The Wall Street Journal

Consulting Giants Offer Billions in Cuts to Federal Contracts. It Might Not Be Enough.

Accenture, Deloitte, IBM and other firms proposed price concessions this week but are expected to be asked to dig deeper

Booz Allen Hamilton generates nearly all of its $11 billion in annual revenue from contracts tied to the U.S. government.
Booz Allen Hamilton generates nearly all of its $11 billion in annual revenue from contracts tied to the U.S. government. Photo: Kevin Dietsch/Getty Images

The 10 biggest U.S. consulting firms to the federal government have offered to cut billions of dollars from their contracts with agencies but face pushback from the Trump administration to deliver even deeper savings.

Companies including Accenture, Booz Allen Hamilton, Deloitte, IBM and others met the General Services Administration deadline this week to justify their contracts and identify potential cost cuts to existing projects. Trump administration officials are expected to go back to some of the firms, demanding further price concessions or other revisions, according to people familiar with the review process.

WSJ Logo