Multibillion-Dollar DHS Cloud Contract Protested


Another major government cloud contract is under protest from a losing bidder.

The Department of Homeland Security’s largest-ever cloud contract is under protest.

In early October, DHS awarded its $2.7 billion Data Center and Cloud Optimization Support Services contract to Perspecta—now a subsidiary of Peraton, which closed on the company’s purchase last spring.  

On Oct. 12, General Dynamics Information Technology filed a protest through the Government Accountability Office, alleging DHS conducted an improper evaluation. GAO is expected to issue a decision by Jan. 20.

DHS’s Data Center and Cloud Optimization Support Services contract is part of the agency’s plan to eventually migrate from its two remaining data centers to a hybrid cloud computing environment. However, the contract now faces similar legal challenges to other multibillion-dollar cloud efforts. The Pentagon’s Joint Enterprise Defense Infrastructure, once valued at up to $10 billion, was eventually canceled after several bid protests and the National Security Agency’s massive cloud effort is currently under protest.