US government hails IT cuts as key part of billion-dollar Department of Defense savings

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DOD claims $5.1 billion to its list of savings

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(Image credit: Shutterstock/Africa Studio)
  • Defense Secretary Pete Hegseth has confirmed $5.1 billion in IT savings
  • They will be realized by terminating contracts with Accenture and others
  • DOGE has now enabled the DOD to save nearly $6 billion, Hegseth says`

$5.1 billion in IT contracts have been canceled by the Department of Defense (DOD) under the guidance of Elon Musk’s Department of Government Efficiency (DOGE), new evidence has shown.

Defense Secretary Pete Hegseth signed a memorandum detailing the cancellations, which mostly consisted of “consulting and other non-essential services.”

As Musk’s unit suggests, the DOD also claims to have enhanced efficiency by removing unnecessary steps and duplication, allowing it to allocate cash to other core areas of the agency’s scope, such as “better health care for our warfighters and their families.”

DOD terminates $5.1 billion in IT contracts

The terminated contracts include “$1.8 billion in consulting contracts the Defense Health Agency awarded to various private sector firms, a $1.4 billion enterprise cloud IT services contract awarded to a software reseller, and a $500 million Navy contract for business process consulting.”

Affected companies include Accenture, Deloitte, and Booz Allen.

Hegseth also noted a $500 million contract awarded to the Defense Advanced Research Projects Agency for IT help desk services was "completely duplicative" of services the Defense Information Systems Agency already provides.

The DOD also terminated 11 contracts related to diversity, equity and inclusion, climate change, and COVID-19.

Although the savings only account for a touch over half a percent of the DOD’s $883.7 billion budget, Musk’s goal to iron out unnecessary spending is at least commendable.

However critics have argued there are more factors to consider than simply how much a contract is costing, urging the government to agree on contracts that meet its requirements with more efficiency and to implement performance metrics.

More broadly for the DOD, this latest announcement follows from the recently confirmed $580 million cut to certain programs, contracts and grants, bringing the running total to nearly $6 billion in savings enabled by the DOGE.

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Craig Hale
Craig Hale

With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!

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