US Defense Secretary Pete Hegseth has directed the termination of $5.1 billion in contracts for “ancillary things like consulting and other nonessential services,” as part of his partnership with Elon Musk’s government efficiency task force.The cuts include consulting services from companies such as Accenture, Booz Allen Hamilton Inc., and Deloitte US serving the Defense Health Agency, which would save $ 1.8 billion, Hegseth said in a video posted on X Thursday evening.
A $500 million US Navy contract for business process consulting as well as a $1.4 billion software reseller contract for cloud IT services are also on the list for cuts, Hegseth said.
Cutting a Defense Advanced Research Projects Agency contract for IT help-desk services that is “completely duplicative” would also free up $500 million, according to the secretary. On the list to be terminated are contracts for diversity, equity, and inclusion programs as well as climate and coronavirus response, Hegseth said.Hegseth has been among the most vocal supporters of Musk’s Department of Government Efficiency cost-cutting efforts. The Defense Department, with a budget totaling about $850 billion a year and overseeing some 2 million employees, is the government’s largest.
A $500 million US Navy contract for business process consulting as well as a $1.4 billion software reseller contract for cloud IT services are also on the list for cuts, Hegseth said.
Cutting a Defense Advanced Research Projects Agency contract for IT help-desk services that is “completely duplicative” would also free up $500 million, according to the secretary. On the list to be terminated are contracts for diversity, equity, and inclusion programs as well as climate and coronavirus response, Hegseth said.Hegseth has been among the most vocal supporters of Musk’s Department of Government Efficiency cost-cutting efforts. The Defense Department, with a budget totaling about $850 billion a year and overseeing some 2 million employees, is the government’s largest.
The Trump administration has faced a number of lawsuits in its attempts to abruptly cancel contracts at other agencies that DOGE has reviewed.
Hegseth did not mention any termination costs that might be associated with canceling the contracts. Often, there are fees associated with such actions.
