- Do not add DOGE claims to reduce costs. According to Bank of America for Securities, the team that has reported the savings of $ 24.8 billion is “exaggerated”. DOGE has already erred in the values of the nodes spacious, with some billions of numbers amplified.
Dog’s savings appear to Bank of America stock.
The cost reduction team claims that it provided about $ 24.8 billion in canceling the contract and re -negotiating on March 30, an increase of 21.6 billion dollars last week.
BOA analysts indicated that a lot of the jump seemed to come from the cancellation of the contract at a value of $ 2.9 billion for the care of the child who is not accompanied by the southern border. The savings associated with the Ministry of Interior, which runs federal lands, is now $ 3.0 billion, an increase of 144 million dollars last week.
Duji also received credit for $ 4.1 million from savings from the IT support contract at General Dynamics for the Office‘ Electronic Appeal Portal. In general, the team’s discounts were affected by about 93 million dollars annually General dynamics GDIT, but analysts say this is still a relatively slight change and represents only 0.7 % of the total GDIT revenue.
They also noticed that despite the cuts, GDIT won $ 33.1 million in new contracts since January 20.
Dog seems to exaggerate his savings elsewhere. The team says it provided $ 9.1 million by cutting a CAE contract for flight Simulation Maintenance; However, the company has received less than $ 40,000 from payments from this contract in the past three years, so the real effect is small.
Experts said luck In such cases, Doug seemed to misunderstand how government contracts work, which leads to inflated values. Sometimes government contracts have “roof values” that far exceeded what could have already been spent.
Bank of America also indicated that the Ministry of Defense, which is receiving a large part of federal spending, has been largely not affected. Dog’s savings remained from the Ministry of Defense contracts for $ 14.1 million, unchanged since March 24. The American Agency for International Development represents half of the Doug’s claim, but many contract details have been deleted from the team’s “receipt wall”, making it difficult to check independently.
Doge’s representatives did not respond immediately to request a comment from luckMade outside the normal working hours.
Dog Accounting is unconfirmed
DOGE, the Elon Musk initiative to reduce costs, wants to reduce $ 1 trillion of federal spending by the end of the year, but many savings demands for the team have been found significantly.
The team’s accountability failed to withstand the continuous scrutiny of the media and experts, while the general wall of receipts was full of mistakes.
The team deleted many contracts from the receipt wall after the media reports that undermined its legitimacy. In one case, Dog was forced to review her largest contract from 8 billion dollars to 8 million dollars after the contract seller explained that No. 8 billion dollars is included In the purchasing record, it was likely to be a written error. In another case, the team removed the largest provision of demands – a contract worth $ 1.9 billion with Centennial Technologies for software – after a report from the New York Times open The contract was canceled under the Biden Administration, not by Duj. The team later re -added the contract in its savings list.
former Before luck It was also found This total savings are amplified on the Doug wall of receipts or significantly. For example, last month, the team claimed that it provided nearly $ 20 billion from 5356 at the end of the contract, but the total savings listed in those contracts only added up to $ 17.97 billion – more than $ 2 billion.
This story was originally shown on Fortune.com
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