Report: Treasury Plans to Spend $1.5B on Cloud Procurement Contracts

Jeff Brody

The Department of the Treasury plans to make an investment of more than $1.5B in the next 10 years to move its data and systems to the cloud, Bloomberg Government reported Tuesday.

A procurement forecast issued Sunday says the department intends to advance “a “shared service cloud infrastructure model in order to capture Treasury-wide efficiencies in access, contracting, and security.”

The forecast document laid out Treasury’s three-step cloud procurement strategy: short-term extension of small cloud services contracts; medium-term bridge contract for cloud infrastructure and support services; and a long-term multicloud contract.

For the multicloud contract called T-Cloud, the Treasury plans to buy a suite of enterprise infrastructure as a service, software as a service and platform as a service through a systems integrator or single broker.

T-Cloud will have a ceiling value of $1B with an eight-year performance period and will cover a set of cloud services from Amazon Web Services, Google, Microsoft (Nasdaq: MSFT) and Oracle (NYSE: ORCL) and SaaS providers such as Box (NYSE: BOX) and Salesforce (NYSE: CRM). The department intends to issue a request for information in early fiscal year 2020 with plans to use a best-in-class vehicle to compete the multicloud contract, which is expected to be awarded in early FY 2022.

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