Amazon Challenges Pentagon’s JEDI Contract Award Decision

Jeff Brody

Amazon (Nasdaq: AMZN) filed a federal suit Friday in Washington contesting the fairness of the Department of Defense’s move to award a $10B cloud computing contract to Microsoft (Nasdaq: MSFT), Bloomberg reported Saturday.

DoD faces the legal challenge one month after it selected Microsoft to provide infrastructure-as-a-service and platform-as-a-service offerings as the Joint Enterprise Defense Infrastructure contractor.

The 10-year JEDI contract also drew bids from IBM (NYSE: IBM) and Oracle (NYSE: ORCL).

Drew Herdener, an Amazon spokesman, told Bloomberg the company believes there were “deficiencies, errors and unmistakable bias” in how the department evaluated industry proposals.

Elissa Smith, a spokeswoman for the Pentagon, said DoD conducted the source-selection process in accordance with the law and partnered with the Department of Justice to review the complaint.

The court filing is under seal to protect sensitive data in the documents.

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