GSA inks governmentwide deal with AWS, touting $1B in potential savings
The General Services Administration has negotiated a governmentwide purchasing agreement with Amazon Web Services that could save agencies up to $1 billion through credits for AWS services.
The deal, announced Thursday, is the latest in a flurry of so-called OneGov agreements GSA has initiated under the Trump administration to consolidate and centralize IT purchasing at scale and unlock greater, consistent savings for civilian agencies, rather than agencies negotiating one-off contracts with vendors themselves. In recent weeks, the agency has announced similar deals with OpenAI, Docusign and Uber.
As part of the governmentwide package, AWS has come to the table offering direct incentive credits that could total up to $1 billion in value for cloud services, modernization support and training.
The deal will run through Dec. 31, 2028.
In addition to streamlining federal IT procurement by working as a single, unified federal entity, GSA’s OneGov initiative also aims to work directly with technology developers themselves, rather than through intermediaries such as value-added resellers. As such, GSA touts the potential for additional savings by contracting directly with the cloud giant for its services.
Josh Gruenbaum, commissioner of GSA’s Federal Acquisition Service, sees the digital transformation enabled through this deal as a key step toward bringing the Trump administration’s AI Action Plan to life.
“GSA’s OneGov continues to deliver critical technology solutions to federal agencies while securing the best value for our most important stakeholders — the American taxpayer,” Gruenbaum said in a statement. “We are grateful for AWS’s partnership as GSA continues to equip agencies with modern solutions at scale and at savings. Through this unique partnership, the federal government is poised to deliver on President Trump’s AI Action Plan and solidify its position as the global AI leader.”
AWS joins some of its biggest cloud competitors in negotiating a OneGov deal with GSA. Hyperscale cloud service providers Microsoft, Google and Oracle already inked agreements with the agency earlier this year.
