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Lawsuit Filed By Amazon Against Pentagon Awarding $10 Billion Cloud Contract To Microsoft


11/24/2019


Lawsuit Filed By Amazon Against Pentagon Awarding $10 Billion Cloud Contract To Microsoft
A law suit has been filed against the United States Defense Department by Amazon.com Inc in a federal court in the US against the decision of defence department that was taken last month to award a contract for cloud computing for the Pentagon worth $10 billion to another US tech giant and rival bidder Microsoft Corp.
 
According to a spokesman for Amazon Web Services, a division of the online retail giant founded by billionaire Jeff Bezos, the complaint and supplemental motion for discovery were filed in the US Court of Federal Claims under seal.
 
The basis of the complaint was not explained in any detail by the company.
 
Amazon said in a court document seeking a protective order that the contents of the filings contain “proprietary information, trade secrets, and confidential financial information” that could “cause either party severe competitive harm”. “The record in this bid protest likely will contain similarly sensitive information,” it further said.
 
After Amazon revealed that it was planning to file a case against the decision of the US defence department about the contract, the  US Defense Secretary Mark Esper last week denied any conjecture that there was any form of bias in the decision making for awarding the Pentagon contract to Microsoft.
 
“We believe the facts will show they (DoD) ran a detailed, thorough and fair process in determining the needs of the warfighter were best met by Microsoft,” Microsoft said in an emailed statement.
 
It market analysts believed that front runner for the Joint Enterprise Defense Infrastructure Cloud (JEDI) contract was Amazon till a rival bid was placed by software developer Microsoft and the contract was ultimately awarded to it. The JEDI program is a part of a larger broader digital modernization project at the Pentagon. The decision of the US Defence Department had surprised a lot of analysts and industry experts.
 
The conceived notion fairness was clouded because of politics, Amazon has previously said. The indications of the company was towards the US president Donald Trump because his decisions and policies are severely criticized by the Washington Post and the owner of the news paper is Bezos who is also the chief executive officer of Amazon.
 
(Source:www.bloomberg.com)