This 2008 photo shows the Pentagon in Washington. The Pentagon is reconsidering its awarding of a major cloud computing contract to Microsoft after rival tech giant Amazon protested what it called a flawed bidding process. (AP Photo/Charles Dharapak, File)

This 2008 photo shows the Pentagon in Washington. The Pentagon is reconsidering its awarding of a major cloud computing contract to Microsoft after rival tech giant Amazon protested what it called a flawed bidding process. (AP Photo/Charles Dharapak, File)

Pentagon reconsiders Microsoft contract after Amazon protest

It’s a $10 billion contract to run the Pentagon’s Joint Enterprise Defense Infrastructure project.

Associated Press

WASHINGTON — The Pentagon is reconsidering its awarding of a major cloud computing contract to Microsoft after rival tech giant Amazon protested what it called a flawed bidding process.

U.S. government lawyers said in a court filing this week that the Defense Department “wishes to reconsider its award decision” and take another look at how it evaluated technical aspects of the companies’ proposals to run the $10 billion computing project.

The filing doesn’t address Amazon’s broader argument that the bidding was improperly influenced by President Donald Trump’s dislike of Amazon and its CEO, Jeff Bezos. Bezos owns The Washington Post, a news outlet that Trump has often clashed with.

Amazon Web Services is a market leader in providing cloud computing services and had long been considered a leading candidate to run the Pentagon’s Joint Enterprise Defense Infrastructure project, known as JEDI. The project will store and process vast amounts of classified data, allowing the U.S. military to improve communications with soldiers on the battlefield and use artificial intelligence to speed up its war planning and fighting capabilities.

Amazon sued the Pentagon after Microsoft won the contract in October. Work on the project has been halted as the lawsuit proceeds.

The judge who is presiding over the bid protest in the U.S. Court of Federal Claims said earlier this month that Amazon’s challenge likely had merit on some technical grounds involving pricing.

The Pentagon is asking her for 120 days to reconsider “certain aspects” of its decision. Amazon said in a statement it is pleased the government is taking correction action if it “fully insulates the re-evaluation from political influence and corrects the many issues affecting the initial flawed award.”

Wedbush analyst Dan Ives said one possible outcome is that the Pentagon could end up splitting the award between Microsoft and Amazon, or with other vendors. That would move the project forward and get it out of the courts, he said.

Talk to us

More in Herald Business Journal

The strip-mall site (bottom) where Trent Development hopes to build 350 studio, one-bedroom and two-bedroom apartments, on Wednesday, Jan. 20, 2020 in Lynnwood, Wa. (Olivia Vanni / The Herald)
Hundreds more apartments planned around Lynnwood light rail

In a new proposal, a developer envisions 350 units, two buildings of at least seven stories, a one-acre courtyard and a dog spa.

Roei Ganzarski, CEO of magniX, poses with a production electric engine, the magni500, at the  company's new office on Seaway Boulevard on Monday, Jan. 18, 2020 in Everett, Washington.  (Andy Bronson / The Herald)
Electric aircraft developer magniX moves HQ to Everett

The company builds electric motors, and it’s teaming with Arlington’s Eviation to launch a fully electric plane.

Weatherstripping is installed Thursday afternoon at Pallet in Everett on January 21, 2020. (Kevin Clark/The Herald)
Everett-based Pallet offers a novel way to shelter homeless

The manufacturer’s small, temporary homes have helped hundreds of people get off the streets around Puget Sound.

A Boeing 777X airplane flies over Moscow, Idaho. during a test flight Tuesday, June 23, 2020. The new model of airplane had its first flight on Jan. 25, 2020, from Paine Field in Everett, Wash. The 777X will be the world's largest and most efficient twin-engine jet, according to Boeing. (Geoff Crimmins/The Moscow-Pullman Daily News via AP)
Tax break proposed for manufacturers, but it needs a sponsor

Port of Everett CEO Lisa Lefeber hopes to boost manufacturing across the state with a new incentive.

Our readers have voted on a few of their favorite things in Snohomish County. (Getty Images)
The best in Snohomish County, chosen by you

Even during a pandemic, people still have their favorites.

FILE - In this Jan. 24, 2019 file photo Washington Gov. Jay Inslee, left, looks on as Suzi LeVine, right, the state's Employment Security Department Commissioner, talks to reporters at the Capitol in Olympia, Wash. The state of Washington is calling in the National Guard to help process unemployment benefit claims as officials grapple with a backlog caused in part by a fraud ring that stole more than half a billion dollars in aid, officials said Thursday, June 11, 2020. LeVine said that Gov. Jay Inslee approved the deployment of troops who will start assisting her team next week as it tries to reduce the unemployment claim backlog.(AP Photo/Ted S. Warren,File)
Head of state employment agency to join Biden administration

Suzi LeVine’s departure is effective Feb. 1. A deputy, Cami Feek, will serve as acting commissioner.

FILE- In this Sept. 30, 202, file photo, a Boeing 737 Max jet, piloted by Federal Aviation Administration (FAA) chief Steve Dickson, prepares to land at Boeing Field following a test flight in Seattle.  (AP Photo/Elaine Thompson, File)
European aviation agency: 737 Max to be cleared next week

The review of the aircraft “began with the MCAS but went far beyond.”

Matt and Jill Wurst opened Audacity Brewing in December 2020 and are now managing to stay open, with the COVID-19 restrictions on businesses, at their brewery on 10th Street on Monday, Jan. 11, 2020 in Snohomish, Washington.  (Andy Bronson / The Herald)
It took some Audacity to open this new Snohomish brewery

The COVID-19 pandemic hit just as Matt and Jill Wurst were getting the business off the ground.

FILE - In this Wednesday, Nov. 18, 2020 file photo, workers stand near a Boeing 737 Max airplane parked at Renton Municipal Airport next to the Boeing assembly facility in Renton, Wash., where 737 Max airplanes are made. On Tuesday, Jan. 12, 2021, the company reported final 2020 numbers for airplane orders and deliveries, and they are down from 2019 even though the 737 Max is flying again. (AP Photo/Ted S. Warren)
Canada OKs return of Boeing 737 Max aircraft

The planes will be permitted to fly as long as they meet specific safety conditions.

Most Read