Pentagon Axes $5.1 Billion in IT and Consulting Contracts With Accenture, Deloitte

Defense Secretary Pete Hegseth has ordered the termination of multiple IT and consulting contracts with firms including Accenture, Deloitte, and Booz Allen Hamilton, describing them as 'wasteful spending.'

A Department of Defense memo indicates the cuts target the Defense Health Agency's consulting services contract and the Air Force's agreement with Accenture to 're-sell third-party Enterprise Cloud IT Services,' services the government can 'already fulfill directly with existing procurement resources.'

The terminations also include 11 other contracts supporting 'non-essential' activities like DEI programs, climate initiatives, and COVID-19 response efforts. The cuts represent $5.1 billion in spending and will yield nearly $4 billion in savings, according to Hegseth. The funds will be redirected toward 'critical priorities to Revive the Warrior Ethos, Rebuild the Military, and Reestablish Deterrence,' with Hegseth noting the money would better serve 'healthcare for our warfighters and their families, instead of $500 an hour business process consultant.'

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