Pentagon Picks Microsoft for JEDI Cloud-Computing Contract Over Amazon -- Update
26 Octobre 2019 - 2:33AM
Dow Jones News
By Aaron Tilley
The Pentagon on Friday awarded Microsoft Corp. a hotly contested
and controversial contract to build a large cloud-computing system
for the U.S. military.
The so-called JEDI contract could be worth up to $10 billion to
Microsoft over a 10-year period if the Pentagon exercises all
options under the deal.
The only other remaining finalist was Amazon.com Inc. Several
other firms were eliminated from the bidding earlier.
The deal is a setback for Amazon, the biggest cloud provider,
and it was regarded as the favorite to win the contract.
Amazon said it was "surprised about this conclusion. AWS is the
clear leader in cloud computing, and a detailed assessment purely
on the comparative offerings clearly lead to a different
conclusion."
Microsoft had no immediate comment.
The process for developing and awarding the JEDI contract has
been fraught, amid multiple conflict-of-interest allegations and
legal challenges, as well as concerns that opting for a
single-source vendor might not be best for the military. Defense
Secretary Mark Esper announced his own top-to-bottom review in
early August, after President Trump voiced concerns about JEDI.
That review delayed the contract award by several weeks.
Mr. Esper this week said he was withdrawing from reviewing the
contract to avoid the appearance of a conflict of interest. His son
worked for one of the original bidders that was no longer in the
running for the deal.
The Pentagon has more than 500 separate clouds. JEDI would serve
as an umbrella system to rationalize that number and provide the
military with access to services that better keep up with the pace
of technology in civilian markets.
"We must improve the speed and effectiveness with which we
develop and deploy modernized technical capabilities," Dana Deasy,
the Defense Department's chief information officer, said in a
statement after the award was announced.
The initial two-year contract includes option periods extending
the potential award over a decade. The Pentagon also wants upgrades
at commercial prices but with tough built-in cybersecurity
protections.
Most of the concerns about the JEDI procurement process have
centered on allegations that Amazon had improperly influenced the
bidding. Amazon has denied the allegations, and a judge in the U.S.
Court of Federal Claims earlier rejected the concerns. That
decision has been appealed by Oracle Corp., which had filed a
protest after it was eliminated from the bidding process. Oracle
declined to comment.
The Pentagon Inspector General's office began investigating the
procurement even before a ruling was made on the bid protest, and
the Defense Department formally referred some concerns to the
IG.
(END) Dow Jones Newswires
October 25, 2019 20:18 ET (00:18 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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