HHS Builds on More Than $16 Billion in Fiscal Year 2025 Savings to Modernize Procurement Across the Department

WASHINGTON, D.C.-September 24, 2026-The U.S. Department of Health and Human Services (HHS) today announced fiscal year 2026 milestones from its enterprise transformation and government efficiency efforts. The milestones include establishing the Procurement Alignment and Collaboration Taskforce (PACT), expanding shared procurement services, modernizing acquisition technology, and moving acquisition activity to shared enterprise systems.

This work builds on HHS efforts in fiscal year 2025, which generated more than $16 billion in acquisition savings. Those savings came from contract terminations, reductions in scope, and decisions not to renew contracts.

PACT was established in fiscal year 2026. It did not produce the prior-year savings. Instead, PACT applies lessons from that work through repeatable business processes across the Department. These processes can identify additional efficiencies and improve how HHS purchases common goods and services.

"HHS programs depend on acquisition teams to deliver the products and services they need to serve the American people," said Assistant Secretary for Financial Resources and Chief Financial Officer Gustav Chiarello. "The Department's fiscal year 2025 acquisition savings demonstrated what can be achieved when we examine spending strategically and act decisively. In fiscal year 2026, we are building durable systems around those lessons. PACT is helping HHS buy as one organization. It is replacing fragmented processes with shared solutions and strengthening accountability for every dollar entrusted to the Department."

These efforts advance President Trump's Executive Order, Eliminating Waste and Saving Taxpayer Dollars by Consolidating Procurement. They also support the Administration's broader government efficiency agenda.

HHS has two central goals for its enterprise transformation work: the Department seeks to streamline operations and save taxpayer dollars.

"President Trump directed federal agencies to eliminate waste and save taxpayer dollars by consolidating procurement, and HHS is putting that directive into practice," said Principal Deputy Assistant Secretary for Financial Resources Anthony Figliola, who has been leading the Department's enterprise transformation efforts to advance government efficiency. "Our fiscal year 2025 work produced more than $16 billion in acquisition savings. It also demonstrated the value of examining HHS spending as one enterprise. In fiscal year 2026, we created PACT to turn those lessons into durable business processes. We are consolidating common spending, standardizing how we buy, and replacing duplicative processes with shared solutions. This work will streamline operations and make every taxpayer dollar work harder for the American people."

PACT brings acquisition leaders from across HHS together. The taskforce identifies and institutionalizes cost saving business processes. It also coordinates the purchase of common goods and services, standardizes tools and performance measures, improves visibility into spending, and reduces duplicative administrative work.

The taskforce supports a "One HHS" approach. Under this approach, HHS can manage common requirements collectively when doing so improves performance, lowers costs, or strengthens accountability. HHS divisions will retain the flexibility needed to carry out their missions.

Fiscal year 2026 enterprise transformation milestones include the following:

• Institutionalizing cost saving business processes through PACT. The taskforce provides a structure across the Department for identifying procurement efficiencies. It also supports coordinated purchasing, performance monitoring, and the use of successful acquisition practices across HHS.
• Expanding enterprise shared services. HHS fully established the Office of Mission Acquisition Solutions (OMAS) as its shared services organization for common information technology and professional services acquisitions. All HHS divisions have joined OMAS. The office supported the transfer of more than 4,000 contracts across eight HHS divisions. It is managing a portfolio representing approximately $2.5 billion in fiscal year 2026 obligations.
• Modernizing acquisition technology. HHS completed the cloud migration of the HHS Consolidated Acquisition System (HCAS). The Department moved 3.1 terabytes of acquisition data to an environment authorized under the Federal Risk and Authorization Management Program. HHS also decommissioned the costly legacy infrastructure. The migration strengthens system security, scalability, and performance. It also establishes the technical foundation for broader adoption across HHS.
• Completing the first major division transition. On June 30, 2026, the National Institutes of Health completed its transition of common information technology and professional services acquisition activity to HCAS. The activity previously operated through the legacy NIH Business System. The transition included more than 1,000 active awards. It marked the first major HHS division migration to the enterprise platform. HCAS now supports more than 19,500 award actions that represent approximately $6.5 billion in fiscal year 2026 obligations. Additional division transitions are underway.
• Reviewing unused obligations. Through a separate Undelivered Orders review, HHS identified approximately $174 million in obligated funds that were no longer needed on 882 expired contracts. The Department deobligated those funds in accordance with applicable fiscal law and program requirements. This review was separate from PACT. HHS also remains on pace to complete 5,782 contract closeouts during the fiscal year.

HHS will continue expanding operations supported by OMAS. The Department will also assess additional areas of common spending for consolidation. Future work will include developing enterprise contracting vehicles for recurring needs and moving targeted procurement activity to shared acquisition systems. HHS will also strengthen its oversight of expired contracts and outstanding obligations.

These milestones advance HHS' Agency Priority Goal for fiscal years 2026 and 2027 to modernize and centralize procurement. HHS is combining common demand, expanding shared acquisition services, and improving visibility into spending across the Department. These actions will reduce duplicative administrative activity, improve acquisition performance, and deliver greater value for taxpayers.