GSA Multiple Award Schedule update reduces barriers and costs for buyers and sellers of software licenses

June 13, 2024

MAS now allows upfront payment for agencies buying software licenses as Software as a Service

WASHINGTON – The U.S. General Services Administration (GSA) announced an update to the Multiple Award Schedule (MAS) which allows for upfront payments for software licenses, a move that could save taxpayer dollars while supporting small businesses. The change - which applies to software licenses delivered as Software as a Service (SaaS) under the Information Technology Category (ITC) Special Item Numbers (SINs) - aligns government practices with existing commercial practices and offers more flexibility for agencies purchasing software through the MAS. 

“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,” said GSA Federal Acquisition Service Acting Commissioner Tom Howder. “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.”  

The update comes after GSA conducted research and gathered input from agency buyers and vendors. 

With the update, GSA is also providing a path for more small business resellers to sell software licenses delivered as Software as a Service. Previously, those firms may have lacked the ability and funding to sustain operations while waiting months for payments from government contracts.   

“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. We appreciate our industry partners and will maintain dialogue on cloud pricing best practices moving forward.”  

For more information, contact GSA’s Cloud Team at: cloudinfo@gsa.gov.

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About GSA: GSA provides centralized procurement and shared services for the federal government, managing a nationwide real estate portfolio of nearly 370 million rentable square feet, overseeing about $100 billion in products and services via federal contracts, and delivering technology services that serve millions of people across dozens of federal agencies. GSA’s mission is to deliver the best customer experience and value in real estate, acquisition, and technology services to the government and the American people. For more information, visit GSA.gov and follow us at @USGSA.