Overview

• Microsoft 365 Copilot will be provided at no cost for up to 12 months to millions of existing Microsoft 365 G5 government users.
• The agreement extends discounts across Microsoft 365, Azure, Dynamics 365, Entra ID Governance and Sentinel, with waived Azure data egress fees and no per‑agent fees for AI agents.
• GSA and Microsoft project about $3.1 billion in first‑year savings and more than $6 billion in total value over three years, with discounted pricing available for up to 36 months.
• Agencies must opt in through the GSA by September 2026 to access the offers, and Microsoft will provide $20 million in support services and implementation workshops.
• Microsoft cites FedRAMP High authorization for Microsoft 365, Azure and key AI services, notes DoD provisional authorization for Copilot with FedRAMP High expected, and positions the deal within GSA’s OneGov push alongside recent low‑cost offers from OpenAI, Anthropic and Google, even as some observers warn of potential vendor lock‑in after short‑term discounts expire.