Saturday, December 20, 2025

Nextgov: GSA’s Tech Shops Face $30M Deficit After Priority Change Last Year

After years of striving for balance between helping federal colleagues improve government services and ensuring its own financial stability, TTS leadership told program managers in September 2021 that cost recovery was no longer a priority…

Through the end of July 2022, TTS had accrued $65.9 million in operating costs for the fiscal year, offset by $35.5 million in revenues, according to an internal document obtained by Nextgov. The result is a net deficit of $30.4 million…

In a September 2021 all-hands call with staff reviewed by Nextgov, then-TTS Director David Zvenyach framed dropping the cost-recovery imperative as a shift toward prioritizing delivery on programs with the biggest impact—what the Biden administration called “high-impact service providers”—while also helping to stem some of the burnout felt by TTS employees…

While acknowledging that TTS programs can and should be fee-for-service—for several reasons, including ensuring agency buy-in and ownership of the projects—Zvenyach said the main goal for TTS programs isn’t to make money

“The purpose of TTS is to improve the public experience with government,” which is where employees should be focused, he told Nextgov. “We should be hiring people, enabling them to deliver the most value to the public and then spending our energy as a management team to create the structures to allow them to ship.” … Read the full article here.

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Jackie Gilbert
Jackie Gilbert
Jackie Gilbert is a Content Analyst for FedHealthIT and Author of 'Anything but COVID-19' on the Daily Take Newsletter for G2Xchange Health and FedCiv.

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