The General Services Administration’s bargain-priced AI agreements—$1 for OpenAI and Anthropic access and $0.47 for Google—are facing formal protests at the Government Accountability Office from Ask Sage, a federal AI vendor led by former Air Force software chief Nic Chaillan. The company alleges the deals violate federal acquisition rules, including commercial item pricing under FAR Part 12, the Competition in Contracting Act, and IT security requirements under FAR Part 39 and FISMA; it also warns the offers could lock agencies into proprietary tools by excluding API access. GAO has until Nov. 24 to decide.
The awards, issued via reseller Carahsoft under GSA’s OneGov effort, have drawn scrutiny for limited transparency on out-year pricing and contract terms. A law professor cited potential Anti-Deficiency Act and competition concerns and characterized the ultra-low prices as “unbalanced.” GSA declined comment. Google said the move prioritizes mission needs by delivering a full platform while confirming APIs are outside the offer and typically priced at commercial rates; OpenAI said it is pursuing FedRAMP, and Anthropic pointed agencies to API access through cloud partners. Critics say the deals risk vendor lock-in once agencies train models and workflows on these systems.
Related articles:
NIST AI Risk Management Framework 1.0
Agencies now have access to no-cost AI platform from GSA
Two new AI tools help illuminate GSA’s future state
White House science adviser talks AI action plan and citizen services
FedRAMP: Federal Risk and Authorization Management Program
