Nearly 40% of contracts canceled by Musk’s DOGE are expected to produce no savings

Source: AP

Nearly 40% of the federal contracts that President Donald Trump’s administration claims to have canceled as part of its signature cost-cutting program aren’t expected to save the government any money, the administration’s own data shows.

The Department of Government Efficiency, run by Trump adviser Elon Musk, published an updated list Monday of nearly 2,300 contracts that agencies terminated in recent weeks across the federal government. Data published on DOGE’s “Wall of Receipts” shows that more than one-third of the contract cancellations, 794 in all, are expected to yield no savings.

That’s usually because the total value of the contracts has already been fully obligated, which means the government has a legal requirement to spend the funds for the goods or services it purchased and in many cases has already done so.

“It’s like confiscating used ammunition after it’s been shot when there’s nothing left in it. It doesn’t accomplish any policy objective,” said Charles Tiefer, a retired University of Baltimore law professor and expert on government contracting law. “Their terminating so many contracts pointlessly obviously doesn’t accomplish anything for saving money.”

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Trump's DEI Order Creates Dilemma for Federal Contractors

Source:Bloomberg

Federal contractors are scrambling to figure out how far they should go in changing policies they’ve used to recruit and retain employees, in light of the Trump administration’s crackdown on what it describes as “illegal” DEI.

Companies that provide goods and services to the US government have a lot at stake. Agencies reported spending more than $770 billion in prime contracts in 2024, and there could be legal repercussions and hefty penalties for crossing the line on diversity, equity and inclusion— a line the administration hasn’t clearly defined. At the same time, existing contracts obligate these companies to maintain hiring policies they’ve been practicing for decades.

“The biggest question to me is, what is still in the contract that you need to comply with? How does it get changed, and when, and by whom?” said David Berteau, president and CEO of the Professional Services Council, an industry group that represents federal contractors.

“Those are still, at least from my perspective, unanswered questions on an uncertain timetable,” he added.

President Donald Trump rescinded Executive Order 11246, a 1965 rule that required contractors to practice “affirmative action” in their hiring, recruiting and promotion policies. In practice, this has meant tracking race and gender in their workforces, and identifying any policies that led to some groups being underrepresented, contracting attorneys said.

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GSA takes steps to remove DEI from federal contracts

Source:WashTech

The General Services Administration’s new class deviations will likely lead to a formal rulemaking process that would more permanently enshrine the Trump administration’s desire to outlaw diversity, equity and inclusion provision in government contracting.

Both deviations issued Saturday are GSA's move to implement the Trump executive order entitled "Ending Illegal Discrimination and Restoring Merit Based Opportunity."

GSA is making changes to the Federal Acquisition Regulation that the agency says will let contracting officers amend and modify current solicitations and contracts without penalty to the government or contract holder.

Agencies can use the modifications to remove contract clauses that promote DEI or have DEI considerations as contract requirements.

GSA Federal Acquisition Service Commissioner Josh Gruenbaum called the deviations “the first steps in transforming the FAR into a sensible, common-sense guideline to ensure that the federal government is working with industry as an attractive partner for business.”

In addition to rolling back DEI programs, the Trump administration has emphasized streamlining government operations as a priority. The administration has said it wants the government to operate more like a business.

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