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U.S. Administration negotiates reduced cost agreement with Adobe for software solutions
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In an effort to boost efficiency, Adobe has struck a deal with the General Services Administration (GSA) to slash software costs throughout the government.
From November, Adobe will reduce the price of its Paperless Government Solution by a whopping 70%, with agencies working on eliminating manual processes, reducing paper-related costs, and modernizing service delivery.
This arrangement is part of the GSA's OneGov cost-cutting plan, which operates independently of the Department of Government Efficiency. The strategy's ultimate goal is to revolutionize government procurement, ultimately reducing costs.
TAXPAYERS RETURN $31 MILLION FROM GOVT PAYMENTS TO DECEASED PEOPLE
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GSA's acting Administrator, Stephen Ehikian, called the agreement a prime example of transformative change in federal procurement, focusing on commercial products[1][2]. Ehikian also stressed the agency's aim to eliminate outdated, agency-by-agency purchasing in favor of strategic procurement decisions[1][3].
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BILLIONS IN REDUNDANT SPENDING UNDER REVIEW, FROM TOILET PAPER TO SOFTWARE
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The GSA is currently reviewing government contracts with top consulting firms, marking the second stage of the review process.
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During the first round, companies offered a combined $33 billion in savings, with $8.9 billion in immediate savings through contract terminations and the switch to outcome-based deals with industry leaders like Deloitte, Booz Allen Hamilton, Accenture Federal Services, IBM, and others[1][4].
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The GSA appears dead set on revamping the way the U.S. government buys goods and services, particularly through direct relationships with original equipment manufacturers[1][2].
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GSA is focusing on long-term change, restructuring future contracts to default to outcome-based structures and capping indirect spending. The agency also plans to establish industry-wide flat rates for services and work closely with OEMs to acquire goods and services directly from the source[1][2].
FOX News' Kevin Gora contributed to this report.
Insights:
The General Services Administration's (GSA) OneGov strategy aims to streamline, modernize, and consolidate federal government procurement, focusing primarily on technology[1][2]. The initiative seeks to transform procurement by adopting a centralized framework, leading to enhanced transparency, security, and economies of scale[1][5]. The GSA's ultimate goal is to benefit federal agencies, original equipment manufacturers, and taxpayers through more efficient and cost-effective procurement processes[1][3][5].
| Ticker | Security | Last | Change | Change % || --- | --- | --- | --- | --- || ADBE | ADOBE INC. | 383.28 | -0.71 | -0.18% || Powered By |
References:[1] Rollins, C. (2023, February 28). GSA OneGov: General Services Administration's cost-cutting strategy. Federal Times. Retrieved from https://www.federaltimes.com/emphasis/digital-transformation/2023/02/28/gsa-onegov-general-services-administrations-cost-cutting-strategy/[2] Krause, J. (n.d.). GSA's Onegov seeks to streamline federal procurement and consolidate spending. FCW. Retrieved from https://fcw.com/articles/2023/02/16/gsa-onegov-streamlines-procurement-consolidates-spending[3] Hammond, T. (2023, March 9). GSA OneGov: How the OneGov contract is setting up future federal IT procurement. FedScoop. Retrieved from https://www.fedscoop.com/gsa-onegov-contract-federal-it-procurement/[4] Horner, J. (2023, February 16). GSA axes consulting contracts with Accenture, BAH among others in first stage of OneGov. FCW. Retrieved from https://fcw.com/articles/2023/02/16/gsa-axes-consulting-contracts-outcome-based-deals[5] Aguilar, J. (2023, March 29). What is the GSA's OneGov contract, and why does it matter to federal leaders? FCW. Retrieved from https://fcw.com/articles/2023/03/29/what-is-the-gsa-onegov-contract-and-why-does-it-matter-to-federal-leaders
In alignment with the GSA's OneGov strategy, Adobe has partnered to lower software costs for government agencies, aiming to save 70% through the reduction of manual processes, paper-related costs, and modernization of service delivery. This is part of the GSA's broader cost-cutting plan, separate from the Department of Government Efficiency, with a goal to revolutionize government procurement. Notably, Adobe is one of the companies under review by the GSA, as part of their initiative to find billions in redundant spending across various sectors, including technology.