Today, Microsoft and the US General Services Administration (GSA) announced a comprehensive agreement to bring a suite of productivity, cloud and AI services, including Microsoft 365 Copilot at no cost for up to 12 months for millions of existing Microsoft G5 users, to help agencies rapidly adopt secure and compliant advanced AI tools that will enhance operations, strengthen security and accelerate innovation for the American people. As an unparalleled milestone in advancing GSA’s OneGov strategy, Microsoft’s offerings will be available through a governmentwide unified pricing strategy that is expected to drive $3 billion in cost savings in the first year alone.
Enabling AI innovation and acceleration for federal agencies
This expansive offering will help agencies achieve key pillars of the America’s AI Action Plan by enabling federal agencies to serve at the forefront on driving AI innovation and adoption in service to the American people. Through this agreement federal agencies will access the latest AI capabilities at scale, now integrated in many of the products they already use, to achieve key administration priorities:
- Transforming productivity with AI: A unique Microsoft 365 and Copilot suite, offered exclusively to the federal government, enables agencies to automate workflows, analyze data and collaborate more efficiently, freeing public servants to focus on their core mission.
- Driving automation with AI agents: With AI agents, and no per-agent fees, agencies can build solutions for citizen inquiries, case management and contact centers, extending the reach and responsiveness of government services.
- Accelerating cloud modernization: With significant Azure discounts and the waiving of data egress fees, agencies can modernize infrastructure, reduce barriers to interagency collaboration and unlock the full power of advanced analytics and AI.
- Streamlining government operations: Dynamics 365 applications help agencies enhance citizen service, optimize supply chains and increase field responsiveness, directly impacting everyday public outcomes.
- Strengthening security across all levels: Integrated platforms such as Microsoft Entra ID and Sentinel provide advanced identity and threat protection, supporting the Zero Trust journey across federal environments.
Federal agencies can opt-in to any or all of these offers through September 2026, with discounted pricing available for up to 36 months.
Innovation meets security
Agencies can quickly adopt these solutions knowing these services have already achieved key FedRAMP security and compliance authorizations, meeting more than 400 critical security controls established in NIST 800-53 standards. Microsoft 365, Azure and our key AI services are authorized at FedRAMP High. Microsoft 365 Copilot received provisional authorization from the US Department of Defense, with FedRAMP High expected soon.
Investing for the future
Our commitment goes beyond technology and savings. Microsoft is also committing $20 million in additional support services to help agencies implement the offers and maximize the value of these services, along with complimentary cost-optimization workshops that will enable agencies to identify opportunities to reduce software duplication, automate services and improve cross-team interoperability. These investments reflect our belief that technology’s greatest value lies in its ability to empower people.
Taken together, we anticipate these services have the potential to deliver more than $6 billion in total estimated value over three years.
