Judge Hands Setback to Amazon in JEDI Case
April 17 2020 - 5:34PM
Dow Jones News
By John D. McKinnon
WASHINGTON -- A federal judge granted the Pentagon's request to
reconsider aspects of its huge JEDI cloud-computing contract, a
move that Amazon.com Inc. had opposed.
Judge Patricia Campbell-Smith said she would stay Amazon's
bid-protest case while the Pentagon weighs changes to the project
that could address some of Amazon's objections. The stay could last
until mid-August or longer.
Amazon had objected to the Pentagon's proposed remand, arguing
that the Pentagon's reconsideration of the project should be much
broader. Amazon contended that the Defense Department's proposed
remand amounted to a "do-over" to help Microsoft Corp. preserve its
win in the face of Amazon's protest.
Amazon was widely regarded as the favorite to win the Joint
Enterprise Defense Infrastructure, or JEDI, contract, which is
estimated to be worth up to $10 billion over a decade. Microsoft,
the other finalist, was awarded the contract last year.
Amazon contended in its bid protest that the Pentagon unfairly
evaluated the two tech giants' proposals and that the process was
influenced by President Trump's public criticisms of the JEDI
project, Amazon itself and founder Jeff Bezos.
Mr. Trump has blamed Mr. Bezos for unfavorable coverage of his
administration in the Washington Post, which Mr. Bezos bought in
2013. The Post says its editorial decisions are independent.
In response to Amazon's bid protest, the Defense Department
proposed a so-called remand of the project that would allow the
Pentagon to reconsider certain aspects. In practice, the Pentagon's
review is likely to focus on certain pricing issues that Amazon
said were applied unfairly, according to court filings.
Earlier this week, the Defense Department inspector general
issued a long-awaited report on the JEDI project that largely
dismissed objections to the project from several disappointed
bidders, including Amazon.
Write to John D. McKinnon at john.mckinnon@wsj.com
(END) Dow Jones Newswires
April 17, 2020 18:19 ET (22:19 GMT)
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