Amazon Bids $10 Billion For Pentagon Cloud Contract

Amazon.com Inc. is continuing to battle Microsoft Corp for the Pentagon cloud contract with the Department of Defense. The Pentagon is updating their information technology systems and is looking for the best company to do the job. Both Amazon and Microsoft were tapped to continue bidding for the contract, which Amazon has offered $10 billion. Oracle Corp didn’t make it into the next round.

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Jabin Botsford/The Washington Post via Getty Images
Jabin Botsford/The Washington Post via Getty Images

However, President Donald Trump is skeptical of Amazon’s technology, after reviewing complaints from tech companies stating that Amazon’s cloud technology needs improving. Trump has previously expressed his dissatisfaction with Amazon, including saying their business practices are unfair and the online retail giant doesn’t pay the U.S. Postal Service a fair rate for delivering Amazon packages. Trump also doesn’t like Amazon Chief Executive Jeff Bezos, who also owns the Washington Post.

While Amazon and Microsoft are both still in the running for the Pentagon cloud contract bid, Oracle challenged the contract process in a lawsuit, which they lost in July 2019. The judge ruled that Oracle didn’t meet the contract requirements, and therefore can’t claim they were wronged.

Trump stated he was looking “very seriously” at the companies bidding for the Pentagon cloud contract. Members of Congress are urging Trump to speed up the contract process, writing that “it is essential for national security.” And “further delays will only damage our security and increase the costs of contract.”