Adobe struck a deal with the U.S. General Services Administration (GSA) to significantly reduce software costs across the government.
Through November, Adobe will cut the cost of its comprehensive Paperless Government Solution by 70% from the current price as agencies work to eliminate manual processes, reduce paper-related costs and modernize service delivery.
The deal, part of GSA’s OneGov cost-cutting strategy, which is independent of the Department of Government Efficiency, aims to transform government procurement and lower costs.
TREASURY DEPARTMENT RECOUPS $31 MILLION IN IMPROPER GOVERNMENT PAYMENTS TO DEAD PEOPLE
GSA acting Administrator Stephen Ehikian called the agreement “another example of GSA leading a transformative change in how the federal government buys goods and services, with a focus on commercial products.”
Ehikian added that it is “moving away from outdated and fragmented agency-by-agency purchasing, towards strategic procurement decisions.”
GOVERNMENT AGENCY REVIEWING BILLIONS OF REDUNDANT SPENDING, FROM TOILET PAPER TO SOFTWARE
The move comes as the GSA enters its second phase of reviewing government contracts with some top consulting firms.
A GSA employee previously told FOX Business the agency has gone through the first round of companies, where the firms offered a total of $33 billion in savings with $8.9 billion in immediate savings, through terminations and restructuring of contracts to outcome-based deals, with industry-leading companies like Deloitte, Booz Allen Hamilton, Accenture Federal Services, IBM and others.
Meanwhile, the supply-side agency is determined to revamp how the U.S. government buys goods and services.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ADBE | ADOBE INC. | 383.99 | -0.98 | -0.25% |
GSA is taking a longer-term approach to this overhaul with the government by restructuring any future deals by making outcome-based contracts the “default” and “mandatory” structure for the future. The agency also wants to cap indirect spending from these firms, provide industry-wide flat rates for services and work more directly with original equipment manufacturers to acquire goods and services straight from the source.
FOX News’ Kevin Gora contributed to this report.
