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Amazon contests Pentagon's Sh1tr cloud deal

By Reuters | November 26th 2019 at 03:00:00 GMT +0300

US digital giant Amazon.com Inc filed a lawsuit in a federal US court on Friday contesting the US Defense Department’s decision last month to award a Pentagon cloud computing contract worth up to Sh1 trillion ($10 billion) to rival bidder Microsoft Corporation.

This comes at a time when US President Donald Trump and Amazon CEO Jeff Bezos are engaged in a long-running row.

The complaint and supplemental motion for discovery were filed in the US Court of Federal Claims under seal, according to a spokesman for Amazon Web Services, a division of the online retail giant founded by billionaire Jeff Bezos.

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The company did not explain the basis for its complaint.

The filings contain “proprietary information, trade secrets, and confidential financial information” that could “cause either party severe competitive harm,” Amazon said in a court document seeking a protective order.

“The record in this bid protest likely will contain similarly sensitive information,” it said.

Considered favourite

Last week, US Defense Secretary Mark Esper rejected any suggestion of bias in the Pentagon’s decision to award Microsoft the contract after Amazon announced plans to challenge it.

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“We believe the facts will show they (DoD) ran a detailed, thorough and fair process in determining the needs of the warfighter were best met by Microsoft,” Microsoft said in an emailed statement.

Amazon had been considered a favourite for the Joint Enterprise Defense Infrastructure Cloud (JEDI) contract, part of a broader digital modernization project at the Pentagon, before software developer Microsoft emerged as the surprise winner.

Amazon has previously said that politics got in the way of a fair bidding process.

Amazon Chief Executive Bezos and owner of the Washington Post, has been an outspoken critic of US President Donald Trump.  

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