Overview

• The Department of Defense has terminated $5.1 billion worth of IT and consulting contracts, including major deals with Accenture, Deloitte, and Booz Allen Hamilton.
• Defense Secretary Pete Hegseth described the contracts as 'wasteful spending' and announced plans to reallocate $4 billion in savings to bolster military readiness and capabilities.
• The cuts include $1.8 billion in consulting contracts from the Defense Health Agency and $1.4 billion in Air Force contracts for third-party cloud IT services.
• An additional $900 million in contracts supporting non-essential activities, such as DEI, climate change initiatives, and COVID-19 response, were also eliminated.
• The move is part of a broader DoD strategy to internalize services, reduce reliance on external consultants, and streamline operations for greater efficiency.