The United States Defense Department has canceled its contested $10-billion Joint Enterprise Defense Infrastructure contract and instead plans to push through with the project with both Amazon and Microsoft, Bloomberg reported.

  • The Defense Department said the Joint Enterprise Defense Infrastructure Cloud contract no longer meets requirements to fill its gaps, and will instead be done through a multi-vendor approach.
  • Pentagon said it intends to seek proposals from providers, namely Microsoft and Amazon, after years of issues with both companies and the government. The deal will not be awarded automatically to either company.
  • The new contract is called the Joint Warfighter Cloud Capability which will have a five-year period. Pentagon has yet to determine the maximum price for the award but said it will be in the billions.
  • Amazon welcomed the Defense Department’s decision, noting the award was the result of “outside influence.” Microsoft said it understood and respected the ruling.

The Defense Department is looking at an initial three-year “indefinite order, indefinite quantity” period, followed by two one-year task order option periods.

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