The multi-billion dollar contract to provide the Pentagon with full cloud computing capabilities has been suspended by the US government due to fears of preferential treatment for one bidder.
The Trump government postponed the deicison following suggestions that Amazon was wrongly favored after other bidders complained about possible discrimination.
Amazon Web Services and Microsoft Azure were the last two participants in the deal after months of consultation, but the process could now be postponed even further.
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JEDI mind tricks
The Joint Enterprise Defense Infrastructure (JEDI) contract is said to be worth about $ 10 billion for the winning bidder, making it an incredibly prestigious win.
Together with Amazon and Microsoft, IBM and Oracle also submitted bids, but later both stopped the process shortly thereafter.
However, Oracle later complained to the deicison and expressed concern that a former Amazon employee was reportedly working for the Department of Defense and had withdrawn due to potential conflicts of interest. He later left the department and again became a member of Amazon within the company's AWS arm.
Pentagon spokeswoman Elissa Smith said the newly appointed Secretary of Defense Mark Esper was investigating the allegations of unfairness, and the deal could not progress until it was completed.
"Secretary Esper keeps his promise to members of Congress and the American public and looks at the Joint Enterprise Defense Infrastructure program," said Smith in a statement Thursday.
Amazon has not yet made a statement about the news, but the JEDI contract is becoming an increasingly controversial detail in US government transactions. Four Republican lawmakers recently urged President Trump to continue the contract and said the delays would harm national security.
The president has had several contacts with Amazon and his foudner Jeff Bezos, who also owns the notorious anti-Tump Washington Post.
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