The Government Accountability Office (GAO) 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 last week.
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.
The February deal garnered attention due to the eye-popping amount and because the department awarded it without a traditional government procurement. U.S. Transportation Command made the award to REAN Cloud using an other transaction production authority based on a prototype project they worked on last year with the Defense Innovation Unit-Experimental, or DIUx.
Keep reading this article at: https://www.nextgov.com/it-modernization/2018/05/gao-rules-against-pentagons-experimental-950-million-cloud-deal/148641/
