Pentagon expects to award up to $9 billion in cloud contracts in December

Pentagon expects to award up to  billion in cloud contracts in December


U.S. Defense Secretary Lloyd Austin speaks during a news conference in Tbilisi, Georgia October 18, 2021.

Irakli Gedenidze | Reuters

The U.S. Defense Department said Tuesday that it plans to award as much as $9 billion in contracts for cloud infrastructure services in December, about eight months later than it expected.

The Joint Warfighter Cloud Capability, or JWCC, initiative represents a new path for the U.S. military that would rely on multiple cloud providers, rather than a single one. That was the strategy the Pentagon had initially sought to use with the Joint Enterprise Defense Infrastructure, or JEDI, contract. The Pentagon wound up awarding the contract to Microsoft before canceling it.

“We’ve recognized that our schedule was maybe a little too ahead of what we thought, and that now we’re going to wrap up in the fall and we’re aiming to award in December,” John Sherman, the Pentagon’s chief information officer, said on a call with reporters. In July 2021, when it announced the JWCC, the goal had been to award contracts as soon as April 2022, Sherman said.

The Pentagon made solicitations to Amazon, Google, Microsoft and Oracle last November, Sherman said.

The Pentagon still expects the contracts to have a three-year base period and two-year-long option periods. Then, Sherman said, the Pentagon will kick off “a full and open competition for a future multi-cloud acquisition.”

The JEDI contract would have been worth as much as $10 billion over 10 years. JWCC would span five years and would have a larger dollar amount over that time period.

The work would reach across all three security classifications and operate both inside and outside the U.S., Sherman said. The expectation is that the Pentagon will have access to the unclassified network when the contracts are awarded. Secret networks will come online 60 days after the contract award and top-secret and tactical edge networks will be online no later than 180 days after picks are made.

The contracts would mark a break from technology services delivery under President Trump, who had reportedly sought to block Amazon from winning the JEDI contract, which came to be seen as structurally problematic by relying on a single provider. Mattis’ successor, Lloyd Austin, last year signed off on a Joint All-Domain Command and Control, or JADC2, strategy that will draw on artificial intelligence.

WATCH: Pentagon asks for new bids in government contract after canceling Microsoft’s ‘Jedi’ deal



Source

WBD tells shareholders Netflix deal is superior to Paramount offer: ‘It was not a hard choice,’ chairman tells CNBC
World

WBD tells shareholders Netflix deal is superior to Paramount offer: ‘It was not a hard choice,’ chairman tells CNBC

The Paramount logo is displayed on the water tower at Paramount Studios on December 8, 2025 in Los Angeles, California. Mario Tama | Getty Images The Warner Bros. Discovery board on Wednesday said it unanimously recommended that WBD shareholders reject a takeover offer from Paramount Skydance and stick with a “superior” proposal from Netflix. Last […]

Read More
CNBC’s The China Connection newsletter: Why Sam’s Club is in a sweet spot as China faces consumption worries
World

CNBC’s The China Connection newsletter: Why Sam’s Club is in a sweet spot as China faces consumption worries

This report is from this week’s CNBC’s The China Connection newsletter, which brings you insights and analysis on what’s driving the world’s second-largest economy. You can subscribe here. The big story Latest data from China showed a key gauge on consumption falling to its weakest level in nearly three years. But it does not capture the […]

Read More
UK inflation falls sharply to 3.2% in November, fueling likelihood of Christmas rate cut
World

UK inflation falls sharply to 3.2% in November, fueling likelihood of Christmas rate cut

Shoppers walk past shops on Regent Street on the final weekday before Christmas in London on December 22, 2023. Henry Nicholls | Afp | Getty Images The U.K.’s inflation rate cooled sharply to 3.2% in November, boosting the chances of the Bank of England cutting interest rates at its final meeting of the year on […]

Read More