The Defense Information Systems Agency will no longer exercise the third option period in the milCloud 2.0 contract and allow the contract to sunset on May 20, Federal News Network reported Wednesday.
In June 2017, DISA awarded the potential eight-year, $498 million milCloud 2.0 contract to CSRA, which was acquired by General Dynamics’ information technology business for approximately $9.7 billion in 2018.
According to the report, DISA informed the Senate and House Armed Services Committees of its decision on Dec. 14. An agency official told the publication that DISA will shut down the environment upon the expiration of the milCloud 2.0 contract.
“We will work closely with existing milCloud 2.0 users to mitigate impacts to mission and support migrations whether to commercial cloud or another environment,” the official added.
A spokesperson for GDIT said the company met all contract requirements with regard to the milCloud 2.0 program.
“GDIT will continue to support customers currently leveraging milCloud 2.0 and stands ready to partner with the Department of Defense as they continue to evolve their enterprise cloud strategy,” added the spokesperson.
The move comes as DISA advances the Joint Warfighter Cloud Capability initiative.
