The General Services Administration (GSA) and Google announced a new agreement today to offer Google Workplace to Federal agencies at a significant discount, marking a significant step forward in GSA’s efforts to create IT cost savings for the Federal government.
Under the agreement, Google will offer Workspace to every Federal agency at a temporary price reduction of 71 percent off the current Multiple Award Schedules Program (MAS IT) pricing – regardless of the transaction size. The agreement to offer Google Workplace on those terms expires on Sept. 30.
“Google will now approach the Federal government as one unified customer – and President Trump’s GSA is working hard on this collaboration to turn that recognition into real savings to secure lower prices for best-in-class technology across all Federal agencies,” GSA Acting Administrator Stephen Ehikian said.
“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,” Ehikian pledged.
Google Workspace is a FedRAMP High authorized communication and collaboration platform that includes apps such as Gmail, Drive, Docs, Sheets, Meet, and more. It also comes with Google AI tools, including Gemini and NotebookLM.
In a separate blog post, the company said that Workspace’s AI tools will allow Federal agencies to leverage state-of-the-art AI capabilities in a compliant manner.
“With Gemini in Workspace apps and the Gemini app having achieved FedRAMP High authorization, Federal agencies can get more done with AI without additional costs for AI add-ons,” wrote Tony Orlando, general manager of specialty sales at Google Public Sector.
“Workspace with Gemini dramatically accelerates the creation and sharing of emails, documents, and even transcribed meeting notes. Users can save an average of 105 minutes per week generating text, summarizing content, and automating tasks,” Orlando added.
He also noted that with governmentwide adoption, Google Workspace could help Federal agencies save up to $2 billion over the next three years.
GSA explained that the new agreement establishes pricing based on the volume of the entire government rather than separate agreements on an agency-by-agency or transactional basis.
GSA’s Information Technology Vendor Management Office (ITVMO) is also working with Google to expand competitive pricing for its Google Cloud Platform (GCP) services. GSA and Google said they will continue to collaborate “on ways to expand savings and simplify procurement across all FedRAMP Authorized Google product categories.”
“This agreement marks a milestone in GSA’s ongoing initiatives to lower IT costs, enhance IT acquisition efficiency, optimize collaboration tools, and strengthen cybersecurity across agencies,” said GSA Federal Acquisition Service (FAS) Commissioner Josh Gruenbaum.
“We were eager to work with GSA on this innovative way to bring Google’s technology to more Federal customers, because lower costs and better performance can go hand-in-hand,” added Karen Dahut, CEO of Google Public Sector. “GSA’s ‘One-Customer’ approach will help modernize IT procurement, and we are proud to offer the potential of billions in savings to Federal agencies.”