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Counseling firms have offered to shorten the US government contracts, limit price increases, and move to performance -based tariffs, as the Trump administration demanded that taxpayers be receiving value for money.
Three of the 10 major consulting that faced a Monday evening to submit money saving proposals offered a menu of options that could shorten at least $ 15BN of federal spending over the coming years, according to a person acquainted with the submissions, with the remainder to be counted in the coming days.
Accenture, Deloitte, Booz Allen Hamilton and IBM were among the target contractors in the “consultants spend reviewing” from the General Services Administration, which helps to coordinate government procurement.
Some groups offered to reduce the maximum value of some federal contracts ongoing and reduce the increase in predetermined prices in the long work of external resources, according to people familiar with the proposals. Only one firm identified $ 12 billion in savings, said one of the people.
Efficiency-identified through a cooperative process-come along with Elon Musk’s attempt to shorten government spending, with its so-called Department of Government Efficiency (DGE) by firing tens of government workers in recent weeks and unilaterally removing contracts with third parties. Many of the Dog’s efforts have been returned by federal courts.
Savings proposed by advisory firms in responses to GSA included more than immediate cuts. Some consultations sailed other ideas to improve the efficiency of government procurement, including the benefits of the scale by presenting projects that shorten departments.
At least one group recommended that consultants engage in IT services should be allowed to buy software and equipment directly from sellers, rather than needing to pass through government -approved intermediaries, replacing a costly note with wholesale savings.
In some cases, the submissions included in a list of long -term procurement reforms desires from the counseling profession. In some, they came to the implicit criticism of how rivals value and operate their government contracts.
“They have started exposing each other,” said one person who had seen the earliest submissions. “They have actually begun to identify how their competitors can save money.”
GSA review comes while Musk increasingly draws attention to what he sees as wild expenses for consultants.
Earlier this month, Doge said he had wasted the federal counseling group, a branch of the internal department he claimed to be “when a government department accuses another of the mediator counseling contracts.”
GSA’s attempt is in line with DOGE’s goals but is led separately by Josh Greenbaum, a former Bankier Moelis and director in the NRC, who was appointed by President Donald Trump as Commissioner of the Federal Buy Service, a GSA division.
The talks were characterized by officials within the agency as being conducted in “good faith” and developed by people with direct industry experience. They seem to have been fewer opponents than Doge’s approach to other branches of the government.
David Berteau, chief executive of the Professional Services Council, who counts eight out of the 10 target counseling firms among its members, said he expected the government to seek a “trust attempt” to align with its advantages and that groups could “propose cuts that do less harm, reductions that save more, and more.
In a statement to The Financial Times, Greenbaum said it was “encouraging the industry is bending over” and identifying “savings opportunities in government excessive spending with advisory firms”.
He added that “the restructuring of contracts to be extremely based on results and their consolidation throughout the government … will use the entire federal portfolio and give a significant discount on the government and a better value for taxpayers.”
A Leido spokesman, one of the target consulting, said he sent to “a detailed set of options to fulfill the administration’s intention to make the US government more efficient and cost effective” and added: “We understand the importance of this effort and are bringing bold ideas to help.”
A GSA official previously told FT the agency planned to expand its cost saving blow to smaller counseling firms after the process with the 10 beginners was complete.
The agency is also seeking savings beyond the counseling profession, and a person acquainted with GSA’s efforts said he had identified nearly $ 7 billion in savings by shortening more than $ 2,100 in general. Doge claims that the Trump administration found $ 140 billion in quite savings, though independent researchers have been able to verify only part of that figure.
