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January 15, 2019 | International, C4ISR

Microsoft's big win: Pentagon signs massive $1.76bn contract

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Microsoft wins a five-year services deal with Department of Defense, Coast Guard, and intelligence community.

Microsoft has scored a major win with the US Department of Defense (DoD) to supply services to the value of $1.76bn over five years.

The Pentagon on Friday announced the deal, which will see Microsoft provide enterprise services to the DoD, Coast Guard, and intelligence community.

In a statement announcing the deal, the Pentagon explains that support includes, "Microsoft product engineering services for software developers and product teams to leverage a range of proprietary resources and source code, and Microsoft premier support for tools, knowledge database, problem resolution assistance, and custom changes to Microsoft source code when applicable."

The five-year 'indefinite delivery/indefinite quantity' (IDIQ) contract has a completion date of January 10, 2024. This contract allows Microsoft to provide an indefinite quantity of services during the period.

The contract allows DoD to pay Microsoft on individual task orders using primarily operations and maintenance funds.

Microsoft's win comes as the DoD assesses proposals for its $10bn, 10-year cloud contract known as JEDI or Joint Enterprise Defense Infrastructure. The Pentagon is expected to announce a single winner of the JEDI deal in the first quarter.

Full article: https://www.zdnet.com/article/microsofts-big-win-pentagon-signs-massive-1-76bn-contract

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