The Trump administration is cutting contracts and shifting its focus towards tech companies.

According to reports, the Trump administration's review of federal contractors has entered a new stage, focusing on technology companies. The General Services Administration has sent letters to 10 technology contractors, including Dell and CDW, asking executives to prove the validity of their work and find areas to cut costs. The United States spends $820 billion annually on IT products and services, and the complex procurement process leads to "excessive markups and increased costs to taxpayers," the letter states, adding that "this must change."