The U.S. General Services Administration announced a multibillion-dollar OneGov agreement with Microsoft, delivering steep discounts on Microsoft 365, Copilot, Azure Cloud Services and other technologies. The partnership is expected to generate $3.1 billion in savings for agencies in the first year, GSA said Tuesday.
Federal Acquisition Service Commissioner Josh Gruenbaum, a 2025 Wash100 Award recipient, called the agreement a “paradigm shift in federal procurement,” consolidating demand across agencies to achieve significant cost savings. “GSA is accelerating access to AI for federal agencies and delivering on the President’s AI Action Plan,” he said. “We appreciate Microsoft’s partnership in this modernization and its commitment toward an interoperable digital federal ecosystem.”
Expanding Access to AI Tools
As part of the agreement, the new U.S. government-exclusive Microsoft 365 + Copilot Suite will be offered at no cost for a year to G5 customers, with additional discounts for subsequent years. Agencies can also access reduced pricing for Dynamics 365, Azure Monitoring, Microsoft Sentinel and Entra ID Governance, along with implementation and adoption workshops.
GSA Deputy Administrator Stephen Ehikian said the agreement supports the Trump administration’s push for wider adoption of artificial intelligence across federal agencies.
According to Chris Barry, corporate vice president for U.S. Public Sector Industries, Microsoft is committed to providing federal agencies with the tools they need to harness AI “to advance the public good.”
The agreement, which agencies can opt into through September 2026, is expected to strengthen government efforts to improve operational efficiency, decision-making and citizen services while lowering costs.
Related Articles
Ashley Manning, principal deputy assistant secretary of defense for cyber policy, and Jonathan Owen, acting deputy assistant secretary of defense for homeland defense integration and defense support to civil authorities, have stepped down from their positions at the Department of Defense, The Hill reported Tuesday. In a LinkedIn post, Gurpreet Bhatia announced his departure from his role as principal director for cybersecurity and deputy chief information security officer at DOD. Ashley Manning Manning most recently was responsible for developing and managing the implementation of DOD’s cyberspace strategy and policy and ensuring that they are aligned with national security objectives. She
The Defense Advanced Research Projects Agency and the state of New Mexico’s Economic Development Department have signed an agreement to work on a project to advance quantum computing technology as part of the Quantum Benchmarking Initiative, or QBI. DARPA’s Quantum Benchmarking Initiative Launched in July 2024, QBI intends to determine the possibility of creating an industrially useful computer much faster than traditional predictions. The initiative seeks to verify and validate whether any quantum computing approach can achieve utility-scale operation by 2033. “New Mexico is the latest state to enter into partnership on QBI, and we are eager to leverage new
The Cybersecurity and Infrastructure Security Agency has appointed Nicholas Andersen, a former Department of Energy cybersecurity executive, as executive assistant director for cybersecurity. Join the Potomac Officers Club’s 2025 Homeland Security Summit on Nov. 12 to gain insights on the latest U.S. homeland security initiatives and programs. Andersen will spearhead the agency’s cybersecurity mission, focusing on mitigating cyberthreats and vulnerabilities while reinforcing critical infrastructure security and resilience, CISA announced Tuesday. Who Is Nicholas Andersen? Andersen is an industry veteran with nearly two decades of experience in cybersecurity, information security and network security. He most recently served as president and chief operating officer