Alphabet's (GOOGL, GOOG) Google has offered to slash what it charges the US government for its tools in a new strategic agreement, the US General Services Administration said in a statement Thursday.
According to the agency, the company is going to offer its Workplace suite of apps at a temporary price reduction of 71% on the current multiple award schedules program.
The deal "establishes pricing based on the volume of the entire government rather than the lower discounts" that were previously available via individual agreements "on an agency-by-agency or transactional basis," the GSA said.
The temporary pricing arrangement expires on Sept. 30 and will see Google treat the federal government as one unified customer, the agency said.
The discount could generate $2 billion in cost savings for federal agencies if there is government-wide adoption, according to Reuters.
Google did not immediately respond to a request for comment from MT Newswires.
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