Introduction
The Department of Government Efficiency (DOGE), a federal initiative championed for eliminating wasteful spending, recently touted $16 billion in savings from canceled government contracts. However, nearly half of this savings—$8 billion—was erroneously attributed to a single contract, which was actually worth only $8 million.
The $8 Billion Miscalculation
Its website originally listed the contract, awarded to D&G Support Services, at $8 billion for program and technical support services at ICE’s Office of Diversity and Civil Rights. However, a review of federal records revealed that the actual contract value had been corrected to $8 million as of January 22 this year, shortly before its termination.
How DOGE’s Error Was Uncovered
The discrepancy was first noticed when The Upshot, a news analysis platform, examined its claimed savings. Even though the DOGE website initially included a screenshot verifying the contract’s true value, it continued to report $8 billion in savings. When this inconsistency was highlighted, it quietly removed the screenshot but upheld its original claim.
The Real Savings Breakdown
Even at its correct valuation, the actual savings from terminating the contract were significantly lower. Reports show that $2.5 million had already been spent before the contract was canceled, meaning the maximum savings possible would be $5.5 million, far from the exaggerated $8 billion figure.
DOGE’s Response
A DOGE spokesperson declined to explain how the error occurred or why it persisted. However, Elon Musk, who has been publicly linked to the initiative, acknowledged potential mistakes.
“Some of the things that I say will be incorrect and should be corrected,” Musk stated at a White House event, emphasizing the need for rapid corrections.
Despite Musk’s public association with DOGE, a recent court filing from the Trump administration denied that he holds an official role within the department.
The Contractor’s Silence
D&G Solutions, the contractor in question, specializes in logistics and technology solutions and maintains more than 40 contracts with an annual revenue of approximately $50 million. The company has yet to comment on the contract cancellation or the database error.
A Pattern of Errors?
This $8 billion mistake raises concerns about the transparency and accuracy of DOGE’s reported cost savings. If such a glaring miscalculation was found in the first contract reviewed, how many more errors might exist in DOGE’s broader $55 billion savings claim?
As scrutiny of DOGE’s accounting practices grows, ensuring accurate government spending reports remains essential for maintaining public trust. Moving forward, DOGE must prioritize accountability, transparency, and factual reporting in its cost-cutting efforts.
