Pentagon slashes $5.1 billion in contracts with Accenture, Booz Allen, and Deloitte

[Skye Jacobs]

In brief: The Defense Department, which manages an $850 billion annual budget and employs two million people, is the largest federal agency – and it has long faced scrutiny over wasteful spending and dark budgets. A new reallocation plan seeks to reduce dependence on outside contractors and shift resources toward in-house operations.

United States Defense Secretary Pete Hegseth has cut $5.1 billion in defense contracts for consulting and nonessential services. The move targets redundant agreements, with plans to shift much of the work to in-house personnel.

The cuts include a range of consulting deals with major firms like Accenture, Booz Allen Hamilton, and Deloitte, which have been providing services to the Defense Health Agency. Hegseth noted in a video posted to X that these terminations alone will save $1.8 billion. Other notable reductions include a $500 million US Navy contract for business process consulting and a $1.4 billion cloud software reseller agreement.

New @DOGE findings, this time it's $5.1 billion. pic.twitter.com/vHRnDHZSUS

– Secretary of Defense Pete Hegseth (@SecDef) April 10, 2025

Hegseth also cut a $500 million DARPA contract for IT help-desk services, calling it "completely duplicative." Additional terminations target contracts supporting diversity, equity, and inclusion programs, climate initiatives, and coronavirus response efforts – areas Hegseth described as peripheral to core defense operations.

In an internal Pentagon memo, Hegseth said the Defense Department's civilian workforce could take over many consulting services currently outsourced to third-party firms. For example, he identified the Air Force's contract with Accenture to resell enterprise cloud IT services as a need that existing government procurement resources could directly fulfill.

In addition to terminating contracts, Hegseth directed the Pentagon's chief information officer to work with Musk's task force over the next 30 days on a plan to insource IT consulting and management services across the department. The memo also called for negotiating more favorable rates on cloud computing.

The Defense Department is redirecting the funds saved from contract terminations to enhance military readiness, advance cutting-edge technologies, and strengthen national security infrastructure. Key areas receiving increased funding include missile defense systems, hypersonic weapons, artificial intelligence, and cybersecurity.

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Pentagon slashes $5.1 billion in contracts with Accenture, Booz Allen, and Deloitte

 

[VitalyT]

I can only comment on account of Deloitte, which is an atrocious leech, charging over 10 times worth for the service they provide.

 

[pnntmp]

The number of completely useless leeches is probably in the thousands.

It's a total absurdity the DoD to have diversity, equity, and inclusion programs or climate initiatives. This is the fukcin' military, not a Marxism -infested college. These idiocies are extremely dangerous, not merely a waste of money.

 

[ScottSoapbox]

They are NOT cuts if the funds are redirected to other spending.

 

[airbornex]

Say what you will, but reallocating from PowerPoint consultants to hypersonic defense systems is the most defense-y thing the DoD could do. Now let’s see if the savings actually stick and don’t get eaten up by another round of bureaucratic overhead.

 

[kiwigraeme]

I can only comment on account of Deloitte, which is an atrocious leech, charging over 10 times worth for the service they provide.

When I decided to get a job out of Uni, went to work for them, left after 5 months as did not pay enough - I had a 99% charge out as well. But then we called it Delays , hassles and stalls ( struggle to remember what the firms the H and S were- as mostly called Deloittes .
Once the big 3 had to make some payouts . T.R , E & Y, they lawyered up and now nearly impossible to extract money no matter how incompetent they are

Plus the get cruisey contracts form Govt, CEO to cover thy a** of decisions already made. BS data , BS rationalisations etc

Look at something we all see Olympics, or a New Stadium , hosting an event = does ANYONE believe the ROI figures for any of this - I don't, not to say you shouldn't do this stuff , as intrinsic reasons may be more stronger

The other joke was at interview gave spiel you to could become a partner, do endless OT , come in an work for free in weekends. Knew that was complete BS from day one , you became a partner from who your family or connections were, but saw all these bushy eyed recruits beavering away hopefully

Then went to work for Inland Revenue - learnt a bit about human nature - same overriding rule as in Law, trust no one , kept your mouth shut , omerta. Amazing how many "big" people end up in prison as can't shut their mouths and/or not show off

 

[SRB]

When I decided to get a job out of Uni, went to work for them, left after 5 months as did not pay enough - I had a 99% charge out as well. But then we called it Delays , hassles and stalls ( struggle to remember what the firms the H and S were- as mostly called Deloittes .
Once the big 3 had to make some payouts . T.R , E & Y, they lawyered up and now nearly impossible to extract money no matter how incompetent they are

Plus the get cruisey contracts form Govt, CEO to cover thy a** of decisions already made. BS data , BS rationalisations etc

Look at something we all see Olympics, or a New Stadium , hosting an event = does ANYONE believe the ROI figures for any of this - I don't, not to say you shouldn't do this stuff , as intrinsic reasons may be more stronger

The other joke was at interview gave spiel you to could become a partner, do endless OT , come in an work for free in weekends. Knew that was complete BS from day one , you became a partner from who your family or connections were, but saw all these bushy eyed recruits beavering away hopefully

Then went to work for Inland Revenue - learnt a bit about human nature - same overriding rule as in Law, trust no one , kept your mouth shut , omerta. Amazing how many "big" people end up in prison as can't shut their mouths and/or not show off

The best part of all of this, no mater where in the US, but especially the government, it that when you do find this stuff and put and end to it, EVERYBODY screams "You can't do that!"

 

[Rudyduu]

Any claims of saving money by canceling contracts is wrong. Contracts are paid upfront, so the money was already spent. Cutting a contract short just means the contracting company gets the keep the money for providing no services until the end of the contract or renewal period.

Say what you will, but reallocating from PowerPoint consultants to hypersonic defense systems is the most defense-y thing the DoD could do. Now let’s see if the savings actually stick and don’t get eaten up by another round of bureaucratic overhead.

Hypersonic defense is one thing, but hypersonic weapons are mostly a waste of money, they cost significantly more and take much longer to manufacturer than conventional precision guided munitions. They may have a place in the military, but they would be used sparingly in actual combat since their numbers would be very limited.

 

[loki1944]

They are NOT cuts if the funds are redirected to other spending.

They are cuts in the sense of contracts being cut.

 

[Rudyduu]

They are cuts in the sense of contracts being cut.

Contracts aren't paid after they are completed; they are paid when they start.

 

[lonetac]

If we didnt build 3 fighter jets or 10 missiles we could end poverty/homelessness in America and likely hunger too.