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Congressional Research Service
Informing the legislative debate since 1914
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Updated July 16, 2019
DOD's Cloud Strategy and the JEDI Cloud Procurement
In September 2017, the Deputy Secretary of Defense issued
a memorandum calling for the accelerated adoption of a
Department of Defense (DOD) enterprise-wide cloud
services solution as a key component of ongoing DOD
modernization efforts. Accordingly, DOD is seeking to
acquire a[n] ... enterprise cloud services solution that can
support Unclassified, Secret, and Top Secret requirements,
based on commercially available cloud service solutions,
through the Joint Enterprise Defense Infrastructure (JEDI)
Cloud program. The Department is in the final stages of
evaluating proposals and anticipates announcing a contract
award decision in August 2019. DOD requested $61.9
million in funding for the JEDI Cloud acquisition program
for Fiscal Year (FY) 2020. Significant industry and
congressional attention has been focused on DOD's intent
to award the JEDI Cloud contract to a single company.
Background
Broadly speaking, cloud computing refers to the practice of
remotely storing and accessing information and software
programs on demand, instead of storing data on a
computer's hard drive or accessing it through an
organization's intranet. This practice relies on a cloud
infrastructure, a collection of hardware and software that
may include components such as servers and a network.
Cloud infrastructure can be deployed privately to a select
user group, publicly through subscription-based commercial
services available to the general public, or through hybrid
deployments that combine aspects of both private and
public cloud infrastructure. As of mid-2018, DOD reported
maintaining more than 500 public and private cloud
infrastructures that supported Unclassified and Secret
requirements. DOD has been critical of its current cloud
services implementation, describing them as
decentralized and creating additional layers of
complexity that impede shared access to common
applications and data across the department. DOD has also
acknowledged that its prior lack of clear guidance on
cloud computing, adoption, and migration has led to
limited capability ... and inefficient acquisitions that
cannot take advantage of economies of scale.
DOD's Cloud Strategy
DOD publicly released its Cloud Strategy in February 2019.
The strategy described plans to extend cloud computing
services across the Department through developing a
multi-cloud, multi-vendor ... ecosystem composed of a
General Purpose and [multiple] Fit For Purpose clouds.
DOD anticipates that the JEDI Cloud acquisition program
will ultimately lead to a foundational enterprise-wide
General Purpose cloud suitable for the majority of DOD
systems and applications. DOD envisions Fit For Purpose
clouds as task-specific clouds-such as the ongoing
Defense Enterprise Office Solutions acquisition program
that is designed to create a cloud-based replacement for
certain DOD software applications-or on-premises cloud
solutions, such as the Defense Information Systems
Agency's milCloud 2.0, to be used in limited situations
where the General Purpose cloud is not capable of
supporting mission needs.
The JEDI Cloud Program
DOD issued its Request for Proposals (RFP) for the JEDI
Cloud on July 26, 2018; the RFP closed on October 9,
2018. DOD has completed its initial downselect from
proposals submitted by offerors, with Amazon Web
Services and Microsoft remaining in contention for the
contract.
Contract Structure
DOD is conducting a full and open competition that is
expected to result in a single award Indefinite
Delivery/Indefinite Quantity (ID/IQ) firm-fixed price
contract for commercial items. DOD has indicated that the
minimum guaranteed award is $1 million. The contract has
a maximum ceiling of $10 billion across a 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 contract period of
performance is structured as a 2-year base ordering period,
with 3 additional option periods, for a potential total of 10
years (see Table 1).
Table I. Anticipated Period of Performance
Performance Period Timeframe
Base ordering period (2 years, guaranteed) 2019-2021
Option #1 (3 years, if exercised) 2021-2024
Option #2 (3 years, if exercised) 2024-2027
Option #3 (2 years, if exercised) 2027-2029
Source:JEDI Cloud RFP, Combined Synopsis/Solicitation for
Commercial Items.
JEDI Cloud Source Selection Process
DOD has indicated that it intends to award the JEDI Cloud
contract to the offeror whose proposal meets specified
requirements and represents the best value to the
government, based on a two-step evaluation process. In the
first step, offerors were evaluated against seven sub-
factor performance -based criteria. Offerors' proposals
were deemed acceptable or unacceptable for each
individual sub-factor as considered sequentially. A
judgement of unacceptable for any sub-factor immediately
disqualified a proposal from further consideration. If a
proposal received a mark of acceptable for each sub-factor,
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