GSA's OneGov strategy consolidates federal acquisitions by operating as a single entity so individual agencies avoid negotiating separate contracts. Companies provided near-free access to AI models through OneGov with the expectation that agencies will adopt and embed those services into operations. Over time the federal government is likely to pay for more expensive AI tools, enabling vendors to charge higher rates once services are integrated. Maintaining favorable relationships with the government remains strategically valuable across administrations because government represents large and potentially growing business for vendors.
The deals were part of GSA's OneGov strategy, in which the government streamlines the acquisition of services by operating as one entity; that way individual federal agencies don't have to negotiate their own separate deals.
The expectation is that, over time, the federal government will likely pay for more expensive AI tools - so offering virtually free access to the models now is a good deal, said Bob O'Donnell, principal analyst at Technalysis Research.
"The presumption is that over time they'll embed their services into the operations of those agencies and that eventually they'll be able to charge higher rates," O'Donnell said.
"This is a case of win-win, because not only is the government big business, but it's also likely to grow over time," O'Donnell said.
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