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Pentagon to end $5.1 billion in contracts with Accenture, Deloitte, others
Published by Global Banking & Finance Review®
Posted on April 11, 2025
2 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on April 11, 2025
2 min readLast updated: January 24, 2026
The Pentagon is terminating $5.1 billion in IT contracts with firms like Accenture and Deloitte to save $4 billion, focusing on in-sourcing services.
(Reuters) -U.S. Defense Secretary Pete Hegseth has ordered the termination of several information technology services contracts valued at $5.1 billion, including companies such as Accenture and Deloitte, according to a Pentagon memo.
The pacts "represent non-essential spending on third party consultants" for services Pentagon employees can perform, Hegseth said in the memo released late on Thursday.
"These terminations represent $5.1 billion in wasteful spending" Hegseth said, adding that their termination would result in "nearly $4 billion in estimated savings."
Representatives for Accenture and Deloitte and Booz Allen Hamilton, also among those with contracts, did not immediately respond to requests for comment.
The contracts appeared to be wide-ranging cuts to consulting services for the Navy, the Air Force, the Defense Advanced Research Projects Agency (DARPA) and the Defense Health Agency.
In a video posted on X, Hegseth said the contracts were for "ancillary things like consulting and other non-essential services." He said the services would be brought in-house.
In the memo Hegseth said he was directing the Pentagon's chief information officer to work over the next 30 days with tech billionaire Elon Musk's Department of Government Efficiency to prepare a plan to cut and in-source the Defense Department's information technology consulting and management services.
Additionally, the memo said the Pentagon would negotiate the "most favorable rates" for cloud computing services.
(Reporting by Ismail Shakil in Ottawa; Editing by Clarence Fernandez and Howard Goller)
The main topic is the Pentagon's termination of $5.1 billion in IT contracts with companies like Accenture and Deloitte to cut costs.
The contracts are being terminated as they represent non-essential spending, with the aim to save nearly $4 billion.
Companies like Accenture, Deloitte, and Booz Allen Hamilton are involved, with directives from U.S. Defense Secretary Pete Hegseth.
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