Cost-saving deal between GSA, Google could be ‘first of many’

The Department of Government Efficiency is celebrating a new cost-saving agreement between the General Services Administration and Google.

GSA agreed to pay Google for its products and services based on volume, rather than the previous “transactional basis.” The agreement runs through Sept. 30 and will temporarily save GSA 71% on its Google expenses.

“Google will now approach the federal government as one unified customer — and President Trump’s GSA is working hard on this collaboration to turn that recognition into real savings to secure lower prices for best-in-class technology across all federal agencies,” GSA Acting Administrator Stephen Ehikian said. “By working closely with industry leaders like Google, we will continue to lower the cost of IT while providing improved experiences for the American taxpayers and the federal government.”

DOGE cheered the move in a post on X.

“Good work by @USGSA for inking its first consolidated deal following the President’s Executive Order: Eliminating Waste and Saving Taxpayer Dollars by Consolidating Procurement,” it wrote. “This will be the first of many bulk discounts as a result of centralized procurement.”

Also reacting was DOGE head Elon Musk, who wrote “Just ensuring common sense deals for the taxpayer.”

The move follows President Donald Trump’s executive order last month that directed GSA to chip away at the government’s $490 billion annual procurement budget through the most “efficient and effective manner possible.”

“It is time to return the General Services Administration to its original purpose, rather than continuing to have multiple agencies and agency subcomponents separately carry out these same functions in an uncoordinated and less economical fashion,” Trump wrote.

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