The ongoing drama between Amazon and the Department of Defense about the JEDI contract continues, after a pause in August. Today, the Department of Defense announced that it has re-evaluated its decision to award the JEDI Cloud to Microsoft, and reaffirmed that decision.
The Department has completed its comprehensive re-evaluation of the JEDI Cloud proposals and determined that Microsoft’s proposal continues to represent the best value to the Government. The JEDI Cloud contract is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract that will make a full range of cloud computing services available to the DoD. While contract performance will not begin immediately due to the Preliminary Injunction Order issued by the Court of Federal Claims on February 13, 2020, DoD is eager to begin delivering this capability to our men and women in uniform.
Amazon does not appear to have accepted that outcome. The company posted a response explaining why they will continue to protest what they have described as a “politically corrupted contract award”.
Amazon feels that the review by the Department of Defense “was nothing more than a ‘do-over’ for Microsoft to fix its non-compliant proposal.” Amazon also complains that the Department of Defense cited price as a major factor in the previous decision, and Amazon feels that it offered a lower price than Microsoft did.
Personally, I doubt that Amazon’s decision to continue fighting against the Department of Defense’s choice to go with Microsoft is going to change anything. I find it incomprehensible that Amazon wants to sink more time and effort into something that is unlikely to go their way. But, this is the “hill they want to die on”, and Amazon clearly intends to keep pushing.
The Defense Department’s inspector general found that the White House “doesn’t appear to have influenced” the decision on which company to award the JEDI contract to, CNBC
reported. According to CNBC, the inspector general noted in the report that it had limited cooperation from White House officials throughout its review, and could not complete its assessment of allegations of ethical misconduct.
Bloomberg reported that the 317-page report issued by the DoD’s inspector general’s office found that giving the JEDI contract to a single company – Microsoft – rather than dividing it among competitors was “consistent with applicable acquisition standards.”
Bloomberg also said that the report stated that the White House had limited cooperation with the inquiry. According to Bloomberg, the inspector general said the assertion of a “presidential communications privilege” resulted in the Defense Department general counsel instructing officials “not to answer questions about potential communication between White House and DoD officials about JEDI.”
Here’s some background for those who haven’t been following along:
Microsoft was selected over Amazon for the JEDI contract in October of 2019. JEDI stands for “Joint Enterprise Defense Infrastructure”. The contract, from the Department of Defense, could be worth over $10 billion over a decade.
In November of 2019, Amazon filed a notice that it will formally protest the decision on JEDI.
In February of 2020, a spokesperson for Amazon Web Services told CNBC (to paraphrase) that Amazon felt the President should not be allowed to use the budget of the DoD “to pursue his own personal and political ends”. A few days later, a federal judge put a temporary block on the JEDI cloud contract.
In March of 2020, Amazon asked a federal court to require the Pentagon to broaden its scope of a reevaluation of its decision to award Microsoft the JEDI contract.
Overall, I don’t see how Amazon can come out ahead on this situation at this point. I’m also confused about why a company with so much money is concerned about a contract that could be worth over $10 billion dollars over a decade.