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October 27, 2016

Feds' tech startup ‘18F' struggles, loses $32M

  • The goal was to create an elite branch of the GSA with tech-savvy employees who could quickly complete digital projects for government agencies.
    • By TAMI ABDOLLAH
    Associated Press

    WASHINGTON — The Obama administration's “18F” program to create its own version of a high-tech startup for government digital projects has foundered since its launch in 2014, losing nearly $32 million as its staff spent most of its time on unbillable work, according to a new inspector general report.

    The comparisons to some Silicon Valley startups were stark: Senior 18F managers overestimated the amount of money their projects would recoup; increased hiring using special rules every three months since April 2014; and devoted less than half the program's staff time on projects for which it could bill other federal agencies, said the report released Monday. It noted the 18F program has “struggled financially” and “has not developed a viable plan to achieve full cost recovery.”


     
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