Goldman Reaffirms “Cautious View” On Gov’t IT & Services Coverage Amid Ongoing DOGE Cuts

Six months ago, Goldman Sachs analysts sounded the alarm with a “cautious view” on Government IT & Services, as Department of Government Efficiency (DOGE) strike teams began slashing bloated federal contracts. Now, with billions of dollars in cancellations piling up, especially across consulting programs, those same analysts are continuing their bearish stance, warning that pain for government contractors is not over. 

A team of Goldman analyst led by Noah Poponak stated that the DOGE website now shows “41 new contract changes with $1.2bn in reported savings across our coverage,” adding, “Of the 41 changes, 26 of them are from the Department of Defense (DoD), accounting for ~$1.1bn (90%) of the new reported savings.” 

Those savings materialized between the June and July updates on DOGE’s website. Savings include:

• CACI International: $700mn in savings were reported for the revised portion of a large Enterprise IT as a Service contract. The contract’s FPDS page indicates there was $0 of action obligation remaining for the contract, but it is unclear if the remaining value was canceled or only a portion of a ceiling was changed, given this was a $5.7bn / 10 year program that started in 2022.

• Booz Allen Hamilton: 21 additional BAH contracts totaling $216mn in reported savings were logged over the last month

Across Goldman’s Government IT & Services and Defense coverage, these are the latest DOGE impacts on a company-by-company basis:

DOGE impact so far on a federal agency basis:

Canceled Contracts (with a value greater than $0) by federal agency:

In early July, Poponak pointed out that DOGE’s contract cancellations at DoD were beginning to ramp up.

Deep Staters On Edge As DOGE’s DoD Strike Team Hits Pentagon With Sweeping Contract Cuts https://t.co/7u6nYbHyLQ

— zerohedge (@zerohedge) July 9, 2025

The good news for DOGE’s mission is that some of its spending cuts are now being codified into law. However, both Trump and GOP lawmakers have been surprisingly slow to accelerate and sign off on these measures. While Trump did sign a rescissions bill last week targeting funding for USAID, NPR, and PBS, the pace must go into high gear. Without a more aggressive push to dismantle the bloated federal bureaucracy, it risks consuming this administration from within.