The U.S. Department of Defense awards $1 contract to Microsoft

The Pentagon has shelled out more than $11 billion over the past couple of years to develop it’s cloud strategy, and it’s not done yet.

The U.S. Department of Defense is planning to enter into additional contracts planned for cloud services and migration and integration solutions.

On Friday Microsoft entered the picture, the latest beneficiary in the multi-billion dollar enterprise.

The tech giant has been awarded an enterprise general-purpose cloud contract.

Adding Microsoft to the chain, the Pentagon says, furthers the strategy of a multi-vendor, multi-cloud environment. Defense maintains the department’s needs are diverse and cannot be met by any single supplier.

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This latest contract, the Pentagon says, “will address critical and urgent unmet warfighter requirements for modern cloud infrastructure at all three classification levels delivered out to the tactical edge.”

“This award is the conclusion of a process that began with the release of the first RFI to industry nearly two years ago. Throughout that time, the department’s focus never wavered from the need to support our warfighters with this essential capability,” the Pentagon adds in a statement released on Friday.

Microsoft was one of four bidders short-listed for the contract, the others being Amazon, IMB and Oracle. “All offerors were treated fairly and evaluated consistently with the solicitation’s stated evaluation criteria. Prior to the award, the department conferred with the DOD Inspector General, which informed the decision to proceed,” the statement said.

The base contract period is two years. It is understood there will be four renewable options, each of two years, taking the contract to 10 years. The department projects that user adoption will drive an estimated $210 million of spending during the two year base period. Defense says it will rigorously review contract performance prior to the exercise of any options, which could see that number blow out to more than $1 billion by the contract’s end.

“The National Defense Strategy dictates that we must improve the speed and effectiveness with which we develop and deploy modernized technical capabilities to our women and men in uniform,” DOD Chief Information Officer Dana Deasy said Friday. “The DOD Digital Modernization Strategy was created to support this imperative. This award is an important step in execution of the Digital Modernization Strategy.”