Continuing Elimination of Wasteful Spending at the Department of Defense
Uploaded by
Kristina WongContinuing Elimination of Wasteful Spending at the Department of Defense
Uploaded by
Kristina WongSECRETARY OF DEFENSE
1000 DEFENSE PENTAGON
WASHINGTON , DC 20301 - 1000
MAR 2 0 2025
MEMORANDUM FOR SENIOR PENTAGON LEADERSHIP
COMMANDERS OF THE CO MBA TANT COMMANDS
DEFENSE AGENCY AND DOD FIELD ACTIVITY DIRECTORS
SUBJECT: Continuing Elimination of Wasteful Spending at the Department of Defense
Pursuant to my commitment to strategically rebuild our military, restore accountability to
the Department of Defense (DoD ), cut wasteful spending, and implement the President's orders,
effective immediately I direct the termination of the following programs, contracts, and grants:
• The Defense Civilian Human Resources Management System (DCHRMS) software
development program and associated active contracts at the Defense Human
Resources Activity (DHRA), which is currently 6 years behind schedule and more
than $280 million (780%) over budget - with at least 2 more years of development
and testing estimated before initial operating capability. This program was intended
to streamline a significant portion of the Department's legacy Human Resources (HR)
information technology stack - an important mission we still need to achieve - but
further investment in the DCHRMS project would be throwing more good taxpayer
money after bad. Therefore, I also direct the DoD Performance Improvement Officer
to work with the director of DHRA, DoD Chieflnformation Officer, Military
Departments, and HR service providers to develop a new plan within 60 days for
achieving this mission.
• We identified over $360 million in additional grants across the Department which
fund research efforts and other activities - in areas of Diversity, Equity, and
Inclusion and related social programs, climate change, social science, Covid-19
pandemic response, and other areas - that are not aligned with DoD priorities.
• There is $30 million in contracts with external consulting firms for analysis products
which are not mission-critical to executing my priorities for the Department. This
first batch of cancellations is part of a broader effort that my Department leadership is
undertaking to eliminate wasteful spending on non-essential consulting services, with
more to follow in the weeks ahead.
Collectively, these terminations represent over $580 million in wasteful spending that is
inconsistent with the priorities of the DoD, and nearly $170 million in estimated savings which
we can reallocate to mission-critical priorities.
I commend Department leadership for identifying these opportunities to cut wasteful
spending, and I encourage other leaders across the enterprise to follow this example and identify - " N'
= - ~ sd-
more opportunities for savings which we can re-invest in critical mission needs. ; ; - ~ Q)
-
-
cc:
( ')
~§
=~ 2
u
. in
\
- - ..
- ... <D
N
• 0
(f)
0
