DoD's Air Force Awards $14.2M for Azure Cloud Platform to GZO, Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $14,199,396 ($14.2M)

Contractor: GZO, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-09-30

End Date: 2026-09-29

Contract Duration: 364 days

Daily Burn Rate: $39.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS EFFORT PROPOSES CONTINUOUS DELIVERY OF A MICROSOFT AZURE (GOV CLOUD) HOSTED PLATFORM (REFERRED TO GOING FORWARD AS THE INNOVATION LANDING ZONE - ILZ) TO TEST THE DEPLOYMENT OF AND OPERATIONAL SCALABILITY OF CLOUD-ENABLED CAPABILITIES.

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78258

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $14.2 million to GZO, INC. for work described as: THIS EFFORT PROPOSES CONTINUOUS DELIVERY OF A MICROSOFT AZURE (GOV CLOUD) HOSTED PLATFORM (REFERRED TO GOING FORWARD AS THE INNOVATION LANDING ZONE - ILZ) TO TEST THE DEPLOYMENT OF AND OPERATIONAL SCALABILITY OF CLOUD-ENABLED CAPABILITIES. Key points: 1. The contract focuses on establishing an "Innovation Landing Zone" (ILZ) on Microsoft Azure Gov Cloud for testing cloud capabilities. 2. Competition was full and open, suggesting a competitive bidding process for this $14.2 million award. 3. The primary risk appears to be the successful deployment and operational scalability of the cloud-enabled capabilities. 4. The IT sector is experiencing significant growth in cloud adoption for government services.

Value Assessment

Rating: fair

The contract is a delivery order with a firm fixed price, indicating a defined scope and cost. Benchmarking against similar cloud platform development contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. The firm fixed price structure aims to control costs, but the specific price discovery mechanism isn't detailed.

Taxpayer Impact: Taxpayer funds are being used for a $14.2 million contract aimed at modernizing and testing cloud infrastructure, with the potential for long-term cost savings through efficient cloud adoption.

Public Impact

Modernization of critical Department of Defense infrastructure through cloud adoption. Potential for enhanced operational scalability and testing of new technologies. Supports the government's broader push towards cloud-first strategies. Ensures a competitive process for taxpayer-funded technology investments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Scalability of cloud capabilities
Successful deployment of the ILZ platform
Vendor lock-in concerns with Azure Gov Cloud

Positive Signals

Full and open competition
Firm fixed price contract
Focus on innovation and testing

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on cloud infrastructure and platform development. Spending in this area is high as agencies migrate services to cloud environments for agility and cost-efficiency.

Small Business Impact

The contract was awarded under full and open competition, and there is no specific indication of small business participation or set-asides in the provided data. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The contract is a delivery order under a larger agreement, suggesting some level of pre-existing oversight. The firm fixed price and defined duration provide clear accountability metrics for GZO, Inc.

Related Government Programs

Telephone Apparatus Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Potential for vendor lock-in with Microsoft Azure.
Complexity of managing cloud costs and optimizing resource utilization.
Ensuring robust cybersecurity measures for sensitive government data.
Dependency on GZO, Inc.'s expertise for platform deployment and scaling.
Uncertainty regarding the long-term operational effectiveness and cost savings.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.2 million to GZO, INC.. THIS EFFORT PROPOSES CONTINUOUS DELIVERY OF A MICROSOFT AZURE (GOV CLOUD) HOSTED PLATFORM (REFERRED TO GOING FORWARD AS THE INNOVATION LANDING ZONE - ILZ) TO TEST THE DEPLOYMENT OF AND OPERATIONAL SCALABILITY OF CLOUD-ENABLED CAPABILITIES.

Who is the contractor on this award?

The obligated recipient is GZO, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $14.2 million.

What is the period of performance?

Start: 2025-09-30. End: 2026-09-29.

What is the expected long-term cost benefit of migrating to this Azure Gov Cloud platform compared to traditional on-premises solutions?

The long-term cost benefit is anticipated through reduced hardware maintenance, increased operational efficiency, and the ability to scale resources dynamically based on demand. However, ongoing subscription costs for Azure services and potential data egress fees need careful management to realize these savings. A detailed total cost of ownership analysis comparing the ILZ to alternatives would provide a clearer picture of the financial advantages.

What are the specific security protocols and compliance measures being implemented for this sensitive government data hosted on Azure Gov Cloud?

While hosted on Azure Gov Cloud, which adheres to stringent government security standards (e.g., FedRAMP), the specific security protocols and compliance measures for this 'Innovation Landing Zone' are critical. This includes data encryption at rest and in transit, access controls, continuous monitoring, and adherence to relevant DoD security directives. The contract should detail these measures to ensure data integrity and protection against cyber threats.

How will the success of the 'Innovation Landing Zone' be measured, and what are the key performance indicators for operational scalability?

Success will likely be measured by the platform's ability to support diverse testing scenarios, the speed and reliability of deploying new cloud-enabled capabilities, and its performance under simulated high-load conditions. Key performance indicators for operational scalability could include metrics like response times, uptime percentages, resource utilization efficiency, and the ease with which new services can be provisioned and de-provisioned within the ILZ environment.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Telephone Apparatus Manufacturing

Product/Service Code: IT AND TELECOM - DATA CENTER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 114 CHAMPIONS BND, SAN ANTONIO, TX, 78258

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $14,199,396

Exercised Options: $14,199,396

Current Obligation: $14,199,396

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA700024D0007

IDV Type: IDC

Timeline