US DoD reaffirms $10bn JEDI contract to Microsoft

7 September 2020 (Last Updated September 8th, 2020 09:18)

The US Department of Defense (DoD) has reaffirmed the $10bn Joint Enterprise Defense Infrastructure (JEDI) cloud contract to Microsoft.

US DoD reaffirms $10bn JEDI contract to Microsoft
The Pentagon, headquarters of the US Department of Defense. Credit: Touch Of Light.

The US Department of Defense (DoD) has reaffirmed the $10bn Joint Enterprise Defense Infrastructure (JEDI) cloud contract to Microsoft.

The DoD decided to stick to its earlier decision after a comprehensive re-evaluation found that Microsoft’s proposal represents the best value for the government.

The move represents a loss for Amazon, which approached the court last year challenging the contract award citing political inclinations.

Despite the reaffirmation by the DoD, the contract will continue to remain on hold due to the Preliminary Injunction Order issued by the Court of Federal Claims in February.

The JEDI Cloud contract is a firm-fixed-price, indefinite-delivery, indefinite-quantity order that encompasses the delivery of a variety of Cloud computing services available to the DoD.

Following the announcement, Amazon cited its disappointment and confirmed that it will continue to protest the ‘politically corrupted contract award’.

In a critical blog post, Amazon said: “AWS remains deeply concerned that the JEDI contract award creates a dangerous precedent that threatens the integrity of the federal procurement system and the ability of our nation’s warfighters and civil servants to access the best possible technologies.

“Others have raised similar concerns around a growing trend where defence officials act based on a desire to please the president, rather than do what’s right.”

In October last year, DoD awarded the JEDI Cloud contract to Microsoft. Amazon, IBM and Oracle were the other companies competing for the deal.

However, IBM and Oracle were eliminated in the long-drawn competition, leaving Amazon and Microsoft as the only two firms in contention.