The government is making big changes that could shake up digital services in federal agencies. The General Services Administration (GSA) recently shut down its 18F program, a key team that helped government agencies build and improve digital services. At the same time, the GSA is canceling contracts with some of the biggest consulting firms, like Deloitte and Accenture, which were set to receive billions in federal contracts.
What Was 18F, and Why Does Its Shutdown Matter?
18F was created in 2014 to provide expert advice and build tech solutions for federal agencies, helping them improve digital services efficiently. It focused on open-source tools and modern technology, ensuring that government agencies didn’t have to rely entirely on expensive outside consultants. Now that 18F is gone, agencies may struggle to develop and maintain digital services without that in-house expertise.
Cutting Ties with Major Consulting Firms
The GSA is also cutting contracts with top consulting firms that were expected to receive $65 billion in fees over the next few years. Officials say the move is part of a broader effort to cut government spending and reduce reliance on outside consultants.
How This Affects Digital Transformation and B2B Integration
These cuts will likely have major ripple effects:
- Agencies may struggle with tech upgrades. Without 18F and these consultants, agencies might have trouble improving and maintaining their digital services, leading to delays and higher costs.
- More competition in federal contracting. With big players sidelined, smaller firms and independent tech providers could have new opportunities to step in.
- Agencies might have to build in-house expertise. Instead of hiring external consultants, agencies may need to train staff and invest in internal teams to manage digital projects.
- Potential for project reevaluation. Agencies may have to prioritize only the most essential tech upgrades, which could slow progress on broader digital transformation efforts.
Bottom Line
By cutting both internal and external tech consulting resources, the government aims to reduce costs. However, in the short term, this could lead to challenges for agencies trying to modernize their systems. At the same time, smaller tech firms and service providers might find new opportunities as agencies look for alternative solutions. Similarly, if it persists, B2B Integration projects will have more competition as teams shift focus from Fed programs to Commercial, SLED, etc.