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Microsoft challenges NSA cloud contract reportedly awarded to Amazon

President Donald Trump speaks with Satya Nadella, Chief Government Officer of Microsoft, and Jeff Bezos, Chief Government Officer of Amazon throughout an American Expertise Council roundtable within the State Dinning Room on the White Home in Washington on June 19, 2017.

Jabin Botsford | The Washington Submit | Getty Pictures

Microsoft has filed a protest with the Authorities Accountability Workplace in opposition to the Nationwide Safety Company, difficult its award of a cloud computing contract.

The protest, filed July 21, seeks to dispute the NSA’s determination to award the $10 billion contract to Amazon, commerce publications Nextgov and Washington Expertise reported Tuesday.

The NSA contract to Amazon comes on the heels of the Pentagon’s determination to cancel its $10 billion cloud contract, referred to as JEDI, or Joint Enterprise Protection Infrastructure. The JEDI deal, embroiled in a prolonged authorized battle between tech giants Amazon and Microsoft, had grow to be one of the vital tangled contracts for the Pentagon.

The NSA contract, additionally price as much as $10 billion, is code-named “WildandStormy” and is meant to modernize the company’s categorized knowledge storage, Nextgov reported.

In a press release to CNBC, a spokesman for the NSA mentioned the company “lately awarded a contract for cloud computing companies,” declining to elaborate additional on the matter.

“The unsuccessful offeror has filed a protest with the Authorities Accountability Workplace. The Company will reply to the protest in accordance with applicable federal rules,” the spokesman added.

A Microsoft spokesperson advised CNBC in a press release: “Primarily based on the choice we’re submitting an administrative protest by way of the Authorities Accountability Workplace. We’re exercising our authorized rights and can accomplish that rigorously and responsibly.”

Amazon Internet Companies, the corporate’s cloud computing unit, referred inquiries to the NSA.

The profitable JEDI cloud contract was supposed to modernize the Pentagon’s IT operations for companies rendered over as many as 10 years. Microsoft was awarded the cloud computing contract in 2019, beating out market chief AWS.

A month later, AWS filed a lawsuit within the U.S. Court docket of Federal Claims protesting the JEDI determination.

The corporate argued former President Donald Trump’s bias in opposition to Amazon and its then-CEO, Jeff Bezos, influenced the Pentagon to provide the contract to Microsoft.

Final 12 months, the Pentagon’s inspector basic launched a report saying the award did not seem like influenced by the White Home.

Nonetheless, the inspector basic famous within the 313-page report revealed in April 2020 that it had restricted cooperation from White Home officers all through its assessment and, consequently, it couldn’t full its evaluation of allegations of moral misconduct.

A Pentagon official mentioned on a name with reporters the litigation itself was not essentially the principle motive for the shifted strategy. However given how a lot the panorama modified through the meantime, the company decided its wants had additionally shifted.

— CNBC’s Jordan Novet and Lauren Feiner contributed reporting to this text.

WATCH: Division of Protection’s chief data officer on determination to finish JEDI program


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