Government agency slashes more consultant contracts it says will billions for taxpayers

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The General Services Administration is entering its second phase of reviewing government contracts with some top consulting firms.

A GSA employee tells FOX Business they have gone through the first round of companies saving a total of $33 billion, through terminations and restructuring of contracts to outcome-based deals, with industry-leading companies such as Deloitte, Booz Allen Hamilton, Accenture Federal Services, IBM and others. However, the supply-side agency is determined to recalibrate how the U.S. government buys goods and services.

“In addition to delivering immediate cost savings for the taxpayer, GSA is focused on transforming how the government buys, not targeting individual companies,” a GSA spokesperson said. “GSA has made progress building the framework with the first 10 firms and are quickly moving to the next tranches.”

GOVERNMENT AGENCY REVIEWING BILLIONS OF REDUNDANT SPENDING, FROM TOILET PAPER TO SOFTWARE

The General Services Administration HQ

A GSA employee tells FOX Business they have gone through the first round of companies saving a total of $33 billion, through terminations and restructuring of contracts to outcome-based deals. (Saul Loeb/AFP via Getty Images / Getty Images)

GSA is taking a longer-term approach with this overhaul with the government by restructuring any of their future deals by making outcome-based contracts the “default” and “mandatory” structure for the future. They also want to cap indirect spending from these firms, provide industry-wide flat rates for services and work more directly with original equipment manufacturers to acquire goods and services straight from the source.

In response to the work that GSA is doing with some of these firms, advanced technology company Booz Allen shares its excitement about working with the agency. 

“Booz Allen is proud to work with GSA to transform government procurement using advanced technology and help create massive savings for the American taxpayer,” Booz Allen CEO Horacio Rozanski said. “As committed partners, we are encouraged by the rapid progress GSA is making to deliver cost-effective solutions to decades-long challenges.”

The General Services Administration is entering its second phase of reviewing government contracts with some of the top consulting firms.–>

TREASURY DEPARTMENT RECOUPS $31 MILLION IN IMPROPER GOVERNMENT PAYMENTS TO DEAD PEOPLE

On Monday, GSA sent letters to their second round of companies consisting of nine more of the biggest firms in the country asking them to review all federal contracts, identify waste and savings opportunities, detail spending and pricing structures, and restructure all pricing to outcome-based, according to the letter FOX Business obtained.

The letter was sent to the following consulting companies: Salient CRGT, Peraton, Smartronix LLC, Minburn Technology Group LLC, Mantech International Corporation, FCN Inc, V3Gate LLC, ASGN Incorporated and Chemonics International. GSA set the deadline for these companies to respond by May 16.

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This comes as GSA has notably joined forces with Elon Musk’s Department of Government Efficiency to cut out waste, fraud and abuse.


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