Amazon: Trump corruption is the only plausible explanation for Microsoft to win $ 10B cloud deal


Amazon says President Trump influenced the Pentagon cloud computing contract in “one of many dangerous examples of uplifting the president’s personal interests above national interest,” shown here at an Army-Navy football game on Saturday. (Official White House photo by Sheilah Craighead.)

In a newly-filed court filing, Amazon has pleaded guilty to improperly influencing “an extraordinary atmosphere of corruption, interference, and retaliation” by President Donald Trump and his administration, which paradoxically influenced the company Was an otherwise unforgivable decision by the US Department of Defense to award $ 10. Billion cloud computing project for its rival Microsoft.

Microsoft quickly shot back, accusing Amazon of sour grapes in its ongoing opposition to the Pentagon Contract Award. The Redmond Company said in a statement that it was “at a time when we moved forward and this technology came into the hands of those who urgently needed it: women and men protecting our nation.”

The statements by Seattle-area tech giants carried the wording of a year-long war on the prestigious government contract.

Before winning the deal in October 2019, Amazon was seen as a precursor to the Joint Venture Defense Infrastructure (JEDI) deal, a major project to move the Pentagon’s computing infrastructure and data to the cloud. The stay is pending an Amazon appeal. It is not yet clear how exactly the matter may change under the incoming administration of President-Elect Joe Biden.

Amazon’s 175-page amended complaint, which was originally filed under seal on October 23, was subpoenaed on Tuesday afternoon. The complaint alleges the Pentagon’s new revaluation of court-ordered contract bids, which led to the Pentagon reaffirming Microsoft as the winner of the contract in September. Amazon says the revaluation is fraught with much more arrogant errors than “Microsoft suffered from the initial award of the contract last year”.

For example, the Amazon web service changes the requirements of the Pentagon, designed to fix a prior government error that allowed AWS to drop the price of its own offer – Microsoft Edwards gave the Redmond company Availed the price benefit on a call basis. “Non-Technical Approach.”

Amazon’s complaint states, “The contract that emerged as the lowest-price proposer has led to complex DoD efforts to reduce the contract to Microsoft.” “Facing a volatile combination of Microsoft’s technical inferiority and now high pricing, DoD manipulated its valuation to an extent that accepted any aspect of reasonableness.”

Amazon Web Services CEO Andy Jessie recently showed AWS again increasing revenue in the Amazon cloud division with a chart: Invent Keynote.

The complaint cites President Trump’s repeated statements reassuring Amazon and his hostility against the company unfairly affecting the procurement process, calling it “the uplift of the president’s personal interests above national interest.” One of the many dangerous examples of “.

According to this Amazon contract, in a “corrupt pressure environment”, procurement officers faced retaliation, including the possible loss of their jobs.

It says the environment has intensified in the months since the initial award, with the DoD’s increasingly irrational flaws to satisfy Commander in Chief and Microsoft’s attempt to re-award JEDI, “it says . ” “The unforgivable defects and errors required to re-award Microsoft can be understood in the context of President Trump’s frequent violations of laws, regulations and norms designed to protect the legitimate and fair functioning of the government.”

Microsoft pointed to a report by the Department of Defense Inspector General in April, which found that DoD officials “were not pressured by DoD officials over their decision on the award of the contract, more senior,” Can communicate with. White House. “

Amazon reported that the White House exercised the president’s prerogative and directed several Defense Department witnesses not to answer investigators’ questions.

Microsoft Corporate Vice President, Frank Shaw said, “Amazon is the only way they can ever lose if the purchase is not fair”. “But every month, the market tells them that this is not true. Large and sophisticated customers regularly choose Microsoft over AWS. They do so because of the strength of our technology, our understanding of complex projects, and our overall value. “

Amazon and Microsoft and other cloud vendors regularly release news, reporting customer wins in an effort to show momentum. During his recent keynote address at the company’s re-invent conference, statistics were shown by Amazon Web Services CEO Andy Jessie, who ranked AWS’s share of the cloud infrastructure market at more than 45%, double that of Microsoft Azure, more than its nearest competitor. Kept.

In its own statement on Tuesday, Amazon said the price change cited in its revised complaint reduced its bid by millions of dollars.

“The fact that just one error can move a needle that demonstrates why it matters is that the DoD fixes all the evaluation errors that remain unheard of, and ensures that they get the most Get access to the best technology at a good price, ”says the AWS statement, in part. “We made it clear that until the DoD has addressed all the flaws in its initial decision, we will continue to conduct a fair and objective review, and this is where we find ourselves today.”

In its complaint, Amazon is asking the US Court of Federal Claims to declare the contract award to Microsoft unfair, directing the Pentagon to request and re-evaluate new proposals, and the Pentagon team responsible for the selection Substitutes.

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