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DOD cancels $ 10 billion JEDI contract at Microsoft and Amazon’s feud center


The Department of Defense has canceled its $ 10 billion Joint Defense Infrastructure (JEDI) cloud contract. The Pentagon said it has “initiated contract termination procedures” in the press release shared Tuesday, noting “the Department has determined that due to evolving requirements, the growth of cloud conversation, and the advancement of the industry, the JEDI Cloud contract no longer meets the requirements. I need them. “

With JEDI, the Department of Defense had planned to modernize its IT infrastructure, but the contract had not advanced since the Pentagon. attributed to Microsoft in 2019 due to a legal challenge from Amazon. A month after JEDI moved to Redmond, Amazon filed a formal challenge with the U.S. Court of Federal Claims, when he evaluated the two companies.

When the cause was eventually uncovered after that same year, it turned out that Amazon believed it had lost the contract due to interference from former President Donald Trump. According to the company, Trump “used his power to” empty Amazon “out of the JEDI Contract as part of his highly public personal revenge against Mr. Bezos, Amazon and The Washington Post.”

After an internal audit, the Pentagon inspector general published a report who said he found no evidence that the Trump administration had interfered with the procurement process. At the same time, he noted that several White House officials did not cooperate with the probe. Thus, he could not definitively determine whether the administration had influenced the process.


Shortly after the Department of Defense announced that it was not moving forward with JEDI, Microsoft released a on the decision. “We understand the basics of the DOD, and we support them and all military members who need the critical 21st century technology mission that JEDI would provide. The DOD has faced a difficult choice: continue with what it could be. a years-long litigation battle or finding another way forward, ”the company said. “U.S. security is more important than any single contract, and we know Microsoft will do well when the nation does well.”

Microsoft went on to say that the episode highlights the need for lawmakers to keep the challenge process going. “The 20 months since DOD chose Microsoft as its partner JEDI highlights issues that warrant the attention of policymakers: when a company can delay, for years, critical technology updates for those who advocate for our nation, the protest process needs reform, ”he said.

We reached out to Amazon for their development response, and will update this article when we hear from the company.

Alongside the cancellation, the Pentagon has announced a new multi-vendor contract called Joint Warfighter Cloud Capability (JWCC). The agency plans to collect proposals from both Amazon and Microsoft. He argues that they are the two most suitable vendors to meet their needs, although he also plans to see if other companies can help modernize their IT infrastructure. The Department of Defense he said CNBC and other outlets during a call expected to award the first JWCC direct contracts in 2022, with the procurement procedure set to open more widely by 2025. He also said the dispute with Amazon was not the primary reason. for the cancellation of JEDI. “The needs of the mission have been our first driver in this,” said John Sherman, the information chief in charge of the DOD.

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