By centralizing procurement for common goods and services, we can leverage the government's buying power to secure the best prices for the taxpayer. This effort will also streamline and consolidate governmentwide procurement and regulations, reducing duplication and enabling agencies to focus on their core missions. Procurement consolidation means that we will leverage the power of the wallet through use of IDIQs, shared services, demand management, and assisted acquisition.
Agencies buying a higher-tier bundle of ServiceNow's information technology products will see discounts as high as 70% though September 2028, the US General Services Administration said Wednesday in a statement. The deal follows a spate of similar announcements touting big discounts on software and cloud products used by federal workers, as the GSA has sought to centralize negotiations with technology vendors to leverage the federal government's purchasing power.
During his tenure, Ehikian oversaw mass workforce turnover at the agency, both via voluntary departures and layoffs, including the elimination of entire GSA teams. "By cutting outdated regulations, centralizing procurement, optimizing real estate, adopting smarter tech and modeling the change we want to see, we are delivering a better government for the American people," Ehikian wrote in his email, saying that "government doesn't need to be slow."
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.
The return to office mandate was another effective lever to get people to quit since they limited the offices people could return to a small number of key cities, whereas much of GSA was purposefully hired remote.