Defense Department reveals $10.4 billion in potential savings from utilization of Dogecoin, with the majority stemming from consulting and contractor expenditures.
The Department of the Air Force has claimed a significant savings of over $10.4 billion as part of President Donald Trump's Department of Government Efficiency (DOGE) initiative. While a detailed itemized breakdown of this total has not been publicly released, the savings appear to be derived from various sources.
Lt. Gen. Caroline Miller, the Air Force's civilian workforce is expected to lose about 12,000 employees, representing roughly 6% of the department's civilian employees. This reduction in the workforce is one of the key contributors to the savings.
The bulk of the savings are attributed to cancellation, descoping, or reducing contracts, particularly in consultant and contractor agreements. The department reviewed over 500 contracts and 50 business systems for these efficiencies. Notable cancellations include a $309.9 million contract for an Air Force Research Laboratory effort called Mayhem.
The Department of the Air Force Strategic Transformation Support contract has seen significant reductions, representing a large portion of the savings. The Air Force also saved $19.4 million by renegotiating a contract due to unused software licenses, with a utilization rate of 1.9%.
In addition to contract reviews, the department has also focused on business systems. The savings include both direct cost savings and cost avoidance on contracts. However, a full detailed breakdown by category, dollar amount, or specific contracts has not been publicly provided.
Defense Secretary Pete Hegseth and Air Force Secretary Troy Meink have stated these savings, emphasizing that they involve cutting waste and working closely with vendors over six months to reduce contract spending. These efforts support ongoing modernization efforts, described as the largest in the Air Force's history.
The Air Force's 2026 budget request notes $1.7 billion in savings from "civilian workforce optimization" and $1 billion from cutting back on "Advisory and Assistance Services." Chief of Space Operations Gen. B. Chance Saltzman estimated a reduction of "almost 14% of our civilian workforce."
Despite inquiries, the Department of the Air Force spokesperson could not provide a detailed breakdown of those savings, but did provide a few examples. DOGE saved $832 million by canceling a task order for Deloitte under the first AFSTS contract. The Air Force saved an additional $4.8 billion by terminating and descoping a program.
The savings on travel expenses and shelved climate initiatives are also noteworthy, with the Air Force claiming $368.1 million in savings on reduced travel expenses, and $340.9 million in shelved climate initiatives in their 2026 budget request.
In fiscal 2024, the total spent on AFSTS was around $12.17 million. The actual amount spent on AFSTS can vary, with $353 million listed on USASpending.gov in total Pentagon spending. However, the precise allocations within the total remain undisclosed due to the absence of a full detailed breakdown.
In conclusion, while the Air Force has achieved substantial savings, the absence of a full detailed breakdown means the precise allocations within the total remain undisclosed. The savings are primarily from contracts and workforce reductions, but the exact figures for each category are yet to be disclosed.
- The savings from the Air Force Defense's Department of Government Efficiency (DOGE) initiative, amounting to over $10.4 billion, are partly due to the anticipation of a loss of about 12,000 employees from the Air Force's civilian workforce.
- The Pentagon's savings were also derived from the cancellation, descoping, or reduction of contracts, particularly in consultant and contractor agreements, with significant savings coming from the Department of the Air Force Strategic Transformation Support contract and a contract with Deloitte worth $832 million.
- In addition to contract reviews, the Air Force also saved money by focus on business systems, with savings including both direct cost savings and cost avoidance on contracts, and $1.7 billion from "civilian workforce optimization."
- The savings on travel expenses and shelved climate initiatives also contributed to the savings, with the Air Force claiming $368.1 million in savings on reduced travel expenses, and $340.9 million in shelved climate initiatives in their 2026 budget request. However, a full detailed breakdown of the savings by category, dollar amount, or specific contracts has not been publicly provided.
