Today, the Pentagon stated that the US Department of Defense will be staying with their previous decision to award the $10 Billion JEDI (Joint Enterprise Defense Infrastructure) contract to Microsoft. Last October 2019, the Pentagon decided to award Microsoft the JEDI contact, but was met with strong opposition by Amazon and a few others. The contradicting opinions were that either the Pentagon should use two different providers for the contract, and Amazon even attempted to take legal action to overturn the decision.
The US Department of Defense has decided to continue with Microsoft as the winner of the JEDI contract worth up-to $10 Billion ($10,000,000,000) over the next 10 years.
Amazon attempted to challenge the contract being awarded to Microsoft with a lawsuit filed. Amazon argued that President Donald J Trump hold bias against Amazon CEO, Jeff Bezos, and this bias influenced the decision against Amazon. In the midst of the controversy and legal battle, the Justice Department invited both Microsoft and Amazon to revise their bids for the contract.
This is an ever developing saga on who will fully win the JEDI contract from the US Department of Defense. We’ll try to publish an update on any more news that comes out from this going forward.
Here’s some more details about the JEDI contact…
JEDI Contract Details
On October 25, 2019, the United States Department of Defense (DoD) posted an announcement that they are awarding the JEDI contract to Microsoft as their single cloud provider to standardize on. The contract is a “firm-fixed-price, indefinite-delivery/indefinite-quantity contract” with a max price ceiling of $10 Billion over a period of 10 years. The expected completion date for the contract is October 24, 2019.
This contract is not a guarantee that the DoD will be paying Microsoft $10 Billion. The contract has a minimum guarantee amount of only $1 Million. In the fiscal year 2020, the operations and maintenance funds of $1 Million ($1,000,000) is being obligated to cover the minimum guarantee of the contract. After this $1 Million is spent with Microsoft, the DoD still has the freedom to change directions and reevaluate their “single cloud provider” plan. Currently, there’s no indication this will change, but they still have the option.
The JEDI contract is set that Microsoft will be providing enterprise-level, commercial Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) to support DoD business and mission operations. In addition, work performance will be taking place at Microsoft’s place of performance; so essentially they’ll be using any combination of the Microsoft Azure public cloud, government cloud, and/or secret cloud regions and data centers. It would also make logical sense that there will be Azure Stack implementations deployed where necessary as well.
Additional Sources: cnbc.com/2020/09/04/pentagon-says-it-will-stick-with-microsoft-for-jedi-cloud-contract.html