The Trump administration is asking agencies to review consulting agreements with at least 10 large companies, including some global companies, as part of their efforts to reduce “non-essential consulting agreements.”
General Services Agency Representative Stephen Ehikian asked him to consider consulting agreements with “senior procurement executives from the agency” with 10 companies. Retrieved February 26th by NextGov/FCW.
These 10 companies are “planning to receive more than $65 billion in fees in 2025 and in the future years,” writes Ehikian.
“This needs to be changed, it needs to be changed,” he added boldly.
The GSA had already asked the institution to review all contracts in question with affiliates, and had terminated everything that would provide “substantial and mandatory technical support” except those deemed mission-critical, Ehikian writes.
“We’re not taking enough action,” he continued. “We will require each institution to re-review these consulting agreements, taking into account size and scope.”
He provided agency procurement executives through March 7 with a list of companies and contracts in question maintained by the agency, and a “signed statement from senior staff” confirming the importance of the companies they have ended and everything that the agency maintains.
All 10 companies listed in the memo hold prime positions in Oasis, a government-wide contract vehicle run by the GSA, which other federal agencies use to obtain essentially technology-centric professional services.
According to data from GoVexec’s Market Intelligence Division Govtribe, Oasis opened for its business in 2014 and has since collectively mandated approximately $46.7 billion in spending on vehicles.
Six of Oasis’s 10 largest spending beneficiaries are quoted in the memo: Booz Allen, SAIC, Leidos, General Dynamics IT, Hill Mission Technologies Corp., Deloitte.
Many of the listed companies are also included in Alliant 2 and CIO-SP3 agreements and GSA schedules.
It is unclear whether all procurement employees from all agencies received notifications or only employees from large federal agencies. A GSA spokesman did not clarify which agency received the memo and referred to the NextGov/FCW to certain agencies for information on specific agency contracts, but said, “The GSA is committed to taking immediate action to fully implement all current enforcement orders and filing a lawsuit to implement new enforcement orders.”
This notice will come in parallel with a new executive order that will justify these payments as well as directing the construction of centralized technology to record all payments issued through contracts and grants. The agency leader was also told to review all grants and contracts within 30 days and to terminate or modify them to reduce spending under that executive order.
Elon Musk’s government efficiency, while Doge’s savings calculations are packed with errors, it already promotes agency-wide contract cancellations. For example, Doge’s four contracts on “receipt walls” have proven to have zero savings, as Washington Technology reported on Tuesday.
“For decades, IBM has advocated the use of technology to help US federal agencies streamline their operations, increase efficiency and deliver better benefits for taxpayer dollars,” an IBM spokesperson told the next gov/FCW. “Today, IBM supports the modernization and delivery of mission-critical federal services and systems to enable a faster, more efficient digital taxpayer experience from processing veteran health claims. We are proud of this and the additional work across the US government, and we are committed to helping agencies become more efficient and deliver better results for the American people.”
GDIT, CGI and Leidos declined to comment, and NextGov/FCW reached out to other companies named in the memo.
