Oracle Protests $427 Million DISA Cloud Storage Contract

A $427 million cloud storage contract for the Defense Department has yet to go to bid, but it’s already under protest.

According to Washington Technology, Oracle Corp. filed a pre-award protest of the contract -- called the Enterprise Storage Services II and now held by incumbent contractor VION Corp. -- for on-demand storage infrastructure services.

Oracle filed the protest June 25, and the Government Accountability Office will make a decision by Oct. 3. Details regarding the protest are sparse, but the bid protest could halt the contract award that was expected in July, according to Deltek.

Contracting documents suggest DISA wants a consumption-based approach to storage, whereby a contractor would own hardware, software and be responsible for maintenance and licensing, yet all equipment would be located on premise at several DISA facilities. It would require the contractor to process orders and provision services within 30 days.

As the contract language currently stands, the contract has a total ceiling of $427 million over a four-year base with two one-year options. 

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