Introduction

A modest price can signify significant change. The U.S. General Services Administration (GSA) and xAI have recently finalized an 18-month OneGov agreement, granting all federal departments, agencies, and bureaus access to xAI’s Grok AI models for just 42 cents per organization. This offer, valid through March 2027, encompasses Grok 4 and Grok 4 Fast, along with training and direct engineering support to help agencies achieve quick results.

Why It Matters

As budgets shrink and operational demands grow, agencies need practical avenues to test and implement AI solutions that enhance service delivery, policymaking, and operational efficiency. OneGov aims to streamline AI procurement, reduce costs, and foster responsible usage across government.

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The Details of the GSA and xAI Agreement

• Pricing and Duration: $0.42 per agency for 18 months, valid until March 2027.
• Models Included: Access to Grok 4 and Grok 4 Fast, xAI’s advanced reasoning models.
• Support Offered: xAI will provide dedicated engineers to assist agencies with onboarding, integration, and customization, as well as introductory training to facilitate adoption.
• Upgrade Options: Agencies may choose to upgrade to Grok enterprise subscriptions aligned with FedRAMP and DoD Impact Levels for expanded features and increased usage limits.
• Context of OneGov: GSA describes this deal as its lowest-priced and longest-term AI model offer to date, representing the final frontier model added to its suite.

GSA leadership has positioned this initiative as part of a comprehensive effort to modernize government operations while ensuring accountability and protecting taxpayer interests.

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Transforming Federal AI Procurement with OneGov

OneGov is GSA’s strategy to streamline technology acquisitions needed by multiple agencies. Rather than each agency conducting its own procurement, OneGov negotiates terms that any agency can adopt, significantly reducing the time and paperwork involved in testing and deploying new technologies. Since 2025, GSA has utilized this approach for cloud, productivity, and AI solutions, forming major agreements with Microsoft and AWS that offer substantial discounts and modernization incentives.

The xAI partnership fits seamlessly into this model, enhancing the portfolio of accessible AI options and lowering the barriers for experimentation with cutting-edge models.

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Benefits of Grok 4 and Grok 4 Fast for Agencies

xAI positions its Grok models as reasoning-first tools optimized for both speed and accuracy in real-world environments. Under the OneGov agreement, federal agencies will receive:

• Full Access: Grok 4 and Grok 4 Fast for the entire 18-month term.
• Dedicated Support: Accelerated onboarding and integration assistance from dedicated engineers.
• Training: Introductory and ongoing training to foster wider adoption among teams.
• Upgrade Path: Options for enterprise subscriptions compliant with federal security standards, allowing for increased capacity and features.

This framework enables mission offices to initiate pilot programs swiftly, appraise Grok’s effectiveness for their specific needs, and strategize transitions to enterprise-scale deployments if the pilots prove beneficial.

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Use Cases Across Government

While agencies’ mission needs vary greatly, several common AI applications tend to emerge during pilot programs. These include:

• Research Assistance: Summarizing complex policy documents, reviewing public comments, and examining regulatory dockets for relevant feedback.
• Knowledge Search: Enhancing the discovery of statutes, guidance, and internal resources to facilitate quicker responses from staff.
• Intake and Triage: Aiding contact centers and correspondence teams in drafting replies, routing inquiries, and suggesting subsequent actions.
• Process Automation: Assisting in generating initial drafts of reports, memos, and briefs, as well as compiling data and preparing management dashboards.
• Program Analytics: Working with testing environments to analyze trends and outcomes in grant, benefit, or acquisition programs.

These application patterns are common across various federal departments and independent agencies, making it easier to pilot and implement AI solutions now that barriers to entry are lowered.

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Understanding the Pricing: $0.42 Explained

GSA and xAI highlight the 42-cent pricing as a commitment to broad accessibility. Reports indicate that this price significantly undercuts the previous $1 per organization annual rate for ChatGPT access through a different OneGov arrangement. Additionally, the 18-month term marks the longest duration for any OneGov AI agreement.

Moreover, GSA has collaborated with other AI and cloud providers, such as Microsoft and AWS, to ensure substantial savings for cloud services and AI enhancements, underscoring a cohesive procurement strategy supporting these AI initiatives.

Recently, GSA also approved Meta’s Llama model for government use at no cost, further diversifying options for agencies exploring various model families.

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Commitment to Responsible AI

Like any powerful tool, AI solutions come with responsibilities. Past discussions have raised concerns regarding inaccuracies and biases in large language models, including Grok. Advocacy groups have called for caution in deploying such technologies due to potential harmful outputs. This is why federal agencies meticulously evaluate AI offerings against security baselines and responsible usage guidelines, including optional upgrades to ensure compliance with FedRAMP and DoD Impact Levels for enhanced deployments.

Agencies considering moving towards production use should implement the appropriate measures to ensure safety and compliance:

• Impact Assessments: Conduct evaluations for high-stakes applications.
• Human Oversight: Keep a human-in-the-loop for sensitive decisions and communications.
• Security Practices: Utilize approved environments and logging measures as required.
• Robust Testing: Rigorously test prompts and analyze failure scenarios before scaling.
• Performance Metrics: Monitor results against clear metrics tied to operational goals.

These best practices are designed to help teams maximize the benefits of AI while minimizing potential harms.

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Fast Tracking Value: A 30-60-90 Day Playbook

Successful pilot initiatives often follow a straightforward timeline:

• Days 1-30: Form a small working group, choose a couple of low-risk, high-volume workflows, and integrate Grok within a sandbox or secure environment. Prioritize safety and measurement from the outset.
• Days 31-60: Expand pilot participants, compare results against traditional workflows, and document time savings and error rates. Begin drafting a transition plan if initial outcomes are promising.
• Days 61-90: Decide whether to scale, pivot or pause the project. If pursuing scaling, prioritize aligning the enterprise upgrade pathway with your security requirements, and implement monitoring and testing procedures.

With xAI’s training and engineering support, these initiatives become more manageable, though agencies remain accountable for governance, testing, and approvals.

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What’s Next to Watch

• Security and Compliance: Clarity regarding FedRAMP and DoD Impact Level alignment for Grok enterprise upgrades and the speed of agency decisions for production workloads.
• Multi-Model Procurement: Expect greater experimentation as agencies assess AI solutions from xAI, OpenAI, Meta, Google, and Anthropic.
• ROI Metrics: Look for case studies showing quantified benefits in time savings, error reductions, and service quality improvements in AI-adopting programs.
• Governance Developments: Continuing guidance from OMB, GSA, and agency CIO councils on responsible AI implementation within federal missions.

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Key Dates and Details

• Agreement Announcement: September 25, 2025.
• Access Period: 18 months from launch, extending through March 2027.
• Included Models: Grok 4 and Grok 4 Fast.
• Cost Structure: $0.42 per agency for the entire term.
• Support Available: Training and dedicated engineers for assistance with implementation and integration.

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The Larger Context: OneGov as a Modernization Catalyst

The Grok agreement exemplifies a larger trend. OneGov has been instrumental in negotiating significant discounts for Microsoft 365, Copilot, Azure, and AWS services, yielding both immediate savings and long-term modernization opportunities. The overarching goal is clear: centralize purchasing power, streamline procurement processes, and equip agencies with the means to adopt AI responsibly.

For agencies awaiting a low-cost, low-friction avenue for AI experimentation, this is an ideal moment. Start small, measure thoroughly, and scale only when mission benefits are realized and sustainable.

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FAQs

What is GSA’s OneGov Initiative?

OneGov is GSA’s approach to establish government-wide terms for technologies widely needed across agencies. This enables agencies to leverage these agreements for time and cost efficiency, accessing pre-negotiated pricing, and jumpstarting trials without starting from scratch.

Which Grok Models Are Included in the Agreement?

The agreement includes Grok 4 and Grok 4 Fast for 18 months, through March 2027, with options to upgrade to enterprise offerings aligned with federal security guidelines.

What is the Cost for Agencies to Participate?

Each agency can access the OneGov offer at a price of $0.42 for the entire 18-month term.

What Support Does xAI Provide to Agencies?

xAI offers dedicated engineers and introductory training to facilitate onboarding, integration, and user adoption. Agencies can also explore enterprise upgrades for enhanced assurance and features.

How Does This Compare to Other AI Options for Agencies?

The deal’s price is notably lower than the $1 per organization OneGov offer for ChatGPT and alongside options like Meta’s Llama, which is available at no cost. OneGov also encompasses major agreements with cloud and productivity providers like Microsoft and AWS.

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Conclusion

GSA’s OneGov agreement with xAI significantly lowers the barrier for federal agencies to explore advanced AI solutions. At just 42 cents per agency, this deal includes Grok 4 and Grok 4 Fast, along with training and engineering support, making it easier to initiate practical pilot programs that can demonstrate measurable value. Coupled with other OneGov offerings and a growing selection of model options, the federal government now has more accessible pathways to responsible AI adoption than ever before. The following phase is all about execution: aligning clear missions with guardrails, ensuring disciplined pilots that build trust and produce results.