DISA Cloud Storage Contract Protested by Oracle Corp.

DISA

This past month the technology giant Oracle filed a pre-award protest on the the Defense Information System Agency (DISA) and their decision to award the $427 million cloud storage contract to VION Corp. Now in some cases protests can be filed for legitimate reasons and sometimes they can be filed because the losing company wants to cry over missed milk. Oracle has not yet stated their reasons why they filed the protest over the DISA’s decision but hopefully their will be a statement released by the end of the week.  The DISA contract would award the recipient $427 million over the course of four years.  The contract requires the company to provide cloud services that are responsive and cost effective. These infrastructure services would include the installation and configuring of software at several locations across the world.

Protests when used for good means can be a good way to settle differences on a contract dispute and bring reasoning to the table. However, due to the economy and enormous fight for large technology based government contracts companies have no problem doing what they must do to win. Sole sourcing contracts do not make it any easier of a fight for large businesses bidding on multi-million dollar contracts.  Chances are the decision to go with VION over Oracle will not change, but it will result in small road bump pushing back the original release date for the contract a month or two.

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