Amazon, Microsoft chosen to compete for Pentagon cloud computing contract

Amazon, Microsoft chosen to compete for Pentagon cloud computing contract

Amazon, Microsoft chosen to compete for Pentagon cloud computing contract

For more than a year, some of the biggest tech companies in the U.S. have been competing for a $10 billion dollar cloud-computing contract with the U.S. Defense Department.

Microsoft and AWS are now the only two companies vying for the contract as they meet all of the requirements listed in the proposal, Smith said.

The selection leaves Oracle Corp and IBM Corp out of the competition for the contract for the Defense Department's Joint Enterprise Defense Infrastructure Cloud, or JEDI.

Until recently, AWS was the only provider with IL-6 clearance, the highest level reserved for data such as national security information. She also revealed that alleged unethical conduct by a former Defense Department employee has been referred to the department's inspector general. Oracle and IBM also were in the running. With protesters assuming AWS (NASDAQ: AMZN) has the inside track to win the JEDI contract, Oracle raised the stakes in December with a federal lawsuit asserting DoD's plan for a single-source award violates USA acquisition regulations.

The Pentagon initially had said it would choose a victor this month, but after investigations and a protracted legal battle, the soonest the contract will be awarded is mid-July, according to Smith.

The Pentagon, the headquarters of the U.S. Department of Defense.

DOD launched the investigation in February to look into a potential conflict of interest involving a former employee, Deap Ubhi, with ties to Amazon Web Services, which is considered the top dog in the bid to provide a foundational commercial cloud for the military.

Oracle also filed a alleging that a current Amazon employee worked on JEDI during his time working at the Defense Department and had the contract in Amazon's favor.

The government argued in court documents that Ubhi was involved in the JEDI procurement only in the very beginning of its development and a "robust debate" about the acquisition strategy continued after he left.

"The department's investigation has determined that there is no adverse impact on the integrity of the acquisition process".

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