Pentagon’s Chief and US Defense Secretary, Pete Hegseth responsible for ordering termination of IT and Consulting Contracts with Deloitte and other firms//Photo courtesy
The Pentagon announced that it would terminate $5.1 billion in IT and consulting contracts with firms like Deloitte, Accenture and Booz Allen Hamilton.
The contracts canceled include major deals for cloud services, consulting, and IT support across various defense agencies; with plans to in source these tasks and negotiate better rates for essential services.
This step aligns with their initiative to cut costs and reallocate funds towards military priorities, such as; provision of healthcare services for their members
“There has been wasteful spending on non-essential services that could be handled internally, estimating nearly $4 billion in savings.” Defense Secretary Pete Hegseth said.
“The savings would be reallocated to serve critical priorities to revive the Warriors Ethos, rebuild the military, and re-establish deterrence.” he added
Hegseth also acknowledged and expressed his gratitude to Elon Musk and DOGE, under which there have been cost-cutting actions, specifically targeting federal spending across various agencies that have championed layoffs of thousands of federal workers and withdrawal of foreign aid programs.
“The Pentagon recently failed its seventh consecutive audit, suggesting that the agency’s leadership has little idea how its annual budget of more than $800 billion is spent.” Musk and Vivek Ramaswamy wrote in an op-ed article for the Wall Street Journal.
Following Ramaswamy and Musk’s publication, Hegseth announced last month that the Defense Department was terminating over $580 million in programs, contracts and grants that DOGE had identified as wasteful spending.
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