Donald Trump government sends 'warning' letter to 10 highest-paid consulting companies, says explain in simple language that 'a 15-year-old can understand' that 'How...'

The Donald Trump administration is intensifying its investigation into federal consultancies, such as Booz Allen Hamilton Holding Corp and Accenture Plc, demanding that these companies describe their work in clear, simple terms rather than "jargon or gobbledygook," Bloomberg reports. According to a letter seen by Bloomberg News, Josh Gruenbaum, the General Services Administration’s new top procurement official, wrote to the 10 highest-paid consulting companies serving the government, requesting detailed information about their billions in government contracts and their plans to "reduce or eliminate spend." Gruenbaum warned, "Do not submit a scorecard that does not identify any waste and spend reduction opportunities," adding that submissions failing to highlight cost savings would lack credibility and signal misalignment with the administration’s cost-cutting objectives.
Gruenbaum, a former private equity executive and investment banker from KKR & Co. and Moelis & Co., appointed by President Donald Trump to oversee GSA procurement, instructed the consulting companies to submit pricing reduction recommendations by March 31 in language "a 15-year-old should be able to understand." This follows GSA’s earlier directive to federal agencies to justify their contracts with consultancies, including major players like Deloitte Consulting LLP, Bloomberg report adds.

Earlier this week, Accenture’s stock dropped after the company reported a slowdown in its US government work, tied to Elon Musk’s Department of Government Efficiency (DOGE) push to cut the federal workforce and budget. CEO Julie Sweet said at the earnings call that federal services made up about 8% of Accenture’s global revenue and 16% of its Americas revenue in fiscal 2024. Meanwhile, Science Applications International Corp., another firm in DOGE’s sights, said its contracts have seen minimal impact so far but acknowledged potential shifts as the administration ramps up its fight against "waste, fraud and abuse."
The report highlights that the federal government spent $759 billion on contracts in 2023, relying on external firms for professional services, tech support, and R&D, per Government Accountability Office data. Supporters argue this outsourcing saves money by leveraging outside expertise. Other targeted firms include IBM, General Dynamics, Leidos, Guidehouse, HII Mission Technologies, and CGI Federal, none of which immediately commented on GSA’s letter.
The GSA is mandating that these consultants submit a form outlining payments received from agencies between 2019 and 2024, along with details of their work types and pricing models. According to Bloomberg News, the GSA has already terminated 1,700 consulting contracts, based on internal agency data released earlier this week.
“We are seeing an elevated level of what was already a significant uncertainty in the global economic and geopolitical environment, marking a shift from our first quarter FY 2025 earnings report in December. At the same time, we believe the fundamentals of our industry remain strong," Sweet noted.