- The US Defense Department is expected to award cloud contracts to several companies.
- The Pentagon has made a new push for Microsoft after it scrapped its plans for a single-vendor cloud contract worth up to $10 billion over a decade.
US General Services Administration said on friday That the Defense Department has solicited bids for cloud contracts from Amazon, Google, Microsoft and Oracle.
The outreach came after the Pentagon set aside a highly competitive $10 billion contract, which was won by Microsoft and challenged by Amazon. The value of the new contracts is not known, but the Defense Department estimates it could run into several billions of dollars.
The new effort, known as Joint War Cloud Capability, or JWCC, appears to have strengthened the top providers in global cloud infrastructure, Amazon and Microsoft, though it could also provide more credibility to the two smaller entities.
“The government is anticipated to award two IDIQ contracts – one to Amazon Web Services, Inc. (AWS) and one to Microsoft Corporation (Microsoft) – but intends to reward all cloud service providers (CSPs) that meet the DoD. requirements,” the GSA said in its announcement.
Indefinite delivery, indefinite quantity, or IDIQ, contracts cover an indefinite amount of services for a specific period of time.
GSA said only two US cloud infrastructure providers, Amazon and Microsoft, have been able to comply with all of the Pentagon’s requirements, including “tactical edge devices” that can operate outside of traditional data centers.
Amazon and Microsoft are the two companies that were finalists for a single joint venture defense infrastructure contract. The contract was to go to a single provider and was expected to amount to $10 billion over 10 years. Microsoft won it in 2019, Amazon filed a protest, and ultimately in July the Pentagon opted to cancel the contract. Andy Jesse, who is currently the CEO of Amazon and former head of AWS, argued that there was political interference in the award of the contract.
The Pentagon expects each IDIQ contract to have a base period of three years and an option period of two years.
Representatives for Amazon, Google and Microsoft did not immediately respond to requests for comment. Oracle declined to comment.
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