GSA tells agencies to terminate contracts with top-10 consulting firms
The top-10 highest-paid consulting firms contracting with the federal government are set to make “$65 billion in fees” in 2025 and beyond, the General Services Administration says. But according to the agency’s acting leader, that “needs to, and must, change.”
GSA acting Administrator Stephen Ehikian issued this week a memo, obtained by FedScoop, calling for the termination of contracts with those top-contracted consultants:
- Deloitte Consulting LLP
- Accenture Federal Services LLC
- General Dynamics IT
- Booz Allen Hamilton
- Leidos
- Guidehouse
- Hill Mission Technologies Corp.
- Science Applications International Corp.
- CGI Federal
- IBM
“Consistent with the goals and directives of the Trump administration to eliminate waste, reduce spending, and increase efficiency, the U.S. General Services Administration has taken the first steps in a Government-wide initiative to eliminate non-essential consulting contracts,” Ehikian wrote in the memo dated Feb. 26 sent to senior procurement officers.
By March 7, agencies are asked to provide a list of contracts with the 10 firms that they intend to terminate as well as those they will maintain. For those that agencies will continue on with, Ehikian wants a signed statement from a senior official explaining why the work is mission critical and “provides substantive technical support.”
The issuance of the memo follows GSA’s previous actions earlier this month with agencies to review contracts with the targeted contractors and terminate any that weren’t critical to agencies’ missions. But according to Ehikian, “not enough action has been taken.”
News of the GSA’s memo was first reported by Nextgov.
