAIRS CHIEF: WE FOUND $980M WASTED IN 2% OF OUR CONTRACTS
Secretary of Veterans Affairs, Doug Collins:
“Almost a billion dollars that we’re cutting now to put back into patient care and working with our benefits.”
Source: Fox News, @WesternLensman https://t.co/DXrkYnIOS5 pic.twitter.com/LQGmnSXCHd
— Mario Nawfal (@MarioNawfal) March 11, 2025
The Department of Veterans Affairs oversees the care and benefits for millions of veterans nationwide.
With these recent changes, the agency says it is committed to operating with greater transparency, accountability, and cost-effectiveness.
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