Pentagon’s Cloud Strategy Just Opened the Door for Small GovCon Tech Firms
Big news for small IT contractors: the Department of Defense is officially reworking its cloud procurement strategy—again. But this time, it’s not just about consolidation or modernization. It’s about opening the door wider to nontraditional vendors, including the kind of agile, niche, and security-cleared small businesses that have long been shut out of major cloud awards.
Here’s what’s changing—and what small GovCon firms need to do to get ready.
The JWCC (Joint Warfighting Cloud Capability) contract, awarded in 2022 to AWS, Microsoft, Google, and Oracle, is the DoD’s $9 billion multi-cloud vehicle. It replaced the doomed single-award JEDI contract and has been rolling out mission-critical cloud infrastructure across agencies. But it’s also been controversial for leaving out just about everyone else.
No other firms were allowed to bid as primes. That meant more than 180 other FedRAMP-approved cloud vendors—many of them small businesses—were left watching from the sidelines unless they could hitch themselves to one of the big four. By early 2025, nearly $2.3 billion in JWCC task orders had been issued… and almost none of it went to small business primes.
Now, the Pentagon wants to fix that.
“JWCC Next” Aims to Break the Big-Cloud Bottleneck
The next version of this contract—informally called “JWCC Next”—is in development now, with a draft RFP expected by late 2025 and a formal solicitation coming in 2026. The new plan?
Expand beyond the four hyperscale vendors
Create multiple award tiers, including lanes for smaller cloud providers
Allow direct task orders for certain services (no lengthy competitions)
Integrate cloud “marketplaces” to access third-party SaaS tools
Add dedicated set-aside contracts for small business support services
Pentagon leaders are saying the quiet part out loud: vendor diversity isn’t just a nice-to-have, it’s a national security priority. DISA, the DoD CIO’s office, and lawmakers across the aisle are all pushing for more competition and more access for smaller firms in cloud, cybersecurity, and AI contracts.
What This Means for Small Businesses
If your business provides secure cloud services, cloud engineering, cybersecurity, or AI/DevSecOps support—and you’ve got the certifications and compliance chops—this is your chance.
Here’s how this shift impacts you:
You may be able to bid as a prime under JWCC Next, something that was impossible under the original contract.
You can get your product listed in government cloud marketplaces, making it easier for DoD buyers to access your SaaS tools.
You’ll see more subcontracting and teaming opportunities on JWCC-related task orders.
You’ll have access to new small business–specific vehicles and 8(a) set-asides, some of which are already trickling out (like the July 2025 DISA sources-sought for JWCC support services).
What You Should Do Now
This opportunity won’t wait. The window to get positioned is now, before the contract hits the streets. Here’s how to prepare:
Get compliant: Make sure your products or services meet FedRAMP Moderate/High and DoD IL4/5 requirements. If you're doing classified work, facility clearance is a must. CMMC readiness matters, too.
Find your niche: Whether it’s edge computing, zero trust, cloud migration, or cost optimization—know what you do best and build a value prop that aligns with DoD’s cloud goals.
Get on the marketplaces: Publish your solutions in AWS GovCloud, Azure Government, or other FedRAMP-compliant marketplaces now. It’s how the DoD plans to “plug and play” with small vendors.
Team strategically: If going solo isn’t feasible, build relationships with current JWCC primes or larger integrators. Bring something unique to the table.
Watch for the draft RFP: Expected by late 2025. Make sure you’re on distribution lists, attend industry days, and comment on RFIs to shape the opportunity in your favor.
Track related set-asides: Look beyond JWCC itself. Support contracts for engineering, cybersecurity, and financial services are emerging, especially for 8(a) firms and those with women owned small business certification or disabled veteran small business certification.
Final Take: Small Firms Have a Rare Opening—But Only If They Act Now
For years, the DoD’s cloud ambitions were mostly a big-tech game. JWCC Next changes that. It won’t be a free-for-all, but it will be more modular, open, and—crucially—winnable for small, qualified contractors who know how to play the long game.
If you’ve been working toward sba 8a certification or looking to expand your 8a contracts services footprint, this is your cue. If your company focuses on cybersecurity, data analytics, or Government Contract Proposal Writing, get into the mix early.
Because when the cloud door swings open, you want to be standing in the right place.
Want more tips on positioning your business in the federal cloud market? Check out our related blog post: “The Most Competitive Federal Contracting NAICS Codes of 2024 and How Small Businesses Can Still Win”
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