US government hails IT cuts as key part of billion-dollar Department of
Defense savings
Date:
Mon, 14 Apr 2025 14:28:00 +0000
Description:
DOGE has reportedly helped the DOD save nearly $6 billion in wasteful
spending.
FULL STORY
$5.1 billion in IT contracts have been canceled by the Department of Defense (DOD) under the guidance of Elon Musks 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 Musks 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 agencys 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 DODs $883.7 billion budget, Musks 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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Link to news story:
https://www.techradar.com/pro/us-government-hails-it-cuts-as-key-part-of-billi on-dollar-department-of-defense-savings
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