U.S. awards $7.6 billion cloud contract to General Dynamics

Wins 10-year DEOS contract

The U.S. General Services Administration and the Defense Department have awarded a Microsoft Office 365 contract worth US$7.6 billion to General Dynamics Corp's CSRA LLC and its partners.

The contract, known as Defense Enterprise Office Solutions (DEOS), is aimed to replace the Defense Department's IT office applications and provide tools such as word processing, email, collaboration, file sharing and storage, the agency said in a statement. It is for a 10-year period.

Earlier this month, the Pentagon decided to put on hold its decision to award a $10 billion cloud computing contract, called the Joint Enterprise Defense Infrastructure Cloud, or JEDI, after U.S. President Donald Trump said his administration was examining Amazon.com Inc's bid following complaints from other tech companies.

In July, lawmakers said JEDI met only a portion of the Defense Department's need for cloud services and that any unnecessary delay would hurt the country's security and increase the costs of the contract.

(Reporting by Mekhla Raina in Bengaluru)

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