The Defense Information Systems Agency (DISA) will not pick up General Dynamics Information Technology’s [GD] next contract option for the milCloud2.0 program and is effectively ending the service in 2022, the office confirmed to

Defense Daily.

“The next option period for the milCloud 2.0 contract is due in June 2022. DISA will not exercise the option and the contract will expire,” DISA wrote in a statement.

DISA headquarters at Ft. Meade, Md. Photo: Army.

DISA awarded the potential $500 million milCloud 2.0 contract to CSRA in June 2017, with the deal including a three-year base period and five one-year option periods. GDIT later acquired CSRA in 2018 for $9.7 billion. 

“GDIT successfully executed the milCloud 2.0 program and met all contractual requirements. We continuously enhanced milCloud 2.0 with new capabilities and delivered on-premise and general-purpose cloud services to meet demand and advances in technology. 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,” GDIT wrote in a statement to Defense Daily

DISA’s move to terminate the milCloud 2.0 program, first reported by FedScoop, arrives as the agency’s new director, Air Force Lt. Gen. Robert Skinner, has begun a strategic program assessment process of its portfolio.

The milCloud 2.0 effort was intended to provide a commercial cloud infrastructure for access on and off-premises, with DISA officials in recent years urging partners to move more rapidly onto service and urging industry to ensure applications are cloud-ready to facilitate faster migration (Defense Daily, Jan. 24 2019). 

The Pentagon is also separately pursuing the new multi-billion dollar, multi-vendor Joint Warfighter Cloud Capability (JWCC) enterprise cloud computing effort, issuing direct solicitation requests in November allowing Amazon Web Services [AMZN], Google [GOOG], Microsoft [MSFT] and Oracle [ORCL] to submit proposals (Defense Daily, Nov. 19).