US Government Inks New Multi-Billion Deal with Microsoft

The US General Services Administration announced a new multi-billion dollar deal with Microsoft as part of the OneGov Strategy for tech purchasing. To support AI and interoperability, Microsoft will provide discounts for Copilot, Microsoft 365, Azure Cloud Services, Dynamics 365, and monitoring tools through a strategic partnership with the US government. According to GSA, the discounts could total as much as $3.1 billion in the first year.

Microsoft has operated as a major government contractor for cloud and AI initiatives in recent years. Through this new agreement, Microsoft will provide a new Microsoft 365 and Copilot Suite offering exclusively for the US government. It provides M365 Copilot at no cost within the government-specific G5 licensing tier. Microsoft is also providing substantial discounts for Sentinel, Azure Monitoring, Entra ID Governance, and Implementation, Adoption, and Optimization Workshops. 

“For more than four decades, Microsoft has partnered with the U.S. Government to serve the American people. 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,” said Satya Nadella, Chairman and CEO, Microsoft, in a statement. 

“GSA is accelerating access to AI for federal agencies and delivering on the President’s AI Action Plan. 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,” stated FAS Commissioner Josh Gruenbaum.