Amazon Blames Trump for Losing $10B Contract

Daniel Fowler
December 10, 2019

Amazon said Trump was motivated by his desire "to harm his perceived political enemy-Jeffrey P. Bezos, founder and CEO of AWS's parent company, Amazon.com, Inc".

Amazon on Sunday formally protested the Pentagon's decision to award a $10 billion cloud computing contract to Microsoft, saying in a court filing it was "the result of improper pressure from President Donald J. Trump" to deny Amazon the deal.

Amazon is blaming Donald Trump's "repeated public and behind-the-scenes attacks" against the company and its CEO, Jeff Bezos, as the reason as why its cloud unit wasn't given a much-anticipated $10 billion contract with the USA government.

In the latest saga between Jeff Bezos and President Donald Trump, Amazon says President Trump engineered "behind-the-scenes attacks" against the company, which led to the e-commerce and cloud computing company missing out on a major contract for cloud services.

Amazon CEO Jeff Bezos said the U.S.is in "big trouble" if the Pentagon is abandoned by major tech companies.

Amazon has been considered the favorite for the Defense Joint Enterprise Cloud Infrastructure (JEDI) contract, part of a modernization project digital wider at the Pentagon, before the software developer comes as a surprise winner.Amazon Microsoft has previously said that politics got in the way of a fair bidding process.

"This source selection decision was made by a team of experts from career officials and military officers from across the Department of Defense and in accordance with the normal source selection process of the Department of Defense".

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For starters, the company says numerous "fundamental errors" were made during the DoD's evaluation of Amazon's Web Service (AWS) cloud skillset.

"The question is whether the President of the United States should be allowed to use the budget of DoD to pursue his own personal and political ends", the 103-page complaint said.

However, Amazon was quick to challenge the Department of Defense's decision, and filed a complaint in the US Court of Federal Claims in November.

A recent book on the tenure of Esper's predecessor James Mattis, written by his speechwriter Guy Snodgrass, contends that Trump told Mattis to "screw Amazon" out of the contract.

"One of the things that's happening inside technology companies is there are groups of employees who for example think that technology companies should not work with the Department of Defense", Bezos said.

AWS is now requesting that the Defense Department to eliminate the award and initiate another review of the submitted proposals.

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