Among the ten major firms affected by the federal government’s ongoing consulting crackdown, Deloitte has experienced the most significant impact. Since January, Deloitte has had at least 127 of its government contracts either cut or modified, surpassing any other consultancy on the administration’s list by more than double. This analysis comes from Business Insider’s examination of data available on the Department of Government Ethics (DOGE) website.
Deloitte is one of ten high-earning consultancies under scrutiny as the administration aims to reduce waste and enhance efficiency. Other firms on this list include Accenture, Booz Allen Hamilton, IBM, and General Dynamics. According to DOGE, the cuts to Deloitte’s contracts will save taxpayers approximately $371.8 million. These savings include $51.4 million from a contract providing IT services to the Centers for Disease Control and Prevention and $1.1 million from a Diversity, Equity, Inclusion, and Accessibility (DEIA) training contract that began in 2020.
Deloitte’s US contracts with federal agencies were valued at $3.3 billion annually, nearly 10% of its most recent annual revenues, as stated in a recent earnings report. Booz Allen Hamilton, which derives almost all of its $11 billion in annual revenue from the public sector, is the second most affected firm, with 61 contracts cut.
Accenture has seen at least 30 contracts cut, resulting in $240.2 million in savings, according to DOGE’s data. During an annual earnings call last month, Accenture CEO Julie Sweet mentioned that DOGE’s cost-cutting measures have already impacted the firm’s revenues, with staff expressing concerns about potential layoffs.
The General Services Administration (GSA), the government’s largest procurement arm, is spearheading the effort to reassess federal consulting expenditures. In March, the GSA requested that these consultancies submit a scorecard detailing their pricing and suggestions for cost reductions. The GSA emphasized identifying “mission critical” contracts using simple language understandable to a 15-year-old.
Responses were due earlier this week, and a source at the agency informed Business Insider that the GSA and federal bodies are now reviewing the scorecards to determine further cuts. The goal is to reduce waste and transition toward a more outcome-based approach rather than open-ended contracts.
Here is the list of contracts cut and savings made, according to the DOGE website:
Deloitte: 127 contracts, $371.8 million
Booz Allen Hamilton: 61 contracts, $207.1 million
Guidehouse: 49 contracts, $128.7 million
Accenture: 30 contracts, $240.2 million
General Dynamics: 16 contracts, $202.7 million
IBM: 10 contracts, $34.3 million
Leidos: 7 contracts, + $78.5 million
CGI Federal: 7 contracts, $465,000
Science Applications International Corp: 5 contracts, $7.5 million
— new from Business Insider