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To: Johnny Canuck who wrote (64693)	7/23/2025 1:39:12 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 67577

Trump official vows Doge-inspired squeeze on government contractors Josh Gruenbaum aims to create ‘market tension’ for tech groups and consultancies despite complaints from companies Josh Gruenbaum: ‘I can’t think of a single contentious or caustic discussion I’ve had with industry’ © Greg Kahn/FT Trump official vows Doge-inspired squeeze on government contractors on x (opens in a new window) Trump official vows Doge-inspired squeeze on government contractors on facebook (opens in a new window) Trump official vows Doge-inspired squeeze on government contractors on linkedin (opens in a new window) Share Save Pro Features Configuration current progress 100% Joe Miller in Washington, Stephen Morris in San Francisco and Stephen Foley in New York Publishedyesterday 43Print this page The Trump administration’s procurement chief has vowed to persist with a Doge-inspired pricing squeeze on technology groups and government suppliers, after some of the US’s largest corporations complained to the White House about his aggressive approach to cost-cutting. Josh Gruenbaum, a former investment banker and director at KKR who runs the powerful Federal Acquisition Service, has overseen a months-long review of multibillion-dollar deals with software providers and consultancies, convincing companies including Booz Allen Hamilton, Google and Oracle to offer steep discounts on services. But Gruenbaum’s sometimes brusque approach — demanding that the likes of Microsoft, Amazon and Uber identify savings or face the possible cancellation of lucrative contracts — has sent shockwaves through the tech and consultancy industries. A letter from Gruenbaum sent to 10 leading consulting firms in March demanding they justify each individual government contract, read: “A 15 year old should be able to understand what service you provide and why it is important — no consultative jargon or gobbledegook.” At least one chief executive complained directly to the White House over the approach, according to a person familiar with the matter. One leading US tech group said dealing with the administration was impossible, and described it as a “circus”. “They are super aggressive and have upset CEOs and others,” another government contractor told the Financial Times. They added that airline industry executives were the latest to complain about the FAS after learning their sector was the next to be targeted. In an interview with the FT on Friday, Gruenbaum claimed all negotiations had taken place in good faith. “I can’t think of a single contentious or caustic discussion I’ve had with industry.” The General Services Administration, which houses the FAS, claims the procurement review has resulted in more than $52bn in savings, of which some $12bn comes from consulting contracts. The total figure accounts for more than a quarter of the purported savings by the so-called Department of Government Efficiency ( Doge). Gruenbaum insisted his team’s approach was “going to persist for the duration of this administration”. He added that multibillion-dollar deals were still being reviewed against cheaper options. “We have shrewd business folks around us, we do run market comparisons,” said Gruenbaum, whose role became more prominent after an executive order further centralising procurement. “We have typically other vendors who are like, ‘we could create proper market tension’.” He warned companies that “volume’s going to start shifting” if government suppliers fail to offer value for money on existing contracts, “and I think industry understands that”. Gruenbaum denied the White House was pressuring him to go easy on companies with close ties to the administration, such as Larry Ellison’s Oracle. “The buy-in from?.?.?.?the administration, for us to go and execute on these things, that’s what’s making this happen,” he told the FT. “We’re not here to like just knuckle drag people,” he said. “There’s a way to get to a great deal where it’s a win-win, where you recognise?.?.?.?how important of a customer the federal government it is.” The White House did not respond to a request for comment on the complaints by chief executives. In a statement on Tuesday, Gruenbaum defended his team’s approach, saying: “We are tough, but fair, and we take our jobs safeguarding American taxpayer money extremely seriously — we make no apologies for that. We stand by our record of success.” In his earlier interview with the FT, Gruenbaum insisted that vendors who had already reached agreements with the government on some contracts — such as Google, Adobe and Uber — would not be exempt from reviews into the return on investment for “another part of their business”. While Gruenbaum and former acting GSA administrator Stephen Ehikian are not officially part of Doge, they have been closely aligned with the initiative run by Elon Musk before his public fallout with the president. Recommended Big Tech Google to agree cloud discount as US government squeezes Big Tech A report by Politico last week suggested that Ehikian, who formerly worked at Salesforce, and Gruenbaum, had been identified by Musk’s then-enforcer Steve Davis as potential leaders of Doge following the Tesla chief executive’s departure from Washington. On Monday, the White House surprised GSA staffers by appointing Michael Rigas as administrator for the agency, above Gruenbaum and Ehikian. In his interview, Gruenbaum said he had joined government in part because he was inspired by Doge’s mission, and added that agencies including the GSA were now “operating with the lens of Doge”. “Doge became what it was supposed to become, which is like an ethos and a way of life, right?” he said.