Pentagon hits pause on massive contract in the midst of Trump’s concerns about Amazon

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The Minister of defense Mark Esper, check, a huge 10-billion-Dollar Pentagon contract, Amazon was to receive strong competition-weeks after President Trump said that he can intervene.

A Pentagon spokesman said Thursday that no decision be taken until the review is completed. The Pentagon had previously said it plans to award the contract as soon as Aug. 23. It is not clear whether the test is immediately to the process beyond this point.


The finalists for the cloud computing contract, known as the Common Enterprise Defense Infrastructure (JEDI) — are Amazon and Microsoft, but it is dogged by the accusations of a conflict of interest in relation to Amazon. These allegations are the subject of investigations by the Pentagon Inspector General’s Office.

The Washington Post reported on Thursday that the White house ordered the review. The Post is owned by Jeff Bezos, the founder and CEO of Amazon.

“I’ve heard of people in the administration, so I have to thank for this, as the new man comes in a fresh look at you, study you, make sure that I understand all the different factors,” Esper, who has the top of the defense Ministry last month, told The Post in an interview. “I’m going to take a hard look at you. We are not making any decisions soon, I’m comfortable where he is . . . then, we will look at what adjustments we need to make, if at all.”

Republican lawmakers trump urged, for the award of the contract until the IG report topics. The concerns are in relation to the DoD employee has worked on the deal before or after that, he worked for the Amazon.

A bid protest of the lawsuit from Oracle, which had also rejected a bid of the contract, to the participation of former Defense Department employee Deap Ubhi, who works at Amazon, before the Ministry of defence in August 2016. Ubhi is now available on Amazon, once again — working with Amazon Web Services, Inc. (AWS), the entity that handles cloud computing.

Oracle claims that Ubhi influenced the decision on the award of a single contract. They also say that he was a part of it, sets high standards for the bidder, which essentially limited the box on Amazon, and Microsoft. Oracle and IBM, the only other bidder, both protested.

IBM, the termination of the process, said in a statement to the Associated Press last month that it “believe a long time serious concerns about the structure of the JEDI “procurement”, and continues to be, that the Defense Department “would be best served by a multi-cloud strategy”, which operated several cloud systems of different companies.

A Federal judge last month ruled against Oracle, claiming that the process was manipulated to the advantage of Amazon. But last week, the judge in the case raised questions about the process, particularly the Pentagon, the decision to award a single large contract.


Sen. Marco Rubio, R-Fla., to urge the legislature the exam, welcomed the Pentagon’s announcement.


“The Ministry of defence needs to a cloud computing contract, but my concern is, you have a contract that only one company could win-and that is Amazon,” he said.

Defense Department spokeswoman Heather Babbel Fox News in the past month, said that the Department is investigating conflicts of the allegations of interest, but ultimately found that the JEDI process was influenced improperly.

“While some potential ethics concerns were raised, that was called, the DoD OIG, DoD has concluded that there was no negative impact on the integrity of the acquisition process,” Babbel.

But Trump said he wanted a “very long time” to the contract


“I’m always a lot of complaints about the contract with the Pentagon and with Amazon” Trump, who has said criticized Bezos about his attachment to the Post, when asked about the matter last month. “You say that it is not a competitive bid.”

“I was only there a very few things, where such actions,” he said.

The Associated Press contributed to this report.

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