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Amazon Asks Judge to Annul $10bln JEDI Contract Awarded to Microsoft, Says Decision was 'Flawed and Politically Corrupted', Microsoft Hits Back

December 16, 2020 7:11 AM

Amazon (NASDAQ: AMZN) has asked the U.S. judge to nullify last year’s decision of the Defense Department to award a Joint Enterprise Defense Infrastructure (JEDI) deal to Microsoft (NASDAQ: MSFT).

In a newly unsealed court filing, the e-commerce giant says that such a decision was made in the light of an “extraordinary environment of corruption, interference, and retribution” by President Donald Trump and his administration.

“Since DoD commenced its corrective action, President Trump and his Administration have intensified a campaign of interference and retribution against those in DoD perceived as disloyal to the President or capable of reaching conclusions at odds with his personal interests,” it is said in a redacted October 23 court filing unsealed yesterday.

Hence, Amazon is asking the court to invalidate the decision as it is “the product of systematic bias, bad faith, and undue influence exerted by President Trump to steer the award away from” Amazon.

“President Trump's campaign against an award of the JEDI Contract to AWS had its intended effect. Under overt and escalating pressure from President Trump, DoD departed from procurement rules to reject AWS's superior proposal. DoD's errors produced the flawed October 2019 award to Microsoft that was the subject of this Court's prior review.

“Faced with the Court's February 2020 ruling that AWS was likely to succeed on the merits, DoD undertook corrective action amidst an increasingly corrupt environment in which President Trump has made clear that anyone in the federal government who does not do his bidding will face the most severe career reprisals,” it is further added in the court filing.

Amazon added on Tuesday that its bid is lower by tens of millions of dollars and it doesn’t understand how DoD ruled “in favor of Microsoft's unproven and theoretical alternative”.

“In particular, to find Microsoft technically superior under Factor 6, DoD inexplicably considered the purported pricing benefits of Microsoft's program management support, while ignoring similar benefits inherent in AWS's already lower-priced proposal.

“DoD also ignored AWS's proven and tested program management approach in favor of Microsoft's unproven and theoretical alternative. Under a rational evaluation, AWS would have received an Outstanding rating and been found qualitatively superior to Microsoft.”

Microsoft responded by saying that “career procurement officials at the DoD decided that given the superior technical advantages and overall value, we continued to offer the best solution.”

Therefore, “it is time we moved on and got this technology in the hands of those who urgently need it: the women and men who protect our nation.”

Amazon filed a lawsuit in November 2019 after the JEDI contract was awarded to Microsoft, with a judge granting a request to temporarily halt the deal from moving forward in February this year.

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