GAO Rules Against Pentagon’s Experimental $950 Million Cloud Deal

May 31, 2018

The Government Accountability Office determined the Defense Department “did not properly exercise the authority granted to it” in February when it awarded a $950 million contract for cloud migration services to Virginia-based REAN Cloud, according to a press statement released May 31, 2018.

The statement outlined GAO’s decision to sustain a bid protest filed by Oracle America on Feb. 20. In its sustainment, GAO recommended the Defense Department “terminate” its contract with REAN Cloud and compete the contract through traditional competitive procedures or take other action, such as issuing a sole-source justification.