Amazon Wins Suspension of Pentagon's $10 Billion 'JEDI' Contract to Microsoft

Marco Green
February 14, 2020

A federal court has ordered the Pentagon to temporarily halt work with Microsoft on a $10 billion military cloud contract that Amazon was initially favored to win.

The judge's decision to block the deal from moving forward was sealed by the court, as was Amazon's January request for the injunction.

Bezos, who also owns The Washington Post, is a frequent target of the USA president, who claims the newspaper is biased against him.

Amazon did not immediately respond to a request for comment.

A temporary injunction requested by Amazon was issued by USA judge Patricia Campbell-Smith, barring the Department of Defense from starting work on the contract known as JEDI, according to a summary of the ruling available online.

Once again, Amazon is leveraging legal recourse to circumvent the Department of Defense's decision to award Microsoft the lucrative Joint Enterprise Defense Infrastructure (JEDI) contract.

Earlier this week, the e-commerce giant sought to depose President Trump along with other senior military officials.

Pentagon spokesman Robert Carver said in a statement that the ruling unnecessarily delays implementation of the cloud contract and deprives "warfighters of a set of capabilities they urgently need".

Amazon was considered the lead contender to provide technology for JEDI, with AWS dominating the cloud computing arena and the company already providing classified servers for other government agencies including the CIA. The contract is meant to give the military better access to data and technology from remote locations. Amazon was initially favored to win the contract, which defense officials say will advance the United States military's technological advantage.

Amazon and Microsoft are industry leaders among cloud services providers. After the victor was narrowed down to Amazon and Microsoft previous year, President Trump said he was looking into the bidding process in response to complaints by IBM and other companies. The judge issued the following concessions before granting a temporary band that includes earmarking the $42 billion-dollar "just in case", it needs to be given to Microsoft or Department of Defense for "costs and damages".

It is not the first time a company has accused Mr Trump of improperly swaying the federal government's decision-making due to his objections to media coverage.

Other reports by Click Lancashire

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