Protest on JEDI Cloud Support Contract Dismissed

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The Government Accountability Office dismissed a bid protest filed in February against a $7 million sole-source cloud support contract related to the Defense Department’s JEDI Acquisition.

A bid protest filed against a $7 million cloud support contract for the Defense Department’s effort to move to an enterprisewide commercial cloud has been dismissed.

The $7 million cloud support contract attracted attention in February when the department selected a little-known contractor, Eagle Harbor Solutions LLC, for such a high-profile award. The contract is to provide consulting support services to the Cloud Executive Steering Committee, which is playing a major role in the Pentagon’s Joint Enterprise Defense Infrastructure cloud acquisition.

A Nextgov investigation found the company, an Alaska Native-owned 8(a) small disadvantaged business, had only a single employee and little past performance in government according to government procurement records. The company later sent a statement to Nextgov stating it had a staff of five, and that its corporate structure allowed it to share certain staff with sister companies of its parent company, Koniag Inc.

The protest, lodged by Interoperability Clearinghouse on Feb. 5, alleged the Defense Department failed to conduct a reasonable responsibility determination of Eagle Harbor Solutions’ capabilities and resources in awarding it a sole-source contract to support the JEDI cloud acquisition.

The Government Accountability Office dismissed by the protest on March 12, deciding that Interoperability Clearinghouse, a not-for-profit entity based in Alexandria, Virginia, “is not an interested party to challenge this sole-source award to an Alaska Native Corporation under the Small Business Administration’s 8(a) program.”

While agencies do sometimes cease work on a contract during a bid protest, there is no indication the Defense Department slowed its work during the duration of the protest. Defense officials held an industry day event and released a draft request for proposals last week for its JEDI cloud acquisition, would experts estimate could be worth as much as $10 billion over 10 years.

The Defense Department did not respond to an immediate request for comment.