Trump administration demands clarity from consulting firms

The Trump administration is intensifying its investigation into consulting firms that work for the US government. Companies like Booz Allen Hamilton and Accenture are being told to explain their services clearly, without using complicated language. The General Services Administration (GSA) sent a letter to the ten highest-paid consulting firms. In it, officials asked for details about the billions of dollars in contracts these firms have. The GSA wants the firms to identify ways to cut costs and eliminate waste. Josh Gruenbaum, the GSA's top procurement official, emphasized that firms should write their recommendations in simple terms that a 15-year-old could understand. He warned that reports lacking clear waste and spending reduction recommendations would not be taken seriously. This letter follows a GSA request for federal agencies to justify their contracts with these consulting firms. Accenture’s stock fell when the company reported a slowdown in government work, partly due to efforts to shrink the federal workforce and budget. Other companies in focus, such as Deloitte and IBM, have reported limited impact so far. However, they remain cautious as the Trump administration pushes hard against perceived waste and inefficiency in the government. In 2023, the federal government spent $759 billion on contracts, often using outside experts for services and technology support. The GSA has already canceled 1,700 consulting contracts. Companies are required to provide details about their earnings and work types between 2019 and 2024 as part of this investigation.