Microsoft is an American technology company that manufactures computer software and related services. Its recent endeavor, the Joint Enterprise Defense Infrastructure contract is a large US Department of Defense cloud computing contract, which was in controversy. Amazon sued the company for modifications made to the selected sections of the contract. A federal judge Patricia Campbell-Smith said that Amazon’s claim “is likely to succeed on the merits of its argument that the DOD improperly evaluated Microsoft’s offer.”
Since then, the battle between Amazon and Microsoft was going on to win this $10 billion contract. The DOD hence had to reopen all the queries related to the contract. As per the he initial decision, it was awarded to Microsoft on October 25, 2019. The bidding of the contract was opened for both the sides and the verdict came on September 4, 2020.
The Official Statement Of the Department of Defense
Following an investigation by The Pentagon, the DOD says it is standing by its decision to award the $10 billion JEDI contract to Microsoft and not Amazon. The contract main aim is to modernize and replenish Pentagon’s IT infrastructure. The Pentagon is the headquarters building of the DOD in the United States of America. It is situated in Washington DC. In a statement, the DOD reaffirmed Microsoft as the owner of this lucrative deal.
It read, “the Department has 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.”
It also said that the contract performance will not begin immediately. The reason is because of the Preliminary Injunction Order issued by the Court of Federal Claims on February 13, 2020. “The JEDI contract is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract that will make a full range of cloud computing services available to the DoD.”
Amazon’s response to Microsoft getting the offer
On September 4, 2020, Amazon posted a blog in which it blatantly called the contract as a “politically corrupted contract award.” The post read, “On JEDI, President Trump reportedly ordered former Secretary Mattis to screw Amazon, blatantly interfered in an active procurement, and then stonewalled an investigation into his own political interference.”
Amazon said that it disagrees with DOD’s decision to give the contract to Microsoft.
On the other hand, Microsoft is relishing in rising shares of its company. In a mail to CNBC, the company expressed its excitement. It wrote, “We appreciate that after careful review, the DOD confirmed that we offered the right technology and the best value. We are ready to go to work and make sure that those who serve our country have access to this much-needed technology.” The decision could further add fuel to the legal fire. Amazon does not look like it will stand down. It believes that AWS can give the best cloud computing software. Furthermore, it claims that the decision is for political benefits rather than social. Maybe, this will further prompt the truth out of the situation. However, the latest news is that the Department of Defense gave the JEDI contract to Microsoft for a second time.