DOGE caucus member cheers on progress in streamlining government spending
Government organization reduces consultancy agreements, allegedly yielding billions in savings for taxpayers.
Rep. Michael Rulli, R-Ohio, a member of the House DOGE caucus, discusses government efficiency on "The Evening Edit."
The General Services Administration (GSA) is stepping up its game, moving forward with phase two of reviewing government contracts with leading consulting firms.
A GSA employee confided to FOX Business that the agency has already gone through the initial round with these firms, revealing proposals that could save taxpayers a whopping $33 billion in costs, with an immediate savings of $8.9 billion through contract terminations and restructuring. They're aiming for more than just budget cuts, though—they want to revolutionize how the U.S. government acquires goods and services.
"Beyond delivering immediate budget relief for the taxpayer, GSA is striving to overhaul the way the government shops," a GSA spokesperson said. "GSA has made ground with the initial 10 firms and is gaining momentum in the subsequent phases."
*GSA TAKES AIM AT RED TAPE BY ELIMINATING BILLIONS IN UNNECESSARY SPENDING*
A GSA insider revealed that the agency has already put $33 billion back in the taxpayer's pocket through contract restructuring and terminations. (Photo by SAUL LOEB/AFP via Getty Images / Getty Images)
The GSA is taking a long-term approach to this overhaul, transforming federal procurement by making outcome-based contracts the new norm. They're also aiming to cap indirect spending from service providers, offer industry-wide flat rates for services, and establish more direct relationships with original equipment manufacturers.
In response to GSA's work with these service providers, high-tech firm Booz Allen Hamilton can't contain its excitement. Sources tell FOX Business that Booz Allen will provide agentic AI technology to improve government procurement efficiency.
"Booz Allen is thrilled to team up with GSA to modernize federal procurement using cutting-edge technology and help produce savings for the American taxpayer," Booz Allen CEO Horacio Rozanski stated. "As valued partners, we're encouraged by the speed at which GSA is pushing toward cost-effective solutions for age-old challenges."
*TREASURY DEPARTMENT CLaws BACK $31 MILLION IN ERRONEOUS GOVERNMENT PAYMENTS TO DECEASED INDIVIDUALS*
On Monday, GSA issued a second round of letters to big-name consulting companies, asking them to audit all federal contracts, root out waste and savings opportunities, spell out spending and pricing structures, and rework all pricing. According to the letter obtained by FOX Business, the following consulting firms received these demands: Salient CRGT, Peraton, Smartronix LLC, Minburn Technology Group LLC, Mantech International Corporation, FCN Inc., V3Gate LLC, ASGN Incorporated, and Chemonics International.
GSA has set a deadline of May 16 for the companies to respond.
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This recent move by GSA comes as it teams up with Elon Musk's Department of Government Efficiency (DOGE) to tackle waste, fraud, and abuse.
Enrichment Data:
The collaboration between GSA and DOGE aims to reduce wasteful spending and improve government efficiency through strategic partnerships and procurement reforms. Some key initiatives include:
GSA Initiatives
- Strategic Partnerships:
- Adobe Alliance: The GSA formed an agreement with Adobe to deliver a "Paperless Government Solution" at a 70% discount, aiming to modernize service delivery by eliminating manual processes and reducing paper-related costs.
- Google Collaboration: GSA negotiated a cost-saving agreement with Google, providing a 71% discount on Google Workspace for federal agencies, consolidating procurement and ensuring uniform pricing.
- Consolidated Procurement:
- GSA leverages its central procurement role to secure better deals for federal agencies, reducing redundancy and streamlining IT acquisition processes.
Department of Government Efficiency (DOGE)
- Efficiency Initiatives:
- DOGE focuses on cutting federal spending through digitalization efforts, like creating a fully digital retirement process.
- DOGE praises GSA's achievements in forming cost-saving agreements with technology companies like Google, viewing these as steps towards centralized procurement and waste reduction.
- Outcome-Based Contracts:
- The collaboration between GSA and DOGE indicates a focus on achieving measurable results and efficiency improvements in government spending by emphasizing centralized procurement and strategic partnerships. They aim to enhance the effectiveness of government contracts and reduce wasteful spending.
- The General Services Administration (GSA) is working on a collaboration with the Department of Government Efficiency (DOGE) to reduce wasteful spending and improve government efficiency.
- A GSA spokesperson stated that beyond delivering immediate budget relief, the agency is striving to overhaul the way the government shops, including transforming federal procurement by making outcome-based contracts the new norm.
- Booz Allen Hamilton, a high-tech firm, will provide agentic AI technology to improve government procurement efficiency in response to GSA's work with service providers.
- In a recent move, GSA issued a second round of letters to big-name consulting companies, asking them to audit federal contracts, root out waste and savings opportunities, and rework all pricing, with a deadline of May 16 for the companies to respond.