US President Donald Trump's government has once again intensified its probe into federal consulting firms, including Booz Allen Hamilton Holding Corp and Accenture Plc, and asked them to describe their work in a simple language without using "jargon or gobbledygook," Bloomberg reported.
The Trump administration sent out letters to 10-highest-paid consulting companies serving the government and demanded them to provide information about their billions in government contracts and their plans to "reduce or eliminate spend," Josh Gruenbaum, the General Services Administration’s (GSA) new top procurement official wrote the letter.
“Do not submit a scorecard that does not identify any waste and spend reduction opportunities,” Josh Gruenbaum warned.
Notably, Gruenbaum is leading cost-cutting efforts at the GSA.
“Scorecards that do not identify waste and spending reductions will not be deemed credible and your firm will be seen as unaligned with the Administration’s cost-cutting goals," he added.
'15-year-old should understand'
Make recommendations on how to reduce pricing by March 31 in language that “a 15-year-old should be able to understand," Gruenbaum, the former private equity executive and investment banker at KKR & Co. and Moelis & Co. tapped by Trump for GSA’s top procurement role asked the companies.
Earlier on Thursday, Accenture shares tumbled after the company said that its US government work has slowed amid Elon Musk's push to slash the federal workforce and budget through his DOGE.
Accenture Chief Executive Officer Julie Sweet on an earnings call said federal services accounted for about 8% of its global revenue and about 16% of its Americas revenue in the 2024 fiscal year.
Other firms in GSA’s crosshairs include International Business Machines Corp., General Dynamics Corp., Leidos Holdings Inc., Guidehouse LLP, HII Mission Technologies Corp., and CGI Federal.
However, none of the companies responded to the requests for comment on the letter.
(With inputs from agencies)