The DOD's JEDI Cloud Program Page: 3 of 3
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DOD indicated that the minimum guaranteed award is $1 million. The contract has a maximum ceiling of $10 billion
across the potential 10-year period of performance. Under an ID/IQ contract, the government is only required to
purchase the minimum amount specified in the contract, and may ultimately choose not to reach the contract ceiling.
The RFP closed on October 9, 2018; DOD is currently reviewing received bids.
How Has Industry Reacted?
DOD received more than 1.500 comments in response to multiple draft RFPs; companies including Amazon, Google,
IBM, and Microsoft expressed interest in competing. However, DOD's proposed acquisition strategy also sparked
resistance from those who opposed DOD's intent to award the contract to a single company. This concern led some
industry associations to publicly contest a single award, arguing that it would be inconsistent with the broader federal
cloud computing strategy, and could unfairly restrict future competition for DOD cloud services. For example, the trade
group ITAPS (IT Alliance for Public Sector) sent a letter to the House and Senate Armed Services committees stating in
part that the:
...deployment of a single cloud conflicts with established best practices and industry trends in the commercial
marketplace, as well as current law and regulation, which calls for the award of multiple task or delivery order
contracts... Further, the speed of adoption of innovative commercial solutions, like cloud, is facilitated by the use of
these best practices.
Oracle America and IBM both filed pre-award bid protests against the JEDI Cloud solicitation. On October 8, 2018,
Google announced that it would not be submitting a bid for the contract, citing possible conflict with its corporate
principles, along with DOD's plans to award the contract to a single vendor, among its reasons for withdrawing.
How Has DOD Responded to Industry Concerns?
DSD Shanahan and other DOD officials have reportedly described JEDI Cloud as a "pathfinder" intended to provide a
model for DOD's future transition of legacy IT systems to the cloud. In its May 2018 report to Congress DOD indicated
that the JEDI Cloud contract would include:
...multiple mechanisms to.. .maximize DOD's flexibilities going forward...Option periods.. .will only be exercised if
doing so is the most advantageous method for fulfilling the DOD's requirements when considering the market
conditions at the time of option exercise.
DOD noted that a multiple-award contract would require competition for each task order issued under the JEDI Cloud
ID/IQ, and would therefore be subject to standard timeframes associated with the DOD acquisition process, which could
"prevent DOD from rapidly delivering new capabilities and improved effectiveness...that enterprise-level cloud
computing can enable."
DOD has also said that it "expects to maintain contracts with numerous cloud providers to access specialized
capabilities not available under the JEDI Cloud contract."
What Actions Has Congress Taken?
Section 8137 of P.L. 115-245, which provided FY2019 DOD appropriations, prevents the obligation or expenditure of
FY2019 funds to "migrate data and applications to the proposed [JEDI]... cloud computing services" until 90 days after
the Secretary of Defense submits to the congressional defense committees: 1) a plan to establish a DOD-wide budget
accounting system for funds requested and expended for cloud services, as well as funds requested and expended to
migrate to a cloud environment; and 2) a detailed description of DOD's strategy to implement enterprise-wide cloud
computing.On October 22, 2018, two members of the House Appropriations Committee asked the DOD Inspector General (IG) to
investigate the development of requirements and the RFP process for the JEDI Cloud program; the DOD IG is
reviewing the request.
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Peters, Heidi M. The DOD's JEDI Cloud Program, report, November 5, 2018; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc1442992/m1/3/: accessed May 30, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.