Sunday, June 1, 2025

Dealing with government bloat


Trump Admin Targets Tech Contracts With Feds To Streamline Bloated Gov't

BY TYLER DURDEN
SUNDAY, JUN 01, 2025 - 08:05 AM

A new report cites an internal memo from the General Services Administration informing 'Big Tech' that the Trump administration is expanding its cost-cutting review of federal contractors beyond consulting firms to include now technology providers—specifically value-added resellers (VARs) like Dell and CDW.

The letter, obtained by The Wall Street Journal, was sent by Josh Gruenbaum, Commissioner of the GSA's Federal Acquisition Service, to 10 tech firms in recent weeks, demanding an explanation of services and a breakdown of costs and markups, targeting inflated pricing practices and inefficiencies.

Gruenbaum oversees the review of federal contractors and has given tech firms until June 11 to respond. The US spends a staggering $82 billion annually on IT products and services through a complex procurement process. He noted that some of these services carry excessive markups and inflate costs to taxpayers, warning the tech firms, "This must change."

"We don't need to outsource everything; we don't need to always go and buy bespoke, specialized products and services," Gruenbaum told WSJ in an interview, adding, "The point is, really, can you shape shift the way the federal government does business? We think unequivocally 'yes.'"

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