DOD reviewing contracting policies, procedures and personnel to comply with Trump’s DOGE directive

The Pentagon has initiated a review of its contracting enterprise in pursuit of DOGE cost-cutting efforts, according to a new memo.

The move follows an executive order issued last week by President Donald Trump, which aims for “a transformation in Federal spending on contracts, grants, and loans to ensure Government spending is transparent and Government employees are accountable to the American public,” according to the EO.

The effort is part of the new administration’s Department of Government Efficiency (DOGE) initiatives, which are being spearheaded by billionaire Trump adviser Elon Musk.

“Each Agency Head, in consultation with the agency’s DOGE Team Lead, shall conduct a comprehensive review of each agency’s contracting policies, procedures, and personnel. Each Agency Head shall complete this process within 30 days of the date of this order and shall not issue or approve new contracting officer warrants during the review period, unless the Agency Head determines such approval is necessary,” per the EO, which was issued Feb. 26. The order also called for agencies to build centralized systems to track every payment they issue for contracts, grants and other expenditures.

DOD’s review, which has major implications for contractors who do business with the department, is now underway.

“My staff and I are presently conducting this review to determine where we might achieve efficiencies to save American taxpayers’ money while executing contracting operations in support of our nation’s defense,” John Tenaglia, the Pentagon’s principal director of defense pricing, contracting and acquisition policy, wrote in a new memo signed Wednesday.

The memo was directed to acquisition and procurement leaders at the Departments of the Army, Navy and Air Force, U.S. Cyber Command, U.S. Special Operations Command, U.S. Transportation Command, and Defense agency and DOD field activity directors.

“Per the EO, Components are directed to forgo issuing new contracting officer warrant appointments to DoD civilian staff members until March 28, 2025, the duration of the review period. On an exception basis, the Secretaries of the Military Departments may approve warrant appointments as necessary for civilian staff members during this period. Given the fact the EO is inapplicable to uniformed service members, there is no restriction on contracting officer warrant appointments to uniformed members of the military,” Tenaglia noted.

He added that he welcomed memo recipients’ input about “specific policy, procedure, and workforce matters we should address to further strengthen our contracting operations toward more affordable defense capabilities for the Warfighter.”

The new memo comes as the DOD is carrying out other cost-cutting initiatives.

On Monday, Darin Selnick, who is performing the duties of undersecretary of defense for personnel and readiness, issued a memo stating that the planned firing of probationary employees would commence March 3.

“The Department will continue taking steps to implement President Trump’s direction to restore accountability to the American public, reduce the size of the Federal Government’s workforce through efficiency improvements and attrition, and faithfully and responsibly manage taxpayer dollars,” he wrote.