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VA Software License Management: Optimizing Billions to Better Serve Veterans

By Laurie Shrout
May 21, 2025

VA Software License Management: Optimizing Billions to Better Serve Veterans

The Billion-Dollar Opportunity to Improve Veterans’ Care

When American veterans need healthcare or benefits, they expect the Department of Veterans Affairs (VA) to function efficiently. However, poor software license management might be delaying their care.

A recent Congressional hearing revealed a troubling reality: The Department of Veterans Affairs spends over $1 billion annually on software licenses without knowing how many licenses they have, whether they're being used, or if they're paying fair prices.

According to the Government Accountability Office (GAO), this mismanagement isn't just an administrative issue—it directly impacts the quality and timeliness of veterans' care and benefits.

"At the end of the day, every unused or duplicative software license that VA pays for isn't just a line item. It's a waste of taxpayer dollars and a missed opportunity. An upgrade that never happened, a fix that got delayed, a veteran waiting longer for the care they earned." - Chairman Barrett, House Veterans Affairs Subcommittee

Quote from Chairman Barrett of the House Veterans Affairs Subcommittee stating: 'At the end of the day, every unused or duplicative software license that VA pays for isn't just a line item. It's a waste of taxpayer dollars and a missed opportunity. An upgrade that never happened, a fix that got delayed, a veteran waiting longer for the care they earned.' The quote appears on a navy blue background with a burgundy quotation mark banner and the SIE Group logo at the bottom.

Key Findings from the GAO Report

The January 2024 GAO report "Federal Software Licenses: Agencies May Need To Take Action To Achieve Additional Savings" identified several critical issues:

  1. No Visibility into Software Spending: The VA cannot explain what they paid for specific software products bundled into license agreements because costs aren't broken down by product.
  2. No Usage Tracking: The VA cannot track whether purchased licenses for widely used software are actually being used.
  3. No Comparison Capability: The VA lacks the ability to compare software license usage to purchase records, preventing them from negotiating better deals or identifying cost savings.
  4. Restrictive Licensing Practices: Some software vendors impose restrictions that increase costs and limit the VA's ability to migrate to cloud computing solutions, as noted in a November 2024 government-wide report.
  5. Decentralized Procurement: Historically, the VA's 170+ medical facilities operated independently, making their own software purchases without central coordination.
Infographic detailing five key findings from the GAO report on VA Software License Management issues: No Visibility into Software Spending, No Usage Tracking, No Comparison Capability, Restrictive Licensing Practices, and Decentralized Procurement. Each finding includes a brief description and is accompanied by a relevant icon. The infographic cites the January 2024 GAO report and includes the SIE Group logo.

The Cost to Veterans and Taxpayers

This isn't just about money—it's about veteran care. Every dollar wasted on unused software licenses represents resources that could be directed toward:

  • Reducing appointment wait times
  • Upgrading medical equipment
  • Improving telehealth capabilities
  • Enhancing benefits processing systems
  • Hiring additional healthcare providers

The GAO testified that just by analyzing one software license, the VA previously saved $65 million over three years. With thousands of software titles in use across the VA, the potential savings could be in the billions.

According to industry research, organizations can cut software costs by up to 30% by implementing proper software asset management practices (Gartner). Applied to the VA's billion-dollar software budget, this could represent $300 million in potential annual savings.

Infographic showing the impact chain of software mismanagement on veteran care. The graphic displays four connected steps: 1) Unused Software, 2) Wasted Budget, 3) Fewer Resources, and 4) Longer Wait Times for Veterans. The background features military personnel reviewing documents, with the title 'The Hidden Cost of Software Mismanagement: Veteran Wait Times' at the top and the SIE Group logo at the bottom.

Steps Toward Improvement

The VA's Office of Information Technology (OIT) has begun implementing changes:

Recent Progress

  • Created a dedicated Software Asset Management (SAM) program
  • Invested in Tachyon software ($12 million) to provide visibility across 600,000 endpoints
  • Developing a centralized software repository
  • Achieved $136 million in cost avoidance on Microsoft licensing through better contract negotiation

On the To-Do List

  • Complete the full inventory of all software licenses (approximately 4,400 commercial off-the-shelf titles and 224 Software as a Service offerings)
  • Establish clear key performance indicators for software usage
  • Implement enterprise-wide standards to reduce duplicate software with similar functions
  • Address restrictive licensing practices that hamper cloud migration
  • Ensure accountability for software management decisions

The Trump Executive Order Impact

Adding complexity to VA’s challenges is Executive Order 14125 (March 20, 2025). The EO consolidates federal procurement for common goods and services, including IT, under the General Services Administration (GSA).

While consolidation could potentially increase purchasing power for commodity software like Microsoft Office, concerns exist about:

  • GSA's ability to handle VA's specialized healthcare software needs
  • Impact on VA's ability to quickly procure mission-critical software
  • Reduction in GSA's budget and staff while increasing responsibilities

Within 30 days of the order's issuance, GSA was designated as the executive agent for all government-wide acquisition contracts for IT (FedScoop). However, the order allows GSA to "defer or decline" this role when necessary to ensure continuity of service, which may provide flexibility for specialized VA software.

How The SIE Group Approaches Software Asset Management

At SIE, we understand the critical importance of effective software license management. Our teams have helped organizations similar to the VA identify and eliminate waste in their software portfolios while ensuring operational needs are met.

Our approach includes:

  1. Comprehensive Software Inventory: Creating a complete inventory of all software assets, including detailed usage metrics.
  2. License Optimization: Analyzing software usage patterns to identify unused licenses and opportunities for consolidation.
  3. Vendor Management: Negotiating favorable contract terms and challenging restrictive licensing practices.
  4. Governance Framework: Establishing clear policies and procedures for software procurement and management.
  5. Automated Monitoring: Implementing tools for continuous monitoring of software usage and compliance.

Take Action for Better Software Management

Whether you're managing IT for a government agency, healthcare organization, or private corporation, effective software license management is essential for controlling costs and maximizing value.

Poor software management will drain your budget and impact operations. If you want to prevent these negative outcomes, contact SIE today for a comprehensive software asset management assessment.

Schedule a Consultation

Our experts will help you identify opportunities for cost savings and operational improvements through better software license management.


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The SIE Group provides expert IT advisory services to government agencies and private organizations, specializing in digital transformation, IT governance, and strategic technology planning.