We describe the redesign and upgrade of the versatile fiber-fed Bench Spectrograph on the WIYN 3.5m telescope. The spectrograph is fed by either the Hydra multi-object positioner or integral-field units (IFUs) at two other ports, and can be configured with an adjustable camera-collimator angle to use low-order and echelle gratings. The upgrade, including a new collimator, charge-coupled device (CCD) and modern controller, and volume-phase holographic gratings (VPHG), has high performance-to-cost ratio by combining new technology with a system reconfiguration that optimizes throughput while utilizing as much of the existing instrument as possible. A faster, all-refractive collimator enhances throughput by 60%, nearly eliminates the slit-function due to vignetting, and improves image quality to maintain instrumental resolution. Two VPH gratings deliver twice the diffraction efficiency of existing surface-relief gratings: A 740 l/mm grating (float-glass and post-polished) used in 1st and 2nd-order, and a large 3300 l/mm grating (spectral resolution comparable to the R2 echelle). The combination of collimator, high-quantum efficiency (QE) CCD, and VPH gratings yields throughput gain-factors of up to 3.5.