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Judge puts Amazon's lawsuit challenging the Pentagon's $10 billion cloud contract award to Microsoft on hold until August

Apr 20, 2020, 23:02 IST
Business Insider
Amazon Web Services CEO Andy Jassy. REUTERS/Mike Blake
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A federal judge paused Amazon's lawsuit challenging the Pentagon's decision to award a $10 billion Pentagon cloud computing contract to Microsoft after the Department of Defense last month requested a remand, saying it "wishes to reconsider" aspects of the decision.

The Department of Defense last year chose Microsoft for its Joint Enterprise Defense Infrastructure (JEDI) deal, a massive cloud project that will store and manage sensitive military and defense data. A judge remanded Amazon's lawsuit challenging that decision for 120 days, or until August.

Microsoft's win of the JEDI deal was seen as a huge upset to some: Amazon Web Services was viewed as the frontrunner throughout the entire bidding process — but lost out amid what AWS alleges was interference from President Donald Trump, a frequent critic of Amazon and its CEO Jeff Bezos, who also owns the Washington Post newspaper.

The Pentagon's request for remand came after a federal judge recently gave an indication that Amazon's challenge could be successful, writing in a that AWS can likely prove the Pentagon made an error in the evaluation process and that the error affected the outcome. Microsoft disagrees, saying that Amazon is seeking a "do-over" after losing the deal fair and square.

Last week, the Pentagon inspector general cleared the Defense Department's decision to award the $10 billion JEDI contract to Microsoft but said that the team couldn't fully investigate Amazon's allegation about Trump's role in the process because the White House barred key witnesses from cooperating.

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Amazon in response blasted the White House for what it described as a "blatant attempt" to block a probe of Trump's involvement.

Are you a Microsoft or Amazon Web Services employee? Contact this reporter via email at astewart@businessinsider.com, message her on Twitter @ashannstew, or send her a secure message through Signal at 425-344-8242.

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