Robert Besser
15 Apr 2025, 22:04 GMT+10
WASHINGTON, D.C: U.S. Defense Secretary Pete Hegseth has canceled several technology service contracts worth US$5.1 billion. These included deals with big companies like Accenture, Booz Allen Hamilton, and Deloitte, according to a memo from the Pentagon.
Hegseth said the contracts were for services that Pentagon employees could handle themselves. He called the spending "non-essential" and said ending the contracts could save about $4 billion.
After the announcement, Booz Allen's stock dropped 2.4 percent and Accenture's fell 2 percent in early trading. The companies have not yet responded to requests for comment.
The canceled contracts covered consulting work for the Navy, Air Force, DARPA, and Defense Health Agency. In a video on X (formerly Twitter), Hegseth said these were for extra services like consulting, which would now be handled internally.
He also directed the Pentagon's tech chief to work with Elon Musk's Department of Government Efficiency over the next 30 days to create a plan for cutting and bringing tech services in-house. The Pentagon also plans to negotiate better prices for cloud services.
Get a daily dose of Afghanistan Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Afghanistan Sun.
More InformationWASHINGTON, D.C: U.S. Defense Secretary Pete Hegseth has canceled several technology service contracts worth US$5.1 billion. These...
WASHINGTON, D.C: U.S. President Donald Trump said this week that farmers might be allowed to ask the government to keep some farmworkers...
BEIJING, China: As tensions with Washington deepen, Chinese President Xi Jinping is turning his focus to Southeast Asia, with a diplomatic...
PASADENA, California: Because many people are worried about dangerous chemicals in smoke, ash, and debris from recent wildfires, Los...
WASHINGTON, D.C.: President Donald Trump, who had often complained about weak water pressure in showers, has signed an order to remove...
NEW DELHI, India: Apple has ramped up shipments of iPhones from India to the United States, chartering aircraft to move hundreds of...
Quetta [Balochistan], April 15 (ANI): The US-made weapons were used in Jaffar Express attack, ARY News cited The Washington Post report...
Nikol Pashinyan has said Yerevan is also prepared to dissolve the OSCE Minsk Group dedicated to mediating the Nagorno-Karabakh conflict...
Nikol Pashinyan has said Yerevan is also prepared to dissolve the OSCE Minsk Group dedicated to mediating the Nagorno-Karabakh conflict...
Tashkent [Uzbekistan], April 15 (ANI): Indian industries are eyeing Uzbekistan as a strategic hub, with Reliance Industries in talks...
New York [US], April 15 (ANI): The Uyghur region in northwest China remains under strict oversight by the Chinese Communist Party (CCP),...
An actress of Tianjin People's Art Theater performs Chinese classic drama Sunrise at a commercial street in north China's Tianjin,...