The Department of Defense cancels the $10 billion JEDI contract at the center of the dispute between Microsoft and Amazon

The Department of Defense is canceling its $10 billion Joint Enterprise Defense Infrastructure (JEDI) cloud contract. The Pentagon stated that it “initiated contract termination procedures” Press release It shared on Tuesday, noting that “The Department of Defense has determined that due to changing needs, increased cloud computing capabilities, and industry advancements, the JEDI cloud contract no longer meets its needs.”

With JEDI, the Department of Defense had planned to modernize its IT infrastructure, but the contract has not advanced since the Pentagon Awarded to Microsoft in 2019 Because of Amazon’s legal challenges. One month after JEDI went to Redmond, Amazon submitted a formal challenge to the U.S. Federal Claims Court. When it evaluates these two companies.

When the lawsuit is final Opened later in the same yearAs a result, Amazon believes that it lost the contract due to the intervention of former President Donald Trump. According to the company, Trump “used his power to’squeeze dry’ Amazon from the JEDI contract as part of his highly publicized personal vendetta against Mr. Bezos, Amazon, and the Washington Post.”

After the internal audit, the Pentagon Inspector General Published a report Said that no evidence of the Trump administration’s intervention in the procurement process was found. At the same time, it noticed that several White House officials did not cooperate with the investigation. Therefore, it cannot clearly determine whether the government has influenced the process.

Soon after the Ministry of Defense announced that it would not promote JEDI, Microsoft issued a On the decision. “We understand the basic principles of the Department of Defense. We support them and every member of the military who need the mission-critical technology provided by the Jedi Knights in the 21st century. The Department of Defense faces a difficult choice: continue a litigation battle that may last for several years, or find Another way forward,” the company said. “The security of the United States is more important than any single contract. We know that when the United States does it well, Microsoft will do it well.”

Microsoft continues to say that this incident highlights the need for legislators to examine the challenge process. “The 20 months since the Department of Defense chose Microsoft as its JEDI partner have highlighted issues worthy of the attention of policymakers: When a company can postpone the upgrade of key technologies for those who defend our country for several years, the protest process requires reform. “it says.

We have contacted Amazon to understand its response to the development, and we will update this article after receiving the company’s response.

In addition to the cancellation, the Pentagon also announced a new multi-vendor contract called the Joint Warfighter Cloud Capability (JWCC). The agency plans to collect proposals from Amazon and Microsoft. It claims that they are the two most suitable suppliers to meet its needs, but it also plans to see if other companies can help it modernize its IT infrastructure.Ministry of Defense tell NBC Finance Channel In a conference call with other outlets, it is expected that the first batch of JWCC direct contracts will be awarded in 2022, and the procurement process will be opened as early as 2025. It also stated that the lawsuit with Amazon was not the main reason for the cancellation of JEDI. “Mission requirements have always been our main driving force,” said John Sherman, acting chief information officer of the Department of Defense.

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