27 juillet 2018 | International, C4ISR

The Pentagon just got one step closer to awarding its $10 billion cloud contract

  • The Pentagon released its final request for proposal for the Joint Enterprise Defense Infrastructure, or JEDI, contract.
  • The lucrative winner-take-all deal may be valued at as much as $10 billion.
  • Amazon is considered the front-runner for the contract since the tech giant already services the cloud system used by U.S. intelligence agencies.

The Defense Department took a large step forward Thursday in its march toward procuring a secure cloud software, an acquisition potentially worth up to $10 billion.

After a nearly two-month delay, the Pentagon released its final request for proposal for the Joint Enterprise Defense Infrastructure, or JEDI, contract. The long-awaited final request for proposal simply outlines what companies will have to deliver in order to get the lucrative deal.

The Pentagon's cloud project will transition massive amounts of data to a commercially operated secure cloud system. The deal is a "single-source" award, meaning that only one company will win the entirety of the contract.

Amazon is considered the front-runner for the contract since the tech giant already services the cloud system used by U.S. intelligence agencies.

Amazon's cloud boasts the highest possible security level, while many of its competitors' clouds do not. However, other cloud providers — such as IBM, Microsoft and Oracle — have worked with government agencies for many decades. That could help their chances of winning the decade-long JEDI contract.

The DoD "has an incredibly unique and complex technology estate and finite set of talent and resources," Pentagon Chief Information Officer Dana Deasy said in a statement. "We need help learning how to put in place an enterprise cloud and the JEDI Cloud is a pathfinder effort that will help Department of Defense do that."

Experts think the deal could be a seismic development in the defense-tech world.

"This award could be market-shaping," Andrew Hunter, director of the Defense-Industrial Initiatives Group at the Center for Strategic and International Studies, said in an interview.

"I think industry's concern is that this will be the premier cloud contract, the flagship one, and that other parts of DoD will gravitate to it," he added. "So, I think whoever wins the contract is likely to have a real advantage in the marketplace going forward but not necessarily a decisive one."

The desire to award a multibillion-dollar, two-year cloud contract was largely set into motion after Secretary of Defense James Mattis visited Silicon Valley last year.

Federal defense agencies widely use Microsoft's server software, which integrates easily with the company's Azure public cloud, and among employees, Windows is the most popular operating system, Leigh Madden, Microsoft's general manager of defense, told CNBC in a prior interview.

"I think it certainly should make a difference," he said.

Similarly, IBM has worked alongside the military for decades.

"We look forward to submitting a thoughtful, comprehensive proposal for a JEDI cloud that will serve the long-term needs of America's men and women in uniform," Sam Gordy, IBM's Federal general manager, said in a statement.

In the midst of all this, President Donald Trump has attacked Amazon on Twitter, particularly as he rails against The Washington Post, which is owned by Amazon CEO Jeff Bezos, for the newspaper's coverage of his administration.

A Vanity Fair report said the Trump administration might try to "cancel Amazon's pending contract" with the Pentagon, but the department maintains that there has been no political pressure from the White House on who should win the multibillion-dollar deal.

U.S. Navy Commander Patrick Evans, a Department of Defense spokesperson, reiterated that the Pentagon's process is "transparent" and will remain "a full and open competition."

"No companies were pre-selected. We have no favorites, and we want the best solution for the department," Evans said.

Similarly, chief Pentagon spokesperson Dana White also addressed speculation Thursday that Amazon was in the lead to take the lucrative defense contract.

"The secretary has been very clear that we need to be good stewards of the American people's money," White said. "So, nothing is taken for granted and nothing is presumed. We will get a full, open and transparent competition, and this is the first of many competitions with respect to the cloud."

The Pentagon is scheduled to award the contract in September.

— CNBC's Jordan Novet contributed to this report.

https://www.cnbc.com/2018/07/26/pentagon-takes-step-closer-to-awarding-10-billion-cloud-contract.html

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  • Contract Awards by US Department of Defense - December 11, 2018

    14 décembre 2018 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

    Contract Awards by US Department of Defense - December 11, 2018

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Maximum dollar amount is for the life of the contract, including options. This was a competitive acquisition with 25 offers received. Location of performance is North Carolina, with a Dec. 10, 2023, performance completion date. Using customers are Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal 2019 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2DE-19-D-0001). Goodyear Tire and Rubber Co., Akron, Ohio, has been awarded a maximum $31,242,109 firm-fixed-price, indefinite-quantity, requirements contract to provide tire support for the global tires program. This was a competitive acquisition with seven responses received. This is a three-year contract with no option periods. Location of performance is Ohio, with a Dec. 10, 2021, performance completion date. Using military service is Army. Type of appropriation is fiscal 2018 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Columbus, Ohio (SPE7L1-19-D-0005). NAVY Sikorsky Aircraft Corp., a Lockheed Martin Co., Stratford, Connecticut, is awarded $38,170,404 for cost-plus-fixed-fee delivery order N0001919F2503, against a previously issued basic ordering agreement (N00019-19-G-0029). This delivery order provides for the development and delivery of a provisioning parts database of technical information to include 2D drawings that support all organizational, intermediate and depot levels in support of initial operational capability for the CH-53K program. Work will be performed in Stratford, Connecticut, and is expected to be completed in November 2023. Fiscal 2019 research, development, test and evaluation (Navy) funds in the amount of $8,600,000, will be obligated at time of award, none of which will expire at the end of the fiscal year. 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U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity (W58RGZ-19-D-0013). Construction Co. Inc.,* Dayton, Ohio, was awarded a $9,429,000 firm-fixed-price contract for design and interior renovation and repair (Building 20) at Wright-Patterson Air Force Base, Ohio. Bids were solicited with three received. Work will be performed in Dayton, Ohio, with an estimated completion date of Aug. 24, 2020. Fiscal 2018 military construction funds in the amount of $9,429,000, were obligated at the time of the award. U.S. Army Corps of Engineers, Louisville, Kentucky, is the contracting activity (W912QR-19-C-0007). AIR FORCE The Boeing Co., El Segundo, California, has been awarded a $22,772,840 modification (P00028) to contract FA8819-15-C-0007, to exercise Option Four for Space Based Space Surveillance Block 10 sustainment. 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  • Epirus, a venture-backed startup, inks deal with Northrop for counter-drone tech

    21 juillet 2020 | International, Aérospatial, C4ISR

    Epirus, a venture-backed startup, inks deal with Northrop for counter-drone tech

    By: Joe Gould WASHINGTON ― Epirus, a venture-backed startup offering a counter-drone capability, launched quietly enough two years ago, but it's making noise by bringing together key veterans of Microsoft, Northrop Grumman and Raytheon ― and by landing its first deal with a name-brand defense prime contractor. Epirus chief executive Leigh Madden was general manager for Microsoft's national security business before he joined the Hawthorne, Calif.,-based firm two months ago, and its chief financial officer, Ken Bedingfield, is a former chief financial officer at Northrop. The former chairman of Epirus is Joe Lonsdale, co-founder of the Silicon Valley data-analytics company Palantir Technologies. Epirus, this week, is expected to announce a previously undisclosed strategic supplier agreement with Northrop to provide exclusive access to Epirus' software-defined electromagnetic pulse system, called Leonidas. The dollar value of the deal isn't being disclosed. Northrop said Leonidas would augment its own kinetic and non-kinetic solutions to counter small drones. The Army recently selected Northrop's Forward Area Air Defense Command and Control software, or FAAD-C2, as the interim C2 system to counter small drones. (DoD's FY21 budget request included $18.7 million for counter-drone enhancements for the system.) “UAS threats are proliferating across the modern battlespace,” said Kenn Todorov, vice president and general manager of Northrop Grumman's Combat Systems and Mission Readiness division. “By integrating the Epirus EMP weapon system into our C-UAS portfolio, we continue maturing our robust, integrated, layered approach to addressing and defeating these evolving threats.” Many companies have jumped into the $2 billion counter-UAS market, anticipating a boom as commercial drones have grown cheaper and more commonplace, posing an asymmetric threat on the battlefield as well as a threat to airports, sports stadiums, government buildings and urban areas. So many companies are in the field the Pentagon has been working to streamline the number of systems available across the department. 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Madden, a former U.S. Navy SEAL who spent eight years at Microsoft, and Bedingfield, who spent five years as Northrop's CFO, both said they joined Epirus because they were impressed by the technology and its potential. “Northrop and Microsoft are both multibillion-dollar defense businesses, and I think we bring a knowledge of how to operate around some of the larger opportunities and to make outsized impacts in the market,” Madden said. “We're taking that experience to a smaller, innovative company. I think that will allow us to really accelerate the pace of growth and have a more rapid and greater impact for our customers.” The Pentagon has attempted to shift toward working with smaller, more innovative companies to supplement its work with larger firms, which continue to dominate the marketplace. Flexible, non-traditional contact vehicles called “other transaction authorities” have grown more popular as the Pentagon has turned to Silicon Valley for cutting edge technologies. “One of the things that attracted me to come to Epirus is the ability to work in an agile enterprise that is trying to take some of the approaches of Silicon Valley and apply them to the defense world―to iterate quicker and to field faster, and to be able to respond to the urgent needs of the customer,” Bedingfield said. Bedingfield said the company is growing fast and generating revenue from working with customers on studies and technology demonstrations, but it's as yet unclear when it will begin to deliver products. The coronavirus pandemic has slowed its hiring, but the firm is looking to double in the next year, adding more than 50 employees in Hawthorne, and a planned office in Northern Virgina. 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  • Pratt & Whitney announces plans for $255M investment in sustainment center near Tinker AFB - Skies Mag

    28 mars 2023 | International, Aérospatial

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