US Govt Agency Directs Agencies to Terminate Contracts With Top-10 Consulting Firms Including Accenture, Deloitte and IBM

The General Services Administration (GSA), an independent agency of the United States government, has issued a directive to federal agencies to terminate contracts with the top-10 highest-paid consulting firms, reported Nextgov.com.

This move is part of a broader initiative to eliminate non-essential consulting contracts and reduce spending. The targeted firms include Accenture Federal Services, Booz Allen Hamilton, CGI Federal, Deloitte Consulting, General Dynamics IT, Guidehouse, HII Mission Technologies, IBM, Leidos, and SAIC.

Acting GSA Administrator Stephen Ehikian emphasized the need for agencies to review their contracts and terminate those that are not mission-critical. Agencies are required to provide a list of contracts they intend to terminate by March 7, along with justifications for any contracts they plan to maintain.

Those 10 companies “are set to receive over $65 billion in fees in 2025 and future years,” Ehikian wrote in a memo dated Feb. 26 obtained by Nextgov/FCW.

This directive follows previous actions by the GSA to review and eliminate non-essential consulting contracts. The goal is to increase efficiency and reduce wasteful spending within the federal government.

The directive aims to reduce non-essential spending, which could lead to significant cost savings for the federal government. Agencies will need to find more cost-effective solutions to meet their needs.

Agencies may need to reallocate internal resources to fill the gaps left by the terminated contracts. This could involve hiring new staff or retraining existing employees to take on new responsibilities.