DOGE’s claimed contract savings of $24.8 billion are ‘overstated,’ Bank of America says

• Doge cost reduction requirements are not increasing. According to American securities analysts, the team’s $ 24.8 billion savings are “overrated.” Doge has previously miscalculated contractual values, some billions of numbers.

Doge savings from canceled or recycled contracts are “overrated” by writing Bank of America Securities.

The cost collection team claimed that as of March 30, it has maintained about $ 24.8 billion contracts and relays, last week $ 21.6 billion.

Boa analysts said most of the jump appears that $ 2.9 billion contract cancellation for the care facility near the southern border. Savings connected to the Interior Department, which are headed by federal lands, are now $ 3.0 billion, last week from $ 144 million.

Doge also demanded a loan of $ 4.1 million in general dynamics “It supports Medicare Hearing and Complaints OfficeWhether E-appeal portal. In total, the team’s cuts have been affected annually about $ 93 million General dynamics It (gdit) contracts, but analysts say this is still a relatively small change and only 0.7% of GDIT’s total income.

They also noted that despite the reductions, GDIT has won $ 33.1 million in new contracts since January 20.

Doge also seemed to exaggerate his savings elsewhere. The team says it saved $ 9.1 million, cutting CAE contract for the maintenance of the flight simulator. However, the company has received more than $ 40,000 from this contract for the last three years, so the real impact is small.

Experts Fortune This, as in such cases, it was wrong to misunderstand the government’s contracts, which leads to exaggerated values. Government agreements sometimes have “ceiling values” that will actually be spent much more.

Analysts of the Bank of America also noted that the Ministry of Defense, which receives a significant part of federal expenses, has remained failed. Savings from DO DOD contracts remain $ 14.1 million on March 24.

Representatives did not immediately respond to the commentary request FortuneMade outside normal working hours.

Doge Uncertain Accounting

The Reduction of Elon Musk’s expenses, Doge wants to reduce $ 1 trillion in federal expenses by the end of the year, but many of the team’s savings requirements have been severely overestimated.

The team’s accounting was unable to conduct a permanent examination from the media and experts, while the public wall of the entrances mixed with errors.

The team deleted several contracts from the wall of receipts after the media reports slammed their legitimacy. In one case, after explaining the salesperson of the contract, Dage had to reconsider his biggest agreement from $ 8 billion to $ 8 million 8 Billion Dollar Index Procurement record was probably a clergyman. In another case, the team removed its largest saved savings – $ 1.9 billion contract with centennial technologies of the software company. After the report is New York Times: has been revealed Which contract was canceled under Biden’s administration, not a dog? The team later revised the contract in its savings list.

Previous Analysis by: Fortune has been found These total savings were inflated or significantly rounded on the wall of the recent of the glare. For example, last month, the team claimed to maintained about $ 20 billion from 5,356 contracts, but the total savings on these contracts only increased to $ 2 billion, more than $ 2 billion.

This story was originally shown Fortune.com