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3w ago

Pentagon Cuts $5.1 Billion in Contracts with Accenture, Deloitte, and Booz Allen

Defense Secretary Pete Hegseth targets nonessential IT and consulting services, reallocating funds toward critical defense priorities.

A logo of Deloitte sits outside the Meta House on the opening day of the 55th annual meeting of the World Economic Forum (WEF) in Davos, Switzerland, January 20, 2025. REUTERS/Yves Herman/File Photo
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Overview

  • Defense Secretary Pete Hegseth announced the termination of $5.1 billion in Department of Defense contracts on April 11, 2025.
  • The cuts include major contracts with consulting firms Accenture, Deloitte, and Booz Allen Hamilton for services deemed nonessential.
  • Hegseth emphasized a shift to in-house civilian workforce solutions to replace outsourced IT and consulting services.
  • Eleven additional contracts related to Diversity, Equity, and Inclusion initiatives, climate programs, and COVID-19 response were also canceled.
  • The terminations are expected to save nearly $4 billion, contributing to a broader $6 billion effort to eliminate wasteful spending and bolster warfighting capabilities.