The Trump administration has initiated a review of consulting contracts held by at least 10 major companies as part of its efforts to eliminate “non-essential consulting contracts.” The acting head of the General Services Administration (GSA), Stephen Ehikian, sent out a memo dated February 26, instructing “agency senior procurement executives” to reassess their contracts with these companies, which are identified as the highest earners based on procurement data.
The companies listed in the memo include:
– Deloitte
– Accenture Federal Services
– Booz Allen Hamilton
– General Dynamics
– Leidos
– Guidehouse
– Hill Mission Technologies Corp.
– Science Applications International Corporation
– CGI Federal
– International Business Machines Corporation (IBM)
According to Ehikian, these 10 firms are projected to collectively receive over $65 billion in fees in 2025 and beyond. He emphasized the urgency of the situation in bold text, stating, “This needs to, and must, change.”
Previously, GSA had requested agencies to examine all existing contracts with the aforementioned firms, along with their affiliates, and to terminate all except those categorized as mission-critical or those providing “substantive, imperative technical support.” Ehikian noted that “not enough action has been taken” and reiterated the need for agencies to conduct another review of these consulting contracts due to their significant size and scope.
Agency procurement executives were given a deadline of March 7 to submit a list of contracts they will maintain or terminate, accompanied by a signed statement from a senior official confirming the criticality of any contracts that will be retained.
Notably, all ten companies are prominent participants in the OASIS program—a government-wide contract vehicle operated by GSA that allows federal agencies to procure professional services that are not exclusively technology-focused. Since OASIS opened in 2014, agencies have already obligated approximately $46.7 billion in spending via this vehicle, with six of the ten largest spending recipients cited in Ehikian’s memo.
Many of the listed firms are also associated with Alliant 2 and CIO-SP3 contracts, as well as the GSA schedule. It remains unclear whether the notice was distributed to all procurement employees across federal agencies or only to those in larger agencies. A GSA spokesperson did not specify which agencies received the memo but mentioned that GSA is committed to implementing current and future executive orders.
This directive coincides with a new executive order mandating agencies to establish centralized technology for documenting all payments made through contracts and grants, along with justifications for these payments. Agency leaders were instructed to review all grants and contracts within 30 days and either terminate or modify them to reduce spending as stipulated by this executive order.
Additionally, Elon Musk’s Department of Government Efficiency (DOGE) has been vocal about contract cancellations across various agencies, although reports indicate that their savings claims contain significant inaccuracies. For instance, the New York Times revealed that four contracts listed on DOGE’s “Wall of Receipts” indicated zero savings.
In response to these developments, an IBM spokesperson highlighted the company’s commitment to leveraging technology to enhance federal agency operations, facilitate efficiencies, and ensure a better return on taxpayer dollars. IBM expressed pride in its role in modernizing and delivering essential federal services. Other companies mentioned in the memo, such as GDIT, CGI, and Leidos, opted not to comment, while Nextgov/FCW has reached out to additional companies for their responses.
