Adobe has finalized an agreement with the U.S. General Services Administration (GSA) to substantially lower software costs for the government. This initiative will see Adobe reduce the price of its extensive Paperless Government Solution by 70% through November, as agencies strive to eliminate manual processes, cut paper-related expenses, and modernize service delivery.
This agreement aligns with GSA’s OneGov cost-cutting strategy, which operates independently of the Department of Government Efficiency. The strategy focuses on transforming government procurement to minimize costs.
Stephen Ehikian, GSA’s acting Administrator, highlighted the deal as a demonstration of GSA’s efforts to revolutionize federal procurement, emphasizing the importance of commercial products in the process. Ehikian pointed out the shift from outdated, fragmented purchasing practices toward strategic procurement decisions.
As GSA progresses to the second phase of reviewing government contracts with prominent consulting firms, this move reflects ongoing efforts to streamline purchasing. According to a GSA employee, the initial phase involved engaging with companies that proposed $33 billion in savings, including $8.9 billion from contract terminations and restructuring into outcome-based agreements. Deloitte, Booz Allen Hamilton, Accenture Federal Services, and IBM were part of these deliberations.
The agency is setting a long-term course by prioritizing outcome-based contracts as the default and mandatory format for future agreements. GSA is also aiming to cap indirect spending, standardize service rates, and collaborate directly with original equipment manufacturers to enhance procurement efficiency.
Throughout, the GSA maintains its commitment to overhauling how the government acquires goods and services.
