Agreement falls under OneGov framework
The US General Services Administration (GSA) has signed another discount deal with a cloud provider.
Revealed on August 7, the deal will see Amazon Web Services (AWS) providing the GSA with up to $1 billion in savings for cloud adoption, modernization, and training across US federal agencies through to the end of 2028.
The agreement is hoped to help government agencies speed up its IT transformation, and "spur AI innovation."
"The Trump Administration is rapidly modernizing out-of-date government systems, streamlining processes, and delivering savings to the American taxpayer through centralized procurement," said GSA acting administrator Michael Rigas.
"Through this new agreement with AWS, federal agencies will be able to enhance delivery of critical services, leverage cloud and advanced AI technologies, and reduce costs."
Federal agencies can access the credits from AWS via the OneGov program, a strategy launched in April 2025 and enabling agencies to gain easier access to goods and services with standardized terms and pricing.
AWS CEO Matt Garman said of the deal: "This landmark agreement marks a significant milestone in the large-scale digital transformation of government services. As federal agencies adopt advanced technologies like artificial intelligence and machine learning, AWS is positioned to not only help them achieve immediate operational efficiencies, but also to build the foundation for a more secure and innovative government of tomorrow."
Other hyperscalers have made similar deals with the GSA. Microsoft established a "Government-wide Microsoft Acquisition Strategy" in January of this year, while both Oracle and Google have committed to offering government agencies significant discounts on their services.
Earlier this year, the US Government Accountability Office highlighted in a report the ongoing issue of legacy IT in the government, noting that it had still not modernized seven of the 11 most critical federal legacy systems as flagged by the Government Accountability Office (GAO) in 2019.
The report added that the US federal government currently spends more than $100bn on IT and cyber-related investments, of which around 80 percent goes on operations and maintenance of existing IT systems.
