The $10B JEDI contract is locked, loaded and still completely stuck
The other day I took a moment to count the number of stories we've done on TechCrunch on the DoD's $10 billion, decade-long, winner-take-all, JEDI cloud contract. This marks the 30th time we've written about this deal over the last two years, and it comes after a busy week last week in JEDI cloud contract news.
That we're still writing about this is fairly odd if you consider the winner was announced last October when the DoD chose Microsoft, but there is no end in sight to the on-going drama that is this procurement process.
Government contracts don't typically catch our attention at TechCrunch, but this one felt different early on. There was the size and scope of the deal of course. There was the cute play on the Star Wars" theme. There was Oracle acting like a batter complaining to the umpire before the first pitch was thrown. There was the fact that everyone thought Amazon would win until it didn't.
There was a lot going on. In fact, there's still a lot going on with this story.
Oracle doth protest too muchLet's start with Oracle, which dispatched CEO Safra Catz to the White House in April 2018 even before the RFP had been written. She was setting the stage to complain that the deal was going to be set up to favor Amazon, something that Oracle alleged until the day Microsoft was picked the winner.
Catz had been on the Trump transition team and so had the ear of the president. While the president certainly interjected himself in this process, it's not known how much influence that particular meeting might have had. Suffice to say that it was only the first volley in Oracle's long war against the JEDI contract procurement process.
It would include official complaints with the Government Accountability Office and a federal lawsuit worth not coincidentally $10 billion. It would claim the contract favored Amazon. It would argue that the one-vendor approach wasn't proper. It would suggest that because the DoD had some former Amazon employees helping write the RFP, that it somehow favored Amazon. The GAO and two court cases found otherwise, ruling against Oracle every single time.
It's worth noting that the Court of Appeals ruling last week indicated that Oracle didn't even meet some of the basic contractual requirements, all the while complaining about the process itself from the start.
Amazon continues to press protests
Nobody was more surprised that Amazon lost the deal than Amazon itself. It still believes to this day that it is technically superior to Microsoft and that it can offer the DoD the best approach. The DoD doesn't agree. On Friday, it reaffirmed its choice of Microsoft. But that is not the end of this, not by a long shot.
Amazon has maintained since the decision was made last October that the decision-making process had been tainted by presidential interference in the process. They believe that because of the president's personal dislike of Amazon CEO Jeff Bezos, who also owns the Washington Post, he inserted himself in the process to prevent Bezos' company from winning that deal.
In January, Amazon filed a motion to stop work on the project until this could all be sorted out. In February, a judge halted work on the project until Amazon's complaints could be heard by the court. It is September and that order is still in place.
In a blog post on Friday, Amazon reiterated its case, which is based on presidential interference and what it believes is technical superiority. In February, the Court of Federal Claims stopped performance on JEDI. The Court determined AWS's protest had merit, and that Microsoft's proposal likely failed to meet a key solicitation requirement and was likely deficient and ineligible for award. Our protest detailed how pervasive these errors were (impacting all six technical evaluation factors), and the Judge stopped the DoD from moving forward because the very first issue she reviewed demonstrated serious flaws," Amazon wrote in the post.
Microsoft for the win?DoD reaffirms Microsoft has won JEDI cloud contract, but Amazon legal complaints still pending
Microsoft on the other hand went quietly about its business throughout this process. It announced Azure Stack, a kind of portable cloud that would work well as a field operations computer system. It beefed up its government security credentials.
Even though Microsoft didn't agree with the one-vendor approach, indicating that the government would benefit more from the multivendor approach many of its customers were taking, it made clear if those were the rules, it was in it to win it - and win it did, much to the surprise of everyone, especially Amazon.
Yet here we are, almost a year later and in spite of the fact that the DoD found once again, after further review, that Microsoft is still the winner, the contract remains in limbo. Until that pending court case is resolved, we will continue to watch and wait and wonder if this will ever be truly over, and the JEDI cloud contract will actually be implemented.