Microsoft targets the Government of products in freebies. Can the star of Elon Musk’s star?


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A few weeks ago, my colleague Doris Burke sent me a story from The New York Times gave us Deja Vu.

The piece reported That starlink, the satellite internet provider run by Elon Musk’s Spacex, with, in the words of Trump Administys officials, “donated” Internet service to improve Wireless Connectivity and Cell Ovection in the White House.

The donation confuses some former officials quoted in the story. But it was then struck by us as the potential Trump-Era’s potential healing in a tested and real business maneuver we spent months last year. on that investigationWe focus on deals between Microsoft and Biden Administration. In the heart of arrangements something most consumers intuitively understand: “Free” offers usually have a catch.

Microsoft begins to offer the federal government “free upgrading and cybers’ consulting services, after pressing the enemy of the country’s enemies. The company knows the proverb to catch that, once the free trial period, federal customers accepted the upgrade of a competition at that point can cost and get costly.

Microsoft staff told me that the company’s offer similar to a drug dealer housing users with free samples. “If we give you the crack, and you took the crack, you enjoyed the crack,” One said. “And then when it comes to the season so we can take the crack, your users will last say, ‘Don’t get it from me.’ And you will be forced to pay me. “

What is Microsoft foretold within the inside. When free trials end, many federal government fights continue to upgrade and start paying higher subscription fees, opening billions in future sales for the company.

Microsoft says all government agreements “followed by the federal regulations at this time federal actors referred to federal actors targeted by federal actors

But experts told me that the government’s contracting was strengthened the competition’s bidding process that was a bedrock of government acquisitions, which prevents opponents for useful federal and, by extending the industry.

After reading the time stories about Starlink’s donation in the White House, I checked experts.

“It doesn’t matter if it’s Microsoft last year or starlink now or another company tomorrow,” as Jessica TillipmanWith Dean for Studies of George Washington University Law School “Whenever you do it, it’s a back door around the competition processes that make sure we have the best things and services from the best retailers.”

Usually, in a competitive bidding process, the government asks for suggestions from retailers for goods and services that it wants to buy. The retailers then submit their government suggestions, which in theory is selected the best choice in terms of quality and cost. The offsets during the whole process.

However, to hear the Secretary of Commerce Howard Lutnick say it, the Trump administration wants not only normal donations but encourage them throughout Washington.

In the last month, during an appearance of Silicon Valley Podcast “All“He saved his concept of a” gratis “vendor” gives product to the government. “At the stage, released only a few days after the New York Times published, Lutnick said no” you have to go to the whole vendor because you have to sign the form of conflict and all you have for the government. You just give up on government things. You really give yourself. You’re not looking for anything. You don’t have money. “

Since President Donald Trump in January, Musk, classified as an unpaid “special government employee,” makes a show of providing his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his services to his government companies “No taxpayer costs. “The White House donation is just the latest step. In February, he ordered his Spacex to the company to send 4,000 terminalsNo charge, at the Federal Aviation Administration for installing satellite satellite internet service.

During our Microsoft investigations, the salespeople have told me the specified “Last game” updates the upgrades to azure upgrade, cloud platform. It is unclear what the last game is for Musk and Starlink. Neither answer the questions that are emailed.

The federal law has long been tried to restrict government donations, in many parts to maintain expenditory expenditure.

At least until the 19th century, the executive branch staff entered contracts that did not seek the necessary funds from Congress, which should have the purse power. Lawmakers do not want taxpayers to spent spending unused by Congress, so they passed the antidiciency act, a version that remains with an effect now. A portion of the restricted “voluntary services” to guard against an assumption that the government’s payment is voluntary.

But in 1947, the overall office of accounting (now called a government recovery office), offering opinions of fiscal laws, allowing the parties to be approved “to write down and the payment of payments.

Microsoft uses to move consulting services that it is valued at $ 150 million in its government customers, entered by the so-called gratuitous services agreements. To provide actual cybersecity products, the company provides federal customers with a “100% discount” up to a year.

It is unclear when servicaus services agreements are in place for musk prompt. The White House and the FAA did not respond to the written questions. Neither the spacex is not either. An officer told the New York Times Last month a lawyer who was in charge of the House House office issues calling the Starlink donation to the White House.

For the experts I consulted, the written agreements may help companies follow the letter of the law, but certainly not in its spirit. “Because something technical legal doesn’t make it right,” as Eve Lyonan attorney who works for four decades as a specialist to take the federal government.

The consequences of receiving a Goaway, no matter how they were transferred, they could come, he said, and government officials “may not understand the danger at first.”

Tillipman agreed, saying the risk for distraction of obligations is especially expressed if it is in technology and it is. Users can be trusted by a provider, leading “vendor lock-in,” he said. Soon to say what comes to starlink donations, but the White House House House gives a preview of what is possible. In line with its goal at the outset, the world’s biggest software company continues to expand its footprint across the Federal Government while Sidestepping Competition.

A source from last year’s investigation of Microsoft recently called to catch. He told me that, with the Government locked in Microsoft, opponents continued to be closed with federal contracting opportunities. When I asked for an example, he shared a 2024 document from defensive defense system, or Dima, holding it for the Department of Defense. The document describes an “exception to the fair opportunity” to take various new services, saying $ 5.2 million order “to issue directly to Microsoft Corporation.”

The justification? Moving from Microsoft to another provider “results in more time, effort, cost, and performance effects.” Dima did not answer the questions.



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