(Mandel Ngan/AFP/Getty Images)

A federal project in the model of a Silicon Valley start-up was designed as an agile, innovative consulting firm to help agencies in these high-tech times.

It even has an unusual name, 18F, signaling its difference from the legacy-laden offices of this and bureaus of that dominating the corridors of old government.

At its beginning, Daniel Tangherlini, former administrator of the General Services Administration (GSA), 18F’s parent agency, described the project in an email to colleagues as “a team of experts and innovators that will work to simplify the government’s digital services, making them more efficient and effective … these public servants will provide cutting-edge support for our federal partners that reduces cost and improves service.”

But like many digital-age start-ups, 18F, named after GSA’s 1800 F St. NW address, was long on vision but short on management. The result — it gets an F in financial administration.

Instead of securing enough cost reimbursements from its federal clients, 18F is losing millions.

A report from GSA’s internal watchdog says the start-up has suffered mounting losses from the beginning.

“Since its launch in March 2014, 18F has struggled financially,” says GSA’s Office of Inspector General (IG), citing loses every year, now totally over $31.6 million.

Whatever expertise 18F has in high-tech apparently is not matched by its ability to make accurate financial projections. The inspector general cited three reasons — “overestimating revenue projections, increased staffing levels, and staff time spent on non-billable activities.”

It also has a pattern of widely missing of financial targets.

“In FY (fiscal year) 2014, 18F senior managers projected annual revenue of $4.76 million, but ended the year with zero revenue billed or collected,” the IG found. “In FY 2015, 18F projected $32.58 million in annual revenue, but ended the year with only $22.26 million, a difference of 32% ($10.32 million) less than projected. 18F has projected annual revenue of $84.18 million for FY 2016; however, through the third quarter 18F has only generated $27.82 million in revenue, leaving 18F one quarter to generate $56.37 million in revenue to meet its projections.”