Google will offer a 71 percent temporary price discount to all U.S. federal agencies using its Workspace business software through the Multiple Award Schedules Program. According to a General Services Administration announcement Thursday, the price reduction follows the agency’s strategic partnership agreement with Google to set Workspace pricing based on the transaction volume for the whole U.S. government instead of discounts based on an individual agency-by-agency, or per-contract, basis.
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Topnotch Service at Lower Cost
Josh Gruenbaum, GSA federal acquisition service commissioner and a 2025 Wash100 Award winner, said the discount shows Google’s readiness in serving federal customers as a “single, unified customer” under an enterprise-level pricing can benefit every federal agency. He added that the strategic partnership agreement with Google “marks a milestone in GSA’s ongoing initiatives to lower IT costs, enhance IT acquisition efficiency, optimize collaboration tools and strengthen cybersecurity across agencies.”
Karen Dahut, Google Public Sector CEO and also a Wash100 awardee, conveyed the company’s eagerness in forging the agreement, saying that lower costs “can go hand-in-hand” with improved performance. “GSA’s ‘One-Customer’ approach will help modernize IT procurement and we are proud to offer the potential of billions (of dollars) in savings to federal agencies,” she added.
Google Workspace Agreement Details
The Google Workspace agreement could potentially generate up to $2 billion in savings for the federal government over the next three years, according to a Friday blog post by Tony Orlando, Google Public Sector’s specialty sales general manager.
“By working closely with industry leaders like Google, we will continue to lower the cost of IT while providing improved experiences for the American taxpayers and the federal government,” said Stephen Ehikian, acting GSA administrator.
The temporary Workspace discount is effective until Sept. 30 and GSA’s Information Technology Vendor Management Office and Google are looking into the expansion of competitive pricing for Google Cloud Platform services.
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