- Doge’s claims of reduction of costs are not added. According to the Bank of America analysts, the team reported a $ 24.8 billion savings “overrated”. Doge has previously mis -calculated contractual values and some number filled with billions.
Dogs seem to save from canceled or negotiated contracts “overrated”, according to a note from Bank of America Securities.
The cost reduction team claims that he saved about $ 24.8 billion of the termination of the contract and negotiation of March 30, which is $ 21.6 billion last week.
Boa analysts have noticed that most of the jumps seem to come from the dismissal of the contract of $ 2.9 billion for an unattended institution for children near the southern border. Savings associated with the interior department, which manages federal land, is now $ 3.0 billion, which is $ 144 million last week.
Doga also requested a $ 4.1 million loan savings from General Dynamics Support Agreement for the Medicare Office Office‘ Electronic appeal portal. Overall, a team reduction has affected about $ 93 million a year General dynamics IT (GDIT) Contracts, but analysts say it is still a relatively small change and represents only 0.7% of the total revenue of GDIT.
They also noted that, despite the reduction, GDIT won $ 33.1 million in new contracts from January 20th.
Doga seems to have exaggerated his savings elsewhere. The team says he saved $ 9.1 million by reducing CAE contract for maintaining flight simulator; However, in the last three years, the company has received less than $ 40,000 from this contract, so the real impact is small.
Experts said Wealth This, in such cases, did not misunderstand how government contracts work, leading to inflated values. Government contracts sometimes have “ceiling values” that are far more than what would actually be consumed.
Bank of American analysts also noted that the Ministry of Defense, which receives a significant part of federal consumption, has not greatly influenced. Doge’s reported savings from the DOD contract remains $ 14.1 million, unchanged from March 24th. USAID makes half of Doge’s savings, but many contract details have been deleted from the “Wall of Receipts” team, which makes it difficult to check the savings independently.
Dogeo representatives did not immediately respond to a commentary request from Wealthmade out of normal working hours.
Doge’s uncertain accounting
Initiative to reduce the cost of Elon Musk, Doge, wants to reduce $ 1 trillion of federal consumption by the end of the year, but it has been revealed that many claims about the savings of the team have been drastically overrated.
The team accounting failed to stay under the constant surveillance of the media and experts, while the public wall of receipts was full of mistakes.
The team deleted several contracts from its walls of receipts after the media reports disturbed their legitimacy. In one case, Doge had to revise his largest contract with $ 8 billion to $ 8 million after the contract supplier explained that The $ 8 billion is listed The procurement record was probably a clerical mistake. In the second case, the team removed its largest claim in savings – a $ 1.9 billion contract with the Centennial Technologies software companies – after the report and New York Times discovered that the contract was canceled under the management of Biden, not reach. Tim later added a contract to his savings list.
The previous one analysis Wealth also found This total savings on Doogo’s receipts were inflated or significantly rounded. For example, last month, the team claimed that he saved about $ 20 billion of $ 5,356 contracts, but the total savings listed on these contracts only added up to $ 17.97 billion – less than $ 2 billion.
This story is originally shown on Fortune.com
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