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Tag: Joint Enterprise Defense Infrastructure

  • Pentagon Weighs Cancelling JEDI Contract

    Pentagon Weighs Cancelling JEDI Contract

    The Pentagon is weighing abandoning the Joint Enterprise Defense Infrastructure (JEDI) contract amid ongoing legal challenges from Amazon.

    Microsoft shocked the industry when it beat out Amazon for a coveted contract to provide cloud services to the Department of Defense (DOD). Amazon was widely considered the favorite, especially when factoring in its long history of working on sensitive government projects.

    Amazon immediately took the matter to court, and has effectivelykept the Pentagon from being able to move forward for a year and a half. Given the Pentagon’s need to move to a cloud-based solution, further legal fighting may simply not be a viable option. In February, the DOD warned Congress it may have to reevaluate the contract if Amazon’s legal challenges persisted.

    According to The Wall Street Journal, the time for that reevaluation may be now. A judge refused to dismiss much of Amazon’s case, guaranteeing the legal fight is far from over. With that prospect, the DOD is signaling it may change direction.

    “We’re going to have to assess where we are with regard to the ongoing litigation around JEDI and determine what the best path forward is for the department,” Deputy Defense Secretary Kathleen Hicks said.

    Throughout the process, Microsoft has maintained it won the bid based on its competitive solution, and that Amazon abused the process to get details on Microsoft’s bid and make adjustments accordingly. If the Pentagon goes for a mulligan, Microsoft may have the chance to prove just how competitive it claims to be.

  • Pentagon May Cancel JEDI Contract With Microsoft

    Pentagon May Cancel JEDI Contract With Microsoft

    The Pentagon has warned it may be forced to cancel its $10 billion JEDI contract with Microsoft amid Amazon’s ongoing legal challenges.

    Microsoft stunned the industry when it won the Joint Enterprise Defense Infrastructure contract, worth $10 billion. Amazon immediately sued, claiming a number of issues, including irregularities in the Pentagon’s review process and undue interference from the Trump administration.

    The Pentagon corrected its review process, coming to the same conclusion that Microsoft rightfully won the contract. Not content, Amazon renewed its complaints, claiming the Pentagon’s second review process was more flawed than the original. Amazon also maintained the second review showed it was cheaper by tens of millions of dollars.

    Meanwhile, Microsoft has maintained that Amazon used the review process to improperly gain access to what Microsoft bid, and then lower its own bid to undercut — illustrating why these type of contracts are supposed to be a blind bidding process, to make sure each company bids fairly.

    After refusing to accept its loss and move on, it appears Amazon’s legal tactics may finally be paying off. According to Business Insider, the Pentagon has sent a memo to Congress warning they may have to cancel Microsoft’s JEDI win if Amazon’s legal challenges persist. At this point, the Pentagon is still without much-needed cloud capabilities, seen as important to national security.

    The Pentagon is quickly arriving at the point where it may be faster to cancel the contract and start over, in hopes of finally having an up-and-running cloud solution. It’s also possible the Pentagon may go with a multi-cloud approach, rather than awarding it to single company.