GSA, Pentagon Re-award DEOS Cloud Contract

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The latest award comes with a significantly lower projected ceiling than previously cited.

The General Services Administration and Defense Department on Friday announced the re-award of the Defense Office Enterprise Solutions contract to CSRA LLC—a managed affiliate of General Dynamics Information Technology—and its contracting teaming partners, Dell Marketing L.P. and Minburn Technology Group LLC.

The award will be worth an estimated $4.4 billion over the next 10 years and includes a five-year base period, with two two-year options and a one-year option. DEOS will provide an enterprisewide set of business cloud capabilities including productivity tools, email, collaboration, file sharing and storage through a Microsoft Office 365 cloud environment. Capabilities will be available at both the unclassified and classified levels in the United States and overseas.  

“DEOS is a key part of the department’s Digital Modernization Strategy and its fit-for-purpose cloud offering will streamline our use of cloud email and collaborative tools while enhancing cybersecurity and information sharing based on standardized needs and market offerings,” DOD Chief Information Officer Dana Deasy said in a statement. “The last six months have put enormous pressure on the department to move faster with cloud adoption. All across the department there are demand signals for enterprisewide collaboration and ubiquitous access to information.”

The Defense Department first partnered with GSA in 2018 to bid out DEOS after initially planning to bid the contract out itself. Friday’s award follows a years-long procurement marred by changes in acquisition strategy and multiple bid protests filed by Perspecta. Following Perspecta’s March protest, GSA pulled the procurement in June to take corrective action, amend the DEOS solicitation and receive and evaluate new bids.

One of the key differences in Friday’s award compared to prior versions of the solicitation is DEOS’ expected value. This award is just over half of the $8 billion expected value long associated with the contract.

“DEOS demonstrates how DOD-GSA collaboration achieves better financial, security, and mission results,” GSA Administrator Emily Murphy said in a statement. “While the cost savings are themselves compelling, more importantly DEOS will enable DOD to more easily share mission-critical information across all military services and enhance cybersecurity.”

Deasy said the DEOS award allows the Defense Department to “transfer a significant part of the ongoing technical and management load to the integrator and free up strained resources to execute other priority missions.”