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Pentagon Awards $9B Worth in Contracts to Tech Giants

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Four technology companies have won defense contracts worth $9 billion each. The contracts have been awarded after careful study of each proposal and with the intent of not being dependent on any one company.  

The Pentagon, on Wednesday, awarded contracts to several technology companies for acquiring their services across its Washington Headquarters Services, Navy, Defense, Airforce, and Army units.

Interestingly, the cloud computing contracts were distributed equally among four tech giants, namely Alphabet’s (NASDAQ:GOOGL) (NASDAQ:GOOG) Google Support Services LLC, Microsoft Corp. (NASDAQ:MSFT), Amazon.com’s (NASDAQ:AMZN) Amazon Web Services Inc., and Oracle America Inc. (NYSE:ORCL). Each company won contracts worth $9 billion with a time frame to perform up to June 8, 2028.

The deal stated, “The purpose of this contract is to provide the Department of Defense with enterprise-wide, globally available cloud services across all security domains and classification levels, from the strategic level to the tactical edge.”

The multiple contract system will put Pentagon on par with private companies that operate in a similar fashion, allowing it to avoid being stuck by the failure of a single company. 

Below is a snapshot of all four companies based on TipRanks Stock Comparison Tool.

The other listed companies that were awarded contracts under the different units are Boeing Co. (NYSE:BA), Raytheon Technologies (NYSE:RTX), and BAE Systems (GB:BA).

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