Consulting companies offer concessions in Trump, spending clashes

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Consulting companies offered to reduce US government contracts, reduce high prices and shift to performance -based fees, after the Trump administration demanded that they prove that taxpayers get value for money.

Three of 10 large Consulting This faced a final date on Monday evening to submit proposals to save money, as it made a list of options that could reduce at least $ 15 billion of federal spending over the coming years, according to a person familiar with the submission, with the rest during the coming days.

Acceneture, Deloitte, Booz Allen Hamilton and IBM were among the targeted contractors in “Consultant spends a review” Through the Department of Public Services, which helps to coordinate government purchases.

Several groups offered to reduce the maximum value of some ongoing federal contracts and reduce the high prices that are not used by long -term external sources, according to persons familiar with the proposals. A company alone said 12 billion dollars in savings.

The competencies-which were identified through a cooperative process-come in addition to the efforts of Elon Musk to reduce government spending, with the so-called it Ministry of Governmental efficiency (Doug) Tens of thousands of government workers have launched in recent weeks and cut contracts unilaterally with third -party service providers. Several Doug’s efforts were reversed by federal courts.

The savings suggested by the consulting companies in the responses to GSA included more than just immediate discounts. Several consultations have offered other ideas to improve government purchases efficiency, including obtaining benefits of size by introducing projects that cut off departments.

At least one group recommended that you allow consultants participating in information technology services to buy software and devices directly from sellers, instead of having to walk through the government -accredited brokers, and replace a mark charged with a sentence of wholesale.

In some cases, the presentations were used in a list of wishes for purchasing reforms that have long wanted in the consulting profession. In some, they served as an implicit criticism of how competitors are pricing and operating their governmental contracts.

“They started exposing each other,” said one of the people who saw the first requests. “They have already started to determine how to provide their competitors money.”

GSA review comes at a time when Musk is increasingly drawing attention to what he sees as a terrible spending on consultants.

Earlier this month, Dog said that it had replaced the Federal Consulting Group, a branch of the Ministry of Interior, which she claimed to be “where one of the other government departments is charged with intermediate consulting contracts.”

GSA’s efforts are compatible with the DOGE goals, but it works separately by Josh Gruenbauum, a former banker and director of Melis in KKR, who was appointed by President Donald Trump as a federal acquisition commissioner, GSA section.

The negotiations by officials inside the agency were distinguished by being in “goodwill” and were conducted by people with direct experience in this industry. It seems that it was less opponent of Dog’s approach in other government branches.

David Berto, CEO of the Professional Services Council, who calculates eight of the ten targeted consulting companies among its members, said that he expects the government to search for a “good -intention effort” to match their priorities and that groups “can suggest cuts that cause less harmful, discounts that provide more than others, and procedures that maintain most of the ability to the future.”

In a statement to the Financial Times, Groenbau said it “encourages the industry to tend” and determines “savings opportunities to spend excessive government with consulting companies.”

He added that “the restructuring of the contracts to be an overwhelming majority- depends on the results and unifying them at the government level … will benefit from the entire federal portfolio and provide great discounts for the government and better value for taxpayers.”

A spokesman for Leidos, one of the targeted consultations, said that it was sent in “a detailed set of options to achieve the goal of the management of making the United States government more efficient and costly,” adding: “We understand the importance of this effort and put forward bold ideas for help.”

The GSA official previously told that the agency planned to expand its scope to provide costs to smaller consulting companies as soon as the process was completed with the primary ten.

The agency is also looking for savings that exceed the consulting profession, and a person familiar with GSA’s efforts said it has set nearly $ 7 billion of savings by reducing more than 2100 contracts in general. Dogs claims that the Trump administration found $ 140 billion in savings completely, although independent researchers were only able to verify a small part of this number.