31 Mar 2025

Federal Consulting at a Crossroads

Surprising insights from my deep dive into federal consulting data

U
Usman SheikhPublished on LinkedIn
Federal Consulting at a Crossroads

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.

U
Usman SheikhPublished on LinkedIn

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