The Trump administration cost-cutting efforts are now moving to audit contracts with tech companies.
The government's procurement office known as the General Services Administration has sent letters to 10 tech contractors asking them justify proof of work, The Wall Street Journal reported Saturday.
The Trump administration is auditing the $82 billion annually on IT products and services and the GSA is reviewing the 10 tech companies for "excessive markups and increased costs to the taxpayer," according to the Journal.
"This must change," the letter reviewed by the Journal read.
"Evaluate whether the offered pricing is appropriate given best commercial industry comparables."
GSA's Federal Acquisition Service Commissioner Josh Gruenbaum's letter gave a June 11 deadline for response to justify their contracts and pricing.
The Trump administration, led by the Department of Government Efficiency's audits, have reportedly canceled 11,297 contracts across 60 agencies for $33 billion in savings, sources told the Journal.
The GSA letter suggests cutting out middle men in government contracts after a President Donald Trump executive order.
"We don't need to outsource everything; we don't need to always go and buy bespoke, specialized products and services," Gruenbaum told the Journal. "The point is, really, can you shape shift the way the federal government does business? We think unequivocally 'yes.'"
Eric Mack ✉
Eric Mack has been a writer and editor at Newsmax since 2016. He is a 1998 Syracuse University journalism graduate and a New York Press Association award-winning writer.
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