The US Department of Defense (DoD) is set to slash consulting services that do not align with President Donald Trump’s priorities, according to a memo from Secretary Pete Hegseth. The move comes as the DoD reallocates $50 billion in the 2026 budget towards initiatives supported by Trump and Elon Musk.
The DoD has long been criticized for its heavy reliance on consulting firms, which can result in significant costs to taxpayers. The review of existing contracts aims to identify non-essential services that can be terminated or down-sized. However, the exact details of the cuts are still unclear.
Major players in the DoD’s consulting market include Booz Allen Hamilton, Deloitte, Accenture, and McKinsey & Company. These firms have high-value contracts with the DoD, providing a range of services including cybersecurity, AI, and mission support.
Booz Allen Hamilton, for example, reported defense-related revenue of $6.8 billion in 2022, while Deloitte has been awarded significant contracts worth hundreds of millions of dollars. Accenture also scores heavily from federal contracts, with its subsidiary focused exclusively on US government work.
The DoD’s review of consulting services is part of a broader effort to cut costs and reallocate funds towards initiatives aligned with Trump and Musk’s goals. While some cuts may be made, it’s unlikely that major, mission-critical contracts will be scrapped entirely.
Source: https://www.consulting.us/news/11466/us-department-of-defense-to-purge-consulting-services