Microsoft To Lose Pentagon's JEDI Contract?

Issue 70

Pentagon officials have begun to revisit their decision in 2019 that awarded Microsoft with a $10 billion contract to create the JEDI Cloud Project for the Department of Defense (DoD).  Microsoft was given the task of the JEDI Cloud Project over Amazon and since then Amazon has been fighting the decision in court.

The JEDI contract is designed to improve current data systems for the DoD by consolidating data systems and allow for better access to real-time information.  The JEDI contract will also allow for the DoD to have increased capability in the development of artificial intelligence.

Due to increased legal pressure from Amazon, the Pentagon is considering the elimination of the program or allow for multiple vendors to work on the project.  Some lawmakers claim that by splitting the work between multiple companies the pentagon can avoid legal issues as well as improve productivity throughout the project.

Microsoft is prepared to continue the project after legal delays and stated that “prolonged litigation is harmful and has delayed getting this technology to our military service members who need it.”

Amazon has faced allegations in which several organizations that bid on the original contract argued that Amazon had an unfair advantage to be selected for the contract.  These allegations came from Oracle Corp. in which they believed that Amazon employees who previously worked for the Pentagon in 2016 and 2017 were attempting to sway the Pentagon's decision to favor Amazon.

After numerous legal battles, the Pentagon is considering a new contract-bidding process to further the competition and find the best companies for the $10 billion contract.

Source: Wall Street Journal