Deals
Pentagon Says It Was Caught Off-Guard by $950 Million Cloud Deal
- REAN Cloud agreement awarded without senior Pentagon review
- Contract now reduced to $65 million amid competition debate
Photographer: AFP/Getty Images
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The Pentagon’s Silicon Valley-based innovation unit awarded a $950 million contract to a little-known company with ties to Amazon.com Inc. last month without alerting senior officials in Washington who are crafting the military’s broad acquisition strategy to move defense data onto cloud servers.
With little explanation, the Defense Department announced Monday that it’s reduced the award to REAN Cloud LLC to $65 million. “We are refocusing this agreement because it is in the best interests of the Department,” Navy Commander Patrick Evans, a spokesman, said in an email.