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Pentagon asks Amazon, Google, Microsoft and Oracle for bids on new cloud contracts


Andy Jassy, chief govt officer of Amazon.Com Inc., through the GeekWire Summit in Seattle, Washington, U.S., on Tuesday, Oct. 5, 2021.

David Ryder | Bloomberg | Getty Photographs

The U.S. Common Companies Administration said Friday that the Protection Division has solicited bids from Amazon, Google, Microsoft and Oracle for cloud contracts.

The outreach comes after the Pentagon put aside a extremely contested $10 billion contract that Microsoft had gained and Amazon had challenged. The worth of the brand new contracts is just not identified, however the Protection Division estimates it might run into the a number of billions of {dollars}.

The brand new effort, generally known as Joint Warfighting Cloud Functionality, or JWCC, seems like it is going to bolster the highest suppliers in international cloud infrastructure, Amazon and Microsoft, though it might additionally present extra credibility to 2 smaller entities.

“The Authorities anticipates awarding two IDIQ contracts — one to Amazon Internet Companies, Inc. (AWS) and one to Microsoft Company (Microsoft) — however intends to award to all Cloud Service Suppliers (CSPs) that exhibit the aptitude to satisfy DoD’s necessities,” the GSA stated in its announcement.

An indefinite supply, indefinite amount, or IDIQ, contract consists of an indefinite quantity of companies for a particular time frame.

The GSA stated that solely two U.S. cloud infrastructure suppliers, Amazon and Microsoft, seem in a position to adjust to all the Pentagon’s necessities, which embrace “tactical edge gadgets” that may function outdoors of conventional information facilities.

Amazon and Microsoft are the 2 firms that had been the finalists for a single Joint Enterprise Protection Infrastructure contract. That contract was meant to go to a single supplier and was anticipated to be price as much as $10 billion over 10 years. Microsoft won it in 2019, Amazon filed a protest and in the end in July the Pentagon selected to cancel the contract. Andy Jassy, at the moment Amazon’s CEO and beforehand head of AWS, argued that there was political interference within the award of the contract.

The Pentagon expects every of the IDIQ contracts to have a three-year base interval and two year-long choice intervals.

Representatives of Amazon, Google and Microsoft did not instantly reply to requests for remark. Oracle declined to remark.

That is breaking information. Please test again for updates.

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