Air Force Awards Microsoft $170M Cloud One Contract
The U.S. Air Force has awarded Microsoft Corp. a $170.4 million firm fixed price task order to provide Azure cloud services in support of the Air Force Cloud One Program, continuing a key pillar of the service’s enterprise cloud strategy.
According to a contract announcement released by the Department of Defense, the award covers Microsoft Azure cloud service offerings used by Cloud One and its government customers across the Air Force enterprise. Work will be performed at contractor designated facilities throughout the contiguous United States and is scheduled to run through Dec. 7, 2028.
The task order was issued as a sole source acquisition by the Air Force Life Cycle Management Center at Hanscom Air Force Base, Massachusetts, under contract number FA8726-26-F-B007.
Contract Scope and Funding
The contract has a total value of $170,444,462. At the time of award, $1,944,400 in fiscal year 2026 operations and maintenance funds were obligated.
Cloud One serves as the Air Force’s enterprise cloud program office, providing standardized, secure cloud environments for mission systems, business applications, and software development efforts. The program supports a wide range of users, including operational units, program offices, and combat support organizations.
By extending Azure services under this task order, the Air Force is maintaining continuity for workloads already operating within the Cloud One ecosystem while supporting future migration and modernization efforts.
Role of Microsoft Azure in Cloud One
Microsoft Azure is one of several commercial cloud platforms approved for use under Cloud One. The platform provides infrastructure as a service and platform as a service capabilities, including compute, storage, networking, data analytics, and application hosting.
Within Cloud One, Azure environments are configured to meet Department of Defense security and compliance requirements, including Impact Level standards defined by the Defense Information Systems Agency. These environments enable faster software deployment, scalable computing resources, and improved collaboration across Air Force programs.
The Air Force has emphasized the importance of enterprise cloud services to support DevSecOps pipelines, data driven operations, and rapid fielding of digital capabilities.
Strategic Importance to Air Force Modernization
The Cloud One Program is a core element of the Air Force’s broader digital modernization strategy. By centralizing cloud access and security controls, the service aims to reduce duplication, lower long term costs, and improve cybersecurity across its information technology portfolio.
Officials have previously described Cloud One as an enabler for agile software development and advanced analytics, particularly for command and control systems, logistics platforms, and intelligence workflows.
This latest award to Microsoft reflects continued reliance on commercial cloud providers to meet operational demands, while allowing the Air Force to focus internal resources on mission specific development rather than infrastructure management.
Contracting Activity and Oversight
The Air Force Life Cycle Management Center at Hanscom Air Force Base is serving as the contracting activity for the task order. The center oversees acquisition and sustainment for a wide range of Air Force command and control, cyber, and business systems.
As with other Cloud One contracts, performance and security compliance will be monitored through established DoD oversight processes to ensure availability, resilience, and data protection.
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