‘Unimpressed’ GSA gives consulting firms new deadline in quest to terminate contracts; New DOGE CIO looks to reduce Labor IT office by 30%

The General Services Administration is not happy with the top-10 consulting firms it asked back in February to self-identify contracts that could be terminated to save the federal government money, going as far as to call their efforts under the initiative “insulting.” Josh Gruenbaum, commissioner of GSA’s Federal Acquisition Service, wrote in a letter to those 10 firms, viewed by FedScoop, that GSA and its contracting partners are “unanimously unimpressed” with the cost savings those contractors identified in the so-called “scorecards” they submitted after the agency called for the termination of government contracts with those top consultants. As a result, the agency is calling on those firms to submit a second “waste review” by 5 p.m. ET on Friday with their proposals demonstrating how they can “lean into developing taxpayer friendly pricing” with “dramatic price reductions.” “In good faith, and with high expectation, we offered firms the opportunity to join us in reducing wasteful spending and do their part in addressing the twin issues of the federal debt and deficit,” Gruenbaum wrote. “The efforts to propose meaningful cost savings were wholly insufficient, to the point of being insulting.” The Labor Department’s new chief information officer is looking to reduce staff in the Office of the CIO by about 30%, according to a source within the agency. Hundreds of people currently work in Labor’s CIO office, but leadership is hoping many workers will voluntarily leave the team. Thomas Shedd, who was appointed to Labor’s CIO role last month, is optimistic that the goal will be achieved through the federal government’s deferred resignation programs and reduction-in-force efforts, the source said. Going forward, Labor’s Office of the CIO plans to focus on systems used to disburse benefits, as well as programs required by law that need business systems and software to work, according to documents viewed by FedScoop. There will also be an emphasis on efficiency and consolidating systems while providing value, the documents said. The department told employees that they’re not “tracking” staff, despite media reports, and that the agency is only interested in measuring results. The Daily Scoop Podcast is available every Monday-Friday afternoon. If you want to hear more of the latest from Washington, subscribe to The Daily Scoop Podcast  on Apple Podcasts, Soundcloud, Spotify and YouTube.