Federal contractors should expect “massive reductions” in what they can charge as President-elect Donald Trump’s government crackdown gets underway, according to entrepreneur Vivek Ramaswamy, who will co-lead the initiative with billionaire Elon Musk.
“Today there is huge waste, fraud and abuse,” Ramaswamy said the fox news’ Sunday Morning Futures. “Federal contractors are really exploiting the federal government.”
Trump said last week that the new panel — known as the Department of Government Efficiency — would work with the White House Office of Management and Budget to dismantle red tape, cut regulations, cut wasteful spending and restructure federal agencies.
“We hope to eliminate some agencies completely,” Ramaswamy said. “We expect a reduction in force in areas of the federal government that are bloated. We expect significant reductions in federal contractors and others that are overbilling the federal government.”
Ramaswamy did not single out any contractors, and it is still unclear how the efficiency drive will be structured.
If Musk and Ramaswamy are placed on a federal advisory board, they would be subject to ethics laws that require them to recuse themselves from discussions and decisions that affect them personally. SpaceXMusk’s rocket company has more than $15 billion in federal contracts.
