WASHINGTON - Microsoft Corp. has won the Pentagon's $10 billion cloud computing contract, the Defense Department said on Friday, beating out favorite Amazon.com Inc.
The Joint Enterprise Defense Infrastructure Cloud (JEDI) contract is part of a broader digital modernization of the Pentagon meant to make it more technologically agile.
But the contracting process had long been mired in conflict of interest allegations, even drawing the attention of President Donald Trump, who has publicly taken swipes at Amazon and its founder Jeff Bezos.
Oracle Corp. had expressed concerns about the award process for the contract, including the role of a former Amazon employee who worked on the project at the Defense Department but recused himself, then later left the Defense Department and returned to Amazon Web Services.
In a statement, an Amazon Web Services (AWS) spokesman said the company was "surprised about this conclusion."
The company said that a "detailed assessment purely on the comparative offerings" would "clearly lead to a different conclusion," according to the statement.
AWS is considering options for protesting the award, a person familiar with the matter told Reuters.
Although the Pentagon boasts the world's most potent fighting force, its information technology remains woefully inadequate, according to many officials.
Officials have complained of having outdated computer systems and being unable to access files or share information as quickly as they might be able to in the private sector.
Some companies were also concerned that a single award would give the winner an unfair advantage in follow-on work. The Pentagon has said it planned to award future cloud deals to multiple contractors.
This week, US Defense Secretary Mark Esper removed himself from reviewing the deal due to his adult son's employment with one of the original contract applicants, IBM Corp. IBM had previously bid for the contract but had already been eliminated from the competition.
Microsoft said it was working on a comment. IBM and Oracle did not immediately return requests for comment.
The Washington Post on Wednesday reported that retired Navy commander Guy Snodgrass, who served as a speech writer and communications director to former Defense Secretary Jim Mattis, said in a forthcoming book that Trump sought to “screw” Amazon by awarding the cloud computing contract to a rival.
"We’re not going to do that," Mattis told Pentagon officials, according to The Post's report on the book, which is due to be published on Oct. 29. "This will be done by the book, both legally and ethically."
Reuters could not immediately obtain a copy of the book to verify the Post's report.
In a statement announcing Microsoft as the winner, the Pentagon underscored its view that the competition was conducted fairly and legally.
"All (offers) were treated fairly and evaluated consistently with the solicitation's stated evaluation criteria. Prior to the award, the department conferred with the DOD Inspector General, which informed the decision to proceed," it said.
Microsoft shares were up 2.5 percent to $144.35 in after-hours trading after the news. Amazon shares were down 0.98 percent to $1,744.12.
The Pentagon said it had awarded more than $11 billion across 10 separate cloud contracts over the past two years.
"As we continue to execute the DOD Cloud Strategy, additional contracts are planned for both cloud services and complementary migration and integration solutions necessary to achieve effective cloud adoption," the Pentagon said.
source: news.abs-cbn.com
WASHINGTON - US Defense Secretary Mark Esper said Sunday the Pentagon would cooperate with the congressional impeachment inquiry -- in an apparent break with President Donald Trump's policy to thwart the probe.
Esper said his department would try to comply with a subpoena from House Democrats seeking records relating to the withholding of US military aid to Ukraine.
"We will do everything we can to cooperate with the Congress," Esper said on CBS's "Face The Nation."
His reassurance came days after the White House announced it would not cooperate with the Democratic-led House of Representatives, calling its impeachment push illegitimate and unconstitutional.
Democrats are seeking information related to Trump pressing his Ukrainian counterpart to uncover dirt on 2020 US presidential contender Joe Biden -- and the alleged conditioning of military aid on that favor.
Democrats have slapped subpoenas on the Pentagon and White House, demanding documents tied to Trump's withholding of almost $400 million desperately needed by Kiev in its conflict with Russia over Moscow's 2014 annexation of Crimea.
Esper told "Fox News Sunday" that administration officials and Trump himself may place restrictions on the release of documents demanded by the subpoena.
"I don't know the status of what that document preparation is. I don't know what restrictions they will have internally," Esper said.
"The White House has a say on the release of documents as well. There are a number of things that play into this."
Democrats obtained a string of text messages between US diplomats that showed the Trump administration's effort to pressure Ukraine into investigating Biden and his son Hunter, and that some diplomats in the text chain expressed concern that such actions were inappropriate.
'ABSOLUTELY ILLEGAL'
On Tuesday, Trump's White House counsel Pat Cipollone sent senior Democrats an 8-page letter declaring the inquiry illegitimate. The letter has been rejected by experts as having little legal basis.
The Democrats' subpoenas focus in part is on Trump's July 25 call with Ukrainian President Volodymyr Zelensky.
A released rough transcript of the call shows the two leaders discussed Zelensky's desire to receive the military aid, followed by Trump responding that "I would like you to do us a favor though," and then bringing up Biden.
Esper was asked by Fox News if Trump had explained why he held up the aid, against the guidance of the Pentagon, and replied: "I have nothing to share with you on this."
Details of the call emerged last month in an explosive whistleblower complaint by an unidentified intelligence official.
The scandal is unusual in that the conduct in question -- Trump soliciting an investigation of a potential 2020 election rival from a foreign country -- is acknowledged by both sides.
At dispute is whether the phone call constituted a crime or an impeachable offense.
Federal Election Chairwoman Ellen Weintraub has declined to discuss the specifics of Trump's case.
But she told MSNBC earlier this month that "the law is pretty clear... It is absolutely illegal for anyone to solicit, accept, or receive anything of value from a foreign national in connection with any election in the United States."
Sunday's morning talk shows, in a repeat of last week, were notable for the absence of key administration officials willing to publicly defend Trump's actions.
Former Ohio governor John Kasich told CNN's "State of the Union" that his fellow Republicans needed to "look in the mirror" and speak out on the Ukraine call.
"Figure out how you want to be remembered later... There's nothing wrong with telling the truth and sharing your real feelings," he said.
"I think at the end of the day, the evidence is there to impeach Trump," Senator Bernie Sanders, a 2020 Democratic presidential hopeful, told ABC's "This Week."
But he added that the "real issue" is whether top Senate Republican Mitch McConnell will "do the right thing" if Trump is impeached, setting the stage for a trial in the US legislature's upper house.
"I am nervous that McConnell will put party in front of country," Sanders said.
source: news.abs-cbn.com
