The General Services Administration announced it will now offer cloud-based email services to federal agencies.

GSA issued 20 blanket purchase agreements to 17 companies to provide cloud services to agencies. The estimated value of the agreements is $2.5 billion.

The new agreements will help streamline the purchasing of cloud services across the government and save on agency IT costs, the agency said.

“GSA has added another excellent option for agencies looking to rapidly move their email to the cloud to save time, resources and taxpayer dollars,” said Mary Davie, the acting commissioner of GSA’s Federal Acquisition Service.

GSA said transitioning to a cloud email system will save agencies $1 million for every 7,500 email boxes.

In addition to email, vendors on the BPAs will offer cloud-based services such as office automation and electronic-records management.

GSA said the BPA will make it easier for agencies to fulfill the dictates of the “cloud-first” initiatives contained in the 2010 Federal IT Reform Plan. That provision called on agencies to make cloud-based services a default IT option and required them to identify three “must-move” technologies to transition to the cloud.

In 2010, GSA became the first federal agencies to transition to a cloud-based email system, which the agency said has saved $2 million so far.

GSA awarded its first cloud BPA in 2010s, for infrastructure-as-a-service options, including cloud storage and Web hosting.

The companies on the latest BPAs include many large technology companies, including Dell Federal, General Dynamics IT and Lockheed Martin. It also includes four small businesses.

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