The US General Services Administration (GSA) and Elastic, a leading Search AI company, have announced a strategic agreement aimed at modernizing federal IT systems while driving cost savings and enhancing cybersecurity, observability, and AI capabilities across federal agencies. The agreement introduces government-wide pricing for Elastic’s solutions, offering significant volume discounts of up to 60%, thereby streamlining the procurement process and reducing inefficiencies associated with fragmented purchases. This collaboration aligns with broader federal initiatives to improve IT efficiency, emphasizing cost-effectiveness and innovation as outlined in recent executive orders and directives from the US Office of Management and Budget (OMB). Elastic's technology enables agencies to utilize open-source Search AI and a data mesh approach to transform siloed data into actionable insights, supporting initiatives like Zero Trust and GenAI applications. The partnership is expected to facilitate secure, scalable innovation in the public sector, allowing agencies to modernize, secure, and simplify operations without exceeding budget constraints.