Turmoil in US Military HR Software Projects Amid Contractor Chaos

The US Navy and Air Force are poised to scrap two nearly finished software endeavors meant to modernize their outdated human resources systems, according to sources familiar with the matter. The decision, affecting projects totaling over $800 million, aims to give firms like Salesforce and Palantir a chance in future contracts.

The move aligns with Donald Trump's administration goal to reduce government waste. However, terminating these contracts could lead to expensive do-overs, as current projects are put on hold. The effort forms part of the Department of Government Efficiency's claims of canceling $14 billion in Defense Department contracts. Despite intentions to enforce efficiency, high-level vacancies and a focus on speed over oversight raise concerns about the Pentagon's contracting process.

Defense Secretary Hegseth is working to improve contracting efficiency, per the White House, although critics worry about regulatory risks and potential costs to taxpayers. With multiple projects now paused or in limbo, including a major HR initiative set for initial deployment this summer, challenges persist in balancing modernized technology projects and responsible fiscal management.

(With inputs from agencies.)