Federal contractors should expect “massive reductions” in what they can charge once President-elect Donald Trump’s government’s efficiency drive begins, according to businessman Vivek Ramaswamy, who will co-lead the initiative with billionaire Elon Musk.
“There is an enormous amount of waste, fraud and abuse right now,” Ramaswamy told Fox News. Futures on Sunday morning. “Federal contractors are really taking advantage of the federal government.”
Trump said last week that the new commission — known as the Department of Government Efficiency — would work with the White House Office of Management and Budget to dismantle bureaucracy, cut regulations, cut wasteful spending and restructure federal agencies.
“We expect some agencies to be eliminated completely,” Ramaswamy said. “We expect a significant reduction in force in bloated federal government areas. We expect massive discounts among federal contractors and others who overbille the federal government.
Ramaswamy did not identify any specific contractors, and it is not yet clear how the efficiency drive will be structured.
If Musk and Ramaswamy are appointed to a federal advisory committee, they will be subject to ethics laws that require them to remove themselves from discussions and decisions that affect them personally. SpaceX, Musk’s rocket company, has federal contracts worth more than $15 billion.