VA Told Congress It Cut $120 Billion in Contracts. The Inspector General Found $1.1 Billion.

A new VA Inspector General report on last year's VA contract terminations found that some staff had only hours, in some cases less than 11, to review hundreds of contracts marked for termination at DOGE's urging, get sign-off from senior leaders, and submit their answers. The audit was released this week at the request of Senators Richard Blumenthal and Angus King, and it puts the value of the terminated contracts far below what the VA told Congress.

A Review on a Stopwatch

For every contract marked for termination, VA employees had to complete a questionnaire: Can your office absorb this work? How quickly? Does the contractor have skills the VA cannot hire? Those answers had to be prepared for hundreds of contracts, sometimes within a few hours, and approved at the senior-leader level, including a deputy undersecretary.

In practice, that meant employees were asked to show that the VA never needed a contractor, on a same-day deadline, without the contractor's help.

Terminations "Regardless" of the Reviews

A VA director told the Inspector General that on February 25, 2025, senior advisers and DOGE officials ordered terminations to proceed regardless of "incomplete reviews."

VA press secretary Quinn Slaven has described the effort as a "methodical and careful review process" and said it had "no negative impact whatsoever." The record complicates that account. According to the IG, 435 contracts were terminated, and 100 contract actions were terminated and then reinstated.

$120 Billion vs. $1.1 Billion

In May 2025, the VA told Congress the terminated contracts were worth about $120 billion. The Inspector General's figure is $1.1 billion, a difference of roughly $119 billion.

The IG's explanation for the gap is that the officials who prepared the information for Congress were "unfamiliar with contracting and acquisition terminology." A VA official also told the IG that DOGE "wanted to claim credit for any contracts that ended, including those that simply reached the end of their performance period." A contract that expires on schedule is not a savings.

The Career Workforce Followed the Rules

The report does not place the problem with the VA's career contracting staff. According to the IG, the career contracting officers followed the rules. The problems traced back to the timeline and the direction set above them.

Senator Blumenthal is now asking VA Secretary Doug Collins what the cancellations cost taxpayers in "arbitration, settlements, and reinstatements."

Why This Matters for Federal Employees

This report is a useful reminder of two things. First, official figures about workforce and contracting "savings" can be wrong, and independent oversight like an Inspector General audit can correct the record. The next time the $120 billion figure is quoted, the IG's number is $1.1 billion.

Second, when you are asked to complete a review or certification on an unrealistic deadline, it helps to protect yourself:

• Keep a copy of the instructions and the deadline you were given.
• Note in writing when a review could not be completed in the time allowed.
• Keep a private timeline of who directed what and when, stored outside government systems, without taking any records you are not permitted to keep.

If you have concerns about retaliation after raising problems like these, the attorneys for federal employees at Southworth PC can help you understand your options.

Legal Disclaimer: This content is for general informational purposes only and does not constitute legal advice. Federal employment situations are fact-specific and time-sensitive. Please consult a qualified federal employment attorney about your specific situation.