WASHINGTON, April 11 (Alliance News): US Defence Secretary Pete Hegseth has announced the cancellation of 15 defence contracts valued at $5.1 billion, labelling them as “wasteful spending” and redirecting the funds toward critical military modernization efforts.
In a press statement, Secretary Hegseth emphasized the need for fiscal responsibility, saying, “This step ensures that taxpayer money is used where it matters the most — enhancing our national defence capabilities.”
Among the cancelled contracts were high-value consultancy agreements with firms such as Accenture, Deloitte, and Booz Allen for the Defence Health Agency. The Department of Defence also scrapped a major cloud IT services contract for the US Air Force, stating that existing infrastructure could handle the required tasks.
The Navy’s administrative consultancy services and Darpa’s IT help desk contract were also terminated, with the department noting that these functions could be managed internally without external consultants.
In addition, 11 consultancy contracts linked to climate change, diversity, COVID-19 response, and other non-essential programs were axed. The move is expected to save $4 billion, which will now be allocated to strengthening and modernising US military capabilities.
“Every dollar saved here will go toward making America’s military stronger,” the department concluded.
