Correction From Source: General Atomics Acquires North Point Defense

Accenture , General Dynamics and IBM are among 10 companies now being targeted by the General Services Administration as the "highest paid" consultants for US government, according to multiple media reports.

The Trump Administration is looking to rein in federal spending by eliminating "nonessential" contracts by government departments and agencies to such firms.

The news outlets cited a memo to senior procurement officials at most federal agencies this week by GSA acting administrator Stephen Ehikian that named 10 companies that are set to receive over $65 billion from the government for consulting work during 2025 and beyond. He asked the procurement officers to list contracts their agencies consider mission critical.

Responses are due March 7, according to the reports.

A GSA spokesperson did not specify which firms were included in the memo, but told MT Newswires that "GSA initially asked agency partners to write a short explanation about why consulting contracts were essential for them to fulfill their statutory purposes." But, more detailed responses were required and GSA is in the process of collecting additional information.

Other seven firms reportedly tagged by Ehikian for potential cuts were Booz Allen Hamilton , CGI , Huntington Ingalls Industries , Leidos and Science Applications International , along with privately held Deloitte and Guidehouse.

None of the 10 firms immediately returned messages from MT Newswires on Friday seeking comment.

The impact of cancelled contracts would vary by firm but may be daunting regardless of their size. For example, The Wall Street Journal on Friday profiled Booz Allen particularly imperiled with 98% of its yearly revenue derived through federal contracts.

Al Root

The situation in Ukraine took an unexpected turn after a heated Oval Office exchange between Vice President J.D. Vance and Ukraine President Volodymyr Zelensky that ended with President Donald Trump scolding the foreign leader.

"Either make a deal or we're out," Trump told Zelensky.

Investors were expecting a less contentious meeting with a potential deal for mining rights in exchange for additional U.S. support.

Defense stocks wobbled after the meeting. Shares of AeroVironment, a contractor supplying munitions to Ukraine, dropped about $2 from levels before the meeting, leaving shares down about 1.5% on the day.

Lockheed Margin dropped about $2 from levels before the meeting, though that stock is off daily lows and flat on the day. Shares of Northrop Grumman, General Dynamics, and L3Harris Technologies were down 0.7%, 0.3%, and 0.4% in late trading, while the S&P 500 and Dow Jones Industrial Average were both down about 0.1%.

The meeting might have impacted the market. President Trump told Zelensky he was putting the world at risk of a significant global conflict.

Defense stocks have struggled since the Nov. 5 election. Investors aren't sure about the direction of defense spending or Trump's priorities, which could siphon money away from large, expensive programs like the F-35 fighter jet into unmanned technology.

Through midday trading, Lockheed, L3Harris, Northrop, and General Dynamics shares are down about 16% since Nov. 5. The S&P 500 is up about 1% over that span. Shares of AeroVironment are off more than 30%.

"I have determined President Zelenskyy is not ready for peace if America is involved, because he feels our involvement gives him a big advantage in negotiations," wrote President Trump on Truth Social Friday afternoon. "I don't want an advantage, I want PEACE."

He added that Zelensky disrespected the U.S. and said he can come back when he is ready for peace.

Write to Al Root at allen.root@dowjones.com

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