Pentagon has not yet publicly announced a winner of the
highly-sought-after, 10-year contract to provide cloud
services to the Department of Defense as it overhauls its IT
systems — a process it's calling the Joint Enterprise Defense
Infrastructure, or JEDI, program.
fact, the Department of Defense is not yet officially done
with its request-for-proposal process. It has agreed to
release another RFP on Monday.
behind the scenes, some Department of Defense agencies are so
sure that Amazon will be awarded the contract that they are
preparing for a transition to GovCloud, which is Amazon's
cloud infrastructure designed specifically for government use,
according to this source.
can't imagine any possible way that the deal could be
stopped," this person said, adding that it was only a matter
of "waiting for the contract start date to be officially
person said the deal wouldn't be finalized until September and
it was too soon to declare Amazon a winner. The Pentagon did
not immediately respond to a request for comment.
process for winning this contract has been highly contentious.
Opponents of Amazon have even gone so far as to take out
advertisements aimed at Trump. The group Less Government last
week placed an ad in the New York Post — known to be one of
Trump's favorite publications — addressed directly to him.The
ad shows a picture of Amazon CEO Jeff Bezos laughing and
says"your Defense Department is set
to award a no-bid, ten-year contract for all its IT
infrastructure to Administration-enemy Jeff Bezos' Amazon."
Safra Catz, the CEO of another Amazon cloud competitor,
Oracle, dined Tuesday with Trump. Oracle is competing against
Amazon for the JEDI contract.
complained to Trump during the dinner that the Pentagon's
intent to award the contract to a single company made it
difficult for anyone but Amazon to win the bidding process,
has unleashed a series of attacks against Amazon on Twitter
over the past few days, accusing it of "costing the United
States Post Office massive amounts of money for being their
Delivery Boy," not paying its fair share of taxes, and putting
other companies out of business, among other criticisms.
thwarting the selection of Amazon Web Services, the
cloud-computing arm of Amazon, could prove difficult, even if
Trump and some members of Congress wanted to.
is by far thelargest
cloud-services provider in the US, offering the broadest
range of technology services. And it already proved itself
worthy of handling highly classified materials when it won a
$600 million cloud contract with the CIA, which it was awarded
Web Services claims 44% percent of the cloud market and is
followed by Microsoft's Azure with 7% percent and China's
Alibaba Group with 3%, according to data cited byBloombergfrom
the research firm Gartner Inc.
unless the Pentagon changes course and decides to use multiple
cloud providers, instead of awarding the contract to a single
provider, Amazon seems like a shoo-in.
said, it is common for those who lose government bids to lodge
complaints with the US Government Accountability Office, and
sometimes the GOA rules in the complainer's favor. Given the
battle over this contract, it would be surprising if no one
protests it after it is awarded.
has been no indication that Trump plans to interfere with the
bidding process. The White House press secretary, Sarah
Huckabee Sanders, reiterated on Wednesday that the president
was not involved in the contest.