DoD's FY26 AWS Cloud Consumption Order for $9M to Amazon Web Services Faces Limited Competition
Contract Overview
Contract Amount: $9,000,000 ($9.0M)
Contractor: Amazon WEB Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2026-01-07
End Date: 2026-06-30
Contract Duration: 174 days
Daily Burn Rate: $51.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: FY26 AWS BPA CLOUD CONSUMPTION ORDER
Place of Performance
Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $9.0 million to AMAZON WEB SERVICES, INC. for work described as: FY26 AWS BPA CLOUD CONSUMPTION ORDER Key points: 1. Significant spending on cloud services highlights reliance on major providers. 2. The contract is with a dominant cloud provider, Amazon Web Services. 3. Potential risks include vendor lock-in and escalating costs without strong competition. 4. The IT sector, specifically cloud computing, is a rapidly growing area of federal spending.
Value Assessment
Rating: fair
The $9M order for cloud consumption is a standard call against a broader BPA. Pricing is likely benchmarked against AWS's standard government rates, but direct comparison to similar, independently procured cloud services is difficult without more granular data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under a full and open competition BPA. However, this specific order is a BPA call, meaning competition may have been limited to BPA holders, and the specific pricing for this consumption order is set by AWS's established rates.
Taxpayer Impact: Taxpayer funds are being used for essential cloud computing services. While the BPA was competitively awarded, the ongoing consumption costs will be borne by taxpayers.
Public Impact
Ensures continued access to critical cloud infrastructure for the Department of the Navy. Supports ongoing digital transformation initiatives within the DoD. Potential for cost savings through efficient cloud resource utilization. Highlights the government's increasing reliance on commercial cloud services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited visibility into specific consumption patterns and potential overspending.
- Reliance on a single vendor for critical cloud infrastructure.
- Potential for price increases in future contract renewals or service expansions.
Positive Signals
- Leverages established cloud infrastructure, potentially improving service delivery.
- BPA structure allows for streamlined procurement of cloud services.
- Fixed-price contract type provides cost certainty for this order.
Sector Analysis
This spending falls within the IT sector, specifically cloud computing infrastructure. Federal spending on cloud services has surged as agencies migrate from on-premise data centers to gain flexibility and scalability. Benchmarks for cloud consumption vary widely based on service type and usage.
Small Business Impact
The data does not indicate any specific set-asides for small businesses in this particular BPA call. While the overarching BPA may have included small business considerations, this direct consumption order is with a large prime contractor.
Oversight & Accountability
Oversight will likely involve monitoring cloud usage reports from AWS and internal DoD IT asset management. Accountability rests with the Department of the Navy to ensure efficient and necessary consumption of cloud resources.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Vendor lock-in potential
- Cost escalation risk over time
- Dependence on a single provider's security posture
- Limited competition for specific consumption orders under a BPA
Tags
computing-infrastructure-providers-data-, department-of-defense, md, bpa-call, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.0 million to AMAZON WEB SERVICES, INC.. FY26 AWS BPA CLOUD CONSUMPTION ORDER
Who is the contractor on this award?
The obligated recipient is AMAZON WEB SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $9.0 million.
What is the period of performance?
Start: 2026-01-07. End: 2026-06-30.
What is the projected cost savings or efficiency gain anticipated by utilizing AWS cloud services for this consumption order compared to alternative solutions?
The provided data does not specify projected cost savings or efficiency gains. Agencies typically pursue cloud adoption for scalability, agility, and potential long-term cost optimization, but the immediate financial benefits of a specific consumption order are not detailed here. A thorough analysis would require comparing projected usage against on-premise costs or alternative cloud providers' pricing models.
What mechanisms are in place to mitigate the risk of vendor lock-in with Amazon Web Services, given the significant investment in their cloud platform?
Mitigation strategies for vendor lock-in often include adopting multi-cloud or hybrid cloud architectures, utilizing open-source technologies, and ensuring data portability. For this specific order, the primary mitigation would be within the broader agency cloud strategy, potentially involving periodic reviews of alternative providers and maintaining flexibility in service integration where possible.
How effectively is the Department of the Navy managing and optimizing its cloud resource consumption to ensure value for taxpayer money on this order?
Effectiveness in managing cloud resource consumption relies on robust monitoring tools, regular performance reviews, and clear governance policies. The Department of the Navy would need to actively track usage, identify underutilized resources, and implement cost-optimization strategies like rightsizing instances and leveraging reserved instances to ensure value. The fixed-price nature of this order provides some cost certainty for the defined period.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - COMPUTE
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 410 TERRY AVE N, SEATTLE, WA, 98109
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $36,605,256
Exercised Options: $35,700,000
Current Obligation: $9,000,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: N6600123A0005
IDV Type: BPA
Timeline
Start Date: 2026-01-07
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2026-01-06
More Contracts from Amazon WEB Services, Inc.
- AWS Cloud Services — $94.8M (Department of Defense)
- AWS Cloud Service and VAR Support Services — $93.2M (General Services Administration)
- Task Order Award Against Jwcc Multiple-Award Idiq Contract HC105023D0005 to Amazon WEB Services, Inc. for AWS Secret IL 4, 5, and 6 (secret) Cloud Compute and Storage Services for the Enterprise Cloud Management Agency (ecma) — $59.7M (Department of Defense)
- AWS Cloud Services — $48.1M (Department of Defense)
- Amazon WEB Services Cloud Requirement — $39.0M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)