The Pentagon is planning to cut several IT contracts with tech consulting firms to reduce duplicative spending and enhance efficiency by depending more on the defense civilian workforce. This decision was outlined in a memo dated April 10, 2025.
Defense Secretary Pete Hegseth has ordered the termination of multiple IT services contracts associated with the Defense Health Agency, Air Force, and Navy. Hegseth stated that the work associated with these contracts could be performed by the civilian workforce or fulfilled using existing procurement resources. A specific contract with the Defense Advanced Research Projects Agency for IT Helpdesk Services has also been terminated due to its duplicative nature with services already provided by the current DISA workforce.
According to Hegseth, the terminated contracts represent an estimated $5.1 billion in wasteful spending.
The Defense Information Systems Agency (DISA) is responsible for managing defense networks globally, as well as ensuring IT services and White House communications. As of 2024, DISA employs approximately 7,500 civilian employees, 1,600 active-duty military personnel, and over 11,000 defense contractors.
In the context of ongoing budget constraints, DISA has been previously targeted for elimination. The relationship between DISA and the Pentagon is crucial for both daily and war-time communications. Nevertheless, the predominantly civilian and highly technical workforce there may conflict with broader governmental objectives to reduce the federal workforce size, a stance promoted by the Trump administration.
Additionally, the Defense Department has faced challenges in retaining technical expertise, particularly in cybersecurity.
Hegseth’s memo regarding IT services follows previous guidance issued by Deputy Defense Secretary Stephen Feinberg. In his memo dated April 7, 2025, Feinberg requested proposals to reduce or eliminate redundant or non-essential functions, suggesting that every role in the department should meet a critical test: if the position did not exist today and the Department were at war, would it still be created? If not, the role should be consolidated, restructured, or eliminated.
