The recent Pentagon announcement of a $950 million (ceiling) production contract to nontraditional defense contractor REAN Cloud has sent reverberations through the acquisition community. This Production Other Transaction (OT) agreement follows a similar, although smaller production award by the Defense Innovation Unit Experimental (DiUX) to the cybersecurity firm Tanium (Full disclosure, Tanium is a client of mine).






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The Department of Defense’s (DoD) plan to accelerate adoption of commercial cloud computing saw an early result this month with the maximum $950 million contract worked out with REAN Cloud that lets DoD agencies buy cloud solutions and services directly from the company. The accelerated part of the equation resulted from the work of the Defense Unit Experimental (DIUx), which worked with REAN to enable prototyping and procurement of the full range of cloud requirements, contributing to the Other Transaction Authority (OTA) award.






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