August 29, 2019 / 9:52 PM / 23 days ago

U.S. awards $7.6 billion cloud contract to General Dynamics

FILE PHOTO: A General Dynamics sign is shown at the International Association of Chiefs of Police conference in San Diego, California, U.S. October 17, 2016. REUTERS/Mike Blake

(Reuters) - The U.S. General Services Administration and the Defense Department said on Thursday they awarded a cloud computing contract worth $7.6 billion to General Dynamics Corp’s CSRA LLC and its partners.

The contract, known as Defense Enterprise Office Solutions (DEOS), is aimed to replace the Defense Department's IT office applications and provide tools such as word processing, email, collaboration, file sharing and storage, the agency said bit.ly/2NFy05q in a statement. It is for a 10-year period.

Earlier this month, the Pentagon decided to put on hold its decision to award a $10 billion cloud computing contract, called the Joint Enterprise Defense Infrastructure Cloud, or JEDI, after U.S. President Donald Trump said his administration was examining Amazon.com Inc’s bid following complaints from other tech companies.

In July, lawmakers said JEDI met only a portion of the Defense Department’s need for cloud services and that any unnecessary delay would hurt the country’s security and increase the costs of the contract.

Reporting by Mekhla Raina in Bengaluru

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