Federal contractors should expect “massive cuts†in what they can charge once President-elect Donald Trumpâ€s government efficiency drive is underway, according to entrepreneur Vivek Ramaswamy, who will co-lead the initiative with billionaire Elon Musk.
“There is massive waste, fraud and abuse right now,†Ramaswamy said on Fox Newsâ€Â Sunday Morning Futures. “Federal contractors are really exploiting the federal government.â€
Trump said last week that the new panel — known as the Department of Government Efficiency — would work with the White Houseâ€s Office of Management and Budget to dismantle bureaucracy, slash regulations, cut wasteful spending and restructure federal agencies.
“We expect certain agencies to be deleted outright,†Ramaswamy said. “We expect mass reduction in force in areas of the federal government that are bloated. We expect massive cuts among federal contractors and others who are overbilling the federal government.â€
Ramaswamy didnâ€t single out any contractors, and isnâ€t clear yet how the efficiency drive will be structured.
If Musk and Ramaswamy are put on a federal advisory committee, theyâ€d be subject to ethics laws requiring them to recuse themselves from discussions and decisions affecting them personally. SpaceX, Muskâ€s rocket company, has more than $15 billion in federal contracts.
