DOD unexpectedly cancels controversial wearable biometric contract

The Defense Health Agency (DHA) has canceled its $96 million solicitation for wearable biometric devices, specifically ring trackers. The decision concludes a contentious process marked by vendor protests, allegations of favoritism, and broader shifts in defense spending priorities.​

In August 2024, DHA announced a $96 million sole-source contract to Ouraring Inc., the U.S. subsidiary of Finnish company Oura Health, for wearable biometric sensor devices and associated wellbeing services. The contract aimed to provide Oura’s smart rings to monitor various physiological metrics, including stress levels, recovery, resilience, and overall well-being. The initiative sought to enhance the health monitoring capabilities of medical staff, potentially leading to improved performance and reduced burnout. ​

DHA’s decision faced immediate challenges, particularly from WHOOP, a competitor in the wearable technology market. WHOOP filed a protest with the Government Accountability Office (GAO) in October 2024, arguing that the sole-source award lacked sufficient justification and that the requirement for a ring-form factor was unduly restrictive, effectively excluding other wearable devices capable of meeting DHA’s needs. ​

In response to the protest, DHA canceled the initial sole-source contract. However, in November and December 2024, the agency issued new requests for information and proposals, still specifying the need for a ring-based wearable device. This continued emphasis on the ring form factor led WHOOP to file a second protest in January, alleging that the solicitation was tailored to favor Oura’s technology and did not allow for fair competition.

The developments surrounding DHA’s wearable device program have attracted attention from lawmakers concerned about procurement practices and budgetary decisions. Some members of Congress have expressed alarm over potential vendor favoritism and the integrity of the contracting process. Representative Morgan Luttrell, a member of the House Armed Services Committee’s Cyber, Information Technologies, and Innovation subcommittee, emphasized the need for competitive processes that allow innovative American companies to participate. ​

As of early March, DHA had not publicly announced the final outcome regarding this solicitation or any alternative plans for procuring wearable biometric devices. The GAO’s decision on WHOOP’s second protest is pending, with a response expected by mid-April. ​DHA did not provide details on why it cancelled the solicitation other than to say, “This acquisition is no longer required.”

The cancelation seems to underscore the challenges the Department of Defense (DOD) faces in integrating new technologies while ensuring fair competition and addressing concerns about vendor favoritism. The outcome of this dispute could have broader implications for future procurement strategies within the defense sector, particularly concerning the balance between innovation adoption and adherence to fair contracting practices.

The cancellation of the wearable solicitation aligns with broader changes in the Pentagon’s budgetary priorities under the Trump administration. Defense Secretary Pete Hegseth initiated a comprehensive review of DOD’s fiscal year 2026 budget, aiming to reallocate approximately $50 billion – about 8% of the proposed budget – to align with President Donald Trump’s defense priorities. These priorities include enhancing border security and developing a domestic missile defense system referred to as the “Iron Dome for America.”

DHA’s cancelation of the Oura contract followed the reputed forced retirement of DHA Director Army Lt. Gen. Telita Crossland, a distinguished officer with a 32-year military career. The unexpected move is seen as aligning with a broader reorganization within the Pentagon under the Trump administration. ​Despite the public announcement of her retirement, reports indicate Crosland was directed to step down without a provided rationale. The development occurred shortly after significant changes in military leadership, including the dismissal of the Chairman of the Joint Chiefs of Staff and other senior officers. Crosland’s departure raises concerns about the future direction of DHA and its initiatives.

The Trump administration’s Pentagon budgetary realignment necessitates cuts to various programs, particularly those deemed low-impact or low-priority. The focus is on eliminating bureaucratic inefficiencies and programs related to climate change and diversity, equity, and inclusion initiatives. The objective is to streamline defense spending to support direct combat capabilities and address emerging threats more effectively. ​

DHA’s decision to cancel the wearable device solicitation reflects this shift in priorities. While the agency did not provide specific reasons for the cancellation, the broader context of budgetary reallocation suggests that programs not directly contributing to immediate defense capabilities are under increased scrutiny. The wearable device program, primarily focused on monitoring the well-being of medical personnel, may have been deprioritized in favor of initiatives with more direct defense applications.​

The cancellation has elicited varied responses from industry stakeholders. An executive from Oura expressed disappointment, highlighting the potential benefits of the program in reducing burnout and operational inefficiencies among DHA personnel.

“This contract was meant to be an efficiency initiative, and we believe that the DHA had a clear business case for how this would have reduced costs and operational inefficiencies from burnout,” a Oura executive told Breaking Defense. “If the insights gained from a successful wearable-led initiative at DHA led to even just a 1% reduction in burnout and turnover, then the contract would have achieved a positive return on investment for an agency that spends billions of dollars on staffing.”

On the other hand, WHOOP’s successful protests underscore the importance of fair competition in defense contracting. The company’s actions have drawn attention to the need for transparent procurement processes that allow multiple vendors to compete, potentially leading to better value and innovation for DOD.​

The situation also raises questions about the future integration of wearable technologies within the military. While the canceled program focused on medical personnel, wearable devices have broader applications, including monitoring the health and readiness of combat troops. As DOD continues to modernize its forces, finding cost-effective ways to incorporate such technologies without compromising other critical programs will be a key challenge.​

Additionally, the broader budgetary shifts orchestrated by Hegseth have sparked debate on Capitol Hill. While some lawmakers support reallocating funds to address emerging threats and enhance border security, others caution against cuts that could undermine military readiness and long-term modernization efforts. The tension between immediate defense needs and sustained investment in future capabilities remains a central theme in these discussions.​

The cancellation of DHA’s $96 million wearable device solicitation reflects the complex interplay between technological innovation, procurement integrity, and shifting defense priorities. As DOD undergoes significant budgetary realignments to address evolving threats and strategic objectives, programs like the wearable device initiative are likely to face increased scrutiny.

Article Topics

biometric data  |  biometrics  |  Department of Defense  |  government purchasing  |  military  |  Oura  |  tender  |  U.S. Government  |  wearables  |  Whoop