Next Wednesday, August 20, will mark the seventh month since the second Presidential administration of Donald J. Trump came into office. It will also mark the length of time since the American people were introduced to the Department of Government Efficiency, or DOGE. Federal Market Analysis (FMA) has been tracking the impact of DOGE on federal government contracting since the beginning by providing hard data on the number of contracts and task orders terminated during DOGE’s agency reviews. By using a series of keywords to search the terminated contracts data, followed by some manual spot-checking, FMA is now able to provide some insight into the impact that DOGE’s activity has had on the federal cloud market. Today's post provides a summary of that analysis.

Number of Contracts and Task Orders Canceled

DOGE had canceled 389 cloud-related contracts by the end of July 2025, which is the date of our latest data pull. The number of contracts terminated by month breaks out as follows.

The rate of contract terminations ramped up quickly after January, hitting a peak in April. The termination rate then fell off almost as quickly, settling to about one-third of the April total.

Ceiling Value of Cloud Contracts Canceled

Parsing the data by contract ceiling value and spend to date offers additional insight.

Peak termination activity as measured by contract ceiling value occurred in May, not in April, as the data in the previous chart above showed. By contrast, the termination of contracts by spending to date did correlate with the peak number of contracts canceled in April.

Altogether, the total ceiling value of the cloud contracts terminated by DOGE was $2.3B as of July 31. Total spending against those contracts comes in significantly lower, which is to be expected since most contracts still have ceilings to reach. As of July 31, that spending totaled $407.2M. Importantly, perhaps, we’ll see how this trend plays out, spending against the contracts terminated in July reached only $13M, the lowest monthly total yet.

Number of Cloud Contracts Canceled by Vendor (Top 10)

Turning finally to the impact of DOGE cuts by vendor shows that both value added resellers (e.g., FCN and Carahsoft) and companies providing cloud-based services, support, and/or capabilities (e.g., Verizon, Gartner, Four Points, etc.) alike have taken hits.

This chart shows only the top ten vendors by number of contracts/orders terminated. When it comes to the financial impact the story changes immensely. For example, the total spending on terminated contracts held by Procentrix, Inc., is $402M. Maximus, Inc. also saw contracts canceled that had $256.6M in spending against them to date. FCN and Carahsoft, meanwhile, although they had the highest number of contracts canceled, took hits of $32.7M and $4.7M, respectively. In other words, the number of contracts canceled doesn’t necessarily translate into the highest lost potential revenue.

Key Takeaways

Summing up:

• The pace of DOGE cloud contract terminations is slowing. This translates into a lessening of DOGE’s impact on the federal cloud market, assuming the currently slower pace continues.
• DOGE’s impact on cloud contract spending is ebbing, giving vendors a sigh of relief.
• DOGE cloud contract terminations are affecting value-added resellers and direct cloud service/support providers alike.