GSA’s OneGov Strategy Starts with Commercial Software

Yesterday, GSA launched the OneGov Strategy, to streamline the purchase of information technology by increasing direct relationships with Original Equipment Manufacturers (OEMs). As the name suggests, the end goal of the strategy is to end siloed purchasing practices by agencies and instead act as a single purchaser for goods and services. While the federal space has long pursued this concept, recent measures are further defining what this coordinated enterprise approach might look like.

“The strategy calls for deeper, direct engagement with OEMs to ensure more transparent pricing, streamlined acquisition, and improved cybersecurity protections,” according to GSA’s announcement.

The first phase of the strategy will target commercial software where, according to a blog by FAS Assistant Commissioner Laura Stanton, there is a vital need. “Software licenses have become more complex, more expensive, and more critical to agency missions. Yet the federal government still largely buys software through resellers, which limits visibility, complicates invoicing, and creates gaps in accountability,” per Stanton.  

The strategy’s announcement comes on the heels of the Trump Administration’s executive order directing agencies to procure commercially available products and services. Federal CIO Greg Barbaccia also targeted software acquisitions in a request to agencies to conduct both specific and full inventories of software licenses and related contracts. Moreover, the strategy’s unveiling follows two deals reached this year by GSA to lower costs in the federal purchase of Microsoft and Google products.

Phase one is set to impact software resellers and system integrators the most, though it is difficult to assess the stake software resellers hold in the market. Contract spend reporting does not differentiate resellers in the data, and there is no specific NAICS code for software resellers. GovWin’s Federal Technology Install Base offers a view of the FY 2024 federal market space for software products. Below is a view of that market share. It is likely that these software companies will be key targets for GSA's efforts in establishing new direct relationships under the strategy’s objectives.

Source: GovWin Federal Technology Install Base

The strategy lacks specifics on how it will form direct relationships with OEMs, some of which prefer working with resellers and integrators. Consequently, the strategy’s impact remains uncertain.

Looking ahead, GSA expects the Onegov Strategy to evolve, with future expansions into domains such as hardware, platforms, infrastructure, cybersecurity services, and additional categories over time.