{"id":14760,"date":"2018-05-01T18:00:48","date_gmt":"2018-05-01T18:00:48","guid":{"rendered":"https:\/\/one.sightlinemg.com\/c4isrnet\/uncategorized\/2018\/05\/01\/industry-group-questions-legality-of-dod-cloud-contract\/"},"modified":"2026-08-08T04:42:12","modified_gmt":"2026-08-08T04:42:12","slug":"industry-group-questions-legality-of-dod-cloud-contract","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/c4isrnet\/special-reports\/dod-cloud\/2018\/05\/01\/industry-group-questions-legality-of-dod-cloud-contract\/","title":{"rendered":"Industry group questions legality of DoD cloud contract"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">The <a href=\"https:\/\/www.federaltimes.com\/it-networks\/2018\/03\/08\/multibillion-dollar-contract-looks-to-reshape-dod-cloud-capabilities\/\" title=\"\" class=\"\" target=\"_blank\">Department of Defense\u2019s massive, multibillion-dollar cloud effort<\/a> once again came under fire because of the agency\u2019s intent to award the contract to a single offeror, with one industry group arguing such an intent may violate federal procurement law.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In a letter to the chairmen and ranking members of the House and Senate Armed Services Committees originally reported by NextGov, the IT Alliance for Public Sector called on Congress to make reports on the Joint Enterprise Defense Infrastructure (JEDI) contract publicly available and questioned whether the DoD\u2019s single-source intent was the best approach for the contract.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cDeployment of a single cloud conflicts with established best practices and industry trends in the commercial marketplace, as well as current law and regulation, which calls for the award of multiple task or delivery order contracts to the maximum extent practicable,\u201d ITAPS Senior Vice President Trey Hodgkins wrote in the letter.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/federaltimes\/it-networks\/2018\/04\/02\/tech-group-calls-for-dod-to-loosen-cloud-regulations\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"214\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/cloud.jpg_2e8f46.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Tech group calls for DoD to loosen cloud regulations<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">The Professional Services Council says it&#039;s time for the Pentagon to revisit its cloud strategy.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">The Federal Acquisition Regulations system, however, gives a great deal of power to contracting officers in determining when a contract would be better suited to a sole-source award. In particular, DoD may rely on allowances in the FAR for when \u201cprojected task orders are so integrally related that only a single contractor can reasonably perform the work\u201d and \u201cmultiple awards would not be in the best interests of the government\u201d to justify a sole-source approach.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, the FAR also requires contracting officers to consider \u201cability to maintain competition among the awardees,\u201d in contract decision-making. Industry groups have voiced the opinion that the current formulation of the JEDI contract actively prevents competition.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The <a href=\"https:\/\/www.federaltimes.com\/acquisition\/2017\/11\/22\/unintended-consequences-modernization-can-lead-to-monopolization\/\" title=\"\" class=\"\" target=\"_blank\">Coalition for Government Procurement said in November 2017 <\/a>that the widespread needs of the JEDI contract, coupled with the intention to award the contract to a single offeror, favors a select group of companies, such as Amazon and Google, while keeping smaller providers out of the market.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to the ITAPS letter, limiting the potential offerors to such a small group of companies will eliminate the cost-saving benefits provided by more widespread marketplace competition.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">DoD officials have argued that a single award for the JEDI contract is the most effective way of meeting the department\u2019s needs, adding that the <a href=\"https:\/\/www.defensenews.com\/it-networks\/2018\/04\/24\/jedi-cloud-contract-fair-and-open-competition-shanahan-says\/\" title=\"\" class=\"\" target=\"_blank\">JEDI contract only represents about 20 percent of DoD cloud needs<\/a> overall.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Jay Gibson, chief management officer at the Pentagon, speaking to Federal Times\u2019 sister publication Defense News in his first one-on-one interview since taking office, said that he hadn\u2019t seen the ITAPS letter specifically, but the JEDI contract would be a fair and open competition.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cAs you can imagine, we know this is sensitive, so we\u2019ve been hyper sensitive as we\u2019ve looked at it from every angle, including the legal execution for the contract and how we structured it. So we feel good that what we\u2019re doing is the right way to do it,\u201d said Gibson.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The <a href=\"https:\/\/www.federaltimes.com\/acquisition\/2018\/04\/16\/pentagon-updates-its-jedi-cloud-solicitation\/\" title=\"\" class=\"\" target=\"_blank\">last opportunity for industry feedback on the JEDI contract<\/a> closed April 30, 2018, with a final solicitation expected to drop sometime in May.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Yet even if the solicitation and eventual award proceed on schedule, it is very likely that, should the award go to an industry heavy-hitter like Amazon, there will be <a href=\"https:\/\/www.federaltimes.com\/opinions\/2018\/04\/26\/cloud-y-with-a-chance-of-progress\/\" title=\"\" class=\"\" target=\"_blank\">protests from other companies in the market<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><i>Aaron Mehta of Defense News contributed to this report from Washington.<\/i><br><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The IT Alliance for Public Sector questioned whether Federal Acquisition Regulations preferring multiple-award contracts conflicted with the Department of Defense&#8217;s intent to award its cloud contract to a single 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