The Pentagon announced this week that the Department of Government Efficiency will now get a chance to assess nearly all unclassified contracts before they’re awarded.
Defense Secretary Pete Hegseth said in a memo published Wednesday that the office, created by the Trump administration and billionaire Elon Musk, may now review solicitations, requirements and cost estimates for new contracts and modifications.
The order excludes requirements packages for overseas contingency operations, contracts with performance outside the U.S., and awards under $1 million. The authority will initially apply to communications and utilities contracts, advisory and assistance services and professional support services.
The directive adds another step to what many already see as a cumbersome Defense Department acquisition process. The document does not lay out what authority DOGE will have to alter or cancel awards, though it does put some administrative restrictions on the timeline for DOGE’s involvement, giving the office just two days to conduct a review.
President Donald Trump established DOGE on his first day in office to “maximize government efficiency and productivity.” The office, which is not a Cabinet-level entity, has been met with mixed reviews, facing accusations of inflated savings claims and cuts motivated by ideology rather than frugality.
Agency leads like Hegseth have praised the cuts as helping reduce federal spending. Some lawmakers, including Republicans like Rep. Don Bacon, R-NE, have expressed reservations about DOGE’s “rash” decision making, despite supporting its underlying mission.
Democrats have widely criticized the efforts, which have slashed funding for foreign aid, gutted the federal civilian workforce and reduced spending on basic research.
In a video posted on X Wednesday, Hegseth said DOGE has uncovered more than $10 billion in savings and cost avoidance at the Pentagon. Much of that total — which includes both obligated funds and projected future spending — has come from canceling large management and consulting contracts.
“We’re committed to reducing bloated bureaucracy and wasteful spending in factor of increased lethality,” he said. “That’s a tradeoff I will take every day — converting consultants into combat power.”
Along with his memo empowering DOGE to review military contracts, Hegseth issued another directive barring acquisition offices from issuing new IT consulting or management services contracts unless the requirements can’t be met in-house or provided by a “direct service provider.” It would also significantly limit what contracts the department may issue for advisory and assistance services.
The memo, also published Wednesday, says DOD entities should rely more heavily on the department’s internal, full-time workforce and should only use contractors for roles that are not inherently governmental or for tasks that can’t be performed by DOD employees.
“While we rely on our vital industrial base to deliver cutting-edge technology and support, we must in-source more expertise and harness the unparalleled talent of our existing experts to drive financial efficiency and operational strength,” Hegseth said in the memo. “We will become lean and mean, eliminating wasteful practices and reallocating resources to fortify our strategic edge.”
That heavier reliance on in-house expertise comes as the Pentagon implements an 8% cut to its civilian workforce and could put more strain on the personnel that remain.
Courtney Albon is C4ISRNET’s space and emerging technology reporter. She has covered the U.S. military since 2012, with a focus on the Air Force and Space Force. She has reported on some of the Defense Department’s most significant acquisition, budget and policy challenges.
