GSA inks latest OneGov agreement with Snowflake
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Under the deal, federal agencies will potentially be eligible “for higher-tier discounts of up to 50% reduced consumption cost on compute, as overall usage increases.”
The General Services Administration announced on Thursday that it reached a deal with data cloud company Snowflake to provide federal agencies with discounted rates on some of its technology services.
The agreement is the latest made as part of GSA’s OneGov initiative, which has negotiated deals with twenty other firms to offer major pricing cuts on software and products by treating the federal government as one, centralized customer. Companies like Microsoft, SAP and Palo Alto Networks have already negotiated deals with GSA as part of the initiative.
“GSA’s OneGov agreement with Snowflake supports President [Donald] Trump’s priority to accelerate technological innovation by giving agencies streamlined access to a shared data platform that breaks down long-standing silos,” GSA Administrator Edward Forst said in a statement. “With stronger cross-agency data capabilities, we can accelerate AI tools tailored to each agency’s mission.”
As part of the deal, Snowflake will offer new federal users a 20% discount on computer services, a 26.67% discount on storage and “potential eligibility for higher-tier discounts of up to 50% reduced consumption cost on compute, as overall usage increases.”
The cost savings will be available until Sept. 30, 2027.
“Our participation in the GSA OneGov program is part of our commitment to our nation’s public servants,” Snowflake CEO Sridhar Ramaswamy said in a statement. “We are removing procurement barriers so agencies can focus on what truly matters: leveraging their data to make faster, more informed decisions that better serve the American people.”
GSA said it has already identified more than $1.15 billion in savings since it launched the initiative in April 2025. The agency has also touted the strategy’s ability to onboard new artificial intelligence tools across the government, with officials reporting that almost 3.4 million federal employees can now access emerging technologies acquired through the initiative.
Although most of the discounted deals that GSA has reached with tech and software companies are set to expire after certain timeframes, agency officials have said that the ultimate goal of the initiative is to parlay these agreements into longer-term direct contracts.