Tech firm CSRA will build the second iteration of the Defense Department’s milCloud.
The Falls Church, Virginia-based IT contractor captured the indefinite-delivery/indefinite-quantity contract dubbed milCloud 2.0, valued at up to $500 million. The contract has a 3-year base period and five additional 1-year options.
MilCloud 2.0 is an important step for the Defense Information Systems Agency—the DOD’s IT arm—as it transitions DOD and military workloads from the government-run cloud of milCloud 1.0 to a contractor-run environment housed within a DOD data center. DISA’s choice represents a middle ground between a government-run cloud and a totally commercial cloud computing environment.
The contract itself is particularly lucrative in the growing federal cloud market. President Donald Trump’s budget proposal calls for an increase of $1.2 billion in cloud spending, totaling $8.5 billion, over the next year. According to DISA, CSRA beat four other competitors during the solicitation.
“This win is a game-changer for CSRA,” CSRA President and CEO Larry Prior said in a statement. “We are now positioned as the industry leader for cloud and military IT. The milCloud 2.0 platform will enable our DoD customers to deploy CSRA’s next-generation technology and services to complete their missions more efficiently and more securely. The Department of Defense is ready to take the next step in its IT transformation. We are excited to continue this partnership with the military and provide our experts and resources to exceed their demands.”
MilCloud 2.0 will provide commercial infrastructure-as-a-service to DOD, employing a pay-as-you-go approach to services. In other words, customers will only be charged for services they actually use. According to DISA’s performance work statement, CSRA’s platform will grow in capacity from handling 50 workloads to 5,000 and beyond, depending on DOD’s needs.