The General Services Administration (GSA) said today it reached an agreement with Microsoft under the agency’s OneGov program for a lengthy list of the company’s cloud services.
Discounted services covered under the new agreement “include Microsoft 365, Copilot, Azure Cloud Services, Dynamics 365, as well as cybersecurity and monitoring tools, with potential savings of $3.1 billion in the first year,” GSA said.
“Most notably, the offer makes Microsoft 365 Copilot available at no cost for up to 12 months for Microsoft G5 customers,” GSA said.
The agreement, GSA said, aims to “lower costs for critical infrastructure and power the next era of AI and interoperability for the federal government.”
Stephen Ehikian, GSA’s deputy administrator, said the agency is “proud to partner with technology companies, like Microsoft, to advance AI adoption across the Federal government, a key priority of the Trump Administration.”
He urged “our federal partners to leverage these agreements, providing government workers with transformative AI tools that streamline operations, cut costs, and enhance results.”
“GSA is accelerating access to AI for federal agencies and delivering on the President’s AI Action Plan,” added FAS Commissioner Josh Gruenbaum. “OneGov represents a paradigm shift in federal procurement that is leading to immense cost savings, achieved by leveraging the purchasing power of the entire federal government. We appreciate Microsoft’s partnership in this modernization and its commitment toward an interoperable digital federal ecosystem,” he said.
Satya Nadella, CEO of Microsoft, commented, “With this new agreement with the U.S. General Services Administration, including a no-cost Microsoft 365 Copilot offer, we will help federal agencies use AI and digital technologies to improve citizen services, strengthen security, and save taxpayers more than $3 billion in the first year alone.”
“As GSA seeks to transform government in this new era of AI, Microsoft is committed to leading as the government’s essential partner in delivering the tools necessary to help federal agencies harness the power of AI to advance the public good,” said Chris Barry, corporate vice president of US public sector industries at Microsoft.
According to GSA, “Microsoft will provide blended discounts on a new US Government exclusive Microsoft 365 + Copilot Suite that includes M365 Copilot available at no cost for the first year for Microsoft G5 customers with substantial discounts in subsequent years. Microsoft 365 G3 and G5 are government-specific licensing plans with different levels of security and features. G5 is specifically designed for environments needing advanced security and includes additional features like real-time intelligence reporting, threat protection, Power BI Pro, and advanced enterprise telephony capabilities.”
The agency said additional offerings through the agreement include significant discounts for:
- Microsoft Sentinel and Azure Monitoring.
- Entra ID Governance “as part of GSA’s and our industry partner’s commitment to working on tenant-to-tenant interoperability issues.”
- Dynamics 365 at no cost for up to one year for eligible workloads.
- Implementation, Adoption, and Optimization Workshops.
“Federal agencies can opt-in to any or all of these offers through September 2026 with discounted pricing available for up to 36 months for certain products,” GSA said.
GSA in April unveiled its OneGov initiative, which aims to modernize and streamline Federal IT acquisitions, and has pushed hard since then to expand availability of services under the program. So far, the initiative has secured discounted technology services deals with Oracle, Elastic, Google, Adobe, Salesforce, Docusign, OpenAI, Box, and Anthropic.
Just last month, GSA said it reached terms with Google for discounted pricing to federal government agencies for a “Gemini for Government” services suite that includes the Google AI platform, cloud services, and agentic AI solutions.