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Microsoft wins $1.76B contract to supply cloud services to Pentagon

January 14, 2019 / MIKE WHEATLEY

Microsoft Corp. has landed a huge $1.76 billion cloud computing contract from the U.S. Department of Defense under which it will provide an array of services to several agencies over the next five years.The contract, which runs until January 2024, calls for Microsoft to supply cloud services to the DOD, the U.S. Coast Guard and the intelligence community. The services include “support for tools, access to knowledge bases, problem resolution assistance and custom changes to Microsoft source code when applicable,” the DOD said in announcing the award.The DoD explained that the contract is based on an “indefinite delivery/indefinite quantity” agreement, which means Microsoft will be paid incrementally according to “individual task orders” using primarily operations and maintenance funds.