Stock Markets January 26, 2026

Amazon Web Services Wins $581.3 Million Cloud Contract to Support Air Force Cloud One

Firm-fixed-price award covers Cloud One support work across the contiguous U.S., with completion slated for December 7, 2028

By Derek Hwang AMZN
Amazon Web Services Wins $581.3 Million Cloud Contract to Support Air Force Cloud One
AMZN

Amazon Web Services has been granted a $581,318,585 firm-fixed-price contract to support the U.S. Air Force's Cloud One Program. The Seattle-based company will deliver Amazon Cloud Service to the Air Force and its customers, with work carried out at designated facilities across the contiguous United States. The award was made via a sole source acquisition and carries an identifier of FA8726-26-F-B004. At the time of the award, the Air Force obligated $3,497,937 in fiscal 2026 operations and maintenance funds toward the contract.

Key Points

  • Amazon Web Services was awarded a $581,318,585 firm-fixed-price contract to support the U.S. Air Force's Cloud One Program, supplying Amazon Cloud Service to the Air Force and its customers.
  • Work will be conducted at designated facilities across the contiguous United States and is scheduled for completion by December 7, 2028; the contracting activity is the Air Force Life Cycle Management Center at Hanscom Air Force Base.
  • The procurement was executed as a sole source acquisition, and at the time of award the Air Force obligated $3,497,937 in fiscal 2026 operations and maintenance funds toward the contract.

Amazon Web Services Inc. has received a firm-fixed-price contract valued at $581,318,585 to provide services for the U.S. Air Force's Cloud One Program, according to an announcement from the Department of Defense. The work will consist of providing Amazon Cloud Service to the Air Force and the customers it serves.

Contract performance is set to take place at designated facilities located within the contiguous United States. The agreement carries a completion date of December 7, 2028, marking the period during which contracted services are expected to be delivered.

The Pentagon characterized this award as the product of a sole source acquisition. In that procurement format, the announcement notes, Amazon was the sole company considered for the contract.

Administrative responsibility for the contract rests with the Air Force Life Cycle Management Center at Hanscom Air Force Base in Massachusetts, which is listed as the contracting activity. The award has been recorded under the contract identifier FA8726-26-F-B004.

At the time the contract was awarded, the Air Force had obligated $3,497,937 in fiscal 2026 operations and maintenance funds toward the agreement. That obligation reflects initial fiscal-year funding attached to the award.


The following points summarize the core factual elements provided by the Department of Defense announcement and the contract documentation.

  • Contract type and value - A firm-fixed-price award totaling $581,318,585.
  • Scope and location - Provision of Amazon Cloud Service to the Air Force and its customers at designated facilities across the contiguous United States.
  • Procurement and administration - Classified as a sole source acquisition, managed by the Air Force Life Cycle Management Center at Hanscom Air Force Base, contract FA8726-26-F-B004.

Risks

  • Sole source acquisition - the award was made with Amazon as the only company considered, which limits information on competitive alternatives for this procurement. This factor affects the defense contracting and government IT sectors.
  • Multi-year timeline - the contract spans through December 7, 2028, introducing completion and execution timeline exposure for cloud services delivery within the defense sector.
  • Limited immediate funding - only $3,497,937 in fiscal 2026 operations and maintenance funds had been obligated at the time of the award, indicating a relatively small portion of the contract value has been funded so far; this is a financial consideration for budgeting and government procurement planning.

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