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US Court of Federal Claims Allows Amazon, Microsoft to Compete for Major Gov’t Contract

By Andrey Kartsev

The United States Court of Federal Claims has allowed Amazon and Microsoft to compete for a major Department of Defense contract, the New York Times reported July 12.

The contract in question, the joint enterprise defense infrastructure, or JEDI, is worth $10 billion.

First announced in March 2018, the program attracted several major candidates from the IT industry, including Oracle, IBM, Amazon and Microsoft.

In April 2019 the Department of Defense determined that the only companies capable of delivering JEDI are Amazon and Microsoft, and announced that only one of them will be awarded the contract.

This decision was contested by Oracle with Pentagon itself, as well as the Government Accountability Office. The company alleged that entrepreneur Deap Ubhi, who worked on the JEDI for two months and then left the DoD for a position at Amazon, was involved in the considerations and adversely affected their outcome.

Both government agencies have dismissed Oracle’s claims, after which the company petitioned the U.S. Court of Federal Claims to review the case. Now, according to the NYT, the Court has also dismissed the claim, and Amazon and Microsoft are now allowed to compete for the contract, which is reportedly set to be awarded in August.

The purpose of the JEDI, as envisioned by the DoD, is to adopt modern cloud storage computing technologies in the U.S. military.

As of press time, Amazon stock is trading at $2,011.00, up 0.50% on the day. Microsoft is at $138.90, up 0.36% over the past 24 hours.

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