The General Services Administration signed OneGov enterprise agreements with OpenAI, Anthropic and Google that set access prices at $1 per agency for OpenAI and Anthropic products and $0.47 per year for Google's Gemini. Ask Sage, led by Nicolas Chaillan, filed GAO protests challenging the OpenAI and Anthropic pacts. Chaillan alleges the agreements fail federal security standards, violate Federal Acquisition Regulation pricing rules, circumvent competition requirements, contradict OneGov strategy and risk vendor lock-in. He contends the deals are one-year arrangements with no clarity on subsequent years and that pricing must reflect established catalog or market prices.
The General Services Administration has reaped a lot of attention from the enterprise agreements they have signed with artificial intelligence providers like OpenAI, Anthropic and Google. GSA's arrangements with OpenAI and Anthropic set a price of $1-a-year per agency for access to their flagship AI products. The pact with Google announced today (Thursday) sets the price at 47 cents for a year for access to Gemini. Each of these agreements are part of OneGov, GSA's initiative for centralized software buys.
On the surface, these agreements seem to be worthy of applause. But Nicolas Chaillan, CEO of Ask Sage and a former Air Force chief software officer, believes they are not when going below the surface. Ask Sage helps organizations navigate different layers of the AI ecosystem. The company filed a pair of protests on Friday at the Government Accountability Office that object to the agreements GSA signed with OpenAI and Anthropic.
"The federal government has never done contracts like this before and for good reason," he told Washington Technology. "For one thing, these are one-year deals with no clear understanding of year two, three, four or five." Chaillan also alleges the agreements violate the Federal Acquisition Regulation portions that govern pricing terms and require the government to pay commercial prices for commercial products. The pricing needs to be based on an established catalog or market prices.
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