Sep 4, 2020 - Technology

Pentagon to stick with Microsoft for JEDI cloud contract

Jacob Knutson

Aerial view of the Pentagon in June 2020. — Photo: Bill Clark/CQ-Roll Call, Inc via Getty Images

The Department of Defense reaffirmed its cloud-computing contract with Microsoft on Friday intended to upgrade the Pentagon’s IT infrastructure, according to CNBC.

Why it matters: The contract, the largest-ever of its kind with an estimated value of roughly $10 billion over a 10-year stretch, has been disputed in court by Amazon for months. The company claims that President Trump cut it and chief executive Jeff Bezos out of the Joint Enterprise Defense Infrastructure (JEDI) deal.

The Pentagon's reaffirmation settles questions over whether procedural errors Microsoft made in its bid could actually derail it, and comes as a blow to Amazon, which had been favored to win the contract until Microsoft received it, Axios' Kyle Daly writes.

What they're saying: “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,” said Russ Goemaere, a Defense Department spokesman cited by the Washington Post.

"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.”

What to watch: "Today's decision could lead to more legal wrangling," CNBC notes.

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Pentagon to stick with Microsoft for JEDI cloud contract

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