The U.S. Navy has ignited a $1.5 billion IT procurement revolution.Awarding eight small businesses a five-year contract to deliver cutting-edge Microsoft enterprise and cloud services. This second iteration of the Microsoft Enterprise Services (MES II) contract, a cornerstone of the Department of Defense Enterprise Software Initiative, redefines IT procurement by empowering small firms. Unlike the 2019 sole-source deal with Microsoft, which carried a $1.8 billion ceiling and expired in January 2024, MES II drew 15 competitive bids, showcasing the dynamic nature of IT procurement. The winning companies—Applied Cloud & Development Technologies, AtechGov, Bennett Adelson Professional Services, ClearPro Partners, Client First Technologies, Innovatus Technology Consulting, Practical Solutions, and True Tandem—are set to transform Navy IT infrastructure with their specialized expertise, proving small businesses can lead in high-stakes IT procurement.
IT Procurement Fuels Technological Innovation
MES II is a bold leap forward, encompassing the entire IT lifecycle through strategic IT procurement. From enterprise-wide architectural planning to seamless implementation, deployment, and infrastructure optimization, these small businesses will strengthen the Navy, intelligence agencies, and the Coast Guard with robust, cloud-driven solutions. Running through 2029, this IT procurement contract builds on the $553.6 million obligated under its predecessor, underscoring the Pentagon’s commitment to streamlining commercial IT acquisitions. By prioritizing small businesses, the Navy is diversifying its IT procurement strategy, fostering innovation, agility, and efficiency in a rapidly evolving digital landscape. For these eight firms, MES II is more than a contract—it’s a golden opportunity to showcase their prowess in IT procurement, setting a new standard for technological excellence across the Department of Defense. This deal highlights how small businesses can drive massive impact, ensuring the Navy remains at the forefront of IT innovation through savvy IT procurement.
