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The Pentagon has completed $ 4 billion IT service contracts with company including Deloitte, Accenture and Booz Allen Hamilton as part of the Consulting Consultation Expenditure Expenditure of Trump Administration.
Defense Secretary Pete Hegseth stipulated that contracts would be “non -essential expenses for third party consultants” which could be more efficiently carried out by Pentagon employees, according to a memorandum he issued on Thursday.
Hegseth said contracts represented “5.1 billion dollars in vain expenses” and cancellations would result in “nearly $ 4BN in valued savings”. More than $ 1 billion has already been disbursed.
The Pentagon canceled the contracts that Accenture, Deloitte, Booz Allen and other firms had with the Defense Health Agency and terminated a separate Air Force contract with Accenture.
Hegseth also ordered the termination of 11 other counseling contracts that “support diversity, capital and inclusion (Dei), climate, Covid-19 response, and other non-essential activities”.
Despite the cuts, US President Donald Trump and Hegseth earlier this week promised the first $ 1TN budget for the Defense Department.
Contract cuts come amid increasingly acrimonial attacks on counseling groups from the general services administration, which helps coordinate government procurement.
The ten senior firms, including Deloitte, IBM and Booz Allen, were asked last month to identify potential savings as part of a “expense spending consultant”, but their answers were considered “offensive” by the administration.
As a result, companies were given a new April 18 deadline to identify more cuts, restructuring contracts into “results -based” or “common courses” and offer the federal government a “loan” for what GSA judges it has been excessive income during Biden years.
GSA did not respond immediately to a comment request if Pentagon cuts were the result of new requests. Booz Allen, Deloitte and Accenture did not respond immediately to the commentary requests.
In a podcast last month, Treasury Secretary Scott Bessent highlighted Booz Allen, who makes almost all of his income from government contracts, as one of the companies included in the “GRIFT” claim and said landing government contractors would be one of the largest sources of administration savings.
Booz Allen this week said that “welcomes the challenge to foster the best value” for American taxpayers. “We are engaged in good faith in a very necessary process to help the government increase efficiency,” she said. “We look forward to demonstrating our skills for the administration.”
Cancellations from Hegseth come as the so -called Elon Musk Department Department, increasingly aiming at what he sees as wild expenses for advisory contracts.
Last week, Doge celebrated the termination of contracts for “Google AdWords Management” and “Global Advisory and Support Services” for the Palau Pacific Pacific, among other things.
Separately Thursday, GSA reached a Google deal to reduce the cost of software and services, including artificial intelligence tools for the federal government.
Counseling cuts also come as Pentagon attracts 5 to 8 percent of its civil workforce, gathering employees who considers them “non-mission”.
But sitting along with Israeli Prime Minister Benjamin Netanyahu on Monday at the Oval Office, Trump said the budget would hit “1tn $ and no one has seen something like that.”
