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Congressional Research Service
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Updated August 2, 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 fundamental component of ongoing
DOD modernization efforts. As a component of this effort,
DOD is seeking to acquire a cloud services solution
accessible to the entirety of the Department that can support
Unclassified, Secret, and Top Secret requirements, focusing
on commercially available cloud service solutions, through
the Joint Enterprise Defense Infrastructure (JEDI) Cloud
acquisition program. The Department originally expected to
award the contract in August 2019. However, Secretary of
Defense Dr. Mark T. Esper is reportedly currently
reviewing the JEDI Cloud program, which may delay the
award.
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, or on-premises cloud
solutions, 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. DOD requested $61.9 million in funding for the
JEDI Cloud acquisition program for FY2020.
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 is
expected to have 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,
it proceeded to the second phase of the source selection
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