Is Washington finally tackling wasteful federal spending? The Trump administration is taking aim at billions in consulting contracts deemed “non-essential,” putting major firms like Deloitte and IBM on notice.
At a Glance
- Trump administration reviewing consulting contracts with 10 major companies worth over $65 billion
- Federal agencies must terminate non-essential consulting contracts unless deemed mission-critical
- Target companies include Deloitte, Accenture, Booz Allen Hamilton, and IBM
- Agencies must submit lists of contracts they’re keeping or cutting by March 7
- Initiative is part of broader Executive Order to centralize tracking of government spending
Trump Admin Launches Consulting Contract Crackdown
The Trump administration has launched a comprehensive review of federal consulting contracts with at least 10 major companies as part of its effort to eliminate wasteful government spending. The initiative targets industry giants including Deloitte, Accenture Federal Services, Booz Allen Hamilton, General Dynamics, and IBM, among others. These firms collectively stand to receive more than $65 billion in fees in 2025 and beyond, making this review a significant part of the administration’s fiscal responsibility agenda.
The General Services Administration (GSA) has directed federal agencies to terminate contracts with these firms unless they can be verified as mission-critical and providing essential technical support. This move aligns with President Trump’s longstanding commitment to “drain the swamp” by reducing unnecessary government bureaucracy and expenditure. Federal agencies have until March 7 to submit detailed lists of which contracts they intend to keep or terminate, with signed statements verifying the necessity of any retained contracts.
The companies targeted in this review hold prime positions on OASIS, the government-wide contract vehicle for acquiring professional services. Six of the top ten spending recipients on OASIS are among those listed in the administration’s memo. The scale of potential savings is substantial, with the administration aiming to redirect billions away from what it considers non-essential consulting services back to American taxpayers.
The Department of Government Efficiency has been at the forefront of promoting these contract cancellations, though some of its savings calculations have faced skepticism. Critics argue that many consulting services provide crucial technical expertise that government agencies lack internally. However, administration officials counter that a significant portion of these contracts represent unnecessary spending that has ballooned over decades without proper oversight.
DOGE: The Greatest Procurement Transformation Story Ever Told?
It All Starts with Spend Analytics
DOGE (the Department of Government Efficiency) is the procurement story of the century. Full stop.
As someone who has spent my career covering procurement and procurement… pic.twitter.com/MoSmFn5hK4
— J.D. Busch (@jasondbusch) February 7, 2025
Industry Response and Implementation Timeline
Reactions from the targeted companies have been mixed. IBM has expressed support for the initiative, emphasizing its alignment with more efficient government operations.
“For decades, IBM has been advocating the use of technology to help U.S. federal agencies streamline operations, increase efficiency and deliver better return on taxpayer dollars,” an IBM spokesperson stated. Meanwhile, other major contractors including GDIT, CGI, and Leidos have declined to comment on the review.
The initiative is part of a broader effort outlined in a new executive order to centralize technology for recording contract payments and justifications. This centralized approach aims to bring greater transparency to government spending and create a more accountable federal bureaucracy.
Trump is well and truly cleaning house!
