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The recently released, DODIG-2020-079 Report on the Joint Enterprise Defense Infrastructure (JEDI) Cloud Procurement presents the reults of the DoDIG review.
On July 26, 2018, the DoD issued a Request for Proposals to obtain cloud computing services using a single-award Indefinite Delivery/Indefinite Quantity contract. The Request for Proposals stated that the contract would have a maximum value of $10 billion, over a potential 10-year performance period, if the DoD exercised all option periods. Multiple protests of the solicitation and more recently the award ensued.
I find the section "JEDI Cloud Acquisition Strategy and Key Acquisition Milestones" particulary informative with respect to single award Indefinite Delivery/Indefinite Quantity (ID/IQ) contracts. The rationale selected by the USD(A&S) was use of a firm fixed price contract type. This was part of Oracle's protest. The DoDIG comments on this indicating that "regarding the firm-fixed-price exception under 10 U.S.C. 2304a(d)(3) (2018)" that the U.S. Court of Federal Claims concluded that the term “established” meant “at the time of” entering the contract. The JEDI Cloud contract left some future requirements open with respect to pricing.
DoDIG's Recommendation 1: We recommend that the Acting Director for Contract Policy, Defense Pricing and Contracting, consider developing and implementing appropriate policy to require some level of documentation and analysis supporting key acquisition decisions, including any legal reviews and advice, for contracts that exceed the $112 million threshold established by statute.
Feel free to reply to this post to discuss this and other points you find of interest. Adam Stroup, Editor, ACE for Services
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