Cloud Infrastructure & Compute3 min readUpdated September 2026

AWS or Google Cloud for a Federal or Defense Contractor's Systems

Say a small defense contractor just won a new federal contract that requires handling Controlled Unclassified Information, and the existing infrastructure was never built for that. This is a common moment for govcon and defense contractors, and it's worth walking through how the AWS versus Google Cloud decision actually plays out in that exact situation, rather than in the abstract.

Vendors Covered in this Article

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First question: what does this specific contract actually require

Before touching infrastructure, get precise about what the contract and any applicable DFARS clauses actually require, whether that's a specific FedRAMP authorization level, CMMC certification level, or ITAR handling for export-controlled data. This isn't a cloud platform question yet, it's a contract compliance question, and the answer narrows your infrastructure options before you compare AWS and Google Cloud at all.

AWS GovCloud versus Google Cloud's Assured Workloads

AWS GovCloud is a long-established, physically and logically isolated region built specifically for government workloads with a deep track record among defense contractors. Google Cloud's Assured Workloads takes a different approach, layering compliance controls and data residency guarantees on top of its standard regions rather than a fully separate physical environment. For a contractor new to this space, AWS GovCloud's longer track record and larger base of contractors who've already built on it often means more available guidance and staff who've done it before; Google Cloud's approach can be a reasonable fit if your team is already deep in its ecosystem for other reasons.

Staffing this correctly costs more than most contractors budget for

Standing up and maintaining a compliant environment takes real, dedicated operations expertise, and a median salary of $105,770 for a general operations manager role is a useful anchor when budgeting for this properly rather than assigning it as a side responsibility to someone already stretched thin1. Contractors that treat this as a part-time addition to an existing role are the ones who struggle to maintain compliance once the initial setup work is done.

How recovery time factors into your compliance posture, not just uptime

Federal contracts often specify incident response timelines, and your failed deployment recovery time, how fast you can restore service after a bad change, is part of demonstrating you can meet those timelines, not a separate engineering concern2. Build and test that recovery process before you need it under a real incident review, rather than describing it in a policy document nobody has actually exercised.

Run a tabletop exercise at least twice a year where your team walks through an actual simulated failure, timing how long restoration genuinely takes rather than assuming the documented procedure would work under pressure. Contractors that only discover gaps in this process during a real incident, or worse, during an assessment, lose credibility they don't easily get back.

Write down the actual time it took in each exercise and compare it against what your contract or internal policy claims, then close the gap deliberately rather than quietly adjusting the policy language to match whatever the last drill happened to produce.

What the contractor in this example actually decided

In this scenario, the contractor picked AWS GovCloud, largely because two of their engineers had prior experience with it from a previous employer and their prime contractor on this award already ran there, which meant fewer new integration questions during onboarding. That's a reasonable, common way this decision actually gets made in practice: existing team experience and a prime contractor's existing environment often outweigh a feature-by-feature comparison.

What to check before you assume you're covered

Confirm your specific FedRAMP authorization level and CMMC requirements directly with your contracting officer or a qualified compliance consultant rather than inferring coverage from a cloud vendor's general compliance marketing, since a vendor's platform level authorization doesn't automatically mean your specific configuration on top of it meets your contract's requirement.

Confirm these points with your contracting officer or a qualified compliance consultant:

  • The exact FedRAMP authorization level and CMMC requirements that apply to this specific contract.
  • Whether your particular configuration is covered, since a vendor's platform level authorization does not automatically extend to what you build on top of it.
  • Whether any ITAR-controlled or CUI data is involved, and how the contract says it must be handled.
  • Whether your prime contractor's platform is a contractual requirement or just the more convenient default.

Budgeting the compliance work as its own line item

Contractors new to CUI handling frequently underestimate how much of the total contract budget the compliance buildout itself consumes, separate from the ongoing hosting cost. Get a specific estimate from a compliance consultant or your prime contractor's own experience before you bid the next contract, rather than treating this year's buildout cost as a one-time expense that won't recur. Every new authorization boundary or system added later typically needs its own slice of this work.

Keeping the environment compliant after the initial buildout

Standing up a compliant environment is the easier half of this work; keeping it compliant as your contract portfolio grows and staff turns over is the harder, ongoing half. Schedule a recurring internal review, not just the periodic external assessment, so configuration drift gets caught by your own team before an assessor finds it. Contractors who treat compliance as a one-time project rather than an ongoing discipline are the ones who fail a reassessment they assumed they'd already passed for good.

Executive Capability Standard

What Good Looks Like

A federal contractor can name the specific FedRAMP and CMMC requirements that apply to its current contracts and point to a tested, not just documented, incident recovery process.

Building The Capability (5-Stage Skill Ladder)

1. Learn:Get precise, in writing, about which compliance level and data handling requirements apply to your current contracts.
2. Do Manually:Run a manual tabletop exercise of your incident response process against a simulated failed deployment.
3. Delegate:Assign a dedicated, adequately budgeted operations role to own compliance infrastructure rather than a side responsibility.
4. Automate:Automate compliance evidence collection, like access logs and configuration snapshots, instead of gathering it manually during an audit.
5. Buy:Bring in a compliance consultant experienced in your specific CMMC level before your first assessment rather than during it.

How to Get Started

Disclosure: We may earn a commission if you buy through some links on this page. It doesn't change what we recommend.

Frequently Asked Questions

Do we need AWS GovCloud or Assured Workloads for every federal contract?

Not necessarily. Some federal work, particularly unclassified, non-CUI contracts, can run on standard commercial cloud regions. Confirm the specific data classification and contract clauses first, since assuming you need the government-specific offering when you don't adds unnecessary cost and complexity.

How long does it typically take to stand up a compliant environment for a new contract?

It varies widely based on your starting point and the specific compliance level required, but budget for months, not weeks, especially if this is your first time meeting a given CMMC or FedRAMP level. Rushing this timeline is a common source of compliance gaps discovered later.

Does our prime contractor's cloud choice determine ours?

Often it should heavily influence your choice, because integrating with a prime's existing environment is easier on the same platform. Confirm whether the prime's platform is a hard contractual requirement or simply the more convenient default before assuming you have no choice.

Sources

Where we quote a benchmark, we show its source. Other figures in this guide are estimates or general guidance, so check them against your own numbers.

  1. Annual wage, General and Operations Managers (SOC 11-1021), US all industries. BLS OEWS May 2025, 2025.
  2. Failed deployment recovery time by DORA performance cluster (upper bound, days). DORA Accelerate State of DevOps 2024 (Google Cloud), cluster table via Octopus Deploy analysis, 2024.

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