Blab Tech
GSA Accelerates Federal IT Modernization with OneGov and AI Sandbox
The U.S. General Services Administration (GSA) is reshaping how federal agencies acquire and deploy technology, moving away from a slow, theory‑driven procurement cycle toward a faster, pilot‑based model. The agency’s chief information officer, David Shive, said in a recent interview that the new approach “disrupts the longstanding practice of how technology is driven into this government.” The shift is intended to cut the typical two‑to‑three‑year lead time for new tools and to deliver business value more quickly.
Under the new model, GSA treats the entire federal government as a single customer through its OneGov strategy, which launched in April 2025. OneGov contracts are designed to give agencies rapid access to commercial software and services, including artificial‑intelligence (AI) tools, with discounts of 70% to 90% on products that agencies already use. According to GSA, the program has secured agreements with more than two dozen technology firms and has generated over $1 billion in cost savings since its launch. Health and Human Services, Veterans Affairs, Transportation, and State are among the agencies that have benefited.
GSA also introduced USAi in August 2025, a secure sandbox that lets federal employees experiment with generative‑AI models from vendors such as Anthropic, Google, Meta, and OpenAI. The platform provides a cloud‑based environment for testing AI applications without risking agency systems. Shive said that the data gathered from USAi usage will inform future OneGov negotiations, ensuring that the government can evaluate real‑world performance before committing to long‑term contracts.
The agency’s digital roadmap emphasizes a “minimum viable product” mindset. Instead of waiting for academic research or standards bodies to validate a technology, GSA pilots the solution, assesses its value, and then shares findings with standards‑setting organizations. This approach, Shive explained, allows the White House’s government‑wide guidance on large‑scale IT implementation to be based on actual use cases rather than theory.
To support agencies in adopting new capabilities, GSA released the Elimination, Optimization, and Automation playbook in June. The guide offers a step‑by‑step framework for modernizing IT services and managing organizational change. The playbook is part of the agency’s broader “Million Hour Challenge,” which aims to eliminate one million hours of employee work in 2027 by leveraging technology, including AI, process optimization, and the removal of obsolete tools.
Industry observers note that GSA’s initiatives align with a broader federal push to increase procurement efficiency. The agency’s annual operating budget is roughly $33 billion, and it oversees about $66 billion in procurement each year. By consolidating purchasing power and offering deep discounts, OneGov is positioned to reduce the cost of software and technology across the federal workforce.
The impact of these programs is already visible. According to GSA, the OneGov strategy has saved hundreds of millions of dollars, and agencies report that AI adoption is improving customer service delivery. Shive told a panel at the Government Service Delivery conference in June that the agency is “50% of the way there” in terms of AI integration, with a target of 90% by the same time next year.
While the initiatives have clear cost‑saving and efficiency benefits, GSA is also mindful of security and compliance. The agency’s AI procurement clause, announced in March 2026, includes provisions on data rights, security, and performance, and is intended to be incorporated into both new and existing GSA schedule contracts.
In summary, GSA’s OneGov and USAi programs, coupled with a pilot‑first procurement model and a focus on measurable outcomes, represent a significant shift in federal technology acquisition. The agency’s efforts are already producing tangible savings and accelerating AI adoption, while its playbooks and challenges aim to sustain momentum and drive further modernization.
The next steps for GSA include expanding OneGov savings beyond software, onboarding additional agencies to USAi, and continuing to refine its AI procurement rules. As the federal government moves toward a more agile, data‑driven procurement framework, the outcomes of these initiatives will likely shape future policy and industry engagement.
Under the new model, GSA treats the entire federal government as a single customer through its OneGov strategy, which launched in April 2025. OneGov contracts are designed to give agencies rapid access to commercial software and services, including artificial‑intelligence (AI) tools, with discounts of 70% to 90% on products that agencies already use. According to GSA, the program has secured agreements with more than two dozen technology firms and has generated over $1 billion in cost savings since its launch. Health and Human Services, Veterans Affairs, Transportation, and State are among the agencies that have benefited.
GSA also introduced USAi in August 2025, a secure sandbox that lets federal employees experiment with generative‑AI models from vendors such as Anthropic, Google, Meta, and OpenAI. The platform provides a cloud‑based environment for testing AI applications without risking agency systems. Shive said that the data gathered from USAi usage will inform future OneGov negotiations, ensuring that the government can evaluate real‑world performance before committing to long‑term contracts.
The agency’s digital roadmap emphasizes a “minimum viable product” mindset. Instead of waiting for academic research or standards bodies to validate a technology, GSA pilots the solution, assesses its value, and then shares findings with standards‑setting organizations. This approach, Shive explained, allows the White House’s government‑wide guidance on large‑scale IT implementation to be based on actual use cases rather than theory.
To support agencies in adopting new capabilities, GSA released the Elimination, Optimization, and Automation playbook in June. The guide offers a step‑by‑step framework for modernizing IT services and managing organizational change. The playbook is part of the agency’s broader “Million Hour Challenge,” which aims to eliminate one million hours of employee work in 2027 by leveraging technology, including AI, process optimization, and the removal of obsolete tools.
Industry observers note that GSA’s initiatives align with a broader federal push to increase procurement efficiency. The agency’s annual operating budget is roughly $33 billion, and it oversees about $66 billion in procurement each year. By consolidating purchasing power and offering deep discounts, OneGov is positioned to reduce the cost of software and technology across the federal workforce.
The impact of these programs is already visible. According to GSA, the OneGov strategy has saved hundreds of millions of dollars, and agencies report that AI adoption is improving customer service delivery. Shive told a panel at the Government Service Delivery conference in June that the agency is “50% of the way there” in terms of AI integration, with a target of 90% by the same time next year.
While the initiatives have clear cost‑saving and efficiency benefits, GSA is also mindful of security and compliance. The agency’s AI procurement clause, announced in March 2026, includes provisions on data rights, security, and performance, and is intended to be incorporated into both new and existing GSA schedule contracts.
In summary, GSA’s OneGov and USAi programs, coupled with a pilot‑first procurement model and a focus on measurable outcomes, represent a significant shift in federal technology acquisition. The agency’s efforts are already producing tangible savings and accelerating AI adoption, while its playbooks and challenges aim to sustain momentum and drive further modernization.
The next steps for GSA include expanding OneGov savings beyond software, onboarding additional agencies to USAi, and continuing to refine its AI procurement rules. As the federal government moves toward a more agile, data‑driven procurement framework, the outcomes of these initiatives will likely shape future policy and industry engagement.
