Current:Home > ContactPentagon Scraps $10 Billion Contract With Microsoft, Bitterly Contested By Amazon -ProfitPoint
Pentagon Scraps $10 Billion Contract With Microsoft, Bitterly Contested By Amazon
View
Date:2025-04-14 04:30:33
The Defense Department is scrapping its $10 billion cloud-computing contract with Microsoft, ending the award process that's been mired in a legal battle with Amazon.
The Pentagon's announcement on Tuesday ends what has been a complicated and highly politicized saga of one of the most lucrative military tech contracts in U.S. history.
Amazon has been litigating the contract — known as JEDI — since 2019 when the company was stunned by its loss of the lucrative 10-year award to Microsoft. Amazon's legal strategy has included a call for testimony from former President Donald Trump, arguing his disdain for company founder Jeff Bezos swayed the bidding process.
The Defense Department on Tuesday said the JEDI contract — short for the Joint Enterprise Defense Infrastructure — no longer met its needs "due to evolving requirements, increased cloud conversancy, and industry advances."
The agency said it planned instead to pursue a contract with multiple companies instead of a winner-take-all approach with JEDI, which long faced criticism from lawmakers and experts. The Pentagon said it would solicit bids for the new multi-cloud contract from Amazon and Microsoft as the two are the only companies at the moment that can meet the military's requirements.
"The security of the United States is more important than any single contract, and we know that Microsoft will do well when the nation does well," Microsoft executive Toni Townes-Whitley wrote in a blog post on Tuesday, adding: "When one company can delay, for years, critical technology upgrades for those who defend our nation, the protest process needs reform."
Amazon in a statement on Tuesday argued once again that JEDI's award to Microsoft was a result of "outside influence," rather than the merits of the company proposals.
"We understand and agree with the DOD's decision," an Amazon representative said about Tuesday's cancellation of JEDI. "Our commitment to supporting our nation's military and ensuring that our warfighters and defense partners have access to the best technology at the best price is stronger than ever."
Editor's Note: Amazon and Microsoft are among NPR's recent financial supporters.
NPR's Tom Bowman and Shannon Bond contributed to this report.
veryGood! (69752)
Related
- Could Bill Belichick, Robert Kraft reunite? Maybe in Pro Football Hall of Fame's 2026 class
- Where the stage is littered with glitter: The top 10 acts of Eurovision 2023
- 'Succession' season 4, episode 6: 'Living+'
- Golf allows me to pursue perfection, all while building a community
- The FTC says 'gamified' online job scams by WhatsApp and text on the rise. What to know.
- How Sex/Life's Sarah Shahi and Adam Demos Fell in Love in Front of the Camera
- Why Dierks Bentley Feels Like He Struck Gold With His Family and Career
- The Trendiest Affordable Throw Blankets From Amazon for Every Home Decor Aesthetic
- Opinion: Gianni Infantino, FIFA sell souls and 2034 World Cup for Saudi Arabia's billions
- Harvey Weinstein Sentenced to 16 Years in Prison for Los Angeles Rape Case
Ranking
- Don't let hackers fool you with a 'scam
- Iran schoolgirls poisoned as some people seek to stop education for girls, Iranian official says
- Pakistan's trans community shows love for 'Joyland' — but worries about a backlash
- A new 'Fatal Attraction' is definitely aware of your critiques of the original
- What were Tom Selleck's juicy final 'Blue Bloods' words in Reagan family
- 30 Lululemon Finds I Think Will Sell Out This Month: Jumpsuits, Bags, Leggings, Sports Bras, and More
- Soccer Star Alex Morgan Deserves Another Gold Medal for Her Latest History-Making Milestone
- 'Shy' follows the interior monologue of a troubled teen boy
Recommendation
Intel's stock did something it hasn't done since 2022
Peter Pan still hasn't grown up, but Tiger Lily has changed
With NBA playoffs underway, players are showing off their talents — and their style
'It's about time': How 'Indian Matchmaking' found love - and success - on Netflix
A White House order claims to end 'censorship.' What does that mean?
Train crash in Greece kills at least 43 people and leaves scores more injured as station master arrested
From Slayer to Tito Puente, drummer Dave Lombardo changes tempo
Here are the winners of the 2023 Pulitzer Prizes