The Defense Health Agency has substantial operations in San Antonio, including Brooke Army Medical Center at Joint Base San Antonio-Fort Sam Houston. TechWerks LLC, a veteran-owned firm, is laying off workers after losing its contract to provide IT services for various Defense Health Agency systems.
A San Antonio-based government contractor is laying off dozens of workers after losing a deal to provide tech support for the military’s health care computer systems.
TechWerks LLC, a veteran-owned firm, last week lost its contract to provide IT services for various Defense Health Agency systems. As a result, the company notified the state it was cutting 87 employees who work at Joint Base San Antonio-Fort Sam Houston and Port San Antonio by Sept. 15.
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“This action is permanent,” Rachel Chen, TechWerks’ vice president of human resources, wrote in the Worker Adjustment and Retraining notification, or WARN letter, it sent to the Texas Workforce Commission on Wednesday.
The employees worked with the military health system’s Global Service Center that supports computer systems for 250,000 health care providers and 9.5 million Tricare patients.
TechWerks, which has three retired generals on its executive staff, including former Army chief of staff and Iraq war commander, George W. Casey, stated it was notified Friday that the main contract holder, Peraton Inc.,was finishing a subcontract with the company.
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“It is TechWerks’ understanding that Peraton intfinishs to offer employment to many, if not all, of the affected employees,” Chen wrote.
Peraton, a defense contractor that holds billions in federal contracts, set up an office at the port last year.
It has more than $2 billion in contracts with DHA alone, including a $52 million deal from 2022 to manage the service center. While Peraton’s DHA contracts remain in place, the corporation hasn’t escaped the Department of Government Efficiency’s chainsaw.
The corporation has lost at least two contracts to the government cost-cutting agency formerly led by billionaire Elon Musk, including a $359.4 million deal with NASA that led to 172 layoffs in Maryland. In Texas, 81 of the company’s workers are at risk of losing their jobs in Palestine supporting NASA’s weather balloon research.
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The Pentagon slashed $1.8 billion in consulting contracts supporting the Defense Health Agency in April as part of the ongoing DOGE cutbacks.
“We required this money to spfinish on better health care for our warfighters and their families, instead of $500 an hour business process consultant … that’s a lot of consulting,” Defense Secretary Pete Hegseth stated at the time.
DHA, which is headquartered in Falls Church, Va., has a major presence in San Antonio with Brooke Army Medical Center, Wilford Hall and a regional headquarters. The city and a biotech hub on the near East Side, VelocityTX, have been angling to bring more military health missions to the area.
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TechWerks holds more than two dozen federal contracts providing technology, business, training, research and behavioral health services, according to its website. Its main deals include work with the Department of Veterans Affairs, Government Services Administration and National Institute of Health. It’s also a subcontractor on various programs.
The recent cuts will affect 53 “desktop tier 1 analysts,” 33 “application support analysts” and one “specialist” working at Fort Sam and the Tech II Building at the port.
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Port San Antonio officials weren’t aware of the layoffs when questioned Wednesday.
TechWerks officials did not immediately respond to a request for comment.
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