Business AI

GSA Announces "OneGov" Agreement with Microsoft for Federal AI Adoption

The deal is expected to generate $3.1 billion in savings in its first year by providing discounted access to Microsoft 365 and Copilot.

Olivia Sharp 2 min read 465 views
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The U.S. General Services Administration announced a "OneGov" agreement with Microsoft on September 3, aiming to save $3.1 billion and accelerate AI adoption across federal agencies.

A "Paradigm Shift" in Procurement

The U.S. General Services Administration (GSA) on September 3, 2025, announced a major "OneGov" agreement with Microsoft. The partnership is designed to accelerate the adoption of artificial intelligence and cloud services across the federal government. The GSA expects the deal to generate $3.1 billion in savings for federal agencies in its first year alone.

Federal Acquisition Service Commissioner Josh Gruenbaum called the agreement a "paradigm shift in federal procurement." The strategy consolidates demand from agencies across the government to achieve significant discounts on key technologies. This approach aims to modernize federal IT infrastructure and …

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