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Audit of Contracts Terminated in FY 2025 at HHS

Announced on  | Last Modified on  | Project Number: OAS 25-03-128

OBJECTIVE

As one of the largest contracting agencies in the Federal Government, HHS obligated more than $36.8 billion for 36,042 contracts in FY 2024. Since January 2025, HHS has terminated (full or partial), descoped, or not renewed more than 5,700 contracts. Part 49 of the Federal Acquisition Regulation establishes policies and procedures relating to the full or partial termination of contracts for the Government’s convenience. To terminate a contract, the Federal Government is required to send a written termination notice to the contractor and make a determination to release, or deobligate, excess funds. We will determine whether HHS terminated contracts in accordance with Federal requirements and applicable contract specifications.

TIMELINE

  • January 15, 2026
    Announced
  • Today
    Office of Audit Services In-Progress
  • Est FY2028
    Estimated Fiscal Year for Project Completion

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