The JEDI agreement, or Joint Enterprise Defense Infrastructure, has become one of the most contested contracts awarded by the Department of Defense. The contract is intended to modernize the Pentagon’s colossal IT infrastructure and could be worth up to $ 10 billion for services over 10 years.
“The department has completed its comprehensive re-evaluation of JEDI Cloud’s proposals and has determined that Microsoft’s offering continues to provide the best value for the government,” the Pentagon said in a statement.
“The JEDI Cloud contract is a fixed price contract, indefinite delivery / indefinite quantity, which will provide the Department of Defense with a full range of cloud computing services. While the execution of the contract will not begin immediately due to the preliminary injunction issued by a federal court for litigation on February 13, 2020, the department is eager to begin providing this capability to our men and women in uniform. “
Microsoft obtained the cloud computing contract on October 25, 2019. In November, Amazon Web Services, Amazon’s cloud computing division, filed a lawsuit in Federal Dispute Court to challenge JEDI’s decision. The company claimed that President Donald Trump’s aversion to Amazon and the company’s CEO, Jeff Bezos, influenced the Pentagon to award the Microsoft contract. Amid the legal battle, the Pentagon has invited Amazon and Microsoft to review and resubmit their contract proposals.
Today’s decision could lead to more legal battles.
The lucrative contract, originally scheduled to be awarded in September 2018, attracted attention after Trump said last year that he was seriously considering analyzing the JEDI contract.