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FreeIPA is a Redhat upstream thing (389 Server or something?) so yea I’d imagine Redhat would probably work with a school district for wicked good pricing.

I'd pay $10k/yr. out of pocket not to use FreeIPA again. It's no substitute for AD and when it breaks, it breaks hard.

Do Microsoft do that work directly?

No, but you can throw a rock and find cheap good enough managed service providers that can do it — ie Microsoft partners. MS has been building out the network for decades.