Amazon says JEDI price “fatally flawed” in Microsoft rebuttal

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Amazon defended its decision to challenge the Pentagon’s multi-billion dollar JEDI cloud computing price on Friday after Microsoft said the company was trying to “force a redesign to save its failed offer.”

The JEDI agreement, or Joint Enterprise Defense Infrastructure, is worth up to $ 10 billion and has become one of the Defense Department’s most tangled contracts.

Microsoft won the cloud computing contract on October 25. In November, Amazon Web Services, Amazon’s cloud computing unit, filed a complaint with the United States Federal Claims Court to protest the JEDI ruling. The company claims that President Donald Trump’s bias against Amazon and its CEO, Jeff Bezos, prompted the Pentagon to give the contract to Microsoft.

In a blog article published on Friday, Amazon called the Pentagon’s JEDI award process “fatally flawed” and launched several attacks on Microsoft, saying it was trying to “fight its way to an unjust victory.”

“Microsoft is doing a lot of postures,” wrote Drew Herdener, vice president of global communications for Amazon. “We understand why. No competent and objective person thinks they have the best offer. And this was further underlined by their uneven operational performance during the Covid-19 crisis (and in 2020 YTD). “

Last month, the Pentagon’s inspector general released a report saying the price didn’t seem to be influenced by the White House.

However, the Inspector General noted in the 313-page report that he had limited the cooperation of White House officials throughout his examination and, therefore, he was unable to complete his assessment of the allegations of ethical fault.

The Pentagon did not immediately respond to CNBC’s request for comment.

Earlier this week, AWS filed another protest offer with the Department of Defense to seek clarification on the Pentagon’s changed storage requirements. Since the specifications were not clearly defined, Amazon had “no other choice than to call the agency to clarify it.”

Microsoft has said that it does not know the full scope of Amazon’s appeal, but that the recent Pentagon amendments “do not allow Amazon to reverse its previous commercial decision to make a high offer, which has resulted in their loss ”.

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