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Government cuts $5.1 billion in consulting contracts as firms face commercial pivot

Article by Grace Harmon  |  Apr 11, 2025
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Government cuts $5.1 billion in consulting contracts as firms face commercial pivot
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Internet
US

The news: The US government canceled $5.1 billion in IT services contracts with Accenture, Deloitte, Booz Allen, and others to reduce “wasteful spending.”

  • The contract terminations will save about $4 billion and decrease “non-essential” spending on third-party consultants, US Secretary of Defense Pete Hegseth said in a memorandum.
  • Hegseth added that the Department of Defense (DoD) and Department of Government Efficiency (DOGE) plan to in-source IT consulting and management services and negotiate more favorable rates for software and cloud services.

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