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

From: Nextgov

By Frank Konkel and Heather Kuldell

The Government Accountability Office recommended the Defense Department terminate a contract awarded to REAN Cloud in February.

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 today.

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.

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