DOD to review all consulting contracts as it looks to cut those that aren’t ‘essential’ to Trump’s priorities

Pentagon leadership ordered all defense agencies and components to comprehensively review their existing contracts for consulting services to determine which are “non-essential” — and could therefore be considered for termination in the near future, according to a new memorandum.

Signed by Steven Morani, who is performing the duties of the undersecretary of defense for acquisition and sustainment, the two-page memo includes instructions for officials across the Defense Department to “assess the essentiality” of such projects.

“To ensure we are accountable for every dollar we spend and that we are aligned with the President of the United States’ America First priorities and Secretary of Defense [Pete] Hegseth’s direction, Component heads will conduct a comprehensive review and validation of existing contracts for consulting services,” Morani wrote in the directive issued Tuesday.

The release of the document comes the same week that Hegseth called on all defense agencies and the U.S. military to cut programs and reset their spending to better align with President Donald Trump’s priorities, such as securing the southern border and establishing a missile defense architecture dubbed Iron Dome for America. In a statement issued Wednesday night, the official performing the duties of deputy secretary of defense — Robert Salesses — confirmed that Hegseth is looking for offsets of about $50 billion from the Biden administration’s planned budget request for fiscal 2026. Officials affiliated with the Department of Government Efficiency (DOGE), led by billionaire and Trump supporter Elon Musk, are also at the Pentagon to probe for spending that the administration deems wasteful.

The DOD is one of the federal government’s top buyers of consultancy services — including for support of its business and information technology enterprises. Broadly, such contracts can underpin assistance and advising on topics like organizational effectiveness, change management and modernization.

U.S. agencies obligated more than $500 billion on contracts associated with consulting services in fiscal years 2019 through 2023, according to a government watchdog report published last year. DOD contracts accounted for more than 46% of that total — or about $233.4 billion in that time period.

In Morani’s newly issued memo, he wrote that the department will “take a phased approach” in reviewing the contract activities.

DOD components were directed to supply consolidated submissions of their contracts awarded through a General Services Administration vehicle for consulting services by March 19, and for non-GSA contracts by April 19.

“Components shall take action to terminate, descope, or forego exercising options for requirements determined to be non-essential as a result of this review. For contracts or elements thereof deemed as essential, Components shall provide a short justification to continue the service, as endorsed by a General Officer/Senior Executive Service member who represents the requirement is valid,” Morani wrote.

DefenseScoop obtained a copy of the new memo on Wednesday. On Thursday, a defense official verified its authenticity and shared a publicly available version.