DOGE is shooting blanks
This appears to be a new and unfamiliar use of the word “efficiency”:
“The Department of Government Efficiency run by Elon Musk last week published an initial list of 1,125 contracts that it terminated in recent weeks across the federal government. Data published on DOGE’s “Wall of Receipts” shows that more than one-third of the contract cancellations, 417 in all, are expected to yield no savings.
“That’s usually because the total value of the contracts has already been fully obligated, which means the government has a legal requirement to spend the funds for the goods or services it purchased and in many cases has already done so.
“It’s like confiscating used ammunition after it’s been shot when there’s nothing left in it. It doesn’t accomplish any policy objective,” said Charles Tiefer, a retired University of Baltimore law professor and expert on government contracting law. “Their terminating so many contracts pointlessly obviously doesn’t accomplish anything for saving money.”
If DOGE were interested in government efficiency, they would bring in accountants and do audits. Of course, there already were accountants and audits. DOGE fired the accountants.
DOGE posts fake savings
“The Department of Government Efficiency run by Elon Musk last week published an initial list of 1,125 contracts that it terminated in recent weeks across the federal government. Data published on DOGE’s “Wall of Receipts” shows that more than one-third of the contract cancellations, 417 in all, are expected to yield no savings.
“That’s usually because the total value of the contracts has already been fully obligated, which means the government has a legal requirement to spend the funds for the goods or services it purchased and in many cases has already done so.
“It’s like confiscating used ammunition after it’s been shot when there’s nothing left in it. It doesn’t accomplish any policy objective,” said Charles Tiefer, a retired University of Baltimore law professor and expert on government contracting law. “Their terminating so many contracts pointlessly obviously doesn’t accomplish anything for saving money.”
If DOGE were interested in government efficiency, they would bring in accountants and do audits. Of course, there already were accountants and audits. DOGE fired the accountants.
DOGE posts fake savings
Interesting. I do not read the Globe.
”Obligating” in federal contract and financial management processes means that cash aka budget authority that equals the contract price is reserved only for the instant contract. IOW the buyer has cash, aka consideration. The cash does not leave treasury accounts until the consideration on contract is delivered. The activity’s budget execution records show the obligated amounts until the bill is paid.
It may be that the vendor could protest the termination, although the federal government can “terminate for convenience”. The contest may take a long time, in which case the funds would expire. Expired funds go into a bucket to be used within limits for late expenditures.
Appropriation law covers here, and last I wandered through it the pentagon financial management manual was over 6000 pages.
Financial managers are narrowly specialized accountants.
I don’t call it “shooting blanks” when folks are dying as a result.
Hi Susan:
I believe what Joel is saying in his post is what Musk and Trump are claiming as cost saves are already depleted. There is no savings to be had from these cancelations. Joel and I are both aligned on what is wrong with an unelected interloper and a rogue president cutting away the programs and infrastructure supporting Americans and us too for that matter.
@Bill,
Exactly. If Susan would read my post, she would understand that. The “blanks” are the claimed savings that aren’t.
Joel:
Susan is a new commenter. I took the time to explain it to her as you had said such. Sometimes we blow right past people with our posts. They are not used to our detail. It frustrates me also.