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Investing.com -- The Trump administration has begun a review of federal contracts with consulting firms as part of efforts to cut government spending, Bloomberg says.
The U.S. General Services Administration (GSA) sent letters on Thursday to several major consulting companies requesting justification for their federal contracts, according to a letter obtained by Bloomberg News.
In the letter, the GSA stated it is collecting information to "critically evaluate which engagements deliver genuine value and demonstrable returns to the American taxpayer." The agency aims to determine which contracts "merit external support, and which should be internalized" to ensure responsible management of taxpayer dollars.
The GSA expressed a "baseline presumption" that "most, if not all, of these contracted services are not core to agency missions."
Companies receiving these letters include AlixPartners LLP, McKinsey & Co. Inc., Ernst & Young LLP, Alvarez & Marsal Inc., Boston Consulting Group Inc., and FTI Consulting Inc (NYSE:FCN)., according to a source familiar with the review.
This initiative appears to be part of broader efforts by the administration to identify and reduce what it considers wasteful federal spending.
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