Amazon disputes Microsoft’s $ 10 billion Pentagon contract

After a dispute that lasted for more than a year, the Microsoft won a $ 10 billion cloud service contract Pentagon. But Amazon, who also disputed the contract, does not agree with the decision, so he will take the matter to justice.


The contract concerns the Joint Enterprise Defense Infraestructure (JEDI), a cloud computing and artificial intelligence project that should process large volumes of data for military purposes.

As JEDI is complex, few companies were able to bid for the contract: Amazon, IBM, Microsoft and Oracle, besides Google, which ended up giving up the dispute on the grounds that the Pentagon’s demands did not align with its ethical principles.

Over the months, the Pentagon has limited the dispute to two competitors: Amazon and Microsoft. Oracle, however, filed a lawsuit against the United States Department of Defense for understanding that the conditions for the JEDI contract were shaped to favor Amazon.

In the face of complaints – representatives of other companies would have expressed similar complaints – President Donald Trump demanded that the matter be investigated.

It was up to Defense Secretary Mark Esper to conduct this work. Whether as an effect of this investigation or not, the fact is that Microsoft was announced the winner of the contract on October 25.

The decision took the market by surprise, after all, Amazon was seen as the right choice for JEDI because it holds almost half of the cloud computing market and is the only competitor to have Impact Level 6, one of the most secure certifications. Department of Defense.

Donald Trump

In any case, the company did not accept defeat. Amazon believes that the decision in favor of Microsoft was unduly influenced by Donald Trump – American laws prohibit politicians from interfering in contract competition.

That’s why Amazon decided to challenge Microsoft’s hiring in court. For the company, the JEDI evaluation process contains deficiencies and clear errors, which must be examined.

One thing is certain: Donald Trump has no sympathy for Amazon. Last year, the president accused the company of damaging the United States Postal Service. Trump also believes that Jeff Bezos used the Washington Post to undermine his election – the newspaper has belonged to the founder of Amazon since 2013.

Wanted, the United States Department of Defense said it does not comment on potential litigation. Microsoft did not comment on the matter.

With information: CNBC, Washington Post.

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