Does DOGE really have what it takes to usefully tackle Uncle Sam's tech spending?
- Reference: 1739020152
- News link: https://www.theregister.co.uk/2025/02/08/doge_us_goverment_tech_spending/
- Source link:
If he thought SAP was too bloated and overpriced, what does that mean for big spending government departments?
First in the line of fire has been USAID, which [1]Musk said he had put through a “wood chipper” on Sunday.
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While the whole federal agency dedicated to distributing billions of dollars in aid around the world may not disappear, it may well be massively cut and [3]merge with the State Department , though reports conflict on the details.
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Legal challenges have added further uncertainty. On Friday, a federal judge put at least part of those plans on hold, temporarily pausing the Trump administration from placing thousands of USAID workers on administrative leave.
Nonetheless, this raises questions about USAID's tech contracts. Its major partner is NTT Data, the Japanese tech services giant, which runs a contract worth up to [6]$469.7 million for custom computer programming services.
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Tech consultancy [8]Accenture and CRM software vendor [9]Salesforce are among the tech suppliers cashing in on USAID's IT budget.
NTT Data has declined to comment on how changes at USAID may affect its work with them, wood chipper or no wood chipper.
Regardless of political stance, USAID is a relatively small federal department. If [10]DOGE really wants to get a hold of US government tech spending, it needs to think bigger.
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The largest federal government department is Health and Human Services, with a total budget of [12]$1.7 trillion proposed for 2025 - most of it allocated to Medicare and Medicaid, which DOGE has been poking around this week.
Big ticket tech suppliers include Peraton, a privately held US national security and technology company, which has a [13]$1.2 billion Department of Health and Human Services contract for data processing and hosting.
Meanwhile, [14]General Dynamics has a $879.1 million deal for custom computer programming services, and Accenture has an up to [15]$805 million contract for systems design services.
Another famously big spender in the federal government is the Department of Defense, with a total budget of [16]$850 billion for fiscal year 2025 – another part of Uncle Sam DOGE has [17]started investigating along with the Dept of Education.
The Pentagon relies heavily on Oracle for its ERP and finance systems, and has a string of contracts with Big Red, including [18]this one for $338 million.
Oracle resellers and systems integration partners also feature prominently on the DoD’s tech spending list, including Mythics LLC, [19]with a $307.5 million deal , and DLT Solutions (part of TD Synnex) with deals worth [20]$279.3 million , [21]$238 million and [22]$132 million .
[23]federal judge tightens DOGE leash over critical Treasury payment system access
[24]Democrats demand to know WTF is up with that DOGE server on OPM's network
[25]DOGE geek with Treasury payment system access now quits amid racist tweet claims
[26]Dems want answers on national security risks posed by hiring freeze, DOGE probes
[27]Musk's move fast and break things mantra won't work in US.gov
Nonetheless, it remains to be seen how much of DOGE’s plan is to create a [28]barrage of noise and attacks on Trump and Musk’s political and commercial opponents, and how much is really planned to reel in government spending. After all, the systems and relationships are very entrenched and creating alternatives may be more challenging than a migration at a relatively small automaker. Yes, despite Tesla’s market valuation, it doesn’t rank in the top 10 automotive manufacturers in terms of production.
Meanwhile, some of the IT suppliers have friends in high places. Oracle co-founder and CTO Larry Ellison stood alongside Trump during the launch of the proposed [29]$500 billion investment in AI infrastructure.
Another Oracle project at the Department of Veterans Affairs just [30]rebooted a $330 million project , despite concerns over the roll-out cost and safety of its Cerner patient record system under the original $9.99 billion deal.
Trump's pick for Veterans Affairs Secretary Doug Collins said during a Senate nomination hearing that the program had gone on for “too many years and cost too many billions of dollars without finding a solution." [31]He said it would be "one of the very first priorities, if confirmed, is to get in and figure out why and put this on a bigger timeframe to get this medical health records issue solved."
Going after federal government tech spending might be more difficult than it seems, but there is also more to Tesla’s ERP system.
Despite claims that a team of 250 Tesla staffers built [32]a new ERP system in four months, other reports suggest it built some manufacturing software that was bolted on the side of [33]a Microsoft Dynamics finance system .
Like many tech legends, the truth is far less exciting than the myth. The same may be true of DOGE’s efforts to take on federal agency’s big tech spending. ®
Speaking of DOGE... The team was this week [34]blocked from accessing the US Dept of Labor's data in a win for unions. A 19-year-old member of DOGE was reportedly [35]fired from an internship after he was accused of sharing information with a competitor. And it's not just inexperienced engineers in the squad; it also has lawyers with [36]elite establishment credentials .
There are various reports of the crew, with the White House's blessing, accessing highly sensitive systems, some involving personal data and classified materials, at the Office of Personnel Management (OPM), the United States Agency for International Development (USAID), the General Services Administration, the Centers for Medicare and Medicaid Services, and the Dept of Education, at least.
This has included, [37]it's said , analyzing sensitive Dept of Education data with AI tools in Microsoft's Azure cloud. All with the stated intention of rooting out inefficiencies and things to cut, aka stuff Musk doesn't find appropriate.
Get our [38]Tech Resources
[1] https://x.com/elonmusk/status/1886307316804263979
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Z6eNse8-7pcEO11KTVWl7QAAAJY&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://www.theregister.com/2025/02/03/musk_doge_treasury_usaid/
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Z6eNse8-7pcEO11KTVWl7QAAAJY&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Z6eNse8-7pcEO11KTVWl7QAAAJY&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] https://www.usaspending.gov/award/CONT_AWD_72MC1019M00011_7200_GS35F518GA_4732
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Z6eNse8-7pcEO11KTVWl7QAAAJY&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[8] https://newsroom.accenture.com/news/2023/accenture-federal-services-wins-329-million-usaid-enterprise-information-assurance-contract
[9] https://www.salesforce.com/news/stories/public-sector-earnings/
[10] https://www.theregister.com/2025/01/21/doge_us_digital_service_renamed/
[11] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Z6eNse8-7pcEO11KTVWl7QAAAJY&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[12] https://www.hhs.gov/sites/default/files/fy-2025-budget-in-brief.pdf
[13] https://www.usaspending.gov/award/CONT_AWD_HHSM500T0003_7530_HHSM500201300014I_7530
[14] https://www.usaspending.gov/award/CONT_AWD_75FCMC20F0080_7530_GS35F393CA_4732
[15] https://www.usaspending.gov/award/CONT_AWD_75FCMC21F0002_7530_HHSM500201600003I_7530
[16] https://www.defense.gov/News/News-Stories/Article/Article/3975033/dod-comptroller-assesses-accomplishments-aspirations/
[17] https://www.usatoday.com/story/news/politics/2025/02/07/donald-trump-musk-doge-targets-pentagon-education/78338303007/
[18] https://www.usaspending.gov/award/CONT_AWD_M6785407F4912_9700_GS35F0009T_4730
[19] https://www.usaspending.gov/award/CONT_AWD_FA877117F0008_9700_W91QUZ06A0003_9700
[20] https://www.usaspending.gov/award/CONT_AWD_N0018918FQ088_9700_N0018918DQ001_9700
[21] https://www.usaspending.gov/award/CONT_AWD_0001_9700_N0010413AZF48_9700
[22] https://www.usaspending.gov/award/CONT_AWD_N0018923FR338_9700_NNG15SC98B_8000
[23] https://www.theregister.com/2025/02/06/federal_court_leashes_doges_tresury_access/
[24] https://www.theregister.com/2025/02/06/democrats_opm_server/
[25] https://www.theregister.com/2025/02/07/doge_staffer_twitter/
[26] https://www.theregister.com/2025/02/06/democrat_trump_admin_letter/
[27] https://www.theregister.com/2025/02/07/opinion_column_musk/
[28] https://www.theregister.com/2024/11/14/all_bark_no_bite_musks/
[29] https://www.theregister.com/2025/01/22/openai_stargate_ai_datacenter_company/
[30] https://www.theregister.com/2025/02/06/oracle_cerner_va_reboot/
[31] https://www.healthcareitnews.com/news/trump-va-pick-pledges-get-oracle-ehr-rolling
[32] https://techcrunch.com/2013/10/31/being-a-cio-at-tesla-motors-a-startup-that-builds-cars-and-its-own-it/
[33] https://www.reddit.com/r/teslamotors/comments/93nghv/tesla_to_update_its_erp_to_microsoft_dynamics_365/
[34] https://www.latintimes.com/elon-musks-doge-blocked-accessing-labor-department-data-stunning-win-unions-574896
[35] https://www.bloomberg.com/news/articles/2025-02-07/musk-s-doge-teen-was-fired-by-cybersecurity-firm-for-leaking-company-secrets?utm_source=website&utm_medium=share&utm_campaign=copy
[36] https://www.propublica.org/article/elon-musk-doge-lawyers-supreme-court
[37] https://www.washingtonpost.com/nation/2025/02/06/elon-musk-doge-ai-department-education/
[38] https://whitepapers.theregister.com/
Re: Going after federal government tech spending ...
Oh please, the fact that the workers don't have a big wallet is the reason why Musk is harassing them.
Perhaps
a good thing to come out of this would be DOGE telling all government IT suppliers to fix their basic shit and stop introducing useless (fsvou) additions until their basic shit is fixed.
" it built some manufacturing software that was bolted on
the side of a Microsoft Dynamics finance system.*"
IOW SOP for a lot of shops back in the mini-computer days of the 60's and 70's.
New century, old story.
And just a reminder USAID is one percent of the US Federal Budget.
Still every little helps when you're looking to fund those tax-cuts-for-billionaire and the Make Billionairs Rich Again agenda
*Itself bodged together by MS from Great Plains Dynamics (fargo) and the Danish "Navision" ( Excellent internationalisation functionality) both bought for user base regardless of compatibility.
It's all quite clear
There is nothing that Musk or Trump are doing in this DOGE escapade that cannot be explained by one word "ego".
Letting two egotists take charge of the apparatus of state where their unbridled desire to be centre of attention (and to punish/bully/intimidate/harass those who don't acknowledge they are the centre of the universe) can run free (apparently) remains a poor choice by the American people.
In the UK we had an inkling of this when Brexit showed that our own constitutional checks and balances work largely because people were prepared to honour them. The US seems to have found that their system of checks and balances - though written down - are in much the same position.
Re: It's all quite clear
"constitutional checks and balances work largely because people were prepared to honour them"
1. Even at it's fastest, the law is slow.
2. You can replace the people who make legal decisions with placemen who say the law is what you want it to be. (Aside from the Supreme Court on Roe vs Wade, look at the advantage to Trump of Aileen Cannon just dragging her heels and gumming up the works.)
3. It needs people who honour those decisions and are willing to implement them. (Look at the South Korea's attempts to arrest their president.)
Ultimately the law (and a constitution) only work because we all agree to honour it. Trump and his Maga cult no longer want to honour the agreed law, and are not willing to overturn it in the agreed ways; they are just ignoring it and doing as they please. There is no check and balance that can protect against that.
It now goes about three ways:
a) Enough people are willing to honour the law that the courts do catch up and some semblance of the rule of law is returned.
b) Trump gets his way and people acquiesce - perhaps in the hope that enough respect for democracy remains that he can be neutered at the mid-terms or the next presidential election. Those elections may or may not be fairly conducted.
c) Civil war.
Head up guys
CNN reporting now that a judge has temporarily blocked doge from the US treasury citing "irreparable harm". It's a temporary decision, and no idea what will come of it long term. Plus, the damage has already been done tbh but, it's a start. Thought you should know the latest.
https://www.cnn.com/2025/02/08/politics/elon-musk-doge-treasury-payment-system/index.html
Re: Head up guys
Something about closing the barn door.
The data is already exfiltrated to Azure. Who is auditing the proper disposal of data? And what about the fun and exciting code additions to the OPA systems, are they all carefully accounted for and able to be reverted? Are they still in the building? What is the status of the backups? Where is the mystery DOGE server currently? It is one thing writing an angry letter and another actually mopping up APTs.
Time will tell, but I am absolutely not holding my breath.
What a security clusterfuck.
Re: Head up guys
Dunno about CNN but BBC's report says the judgement ordered destruction of any copies.
Re: Head up guys
Yep, destruction of anything already not faxed to the saudis, or captured by yahoo's gift of a golden pager (look that one up if you haven't).
One of those "very smart things" Biden did right before he left was appoint a whole lot of new local judges. They are fresh, and full of energy, and ready to try at least. The democrats seem to be using them for temporary restraints.
What caught my eye was the name right in the middle of it : New York Attorney General Letitia James.
Not all heros wear capes. This woman wants justice.
Re: Head up guys
It's all fun and games until it hits SCOTUS, isn't it?
Re: Head up guys
Honestly, the restraints are starting to fly, not sure scotus will be able to see them all. They might get over run with cases. It's out of our hands. Pray for us.
Re: This woman wants justice.
Which is why she is near the top of the MAGA hit list for sending to Gitmo for life.
Other notaries on the list are
Joe Biden
Hunter Biden
Kamelea Harris
Jack Smith
Fanni Willis
Gavin Newscum
Barak Obama
Nancy Pelosi
Any Judge, Federal or State that has ruled against Trump or Musk in any case.
It won't matter if they have a presidential pardon, presidential immunity, there will be 'Trumped' up charges, and put in court before Judge Eileen Canon, in Fort Pierce, FLA, and off got Cuba they will go,
Re: This woman wants justice.
anybody checked on Stormy lately? A true patriot.
What's repulsive is the slobbering reverence they give to anyone the propaganda machine puts in front of them.
Dude is bragging about sinking the CFPB because "???" and they viciously deride the organization and anyone on "their team" who questions the necessity of trashing a compromise between owners and the great unwashed.
The propaganda machine has also managed to turn opinions on the CEO shooter despite 1 in 9 having an immediate reason to hate United "Healthcare" and the same people who wanted to hang health officials for overzealous lockdowns are now lecturing on the value of human life.
Classified ads
The word Classified doesn’t really mean anything sinister. Newspapers have classified advertisements. Personnel data is classified as Confidential. You don’t need much to get that level of clearance. Targeting data is Secret. DOGE won’t bother with that.
Re: Classified ads
"Targeting data is Secret. DOGE won’t bother with that."
I'll take Statements that can't be Proven for 2000, Alex.
Going after federal government tech spending ...
I can't help feeling those big suppliers are in a rather stronger position to fight back than the bewildered bunch of career civil servants locked out of their offices. And no doubt some of them are the source of very useful campaign contributions. Perhaps Musk may even discover where the deep state actually resides.