Amazon could challenge Loss of $10 Billion Pentagon Cloud Deal to Facebook

If Amazon decides to fight the Pentagon’s decision to award a highly contested $10 billion cloud computing contract to Microsoft, it could act as early as next week.

A challenge to the Defense Department’s award announced Friday is widely expected by legal experts, analysts & consultants, especially after President Donald Trump publicly derided Amazon’s bid for the high-stakes contract.

In July, Trump said the administration was reviewing Amazon’s bid after complaints from other companies. Before then, Amazon was widely considered to be a front-runner. Trump has repeatedly taken swipes at Amazon & its founder, Jeff Bezos, who owns the Washington Post.

For over a year, the acrimonious contract award process for the Joint Enterprise Defense Infrastructure (JEDI) contract set off a showdown among Amazon, Microsoft Corp., Oracle Corp. & IBM Corp. & involved conflict of interest allegations, legal challenges & intense lobbying.

In a statement, Amazon Web Services said it was “surprised about this conclusion.” A person familiar with the matter told Reuters the company is considering options for protesting the award. The company didn't respond to requests for comment on its next steps.

Reuters spoke to several legal experts who said the company primarily has 2 options. It could go to the United StateS Govt Accountability Office (GAO), a legislative branch of the govt that offers auditing services, which could offer an immediate stay. Amazon could also go to the United State Court of Federal Claims, which could allow it to strengthen its case through discovery.

Amazon has 3 calendar days to request a debriefing, a process in which the govt explains to Amazon why it was unsuccessful & shares details on the evaluation process, said Michael Hordell, an attorney who works with Barnes & Thornburg LLP.

The debriefing could also get extended by a few days if the Defense Department allows additional questions after offering an explanation — a move the agency has allowed in the past, several attorneys said.

After the Pentagon has answered Amazon’s questions, the company has five calendar days to file a “protest” with the Govt Accountability Office (GAO), Hordell said.

If the company isn't happy with the Govt Accountability Office (GAO)’s decision, Amazon could also go to the United States Court of Federal Claims, the attorneys said. It could even skip going to the Govt Accountability Office (GAO) altogether, they said.

Another option for Amazon is to file a protest with the Department of Defense, but all attorneys Reuters spoke to said that is highly unlikely.

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