Pentagon Affirms Microsoft Award of JEDI Cloud Computing Contract
September 04 2020 - 5:16PM
Dow Jones News
By John D. McKinnon
WASHINGTON -- The Defense Department reaffirmed Friday its award
of a multibillion-dollar cloud computing contract to Microsoft
Corp., in another setback for Amazon.com Inc.
Amazon unexpectedly lost its bid last year for the project,
known as Joint Enterprise Defense Infrastructure, or JEDI, and
filed a bid-protest case alleging that the Pentagon improperly
decided the award and considered improper factors, including
political influence.
A federal judge in April stayed Amazon's bid-protest case while
the Pentagon weighed changes to the project that could address some
of Amazon's objections.
In a short statement, the Pentagon said it had "completed its
comprehensive re-evaluation of the JEDI Cloud proposals and
determined that Microsoft's proposal continues to represent the
best value to the Government."
The statement added that work on the contract won't begin
immediately because of the court order staying implementation.
In a statement, Microsoft applauded the Pentagon's decision and
said it was "ready to get to work and make sure that those who
serve our country have access to this much needed technology."
Amazon didn't immediately respond to a request for comment.
In response to Amazon's bid protest, the Defense Department
proposed a so-called remand of the project that would allow the
Pentagon to reconsider certain aspects.
The Pentagon's review was expected to focus on certain pricing
issues that Amazon said were applied unfairly, according to court
filings.
Amazon had objected to the Pentagon's proposed remand, arguing
that the Pentagon's reconsideration of the project should be much
broader. Amazon contended that the Defense Department's proposed
remand amounted to a "do-over" to help Microsoft preserve its win
in the face of Amazon's protest.
Amazon was originally regarded as the favorite to win the JEDI
contract, which is estimated to be worth as much as $10 billion
over a decade.
Amazon contended in its bid protest that the Pentagon unfairly
evaluated the two tech companies' proposals and that the process
was influenced by President Trump's public criticisms of the JEDI
project, Amazon itself and founder Jeff Bezos.
Mr. Trump has blamed Mr. Bezos for unfavorable coverage of his
administration in the Washington Post, which Mr. Bezos bought in
2013. The Post says its editorial decisions are independent.
Earlier this year the Defense Department inspector general
issued a long-awaited report on the JEDI project that largely
dismissed objections to the project from several disappointed
bidders, including Amazon.
Write to John D. McKinnon at john.mckinnon@wsj.com
(END) Dow Jones Newswires
September 04, 2020 17:01 ET (21:01 GMT)
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