31 Mar 2025
Federal Consulting at a Crossroads
Surprising insights from my deep dive into federal consulting data
Deloitte lost 129 federal contracts worth $372 million.
The data suggests that's just the beginning.
I downloaded the full dataset of federal consulting contracts from the DOGE website to get the specifics.
The scale is massive:
→ $65 billion in total contracts under review
→ 7,100+ contracts being scrutinized by DOGE
→ $130 billion in claimed savings identified to date
→ Goal of reaching $1 trillion in total savings
Contracts terminated by firm:
→ Deloitte: 129 contracts terminated
→ Booz Allen Hamilton: 60 contracts terminated
→ Guidehouse: 54 contracts terminated
→ Accenture: 30 contracts terminated
→ General Dynamics: 16 contracts terminated
The biggest terminations:
→ $158M NIH Digital Services contract with Deloitte
→ $137M HHS Software contract with Accenture
→ $126M ORR Mission Support with General Dynamics
→ $68M NIH Systems Engineering contract with Deloitte
Deloitte US appears to be taking the brunt of these cuts so far.
Looking deeper, three patterns were present in what's being targeted:
Pattern 1: Strategic Service Targeting
→ Diversity, Equity & Inclusion initiatives terminated
→ "Organizational transformation" reduced or cut entirely
→ Strategic planning services labeled "non-essential"
→ Enterprise risk management projects canceled
→ Programs with soft deliverables or vague metrics
Pattern 2: Agency Concentration
→ HHS, CDC, and NIH at the core of cuts
→ $300M+ in digital transformation initiatives terminated
→ Multiple public health programs discontinued
→ Major reductions in research technology services
Pattern 3: Implementation vs. Strategy
→ Technical (cloud, O&M) deals mostly survive.
→ Major modernization efforts being modified, not ended.
→ "Advisory" services are being slashed first
What happens next?
The GSA deadline today requires firms to:
→ Identify 25-30% in additional potential savings
→ Present justifications "a 15-year-old can understand"
→ Explain what services they provide in "layman's terms"
What is not being reported or in the numbers is the scale of the employment impact of these cuts.
We seem to be entering the next quarter with uncertainty only increasing. This week we also see the impact of the tariffs which will complicate matters further.
Data Sources:
- DOGE's reported savings government-wide.
- FPDS records from the api doge gov (subset analysis)
- GSA filings referencing future cost-saving requirements
Disclaimer: All dollar amounts are approximations from aggregated contract ceilings, modifications, and reported savings. Actual obligations may differ if a contract was partially terminated or re-awarded under a new vehicle.