Horizon cutting-room links: Wednesday, 14 May 2025

First, a note on governmentwide contract savings

While I shed few tears for Booz Allen Hamilton, Deloitte, et al., I can assure you the Big Four will not see reduced margins owing to GSA-driven contract savings (first story, below). Only four CPA firms with management consultancies are trusted by markets worldwide. They are expert at getting from top-line to bottom, especially where it affects partner comp. So, the projects will get slightly greener and slimmer, and individuals’ billable hours might tick up. The agencies budgeted the contracts during award, so we’re in execution phase, where we focus on schedule, quality, and risk. Also, you can’t calculate cost savings until you can evaluate performance and assess any overruns, delays, or failures. I thought that obvious to anyone negotiating governmentwide contracts. –JB

"GSA expands efforts to reshape federal consulting contracts," Federal News Network

GSA is taking significant steps to reassess federal consulting contracts, focusing on obtaining detailed insights from a new group of consulting vendors on governmentwide contracts. This initiative aims to identify potential savings and improve the value of government contracts by pushing for more outcome-based pricing models and smarter spending strategies.

• GSA has requested ten new consulting vendors to submit detailed data on their contracts, focusing on spending breakdowns, pricing models, and potential savings to enhance taxpayer-friendly pricing strategies.
• The initiative has purportedly approximately $33 billion in potential savings from earlier reviews, with GSA acting on $8.9 billion of that figure.
• Industry experts express concerns over GSA’s broad definition of consulting contracts and the challenges of transitioning to outcome-based contracts, emphasizing the need for clear communication and agreement on outcomes between vendors and government agencies.

"IRS would eliminate Direct File under Trump-backed budget reconciliation bill," Federal News Network

In a significant move, a sweeping budget reconciliation bill backed by House Republicans aims to cut over $880 billion in federal spending, including the termination of the IRS's Direct File program, which has provided free online tax filing for two years. So, those with more complex taxes and larger tax bills, who likely hire help, gain the most from the cuts. Meanwhile Intuit somehow wins again (Turbo Tax, QuickBooks) and everyday Americans lose—to finance the first group.

• The budget reconciliation bill mandates the IRS to terminate the Direct File program within 30 days of the bill's enactment, shifting toward a public-private partnership for tax preparation services.
• Critics argue that eliminating Direct File undermines a cost-saving platform for taxpayers, potentially costing them billions annually in tax preparation fees.
• The bill allocates funds for a report analyzing the feasibility of alternatives to Direct File, including taxpayer preferences for government-run versus private tax services.

"OPM touts ‘fully paperless’ retirement application, though concerns remain," Government Executive

OPM prepares to launch a new “paperless” retirement application for federal employees, concerns linger about its effectiveness in addressing longstanding issues within the retirement process. Experts caution that while the transition to an electronic system is a significant step towards modernization, numerous uncertainties remain regarding processing times and accuracy, especially given that many employment records are still maintained in paper format.

• The new Online Retirement Application form will be mandatory for all new retirement applications starting 2 June, aiming to streamline the process and reduce wait times.
• Experts emphasize the importance of ensuring the accuracy of applications and question whether the new system can effectively handle the anticipated increase in retirement processing due to various programs.
• Concerns persist about the reliance on paper records for many employees.

"Meink Confirmed as 27th Secretary of the Air Force," Air & Space Forces Magazine

Dr. Troy Meink has been confirmed as the twenty-seventh Secretary of the Air Force, following a Senate vote that underscores his extensive experience in space intelligence and his commitment to modernizing the Air Force amidst increasing global threats. With a focus on both air and space operations, Meink's leadership is poised to address critical challenges and initiatives, including the reorientation of budgets toward advanced missile defense systems and the integration of new technologies.

• Senate confirmation: Dr. Meink was confirmed with a 74 to 25 vote, showcasing bipartisan support for his extensive experience in space intelligence, including his previous roles at the National Reconnaissance Office.
• Modernization Focus: Meink aims to modernize the Air Force while addressing the growing challenges of the Space Force, particularly in securing space resources amid evolving threats from global competitors like China and Russia.
• Controversial Deputy Nominee: His choice for deputy, Matthew Lohmeier, has sparked debate because of previous comments on the Space Force, highlighting the contentious nature of leadership within USAF.

"F-47 will have 70% better combat radius than F-22, Air Force says," Defense One

The Air Force's upcoming F-47 fighter jet is set to significantly enhance combat capabilities with a combat radius that extends 70 percent farther than the current F-22. This advancement is critical for modern aerial warfare, allowing for greater operational range and reduced risk to support aircraft.

• The F-47 is designed to have a combat radius exceeding 1,000 nautical miles, allowing for extended missions without the need for refueling.
• It will feature advanced stealth capabilities classified as “stealth++,” surpassing the F-22’s “stealth+” designation (I guess it worked for the C programming language).
• The Air Force plans to acquire at least 185 F-47 fighters, which could match or exceed the total number of F-22s previously purchased.