The Erroneous Confrontation of DOGE with Software Licenses.

The Department of Government Efficiency, led by Elon Musk, recently announced the discovery of large amounts of unused software licenses while continuing its search for waste in the federal government. It was alleged that the General Services Administration (GSA) holds 37,000 licenses for the file compression and encryption program WinZip, despite the agency having approximately 13,000 employees. Musk's team shared this information on platform X, stating that solutions are being sought.

However, the discrepancies between the number of licenses and the number of employees may not be as problematic as indicated. Liz Lezius, spokesperson for Alludo, the Canadian company that develops WinZip, explained that the program's licensing is based on the number of devices where it is installed, not on the number of employees with access. This means it is common to have more devices than employees in an organization.

Additionally, it is possible that certain vendors require agencies to purchase a bundle of tools to access the one they actually need. A former federal official who worked on technology licensing commented that agencies sometimes have more licenses than employees due to budget peculiarities and outside contractors. He added that the work of DOGE seems superficial and limited in knowledge.

GSA's interim press secretary, Will Powell, reported that the agency is reviewing contracts and resources to ensure its staff can fulfill their functions. In a subsequent post, DOGE indicated that the GSA had eliminated 114,163 unused software licenses and 15 redundant products, achieving an annual savings of $9.6 million.

Musk, who also retweeted allegations of overspending at the Department of Labor, pointed out that while these expenses may seem small individually, they add up to millions and could eventually eliminate billions in waste and fraud. Both the Department of Labor and the White House did not respond to requests for comments.

Federal agencies often sign long-term contracts with software providers, allowing them to secure discount rates and avoid annual renegotiations. Therefore, the number of budgeted licenses may include projections for increases in staff. The former official noted that it is more economical to acquire licenses in advance rather than adding them one by one as the need arises.

Each government agency has its own unique structure, which may lead to additional issues related to licenses, such as the use of multiple ticketing systems and tools for unspecified training. DOGE also noted that the Department of Labor has licenses for five cybersecurity programs, each for more than 20,000 users, despite having approximately 15,000 employees, indicating that there are also Microsoft 365 licenses with no active users.

Although DOGE has addressed licensing issues, it is recognized that the federal government has struggled to effectively manage the use of these licenses. Several watchdog groups have identified waste in the past. There is a continuing effort by members of Congress for agencies to address this issue, as demonstrated by the SAMOSA bill, which seeks to require the assessment and consolidation of software contracts.

It is suggested that if Musk truly wanted to address the problem effectively, he should work with Congress to enact the SAMOSA Act, allowing agencies to negotiate smarter contracts. Some experts see potential in what DOGE is doing, but they warn about the importance of not losing sight of larger threats and areas with greater spending within the government.

The magnitude of DOGE's software purge is difficult to quantify, as approximately 60 software contracts specifically canceled were found during a search. Although the costs associated with WinZip licenses are relatively low, they reflect the need for agencies to manage costs effectively and ensure compliance with data security requirements.