Today is the deadline for some of the largest consulting firms in the world to justify their billion-dollar federal contracts as President Donald Trump and Elon Musk’s DOGE move to cut costs.
The General Services Administration had ordered agencies to review contracts with 10 major consulting firms, including Deloitte, Accenture, Booz Allen Hamilton and IBM.
Since Trump’s inauguration, over 30 contracts have been canceled, including a $1.9 billion IRS IT services deal with Deloitte.
More to come
Consulting firms charged $500 billion from federal agencies from fiscal years 2019 through 2023, and the DOD accounted for over 46% of the amount. Defense Secretary Pete Hegseth directed the agency to conduct a full review and eliminate non-essential contracts.
Industry analysts like Source Global warn that uncertainty is causing widespread concern. The $6 billion public sector consulting market is now expected to flatline in 2025 and decline in 2026.
But, data published by DOGE indicates that 794 out of 2,300 contracts terminated in recent weeks (around 40%) will yield no savings. Despite this, the agency remains positive, claiming canceled contracts will save nearly $10 billion.