Microsoft Wins $10B DoD JEDI Cloud Contract

Jeff Brody

Microsoft (Nasdaq: MSFT) has won the potential 10-year, $10B Joint Enterprise Defense Infrastructure cloud computing contract from the Department of Defense.

JEDI is an indefinite-delivery/indefinite-quantity contract and includes enterprise-level platform-as-a-service and infrastructure-as-a-service offerings in support of the Pentagon’s mission and business operations, DoD said Friday.

The Washington Headquarters Services obligated $1M in operations and maintenance funds for fiscal year 2020 on a task order, covering the minimum guarantee.

Work will occur at the contractor’s place of performance and is expected to be completed on Oct. 24, 2029.

DoD said JEDI has a two-year base term with a $1M guarantee and it expects spending to reach $210M during the base period driven by user adoption. The Government Accountability Office and the Court of Federal Claims also conducted a review of the acquisition process.

Dana Deasy, DoD’s chief information officer and 2019 Wash100 award winner, said the award marks a step in the implementation of the department’s digital modernization strategy in support of the National Defense Strategy.

In August, the Pentagon’s inspector general established a team of auditors to assess the single-award contract. Microsoft and Amazon (Nasdaq: AMZN) were named in April as final competitors for the JEDI program.

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