The General Services Administration (GSA) announced a major update on June 13 to its Multiple Award Schedule (MAS) that will allow Federal agencies to make upfront payments when purchasing software licenses.
The update – which applies to software licenses delivered as Software as a Service (SaaS) under the Information Technology Category (ITC) Special Item Numbers (SINs) – will help save taxpayers money while supporting small businesses.
“By giving the option of one invoice on a purchase that’s immediately delivered, we’re eliminating another administrative burden for our vendor and agency partners. This is a major milestone that reflects our strong commitment to helping agencies save money, advance their mission, and support small business at the same time,” GSA Federal Acquisition Service Acting Commissioner Tom Howder said in a press release.
“Modernizing our approach to payment methods will reduce barriers and help agencies as they enhance and improve their IT operations in service of American taxpayers,” Howder added.
The move comes after GSA surveyed agency buyers and vendors. By allowing upfront payments, GSA is helping to support small businesses that may have struggled financially to wait months for payments from government agencies.
The update also aligns government practices with existing commercial practices, offering more flexibility to agencies when purchasing software.
“Along with our upcoming Ascend Blanket Purchase Agreement, this flexibility is another evolution in how GSA is making buying cloud easier and less costly, by allowing agencies to take advantage of competitive prices for cloud solutions when upfront payment is an option,” said Assistant Commissioner of GSA’s Information Technology Category Laura Stanton.
“This change means agencies can take advantage of paying upfront, and it will allow more small businesses to enter the government cloud market,” Stanton said. “We appreciate our industry partners and will maintain dialogue on cloud pricing best practices moving forward.”
