The Department of Veterans Affairs has canceled a $15.3 million contract after a federal review found the pricing to be excessive, according [1] 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.
“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 [2] 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 [3]— Department of Government Efficiency (@DOGE) April 14, 2025 [4]
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.
