Defense chief steps aside from reviewing $10B cloud contract

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Defense chief steps aside from reviewing $10B cloud contract
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Defense Secretary Mark Esper has recused himself from reviewing a potentially $10 billion cloud computing deal that has provoked a bitter rivalry between Amazon and Oracle

Defense Secretary Mark Esper has recused himself from making decisions on his department's controversial cloud procurement program, a potentially $10 billion deal that has provoked a bitter rivalry between Amazon and Oracle.

Both Oracle and IBM have raised issues with the Pentagon’s procurement process for the program, saying that the contract should be split among multiple companies rather than awarded to a single winner. Oracle sued the Pentagon in December after it was cut from the competition, alleging that the Defense Department unfairly limited competition by tailoring the JEDI requirements to Amazon’s proposed solution.

While Oracle has been the most vocal critic of the program, IBM also filed a protest with the GAO in October 2018, arguing that the Pentagon should select multiple winners instead of structuring the competition as winner-take-all.

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