Doing the Math
$1.6B is the equivalent of 12,800 personnel years based on a salary of $125,000 per year.
If they are serving 18M veterans, they are then hoping to save 1.3 hours per veteran on average through these AI agents alone.
This seems incredibly high given the fact that all AI output still needs to be independently verified, and there are lots of cost-efficient options available for all kinds of use cases. And this one solution is probably not flexible enough to address all possible use cases. Also, add vendor lock-in to the mix, and it's clear where this is going.
Also, saving $440M on an amount of $7B is only 6%. If there are any downsides to the new contract, the cost savings will vaporize instantly and turn into a huge additional cost.