Treasury to Acquire $1B in Multi-Cloud Capabilities

Published: September 19, 2019

Cloud ComputingTREAS

The Department of Treasury intends to acquire multiple suites of cloud computing services via a long-term contract expected to total in excess of $1B over seven years.

Over the weekend, Treasury released a Cloud Acquisition Roadmap which lays out its strategy for acquiring enterprise-wide cloud services with the goal of reducing duplication and gaining efficiencies in access, contracting and security.

To date, component agencies have been acquiring and implementing their cloud own solutions resulting in multiple procurement efforts and a scattered approach to cloud implementation.  Treasury anticipates growth of 30% annually in cloud service consumption. To handle this demand, the Treasury Office of the Chief Information Officer (OCIO) wants to embrace a shared services model for cloud acquisition and usage by expanding and building on its current shared service cloud infrastructure called the Workplace Community Cloud (WC2). Amazon Web Services (AWS) is the current WC2 cloud service provider (CSP).

Because workloads are not easily portable between CSPs, Treasury foresees needing multiple CSPs under contract. The department plans to procure a mix of managed and unmanaged IaaS, PaaS, and SaaS services via long contract lifecycles in order to satisfy customer needs. The roadmap states, “These services will be facilitated in a hybrid and multi-cloud structure providing bureaus maximum flexibility in meeting their requirements.”

The acquisition plan consists of three phases: servicing short-term requirements, awarding bridge contracts for core cloud services, and the long-term acquisition of enterprise cloud services called T-Cloud. While efforts are underway to reach the desired cloud computing shared services end-state, Treasury will need to keep existing cloud services active and capable of handling short-term growth in consumption.  

The specific acquisition phases and projects are specified below:

  1. Service Short-Term Requirements
    1. AWS Reseller Contract Ceiling Increase – Projected award by 9/30/2019 under NASA SEWP with increased award value from $6.4M to $9.6M.
    2. Professional Services for WC2 Support (GAP Sole-source) – Awarded 7/31/2019 under GSA Schedule 70 as a sole source contract with a value of $3.3M.
  2. Bridge Contracts for Core Cloud Services
    1. Professional Services for WC2 Support – Projected award by 9/30/2019 under a NITAAC contract vehicle for 4 years with a value of $170M.
    2. Recompete of AWS Reseller Contract – Projected award in early FY 2020 under a GWAC for four years with a value of $200M.
    3. Recompete of Microsoft Reseller Contract – Projected award in early FY 2020 under a GWAC for four years with a value of $200M.
  3. Long-Term Acquisition of Enterprise Cloud Services
    1. T- Cloud – Projected RFI in FY 2020 and award in FY 2022 under a GWAC or Best in Class (BIC) vehicle for 7+ years with a value of over $1B.

These efforts at Treasury provide obvious opportunities for CSPs, but IT professional services contractors can expect other opportunities to arise such as migration assistance, training, and application design/redesign for cloud hosting.