I N S U R E N
Berkshire Hathaway, Nebraska, USA contact@insurhaven.com

Deloitte Bloomberg

Federal Cost Reduction Initiatives promoted by President Donald Trump have focused on the Federal Emergency Management Agency, where expense in consultants such as Deloitte now faces scrutiny.

The agency workers have been asked to provide for simple explanations on Tuesday at night of contracts and designated that are not “non -essential” and must be completed or reduced, according to documents seen by Bloomberg News. The contracts of dozens of consultants, including Guidehouse, Serco Group PLC are being reviewed. And the Cadmus group, according to the documents.

Trump has underestimated Elon Musk, the richest person in the world and CEO of Tesla Inc., to supervise cost savings through a White House office known as the government’s efficiency department. Musk teams seek to select spending and eliminate opposite programs by the new administration, leaving government contractors on alert.

The FEMA Directive is based on a request from the administrator of the General Services Administration, according to the documents. Stephen Ehikian, an interim administrator of the agency, is a former executive of Salesforce Inc. who has said that he will work closely collaboration with Doge.

FEMA, Deloitte, Guidehouse, Serco and Cadmus spokesmen did not immediately respond to comments requests.

Essential contracts are “necessary for an agency to comply with its legal purpose”, while non -essential are those that “simply generate a report, research, coaching or an artifact,” say the documents.

In these cases, workers are asked to determine whether the full contract must be terminated or simply be modified to eliminate “non -essential work.” They are also asked to estimate cost savers, the estimated end date and identify which worker determined whether the contract was essential.

Fema, part of the Department of National Security, is responsible for coordinating the disaster relief of the United States. Until Monday, his staff was responding to more than 100 main disasters throughout the country, including the continuous recovery of historical forest fires that devastated parts of Los Angeles last month.

Since assuming the position, Trump has publicly questioned the role of Fema. His attacks against the agency date back to the 2024 campaign, when he criticized his response to Hurricane Helene in North Carolina, often citing rumors and falsehoods as evidence that FEMA was not doing enough to help survivors.

Trump has not yet nominated a FEMA administrator, instead of touching Cameron Hamilton, a former Navy Seal without previous fema or experience in large -scale disasters, to serve as an interim boss. The Secretary of National Security, Kristi Noem, who directs a review of the agency, said Sunday that I would recommend that Trump “get rid of the way in which it exists today.”

FEMA uses contractors for everything, from graphic information services to support the disaster response and install trailers, according to Craig Fugate, who directed FEMA under former President Barack Obama.

“If you got rid of all FEMA and DHS contractors, the agency could not work,” Fugate said in a telephone interview.

At the same time, the use of contractors expanded as part of a “Shell game” to get rid of federal workers after the administration efforts of former President Bill Clinton to reduce the size of the government, added Fugate. In some cases, contractors were working on acquisitions and reviewing other contractors, he said.

“It’s a fair game,” said Fugate. “Every time I was trying to get away from the contractors, they would call me Congress to ask why I was cutting them. It will be interesting to see who runs the ox. “

Photo: A Deloitte office building. Photographer: Benjamin Girette/Bloomberg

Copyright 2025 Bloomberg.

The most important insurance news, in its entrance tray every business day.

Obtain the reliable Bulletin of the Insurance Industry



Source link
Related Tags:
Social Share:

Leave a comment