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Software Procurement
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Navy Awards AWS Cloud Contract Worth Nearly $724 Million
The Navy awarded AWS a five-year contract Monday the secures use of the
company's commercial cloud and professional services tools. The Navy
awarded AWS a five-year contract Monday the secures use of the
company's commercial cloud and professional services tools.
The Navy awarded AWS a five-year contract Monday the secures use of the
company's commercial cloud and professional services tools.
Peach_iStock/GETTY IMAGES
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[48]Chris Riotta Chris Riotta By [49]Chris Riotta,
Staff Writer
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By [50]Chris Riotta
| December 21, 2022 08:37 AM ET
The five-year contract gives the military branch access to the cloud giant's
full suite of commercial cloud services, trainings and certification
programs.
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The Navy awarded Amazon Web Services a five-year contract worth nearly
$724 million Monday that will provide access to the company's
commercial cloud environment and professional services, including
training and certification programs.
The $723.9 million contract is a single-award, firm-fixed-price
enterprise software license blanket purchase agreement. The BPA will
allow the Navy to issue task orders under an enterprise software
license agreement where it can utilize AWS tools through operation and
maintenance, procurement and working capital funds, depending on the
task order.
It comes after AWS recently secured a portion of the $9 billion
contract known as the Joint Warfighting Cloud Capability, alongside
Google, Microsoft and Oracle [54]earlier this month. That award was
seen as a successor to the failed Joint Enterprise Defense
Infrastructure, or JEDI, cloud computing contract that was initially
won by Microsoft in 2019, but was canceled by the Defense Department in
2021 following a lengthy contract protest from AWS.
The Navy contract will provide it with access to AWS' cloud services
through December 2028, with funding obligated through task orders
rather than at the time of the award.
The Navy has launched a number of digital transformation initiatives in
recent years, including an effort to consolidate IT systems and
reallocate funding towards its human resources and financial
portfolios. That effort, titled the "Cattle Drive" project, has
reportedly saved the branch $150 million since it was first launched in
2020, the Navy's chief digital innovation officer [55]said at a
conference earlier this year.
The fiscal year 2022 National Defense Authorization Act also required
military branch leaders to identify legacy systems and outdated IT
services that can be removed or replaced with more modern technology.
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NEXT STORY: [56]Here Are the Major Takeaways From the $1.7 Trillion
Omnibus Spending Bill
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