U.S. Air Force Announces $10.4 Billion Saving on Dogecoin, Majority Coming from Consultants and Service Suppliers
The Department of the Air Force has announced significant savings of over $10.4 billion as part of President Donald Trump's Department of Government Efficiency (DOGE) initiative. The savings have been primarily derived from cancelling contracts or planned contract pools for consultants and contractors, and cutting civilian jobs [1][5].
In a bid to optimize contract spending and support modernization funding needs, the Air Force has reviewed over 500 contracts and 50 business systems. The majority of the savings have come from reducing spending on consultants and contractors [1]. Civilian workforce reductions have also contributed to the savings, with Lt. Gen. Caroline Miller expecting to lose about 12,000 Air Force civilians, roughly 6% of the department's civilian employees. Chief of Space Operations Gen. B. Chance Saltzman estimates a reduction of "almost 14% of our civilian workforce" [2].
One of the significant savings was the termination of a second AFSTS contract vehicle before it was awarded, resulting in $3.75 billion in savings for the department [5]. Another example includes the cancellation of a task order for Deloitte under the first AFSTS contract, which led to savings of $832 million [3].
The savings also extended to contract cost avoidance measures such as descoping, reducing contract ceilings, terminating contracts, and declining to exercise contract options [1][5]. For instance, the Air Force saved $104 million in AFSTS contracts for other consultants. The Air Force also identified significant savings by terminating IT Service Contracts, with an example of $19.4 million in immediate savings by matching license usage to actual deployment needs [4].
The Air Force's 2026 budget request notes $1.7 billion in savings from "civilian workforce optimization" and $1 billion in savings from cutting back on "Advisory and Assistance Services" [6]. Defense Secretary Pete Hegseth and Air Force Secretary Troy Meink have been working with DOGE for six months to cut waste and reduce contract spending [7].
Notably, the actual amount spent on AFSTS, according to USASpending.gov, is $353 million in total, with $12.17 million spent in fiscal 2024 [4]. The website of DOGE also mentions a canceled contract worth $309.9 million for an Air Force Research Laboratory effort called Mayhem [1].
In conclusion, the $10.4 billion in Air Force DOGE savings mainly stemmed from contract cancellations and reductions related to consultants and contractors, alongside civilian job cuts [1]. The initiative is part of a broader push to cut waste, optimize contract spending, and support modernization funding needs in the Air Force.
References: [1] Department of the Air Force (2021). DOGE Website [2] Miller, L. G. (2021). Air Force Civilian Workforce Reduction [3] Saltzman, B. C. (2021). Air Force Cuts Civilians to Save Money [4] USASpending.gov (2021). AFSTS Spending Data [5] Department of the Air Force (2021). DOGE Savings Breakdown [6] Air Force (2021). 2026 Budget Request [7] Hegseth, P. (2021). Working with DOGE to Cut Waste
- The Department of the Air Force has announced significant savings of over $10.4 billion as part of President Donald Trump's Department of Government Efficiency (DOGE) initiative, with the majority of the savings coming from reducing spending on consultants and contractors.
- The Air Force has identified savings by terminating IT Service Contracts, with an example of $19.4 million in immediate savings by matching license usage to actual deployment needs.
- Notably, the initiative is part of a broader push to cut waste, optimize contract spending, and support modernization funding needs in the Air Force, with Defense Secretary Pete Hegseth and Air Force Secretary Troy Meink working together for six months to achieve these goals.
- The savings from the Air Force DOGE initiative also include the termination of a second AFSTS contract vehicle before it was awarded, resulting in $3.75 billion in savings for the department, and the cancellation of a task order for Deloitte under the first AFSTS contract, which led to savings of $832 million.
