Amazon forces Pentagon to reconsider Microsoft $ 10 billion tender

US, WASHINGTON (NEWS OBSERVATORY) — The U.S. Department of Defense said it would review a decision to award Microsoft $ 10 billion in cloud computing after an appeal from Amazon. Jeff Bezos’s company, which also fought for the contract, claimed to have lost the deal due to potential interference from President Trump.

Last month, a U.S. court suspended the Defense Infrastructure Cloud (JEDI) contract between Microsoft and the Pentagon. Microsoft regretted the court ruling. The Pentagon then stressed that they were confident in their decision to sign a contract with Microsoft.

Amazon claims that the Pentagon made “egregious errors in almost every valuation factor, ignoring the unique benefits of the AWS offer (Amazon subsidiary – Ed.), And closed its eyes to the obvious flaws in Microsoft’s implementation proposal, Amazon said. technical requirements “under the contract.

According to sources from the White House company, US President Donald Trump personally ordered Amazon to be removed from the list of possible winners in the state contract race. Amazon, whose largest shareholder is the richest man in the world, Jeff Bezos, immediately sounded the alarm. The fact is that Bezos has an open conflict with Trump. Bezos media constantly muds the head of the White House. Trump reciprocates. And Amazon, not without reason, suspected that the decision was made not on a market basis, but on a call from above.

The company issued a statement stating that if the Pentagon made a decision solely on the basis of evaluating competitive offers, it would obviously be different. That is, Amazon directly accused Donald trump of pressure on the defense department in making the decision.

The Department of Defense requested 120 days to review the decision. The judge in this case, Patricia Campbell-Smith, is expected to allow a re-evaluation, although she has not yet made a formal decision.

Amazon spokeswoman Doug Stone said in a statement Thursday that the company was “satisfied that the MoE recognizes the“ material and legitimate ”issues that influenced the decision to award the JEDI contract and that corrective action is needed.” He added that Amazon is looking forward to actions “that will completely isolate the reassessment from political influence and will fix many problems that affect the initial erroneous result.”

However, this decision is not a complete victory for Amazon: the Department of Justice said in a lawsuit that it would object to a motion to review the contract. The petition was based on the issue of price, and not on whether Mr. Trump intervened in the process, officials said.

A spokeswoman for the Department of Defense did not immediately respond to a request for comment.

“We believe the Department of Defense made the right decision when they awarded us the contract,” said Frank X. Shaw, Microsoft spokesman, adding that the company remains confident that its proposal “is the right choice for the ministry of defense. ”

In connection with the Pentagon’s fast-paced position, the question arises whether Amazon’s sudden advantages have been discovered or whether officials fear that a lawsuit contesting the arbitration award will inevitably pop up emails alleging that Trump intervened in the process, writes New York Times.

A Department of Defense official who was not authorized to speak out publicly stated that filing a lawsuit would force Amazon to prove the allegations of bias against Trump, which is a complex legal challenge.

Although Amazon insists that Trump and the Department of Defense officials intervened in the race for JEDI, legal arguments disputing the award of the contract focused on the Department of Defense not providing an accurate estimate of the cost of certain services provided.

In February, a judge sided with Amazon on pricing by issuing a temporary injunction that prevented Microsoft from continuing to work with the Department of Defense on a contract basis.

This put the Pentagon in an awkward position. Speaking to reporters at the Munich Security Conference last month, Secretary of Defense Mark Esper argued that it was time to give up on the problems and move on toward building cloud infrastructure. Time was at stake, he said, and American national security was at stake. “For the military, it is important that we move forward on this contract,” he said. “This goes on too long.”

Regarding Trump’s intervention, the official said only that “he never felt pressure from the White House.”


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Article is written and prepared by our foreign editors from different countries around the world – material edited and published by News Observatory staff in our US newsroom.