Latest news with #federalContracts
The Verge
4 days ago
- Business
- The Verge
Some Palantir employees are worried about ‘reputational damage' over the company's work for Trump.
Palantir has received more than $113 million in federal funds since Trump took office and is reportedly discussing potential contracts with the Social Security Administration and the IRS. The ubiquity of Palantir's tech within federal agencies may help Trump achieve his goal of creating a master database allowing administration officials to access data on nearly anyone in the US. Employees are 'raising questions internally' about Palantir's contracts, one former engineer said. Some are worried about the implications of collecting so much data on Americans.
CBS News
27-05-2025
- Business
- CBS News
Trump administration looks to end all federal contracts with Harvard University, totalling $100 million
The Trump administration is making its latest move to take away funding from Harvard University on Tuesday, writing in a letter that all federal agencies should look at canceling their government contracts with the Ivy League college or move them somewhere else. There are about 30 outstanding federal contracts with Harvard totaling $100 million, a senior administration official tells CBS News. Why Trump administration wants to end Harvard contracts The letter from the U.S. General Services Administration alleges that Harvard "continues to engage in race discrimination, including in its admissions process and in other areas of student life." It also claims that the school is not doing enough to project Jewish students from harassment on campus. "In light of this deeply troubling pattern, each agency should consider its contracts with Harvard University and determine whether Harvard and its services efficiently promote the priorities of the agency," the letter says. "Going forward, we also encourage your agency to seek alternative vendors for future services where you had previously considered Harvard." The Supreme Court ruled in 2023 that Harvard's race-conscious admission policies were unconstitutional. But since then, Harvard says admissions workers no longer have access to certain information about an applicant's race. The school reported a drop in Black student enrollment last fall after the affirmative action ruling. Harvard did not immediately respond to a request for comment. What happens next? The federal agencies have a June 6 deadline to respond to the GSA with the actions they are taking. "The goal at the end is for the government to be out of business with Harvard, but to do it in a way that preserves critical services that agencies think they still need by transitioning that to a new vendor," the senior administration official said. What about Harvard-related hospitals? The official said the contract review would not include the Harvard hospital system. Funding for Massachusetts General Hospital, which has a partnership with Harvard, would not be impacted. On Monday, Trump said he's considering rerouting $3 billion in Harvard grants to trade schools across the U.S. The administration has already frozen billions of dollars in federal funding to Harvard, and last week moved to block the university from enrolling foreign students. Harvard has sued the Trump administration, saying the funding freeze is part of the government's efforts to control policies at the school. Harvard president Alan Garber has said that while the school has taken steps to address antisemitism, "The University will not surrender its independence or relinquish its constitutional rights."
CBS News
27-05-2025
- Business
- CBS News
Trump administration looks to end federal contracts with Harvard University
The Trump administration is making its latest move to take away funding from Harvard University on Tuesday, writing in a letter that all federal agencies should look at canceling their government contracts with the Ivy League college or move them somewhere else. There are about 30 outstanding federal contracts with Harvard totaling $100 million, a senior administration official tells CBS News. The letter from the U.S. General Services Administration alleges that Harvard "continues to engage in race discrimination, including in its admissions process and in other areas of student life." It also claims that the school is not doing enough to project Jewish students from harassment on campus. "In light of this deeply troubling pattern, each agency should consider its contracts with Harvard University and determine whether Harvard and its services efficiently promote the priorities of the agency," the letter says. "Going forward, we also encourage your agency to seek alternative vendors for future services where you had previously considered Harvard." The Supreme Court ruled in 2023 that Harvard's race-conscious admission policies were unconstitutional. But since then, Harvard says admissions workers no longer have access to certain information about an applicant's race. The school reported a drop in Black student enrollment last fall after the affirmative action ruling. Harvard did not immediately respond to a request for comment. The federal agencies have a June 6 deadline to respond to the GSA with the actions they are taking. "The goal at the end is for the government to be out of business with Harvard, but to do it in a way that preserves critical services that agencies think they still need by transitioning that to a new vendor," the senior administration official said. The official said the contract review would not include the Harvard hospital system. Funding for Massachusetts General Hospital, which has a partnership with Harvard, would not be impacted. On Monday, Trump said he's considering rerouting $3 billion in Harvard grants to trade schools across the U.S. The administration has already frozen billions of dollars in federal funding to Harvard, and last week moved to block the university from enrolling foreign students. Harvard has sued the Trump administration, saying the funding freeze is part of the government's efforts to control policies at the school. Harvard president Alan Garber has said that while the school has taken steps to address antisemitism, "The University will not surrender its independence or relinquish its constitutional rights."
TechCrunch
16-05-2025
- Business
- TechCrunch
How Silicon Valley's influence in Washington benefits the tech elite
Elon Musk isn't the only tech billionaire with power over the federal agencies that regulate his businesses. Since Donald Trump took office, more than three dozen employees, allies, and investors of Musk, Peter Thiel, Marc Andreessen, and Palmer Luckey have taken roles at federal agencies, helping direct billions in contracts to their companies. Companies owned, founded, or invested in by Musk, Thiel, Andreessen, and Luckey have collected more than a dozen federal contracts totaling about $6 billion since Trump's inauguration in January, according to a Wall Street Journal analysis. And they're actively pursuing billions more. Those appointments, which are in departments that oversee, regulate, and award business to the four men's companies, raise a number of red flags. They could violate conflict of interest laws or government ethics regulations, both of which prohibit federal employees from using public office for private gain. And while it's not unusual to install trusted allies in government roles, Musk's network has moved in at an unprecedented rate and scale. TechCrunch has previously reported on all of the people in Musk's universe who have joined him at DOGE, where he has shuttered federal agencies and slashed workforces in departments that regulate his businesses. At least 19 others with Silicon Valley connections, be they founders or investors, have also joined DOGE. 'The second Trump administration is actually the first in recent years to not impose any sort of additional ethics safeguards on high level appointees,' Daniel Weiner, director of the Brennan Center's Elections & Government Program, told TechCrunch. He noted that Trump fired at least 17 people at the Office of Government Ethics, including the director, immediately after taking office. 'It certainly does potentially increase the risk that you have people working on matters that do impact, at least indirectly, their bottom lines,' Weiner said. 'But this is a long-term issue in our government that's not unique to this administration.' Innovation versus accountability Peter Thiel speaks during the Bitcoin 2022 Conference.(Photo by Marco Bello) Image Credits:Getty Images Some may argue that it makes sense for employees and associates of Musk, Thiel, Andreessen, and Luckey to join government agencies. Their insiders are talented individuals who are behind the cutting-edge technology the government genuinely needs, and they understand how to innovate quickly and compete globally. Techcrunch event Join us at TechCrunch Sessions: AI Secure your spot for our leading AI industry event with speakers from OpenAI, Anthropic, and Cohere. For a limited time, tickets are just $292 for an entire day of expert talks, workshops, and potent networking. Exhibit at TechCrunch Sessions: AI Secure your spot at TC Sessions: AI and show 1,200+ decision-makers what you've built — without the big spend. Available through May 9 or while tables last. Berkeley, CA | REGISTER NOW More serious questions arise when favoritism threatens to undermine competition, when policy is created or destroyed to protect market dominance, or when regulations that would serve the public good are waylaid to promote business interests. For instance, the Consumer Financial Protection Bureau recently retreated from pursuing rules that would restrict data brokers, despite growing privacy concerns – a shift that stands to benefit companies involved in AI, surveillance, and data analytics. Another example is DOGE's firing of staffers at the National Highway Traffic Safety Administration who investigate autonomous vehicle safety, including several probes into Tesla. 'One of the defining structural challenges the government of the United States has right now is that we have a system in which the very wealthiest interests have so much power to shape our elections and then turn around and shape government policy,' Weiner said. Another Silicon Valley appointee, Mike Kratsios – a former Thiel employee – is now leading technology policy for the U.S. government. In an April speech, he spoke about throwing away bad regulations that 'weigh down our innovators,' particularly those who are innovating in AI. 'Many people in Silicon Valley tend to think that whatever worked in Silicon Valley is also going to work for administering the United States government,' Weiner said. 'And as we're seeing now, the danger is a lot of people are going to get hurt because of the assumptions they make.' 'The fact that you had a successful startup after five others failed doesn't necessarily mean you know how to run the Social Security Administration,' he continued. A network inside and a payoff outside Marc Andreessen, co-founder and general partner of Andreessen Horowitz. Photographer: David Paul Morris/Bloomberg Image Credits:Getty Images All of the businesses between Musk, Thiel, Andreessen, and Luckey are related. Musk's SpaceX was backed by Thiel's Founders Fund and Andreessen's a16z (which also invested in X and xAI). Both of those VCs also backed Anduril, Luckey's defense startup. The overlapping network of founders, funders, and insiders extends into several federal agencies. And in many cases, those agencies are steering billions in federal contracts back to those companies. The Journal found that across Washington, people from Musk's network, including Tesla, X, and SpaceX, are in more than a dozen agencies, from the executive office of the president and Office of Personnel Management all the way down to the Department of Transportation and the Department of Energy. SpaceX employees are also in agencies that could provide the company new business. For example, the Journal reports that SpaceX senior engineer Theodore Malaska got an ethics waiver in February that lets him take a temporary job at the Federal Aviation Administration while still working at the rocket company. The FAA hasn't given any contracts to SpaceX yet, but Malaska said on X the agency has used Starlink to upgrade a weather observing system in Alaska. SpaceX is also the main commercial provider that transports crew and cargo for NASA. Despite national security concerns – like the company's secret backdoor for Chinese investment and Musk's reported habit of drug-taking – SpaceX in April won $5.9 billion of a $13.7 billion multi-year contract from the U.S. Space Force in April to launch Pentagon missions. The DOD, which is currently a Starlink customer, also plans to buy SpaceX's Starshield satellites, a militarized version of the internet satellites. Employees at Thiel-backed firms have found themselves in roles in the State Department, the Office of Management and Budget, Health and Human Services, and Social Security, per The Wall Street Journal. Thiel's Palantir has already been awarded nearly $376 million since 2020 from Health and Human Services. In 2024, the company was also awarded at least $1.2 billion in Department of Defense contracts in 2024, and is in the running for another $100 million deal. Anduril, Palantir, and SpaceX recently submitted a multibillion-dollar proposal for Trump's 'Golden Dome' missile-defense program, which would also add to Anduril's existing contracts with the U.S. Army. Recently, Anduril and Microsoft took over a 2021 contract worth up to $22 billion to develop AR headsets, per the Journal. An Anduril executive, Michael Obadal, has been nominated to a top role at the Department of Defense. In his ethics disclosure, he stated that he would retain his Anduril stock if appointed. TechCrunch has reached out to Anduril, Andreessen Horowitz (a16z), Palantir, and SpaceX for comment. 'This sort of concentration of private wealth and political power is ultimately very risky for our economy,' Weiner said. 'Because instead of the government making decisions that are intended to foster competition, foster economic growth, you run the real risk that government decisions are going to instead be structured around protecting particular companies and particular industries from full economic competition.'
Yahoo
09-05-2025
- Business
- Yahoo
Maximus Inc (MMS) Q2 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic AI ...
Release Date: May 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Maximus Inc (NYSE:MMS) reported a solid 3% organic revenue growth year over year, reaching $1.36 billion in Q2. The company achieved an adjusted EBITDA margin of 13.7%, which is at the upper end of their guidance range. Maximus Inc (NYSE:MMS) successfully implemented AI solutions to enhance efficiency in federal contracts, such as the Federal No Surprises Act and the Department of Veterans Affairs. The company secured new contracts in the clinical assessment space, including a $40 million contract in Kansas and a $150 million contract in California. Maximus Inc (NYSE:MMS) was recognized by Fortune as one of America's most innovative companies, highlighting their advancements in AI and automation. The company is experiencing delays in federal procurement processes, particularly in civilian agencies, which could impact future contract awards. Revenue from the US services segment decreased due to the completion of the Medicaid unwinding exercise, reflecting a normalization of revenue. Cash flow was lighter this quarter due to temporary delays in collections, leading to higher days sales outstanding (DSO). Maximus Inc (NYSE:MMS) is facing requests for pricing concessions on certain contracts, reflecting increased scrutiny from the federal government. The company maintains a cautious outlook for the second half of the fiscal year due to potential macroeconomic uncertainties and evolving government spending priorities. Warning! GuruFocus has detected 2 Warning Signs with MMS. Q: How should we think about the guidance for the back half of the year, and the weightings between Q3 and Q4? A: David Meutron, CFO: Our guidance reflects the Q2 overperformance and maintains guidance for Q3 and Q4. We anticipate a natural step down from Q2 due to moderation in clinical volumes and less seasonal work. We have no reliance on new work contributing to this fiscal year, and our cautious approach accommodates potential headwinds from the macro environment. Q: Can you provide more color on the exceptional margin performance this quarter? A: Bruce Caswell, President and CEO: The strong margin performance is due to high volumes and investments in technology, such as automation, which have increased productivity. This has allowed us to scale up operations and redirect staff to higher-value functions, demonstrating the effectiveness of our Maximus Forward transformation initiatives. Q: Are you seeing any potential delays in new work due to federal scrutiny, and are there new opportunities in the pipeline? A: Bruce Caswell, President and CEO: While there are some delays in civilian agency procurements, we are seeing a healthy pipeline with a 25% increase in proposals. The administration's efforts to consolidate contracts may lead to bridges and extensions benefiting incumbents. We are also exploring opportunities for efficiencies and innovation in existing contracts. Q: Can you provide additional color on the drivers behind the organic growth in the outside the US segment? A: David Meutron, CFO: The organic growth is primarily driven by our operations in the UK, particularly the functional assessment services contract. This contract provides a modest revenue increase compared to its predecessor and is a key driver of growth in the segment. Q: How are you managing the potential impact of pricing concessions and scrutiny from the federal government? A: Bruce Caswell, President and CEO: We are engaging in mutual negotiations for pricing concessions and are prepared for potential requests due to the administration's review of government spending. We maintain a balanced stance to support our customers and explore opportunities for efficiencies and innovation. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
