Shortly after the Defense Department revealed it wasnt moving forward with JEDI, Microsoft released a blog post on the decision. “The security of the United States is more crucial than any single agreement, and we know that Microsoft will do well when the country does well.”.
The agreement award was not based on the benefits of the proposals and rather was the outcome of outside influence that has no place in federal government procurement,” a representative for Amazon said. Alongside the cancelation, the Pentagon announced a brand-new multi-vendor contract called the Joint Warfighter Cloud Capability (JWCC). It also stated the litigation with Amazon wasnt the primary reason for the cancelation of JEDI.

The Department of Defense is canceling its $10 billion Joint Enterprise Defense Infrastructure (JEDI) cloud contract. The Pentagon stated it “started agreement termination procedures” in a news release it shared on Tuesday, noting “the Department has identified that, due to developing requirements, increased cloud conversancy, and market advances, the JEDI Cloud agreement no longer satisfies its requirements.”
With JEDI, the Defense Department had actually prepared to update its IT facilities, however the agreement had not moved on because the Pentagon awarded it to Microsoft in 2019 on account of a legal obstacle from Amazon. One month after JEDI went to Redmond, Amazon filed an official challenge with the US Court of Federal Claims, declaring the Pentagon showed “apparent predisposition” when it assessed the 2 companies.
When the suit was ultimately unsealed later on that exact same year, it came out that Amazon thought it lost the agreement due to disturbance from previous President Donald Trump. According to the business, Trump “utilized his power to screw Amazon out of the JEDI Contract as part of his highly public personal vendetta against Mr. Bezos, Amazon and The Washington Post.”
Following an internal audit, the Pentagons inspector general launched a report that said it found no proof that the Trump Administration had actually disrupted the procurement procedure. At the very same time, it kept in mind that a number of White House authorities did not comply with the probe. It might not definitively identify whether the administration had affected the procedure..
Soon after the Defense Department announced it wasnt moving forward with JEDI, Microsoft published an article on the choice. “We understand the DODs rationale, and we support them and every military member who needs the mission-critical 21st century innovation JEDI would have provided. The DOD dealt with a tough option: continue with what could be a years-long litigation battle or discover another path forward,” the company said. “The security of the United States is more crucial than any single contract, and we know that Microsoft will succeed when the country succeeds.”.
Microsoft went on to state the episode highlights the requirement for lawmakers to look at the obstacle process. “The 20 months given that DOD selected Microsoft as its JEDI partner highlights concerns that call for the attention of policymakers: when one business can postpone, for years, crucial technology upgrades for those who protect our country, the protest process needs reform,” it stated..
” We comprehend and concur with the DODs decision. Sadly, the contract award was not based on the benefits of the proposals and rather was the result of outside influence that has no location in government procurement,” a representative for Amazon stated. “Our commitment to supporting our countrys military and ensuring that our warfighters and defense partners have access to the finest innovation at the very best price is stronger than ever. We anticipate continuing to support the DODs modernization efforts and developing options that help achieve their important missions.”.
Along with the cancelation, the Pentagon announced a brand-new multi-vendor contract called the Joint Warfighter Cloud Capability (JWCC). The company plans to collect propositions from both Amazon and Microsoft. It competes theyre the 2 suppliers best matched to meet its needs, though it likewise plans to see if other companies can assist it improve its IT infrastructure. The Defense Department informed CNBC and other outlets during a call that it expects to award the first direct JWCC agreements in 2022, with the procurement process to open more broadly as quickly as 2025. It likewise stated the lawsuits with Amazon wasnt the primary factor for the cancelation of JEDI. “The mission requirements have actually been our primary driver on this,” John Sherman, the DOD acting chief information officer, stated..
Update 3:29 PM ET: Added remark from Amazon. All items recommended by Engadget are selected by our editorial team, independent of our parent company. A few of our stories include affiliate links. If you buy something through one of these links, we may make an affiliate commission.