Review of Contracts Terminated for Convenience

The VA OIG reviewed contracts “terminated for convenience” at VA, following a request from Senators Richard Blumenthal and Angus King. The senators sought clarity on which contracts, initiated after January 20, 2025, were canceled, reduced, stopped, or allowed to expire, and they raised concerns about the use of artificial intelligence in decision-making, expert input, contingency plans, and financial transfers related to canceled contracts.

The OIG examined VA’s process for selecting contracts for termination and the accuracy of reported numbers and values. In November 2025, VA announced a realignment of procurement staff under the Office of Acquisition, Logistics, and Construction, with full completion expected by September 2026. The review focused on actions before this realignment.

The OIG found that between January and June 2025, VA received multiple requests to terminate contracts. To mitigate risks, VA implemented review procedures and generally complied with Federal Acquisition Regulation requirements. Of 2,210 contract actions reviewed, 435 were terminated for convenience, valued at about $1.1 billion. The remaining actions were either reinstated or never terminated, indicating they were considered but ultimately retained. While VA’s procedures reduced the risk of terminating critical services, unfamiliarity with contracting terminology led to inaccurate congressional reporting. Errors were found in data submitted to Congress in May and July 2025, but VA provided an updated, clearer list in April 2026.

The OIG made no recommendations requiring VA action, and the executive director of procurement concurred with the findings.