Improving Software Licensing Management

VA Budget and ModernizationHouse Veterans' Affairs Subcommittee on Technology Modernization · May 19, 2025 · 119th Congress
The House Veterans' Affairs Subcommittee on Technology Modernization held this hearing to examine the VA's failure to track and manage its more than $1 billion in annual software license spending, following a January 2024 GAO report that found the department could not verify license usage against purchase records. Begins at ▶ 0:12:14
Transcript
Highlights

Title

VA's mismanagement of software licenses and future GSA procurement plans

Purpose

The House Veterans' Affairs Subcommittee on Technology Modernization held this hearing to examine the VA's failure to track and manage its more than $1 billion in annual software license spending, following a January 2024 GAO report that found the department could not verify license usage against purchase records. Members questioned VA officials on the Software Asset Management (SAM) program's progress and pressed on how President Trump's executive order consolidating federal IT procurement under GSA could affect VA's specialized software needs. Begins at▶ 0:12:14

Who spoke

• Chairman Barrett (R-MI)▶ 0:12:14: Opened by comparing software licenses to library cards, said VA spends over $1 billion annually on licenses with poor tracking▶ 0:12:33, and noted VA reported tens of millions of dollars in licenses with "unknown" usage to the federal CIO▶ 0:14:45; later questioned witnesses on the top 15 software titles▶ 0:19:56, VA's total inventory of 4,433 COTS titles and 224 SaaS offerings▶ 1:20:16, and Adobe/Microsoft bundled pricing▶ 1:09:14.

• Ranking Member Budzinski (D-IL)▶ 0:17:00: Cited the January 2024 GAO report's two recommendations to VA▶ 0:18:10, raised concerns about "shadow IT" and poor requirements development▶ 0:19:01, and warned the Trump executive order to consolidate procurement under GSA could harm VA given GSA's tech unit has been shuttered and its budget cut in half▶ 0:20:51; later pressed on the BIOS office's status amid reduction-in-force plans▶ 1:00:34 and DOGE employee Sahil Lavinia's access to VA systems▶ 1:15:50.

• Mr. Jeff Van Bemmel, VA Executive Director of End User Operations▶ 0:22:42: Described the SAM program addressing GAO recommendations▶ 0:23:11, said VA is close to closing out the top-15-titles recommendation and has over 80% visibility on the rest▶ 0:34:33, and disclosed VA bought Tachyon endpoint-visibility software from 1E for about $12 million▶ 0:47:17; confirmed VA directive 6403 has not been updated since 2015▶ 0:38:59 and that key performance indicators for SAM have not yet been established▶ 1:01:55.

• Mr. Don Carter, VA Executive Director for Contract and Operations Management [0:22:42 intro; first speech 0:57:14]: Explained new Microsoft contract clauses allowing renegotiation if usage falls below 10%▶ 0:58:56, said this yielded $136 million in cost avoidance over the contract's life cycle▶ 0:59:23, and cited $230 million in cost avoidance across roughly eight major contracts this past year through direct negotiation rather than GSA▶ 1:11:09.

• Ms. Carol Harris, GAO Director of IT and Cybersecurity Issues▶ 0:27:43: Said VA plans to spend roughly $985 million on software in FY2025▶ 0:28:12, that VA previously saved about $65 million over three years by analyzing just one license▶ 0:31:20, and that GAO does not know total waste because VA still cannot track its full inventory▶ 0:49:13; noted GAO has not evaluated VA software provided directly to veterans, only employee-use software▶ 1:17:47.

• Rep. Luttrell (R-TX)▶ 0:44:08: Questioned whether all 170-plus VA facilities must now route software requests through Van Bemmel's office▶ 0:44:08, pressed on the cost of the Tachyon and ServiceNow tools versus prior spending on Oracle, Microsoft, Adobe, and Splunk▶ 0:46:48, and used the Zoom-versus-Teams example to probe redundant software titles across facilities▶ 1:05:33.

• Rep. Sherfey-List-McCormick (D)▶ 0:48:43: Pressed on whether AI is currently being used to manage software assets, learning it has not yet been integrated▶ 0:50:36, and questioned whether funding should go toward AI tools or dedicated staff to find redundancies▶ 0:52:36.

• Rep. Kiley (R)▶ 0:38:29: Asked whether VA directive 6403 has been updated since 2015▶ 0:38:59 and which offices are responsible for the enterprise view of license data, learning three OIT-affiliated groups currently hold separate repositories▶ 0:40:34.

Key moments

• GAO's January 2024 report found VA could not explain per-product costs within bundled license agreements and could not compare license usage to purchase records▶ 0:13:18▶ 0:18:10.

• VA reported to the federal CIO that for tens of millions of dollars in licenses from the five largest federal software vendors, usage and quantities were "unknown," and VA missed its end-of-April deadline to produce a full software inventory▶ 0:14:45.

• Van Bemmel disclosed VA spent about $12 million on the Tachyon endpoint-visibility tool from vendor 1E, covering 600,000 endpoints, as a recent investment to improve tracking▶ 0:47:17▶ 0:47:48.

• Carter said a new Microsoft contract clause lets VA renegotiate if usage of its 570,000 licenses drops below 10%, contributing to $136 million in cost avoidance over the contract's life cycle▶ 0:59:23.

• Carter separately cited $230 million in cost avoidance across roughly eight large contracts this past year, achieved through VA's own negotiating rather than GSA▶ 1:11:09.

• Harris said VA had previously saved about $65 million over three years from analyzing just one software license, illustrating the scale of potential savings across VA's full inventory▶ 0:31:20.

• Budzinski disclosed the VA's BIOS office, which manages stakeholder engagement on software requirements, has been told its work is "not mission critical" and may face reduction-in-force cuts▶ 1:00:59.

• Budzinski pressed Van Bemmel on DOGE-linked employee Sahil Lavinia allegedly writing AI-generated code integrated into VA systems, and on what qualifications and oversight structures govern such access; Van Bemmel said he would have to take the questions back for the record▶ 1:15:50▶ 1:16:19.

• Van Bemmel confirmed VA now has visibility into 4,433 commercial off-the-shelf software titles and 224 SaaS offerings, calling the inventory "100%" complete but noting gaps remain in identifying who is accountable for each license▶ 1:20:16▶ 1:22:10.

• Budzinski criticized the Trump administration's plan to shift IT procurement to GSA while simultaneously shuttering GSA's tech unit and cutting its budget in half, arguing VA employees and veterans "should not have to wait in line behind other agencies"▶ 0:20:51▶ 1:26:34.

Metadata

CommitteeHouse Veterans' Affairs Subcommittee on Technology Modernization
Chamber / CongressHouse · 119th Congress
DateMay 19, 2025
TypeHearing
Witnesses
Mr. Jeff VanBemmel — Executive Director of End User Operations, U.S. Department of Veterans Affairs
Mr. Don Carter — Executive Director for Contract and Operations Management, U.S. Department of Veterans Affairs
Ms. Carol Harris — Director, Information Technology and Cybersecurity Issues, U.S. Government Accountability Office
Videoyoutube
Transcript176 caption blocks · 13,454 words · 1:30:29 runtime
EventCongress.gov 118258