There’s such a sea of chaotic information we’re all drifting through in these days that it is terribly difficult to find out precisely what is going on, to find the patterns that can bring the larger story into focus. I want to point to one of those patterns I noticed or which was brought to my attention last night. I think I’m the first to highlight this, though I may be wrong about that. Not trying to claim an exclusive; I want to point to the significance of the detail.
Let’s start with my story from last night about the abrupt and reckless cancelation of upwards of a thousand VA contracts totaling roughly $2 billion and covering a huge variety of work VA does, everything from funeral care to doctor recruitment. As I reported last night, VA contract officers were sent an Excel spreadsheet of almost a thousand contracts in the early morning of February 21st, told that all of these contracts should be canceled and that if anyone wanted to make a case to spare individual contracts they had until the end of business that day (February 21st) to make their case. My sources noted that the contract code on all of these contracts was NAICS – 541611, which is “Administrative Management and General Management Consulting Services.” It’s very clear the DOGE people pulled up everything under that label and slated it to be cut. My sources’ impressions are that the DOGErs making these decisions read that label as basically, McKinsey/MBA consulting type bullshit, easy stuff to cut. At VA, most of it wasn’t that at all. But they didn’t seem to make any attempt to look under the hood at what those contracts were.
JoinReviewing a directive from DCPAS Director Daniel J. Hester. This applies to DOD civilian personnel. On Friday the 28th, they “must terminate the employment of all individuals who are currently serving probationary or trial periods in the DOD.” The document lists categories of exception: positions “designated mission critical,” “political appointees.” There are a few other technical exception categories. Document signed yesterday.
As I wrote below, yesterday VA Secretary Collins was out bragging that he and DOGE had found more than $2 billion of BS professional services contracts that they were cutting right away. Then today the whole thing blew up in their faces. The contracts weren’t at all what they’d described and they either didn’t know or didn’t care that the great majority of those contracts were with what are called service-disabled veteran-owned small businesses — SDVOSBs. I’ve done some poking around and I can share a bit more about how this seems to have happened. It’s probably a microcosm of damage being wrought across the executive branch.
Here’s my understanding. DOGE is looking for contracts to cut at the VA, a repeat of what we’ve seen across numerous agencies. They come across a contract code (NAICs 541611) that is listed as “Administrative Management and General Management Consulting Services.” So they figure, okay, this is some McKinsey-type BS. We can definitely cut that.
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Yesterday I saw a video from VA Secretary Doug Collins (former member of Congress from Georgia) bragging about how they were cutting $2 billion worth of what were clearly, in his estimation, worthless and stupid contracts. They were in fact almost one thousand different contracts tied to everything from medical and burial services to cancer prevention and doctor recruiting programs. I’ve posted that video below. This afternoon I received this email from a longtime reader …
Read MoreI’m a contractor working for a service-disabled veteran-owned small business (SDVOSB) for 15 years. I’ve worked on projects with the Veterans Benefit Administration and the Veterans Health Administration. During that time, I’ve run marketing campaigns to get veterans to enroll in healthcare, conducted program evaluations and process improvement efforts, and provided strategic communications support.
Often there’s business news on at the gym where I go to work out each day. I’ve noticed over the last handful of days that CNBC has had a series of chyrons over their panels, all of which are some version of “why is the market so downbeat all of a sudden?” There are also some similar ones about consumer confidence, which has also been dropping. Economies are complex and no shift — including temporary ones — can be definitively ascribed to a single factor. But as I’ve watched this, I’ve been struck by how little discussion there is of one fairly straightforward explanation.
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I’ve spent the last 24 hours trying to confirm or refute pervasive rumors throughout the Social Security Administration that the agency is about to announce an across-the-board cut of 50% of staff. The decision was purportedly announced at an afternoon meeting yesterday by Acting Commissioner Leland Dudek. He asked for a plan for 50% cuts to be presented to him this afternoon. I have not been able to confirm this. But David Dayen at The American Prospect appears to have found two people who were in the meeting and do confirm it. Here’s David’s report.
It’s been hard to imagine that they were actually contemplating this, not because it’s horrible but because it’s likely to have such dramatic (and likely political costly) impacts on tens of millions of Americans. But here we are.
I had been planning, today or tomorrow, to write a post giving everyone a heads up that next week we kick off our annual TPM membership drive. I like to do that because when the drives coincide with major news events, or even public crises, I want to remind people that these are fixed annual events, a key part of our business model, etc. We’re not dropping one in just because it’s a period of high news interest. But my thinking about this changed a bit when I saw the news this morning that Jeff Bezos appears to be taking direct control of the paper’s opinion pages, saying they will now focus on promoting “personal liberties” and “free markets,” and will not publish contrary opinions. As I’ve noted before, the editorial page is literally where the paper itself speaks. It speaks for the ownership. Owners bringing those voices into line with their personal beliefs isn’t a crazy thing — entirely different from putting a thumb on the direction and integrity of news reporting.
I took a moment to think what “personal liberties” meant. If the line were “democracy and free markets” or “the rule of law and free markets” or even “freedom and free markets,” that reads quite different. In context, it’s pretty clear the meaning of this is a hard right/libertarian kind of politics. Bezos is the owner. He calls the shots. But if we are now moving into a world and a politics of the oligarchs vs. the people, it’s pretty clear that the Washington Post as an institution is firmly attached to Team Oligarch.
Which brings us back to our drive, kicking off next week. We’re in a new era. We’re not new. But the ways we differ from other news organization are much more consequential now than they have been at really any other point in our history. So when we kick off this year’s drive, please keep that in mind. Please consider subscribing if you don’t already. Consider suggesting it to your friends.
We mentioned on Monday that the Office of Special Counsel had found that six federal civil servants from six separate agencies had been unlawfully terminated from their positions. Now the Merit Systems Protection Board has granted the request to halt those terminations. Needless to say, this all sounds very technical and bureaucratic, and it’s not at all clear just what it means. I’m kind of there too. I think the best way to put it is that there are agencies within the federal government charged with deciding what kinds of dismissals are and are not okay. The OSC is a sort of finder of fact. It decided these terminations were unlawful. Then it brings it to this board and ask them to reinstate these people. That’s what just happened.
JoinThere are a couple stories today that require understanding something about DOGE’s predecessor institution. So here goes.
Read MoreA short time ago, I broke the news that the acting Commissioner of the Social Security Administration has abolishing CREO, the SSA’s statutory civil rights and equal opportunity division. He also put all employees of the division on immediate leave; that’s the standard DOGE approach, the closest you can get to firing those people, which will presumably become formal soon. Acting Commission Leland Dudek was a mid-level SSA staffer until about a week ago, when he was caught making unauthorized leaks of SSA information to DOGE. He was in the process of being fired when he was elevated over at least one hundred more senior agency executives to running the whole agency.
I am told that other steps of similar gravity and equally questionable legality are also either in process or expected.
This is a developing story.