Story perspectives
Defense Department Targets $65B in Nonessential Contracts
2/28/2025
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Story summary
- The Defense Department and GSA are evaluating consulting contracts with 10 major firms to reduce nonessential spending by March 7.
- These firms are expected to earn over $65 billion in fees by 2025.
- Agencies must justify which contracts to keep or terminate based on essential services.
- This review follows a memo encouraging agencies to assess nonessential contracts.
- Experts stress the importance of a careful approach to prevent service gaps.
