The Department of Government Efficiency (DOGE) has announced that the U.S. Office of Personnel Management (OPM) has successfully reduced its annual spending on federal contracts by 50% while enhancing both the quality and scope of its services. This announcement was made on the social media platform X.
According to a report by OPM, federal agencies have been increasingly focusing on cost-cutting and efficiency measures as part of broader government reform efforts. The Department of Government Efficiency's announcement follows several years of OPM modernization projects and workforce streamlining. This move aligns with wider trends in public sector management, as discussed by the Government Accountability Office in its recent efficiency studies.
Based on information released by OPM, as of January 20, 2025, the agency managed 444 active contracts. Since that date, OPM has taken action on 191 contracts, including terminations, descoping, and non-renewals. This reduction reflects a significant shift in federal contract management priorities highlighted in the agency’s 2025 budget justification.
Key savings highlighted in DOGE’s announcement include $12 million from internalizing retirement-related projects, $5.9 million from restructuring the IT helpdesk, and $39 million from overhauling underutilized IT contracts. According to Federal News Network, these savings directly contributed to a 30% reduction in IT helpdesk ticket backlog and helped launch OPM’s fully digital retirement portal. The focus on digital transformation and contract efficiency is detailed in recent coverage by Federal News Network.
DOGE is a federal agency focused on optimizing government spending, reducing waste, and ensuring accountability in contract management. By reviewing expenditures and canceling non-essential contracts, DOGE aims to improve fiscal responsibility and enhance the effectiveness of public resource allocation.
