Microsoft upheld over Amazon as JEDI ‘war cloud’ contract winner
DoD review concludes Microsoft’s offers the ‘best value’ to the U.S. government
The Defense Department upheld a decision to award a lucrative multibillion-dollar cloud contract to Microsoft, after fielding a challenge from competitor Amazon over the procurement process.
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In a statement issued on Friday, the Department of Defense said it had completed its review of the Joint Enterprise Defense Infrastructure (JEDI) proposals, concluding that Microsoft’s offer represents the “best value” to the U.S. government.
The Department of Defense noted that contract performance will not begin immediately because of a preliminary injunction issued in February, but that it is “eager to begin delivering this capability to our men and women in uniform.”
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MSFT | MICROSOFT CORP. | 407.18 | -0.39 | -0.10% |
| AMZN | AMAZON.COM INC. | 176.46 | -3.08 | -1.72% |
A spokesperson for Microsoft said in a statement that the company appreciated the review is ready to start working on the job.
“We appreciate that after careful review, the DoD confirmed that we offered the right technology and the best value," the spokesperson said. "We’re ready to get to work and make sure that those who serve our country have access to this much needed technology.”
Amazon said it intended to continue protesting the award.
"Taking corrective action should have provided the DoD an opportunity to address the numerous material evaluation errors outlined in our protest, ensure a fair and level playing field, and ultimately, expedite the conclusion of litigation," the company wrote in a blog post. "Unfortunately, the DoD rejected that opportunity.."
The JEDI contract is a winner-take-all job that is valued at about $10 billion. It is intended to help the military upgrade and transfer classified data.
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Amazon filed a lawsuit in November challenging the Pentagon’s decision to award the massive contract to Microsoft, citing “unmistakable bias” in the evaluation process. It filed a motion in court earlier this year to pause work on the job until its protest of the contract had been ruled on.
Last fall, Microsoft was declared the winner in the race, which became the object of heightened scrutiny. Amazon had been considered the frontrunner due to its other standing cloud deals, including a $600 million cloud contract with the CIA. That indicates the company already has the approval to handle sensitive government data. The company, however, got drawn up in public controversy.
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The Department of Defense reviewed the pending cloud contract following complaints there had been conflicts of interest involving Amazon and department employees throughout the procurement process.
Trump also made comments that the contract may have been biased in favor of Amazon, which became part of Amazon’s argument.
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Oracle, IBM and Google were the other initial contenders for the massive contract. Oracle challenged the bidding process in court last year but lost.
