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The General Services Administration (GSA) is cracking down on what it considers “non-essential” consulting contracts within the federal government. Acting GSA administrator Stephen Ehikian has instructed a federal agency to either terminate or provide justification for consulting contracts that merely “generate a report, research, coaching, or an artifact”….
This action aligns with the Trump administration’s broader initiative to reduce federal spending. The GSA has requested the agency to pinpoint contracts deemed nonessential and, if the agency intends to maintain them, to provide a rationale explaining why the consulting contract(s) is vital for the agency to meet its statutory obligations, as well as identify the individual who can vouch for the contract’s necessity.
The GSA is responsible for managing procurement, IT, and real estate for the federal government. Although it remains unconfirmed whether other agencies received the same letter, its address to “Agency Head” implies a potentially broader application.
This memo could have significant consequences. According to the Government Accountability Office (GAO), federal agencies committed $500 billion to consulting services between 2019 and 2023. The Department of Defense and the Department of Homeland Security accounted for a substantial portion of this amount5. The GAO has also expressed concerns regarding contractors who consult for foreign governments, especially China, as this could present a national security risk.
Tags: GSA, consulting contracts, federal spending, Trump administration, Government Accountability Office, GAO, Stephen Ehikian, non-essential contracts, government oversight, federal agencies, procurement, IT, real estate, Department of Defense, Department of Homeland Security, national security, China, government contracts.
