Microsoft stocks at record high on controversial Pentagon contract

Late on Friday, word broke that the US Department of Defense had made a decision to award the massive 10-year, $10bn Joint Enterprise Defense Initiative contract to Microsoft.

Amazon had been seen as the front-runner for the deal, dubbed the Joint Enterprise Defense Infrastructure, or "JEDI", for much of the 15-month-long bidding process.

A challenge to the Defense Department's award announced Friday is widely expected by legal experts, analysts and consultants, especially after President Donald Trump publicly derided Amazon's bid for the high-stakes contract.

Microsoft has been announced as the victor of a multi-billion dollar deal to supply cloud computing services to the Pentagon.

The DoD stated that "All (offers) were treated fairly and evaluated consistently with the solicitation's stated evaluation criteria, but Amazon now has ten days to decide if it wants to appeal, with an AWS spokesman saying it was "surprised about this conclusion". "AWS is the clear leader in cloud computing, and a detailed assessment purely on the comparative offerings clearly lead to a different conclusion".

There were "concerns" in the West Wing, the article added, that the lucrative contract "would go to Amazon". "He's the commander-in-chief, and he hasn't been subtle about his hostility toward Amazon", Floyd told reporters. "It's a landmark win that will change the cloud computing battle over the next decade". The company will also be involved in bids for a second large Defense contract that involves cloud-based email and collaboration software. Ubhi never recused himself, according to the document.

White House officials recently showed Trump a document that connects Ubhi and others to a ploy awarding Amazon the 10-year contract, CNN reported in July, citing documents. The DCNF has independently confirmed the existence of the flow charts.

On the other hand, Berteau noted, if the debrief doesn't provide clear answers to whether a company lost on price, technical factors, experience, past performance or other factors, "the best way to get more information on why you lost is to protest".

The Pentagon's inspector general said in a separate statement on Friday night that it had "not found evidence that we believe would prevent the DoD from making a decision about the award of the contract". It could even skip going to the GAO altogether, they said.

The Pentagon selected Microsoft and AWS, cloud computing arm of Amazon, as the two finalists for its $10 billion Cloud contract, as earlier contender Oracle missed the bus. The company reported on October 4 that hackers made more 2,000 attempts to identify the email accounts of current and former US officials and accounts associated with presidential campaigns.

Microsoft CEO Satya Nadella was in Washington, D.C., on October 8 to talk about the company's successes.

The next step for AWS is to request a debriefing from the Department of Defense to explain the decision.

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