Judge Hands Setback to Amazon in JEDI Case

By John D. McKinnon 

WASHINGTON -- A federal judge granted the Pentagon's request to reconsider aspects of its huge JEDI cloud-computing contract, a move that Amazon.com Inc. had opposed.

Judge Patricia Campbell-Smith said she would stay Amazon's bid-protest case while the Pentagon weighs changes to the project that could address some of Amazon's objections. The stay could last until mid-August or longer.

Amazon had objected to the Pentagon's proposed remand, arguing that the Pentagon's reconsideration of the project should be much broader. Amazon contended that the Defense Department's proposed remand amounted to a "do-over" to help Microsoft Corp. preserve its win in the face of Amazon's protest.

Amazon was widely regarded as the favorite to win the Joint Enterprise Defense Infrastructure, or JEDI, contract, which is estimated to be worth up to $10 billion over a decade. Microsoft, the other finalist, was awarded the contract last year.

Amazon contended in its bid protest that the Pentagon unfairly evaluated the two tech giants' proposals and that the process was influenced by President Trump's public criticisms of the JEDI project, Amazon itself and founder Jeff Bezos.

Mr. Trump has blamed Mr. Bezos for unfavorable coverage of his administration in the Washington Post, which Mr. Bezos bought in 2013. The Post says its editorial decisions are independent.

In response to Amazon's bid protest, the Defense Department proposed a so-called remand of the project that would allow the Pentagon to reconsider certain aspects. In practice, the Pentagon's review is likely to focus on certain pricing issues that Amazon said were applied unfairly, according to court filings.

Earlier this week, the Defense Department inspector general issued a long-awaited report on the JEDI project that largely dismissed objections to the project from several disappointed bidders, including Amazon.

Write to John D. McKinnon at [e-mail]

(END) Dow Jones Newswires

April 17, 2020 18:19 ET (22:19 GMT)

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